Document:

Asia Green Agriculture Corporation: Exhibit 10.3 - Filed by newsfilecorp.com

Exhibit 10.3

Guarantee Contract 
(Natural Person Guarantee)

 

 

Fujian Branch of China Construction Bank

Exhibit 10.3

The contract is entered into by the following parties: 

Guarantor (Party A): Please see Article 10 of the contract for
details. 

Creditor (Party B): Please see Article 10 of the contract for
details. 

	Article 1 	SCOPE OF GUARANTEE 
	 	 
	  	
      Please see Article 11 of the contract for details.
  

	 	
       

	Article 2 	
      METHOD OF GUARANTEE 

	 	
       

	  	
      Party A shall provide joint responsibility guaranty under
      the contract. 

	 	
       

	Article 3 	
      GUARANTEE PERIOD 

	 	
       

		
      The guarantee period is from the effective date of this
      Contract and ends two years from the expiration of the debt performance
      term under the Main Contract. In case Party A agrees to extent the debt
      performance term, the guarantee period ends two years from the expiration
      of the extended debt performance term under the Main Contract. If Party B
      announces advanced maturity of debts according to the Main Contract, the
      guarantee period ends two years from the advanced maturity date of debts
      announced by Party B. In case the debts under the Main Contract are paid
      in installments, the guarantee period of each installment is two years
      from the expiration date of the debt performance term of the last
      installment. 

	 	
       

	Article 4 	
      INDEPENDENCE OF THE GUARANTEE CONTRACT 

	 	
       

		
      The validity of the guarantee contract is independent
      from that of the Main Contract. The failure, invalidation, partial
      invalidation, or cancellation of the Main Contract does not affect the
      validity of the guarantee contract. If the Main Contract fails, is
      invalidated, partially invalidated, canceled or void, Party A shall be
      jointly responsible for the debtor’s debts due to return of properties or
      compensation of losses. 

	 	
       

	Article 5 	
      CHANGE OF MAIN CONTRACT

	 	I. 	
      Party A agrees to be jointly and severally responsible
      for the debts under the amended Main Contract, in the event that Party B
      and the debtor agree to amend the Main Contract provisions in writing
      (including but not limited to the repayment currency, repayment method,
      loan account No., repayment account No., expense utilization plan,
      repayment plan, value date and settlement date, startup date or expiration
      date of debts performance term if the term is not extended). However, if
      Party B and the debtor have extended the debt performance date or
      increased credit principal through agreement without Party A’s consent in
      advance, Party A shall be jointly and severally liable only for the debts
      according to the provisions of the Main Contract before the
    amendment.

	 	 	 	 
	 	II. 	
      Party A’s liability as a guarantor is not reduced or
      exempted due to any of the following conditions:

	 	 	 	 
	 		(I) 	
      Party B or the debtor has undergone change of formality,
      merging, integration, separation, capital increase/reduction, joint
      venture, joint business operation and name change;

	 	 	 	 
	 		(II) 	
      Party B has entrusted a third party to fulfill its due
      obligations under the Main Contract.

Exhibit 10.3

	 	III. 	
      In case of invalidation, cancellation or voidance of any
      transfer of debts or credits under the Main Contract, Party A shall
      continue to be jointly and severally responsible as a guarantor for Party
      B according to this Contract.

	Article 6 	GUARANTORS’ LIABILITIES

	 	I. 	
      Party A shall be jointly and severally liable within the
      scope of guarantee, if the debts under the Main Contract are due or Party
      B announces advanced maturity of debts according to the Main Contract or
      laws, the debtor fails to fulfill in full amount and in a timely manner,
      or the debtor breaches other provisions of the Main Contract.

	 	 	 
	 	II. 	
      Whether Party B has other guarantee of credits under the
      Main Contract (including but not limited to various guaranty methods such
      as guaranty, mortgage, pledge, guaranty letter and standby L/C), whether
      the guaranties are valid and established, whether Party B claims its right
      to other guarantors, whether any third party agrees to be liable for total
      or partial debts under the Main Contract, and whether other guaranties are
      provided by the debtor, Party A’s liabilities as a guarantor under this
      Contract will not be reduced or exempted. Party B can directly require
      Party A to be liable within the scope of its guarantee according to this
      Contract; and Party A cannot raise any objections.

	 	 	 
	 	III. 	
      If Party A only provides guarantee for a part of the
      debts under the Main Contract, Party A agrees that even if the debtor
      repays part of the debt, or Party B partially exercises its right under
      other guarantees, or the debt was partially paid by other means, Party A
      will be responsible within the scope of the guarantee for the unpaid
      debt.

	 	 	 
	 	IV. 	
      If Party A only provides guarantee for part of the debts
      under the Main Contract, and if the debts under the Main Contract are not
      fully paid after Party A performs its obligation as a guarantor, Party A
      agrees not to cause any damage to Party B when it claims its subrogation
      right (including in-advance) against the debtor or other guarantors. Party
      A agrees that the right to receive repayment of debts under the Main
      Contract has priority over Party A’s subrogation
right.

Before total repayment of Party B’s
credits: 

	 	(a) 	
      Party A agrees not to claim its subrogation right against
      the debtor or other guarantors; once Party A has exercised the above right
      due to any reason, it shall use the payment from the claim to first repay
      the unpaid debt owned to Party B’s ;

	 	 	 
	 	(b) 	
      If the debts under the Main Contract have collateral,
      Party A agrees not to declare rights to the secured articles or the
      proceeds of sale of such articles for any reason including but not limited
      to subrogation rights. The secured articles or the proceeds of sales of
      such articles shall be first used to repay the unpaid debts owed to Party
      B.

	 	 	 
	 	(c) 	
      If the debtor or other guarantor has provided a
      counter-guarantee to Party A, Party A shall use the proceeds from the
      above counter-guarantees to first repay unpaid debt owed to Party
  B.

	 	V. 	
      Party A fully understands the interest rate risks. Party
      A agrees to be jointly and severally responsible for the increased part
      due to the increase of the interest rate, the default interest or the
      compound interest, if Party B adjusts the interest rate according to the
      Main Contract, or the government adjusts the interest rate, calculation
      method or the settlement method.

Exhibit 10.3

	 	VI. 	
      If the debtor has other loans from Party B other than the
      loans under the Main Contract, Party B has the right to receive the
      debtor’s RMB or other currency expenses in the account established in the
      system of China Construction Bank to satisfy any expired debt. Party A’s
      guaranty responsibilities are not reduced or
exempted.

	Article 7 	PARTY A’S OTHER OBLIGATIONS
  

	 	I. 	
      Party A shall supervise how the debtor uses the loans
      (including its purpose).

	 	 	 
	 	II. 	
      Party A shall provide Party B with its financial
      conditions and individual credit information, and guarantee that all
      materials provided are correct, true, complete and valid. Without written
      consent of Party B, Party A cannot provide to any Third Party with a
      guaranty that is out of its capacity.

	 	 	 
	 	III. 	
      In case of any changes to Party A’ s nationality, address
      or marital status, or if Party A has a serious health issue, receives
      administrative or criminal punishment, or is involved in a major civil
      dispute, deterioration of financial status, or loses or is likely to lose
      the capability to guarantee for any reason, Party A shall inform Party B
      immediately in writing, and perform undertaking, transferring or
      inheritance of guarantee liabilities herein as Party B requires, or
      provide a new guarantee for fulfillment of the Main Contract.

	 	 	 
	 	IV. 	
      If the company, of which Party A is in the position of
      controlling shareholder or actual controller, merges, dissolves, changes
      in entities, fluctuates the amount of capital, or is jointly-funded or
      jointly-operated, Party A shall inform Party B of such condition
      immediately.

	Article 8 	MISCELLANEOUS 

	 	I. 	
      Allocation and charging of payable expense

	 	 	 
	 		
      As for Party A’s amount payable under the contract, Party
      B has the right to charge RMB or other currency expense from Party A’s
      account established in the China Construction Bank—it is not necessary to
      notify Party A in advance. Once it needs to handle the sales and
      purchasing of foreign exchange or exchange settlement, Party A is obliged
      to assist Party B; Party A shall bear the exchange rate risks.

	 	 	 
	 	II. 	
      Use of Party A’s information

	 	 	 
	 		
      Party A allows Party B to inquire Party A’s credit status
      from individual credit information database of People's bank of China or
      any other individual credit information database approved by credit rating
      authority or other relevant work unit, department and person. All credit
      report obtained are limited to be used on purposes stipulated in
      Provisional Rules on Management of Individual Credit Information Database
      issued by People’s bank of China. Party A allows Party B to provide its
      credit information for individual credit information database of People's
      bank of China or any other individual credit information database approved
      by credit rating authority. Party A also agrees that Party B may use and
      disclose its information reasonably for the necessary of
  business.

	 	 	 
	 	III. 	
      Collection by Public Notice

Exhibit 10.3

	 		
      As for Party A’s breach of contract, Party B has the
      right to report to the relevant government agency and make an announcement
      through news media to collect the debt.

	 	 	 
	 	IV. 	
      Effect as Evidence of Party B’s record

	 	 	 
	 		
      Except for reliable and confirmed contrary evidence,
      Party B’s following documents constitute evidence to prove the credit
      relationship under the Main Contract: internal account record of Party B’s
      principal, interest, expense and repayment record; receipt and voucher
      during debtor’s handling withdrawal, repayment and interest payment made
      or reserved by Party B; loan collection record and voucher by Party B.
      Party A cannot object to Party B’s personal fabrication or reservation of
      the above records, receipts and vouchers.

	 	 	 
	 	V. 	
      Reservation of Right

	 	 	 
	 		
      Party B’s rights under the contract do not affect or
      eliminate any rights enjoyed according to relevant laws, stipulations and
      other contracts. Any grace, forgiving, preference or postponed exercising
      of any contract rights aimed at the breach or delay cannot be taken as the
      abandonment of rights and interests under the contract or permission or
      approval of any breach of contract; besides, they do not affect, block or
      hinder the continuous exercising of the rights or exercising of any other
      rights and do not ask Party B to bear any responsibilities and obligations
      for Party A.

	 	 	 
	 		
      Even if Party B fails to exercise or delays exercising of
      any rights under the main contract or fails to completely utilize any
      rescue operation under the main contract, Party A’s guaranty
      responsibilities under the contract can not be reduced or exempted;
      however, once Party B reduces or exempts the debts under the main
      contract, Party A’s guaranty responsibilities under the contract are
      reduced and exempted accordingly.

	 	 	 
	 	VI. 	
      Debtor’s dissolution or bankruptcy

	 	 	 
	 		
      In the event that Party A knows that the debtor has
      entered into dissolution or bankruptcy procedure, it shall immediately
      notify Party B to report the debts; at the same time, it shall participate
      in the dissolution or bankruptcy procedure in a timely manner and exercise
      the claim right in advance. If Party A knows or should have known that the
      debtor has entered into dissolution or bankruptcy procedure but fails to
      exercise the claim right in advance, Party A shall be responsible the
      incurred losses. In spite of Article 5 (2), if Party B and debtor reach a
      reconciliation agreement in the debtor’s bankruptcy procedure or a
      restructuring plan, Party B’s rights under the contract are not affect by
      reconciliation agreement or restructuring plan; Party A’s guarantee
      responsibilities are not reduced or exempted. Party A can not defend
      against Party B’s claim of right through the conditions stipulated in the
      reconciliation agreement and restructuring plan. As for the credits
      compromised by Party B in the reconciliation agreement and restructuring
      plan to the debtor without repayment, it still has the right to require
      Party A for continuous repayment.

	 	 	 
	 	VII. 	
      In case of any changes in Party A’s communication address
      or contact method, it shall immediately notify Party B in written form; in
      case of any losses arising from timely notification failure, Party A shall
      bear relevant losses by itself.

Exhibit 10.3

	 	VIII. 	
      If Party A or debtor fails to strictly comply with
      relevant laws, stipulations or regulations concerning environmental
      protection, energy saving, discharge reduction and pollution reduction or
      in case of any possible energy consumption and pollution risks, Party B
      has the right to exercise the guaranty rights under this Contract in
      advance and adopt other remedial measures permitted by the contract or
      law.

	 	 	 
	 	IX. 	
      Conditions for the effectiveness of the
Contract

	 	 	 
	 		
      This Contract becomes effective upon signature or
      official seal by Party A’s legal representative (responsible person) or
      authorized agent and signature or official seal by Party B’s responsible
      person or authorized agent.

	Article 9 	PARTY A’S REPRESENTATIONS AND GUARANTEES
    

	 	I. 	
      Party A fully understands Party B’s business scope and
      authorized power.

	 	 	 
	 	II. 	
      Party A has read all the provisions of the contract and
      main contract. In response to Party A’s requirements, Party B has
      specified relevant provisions of this contract and main contract. Party A
      has known and adequately understood the meaning of provisions in this
      contract and main contract and its legal consequence.

	 	 	 
	 	III. 	
      Party A has the legal qualification of a
  guarantor.

	 	 	 
	 	IV. 	
      Party A has confirmed it adequately knows the debtor’s
      assets, debts, business, credits and reputation, whether it has the main
      qualification and power of signing the main contract as well as all the
      contents of main contract.

Exhibit 10.3

Particular Signing Provisions

This personal guarantee contract is 2011 Jian Ping Song Dai CZ
Zi Bao Zi No.8-8

	Article 10 	INFORMATION OF CONTRACTORS

Guarantor (Party A): Zhan Youdai, Zhou Liufeng

Certificate Name and No: ID number: 352128196909072016,
352128197111071529 

Address: No 6-1, Shui Nan Gong Ye Road, Songxi County 

Post Code: 353500 

Tel: 2325600

 

Creditor: China Construction Bank Co., Ltd Songxi Branch 

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

Post Code: 353500 

Principal: Liu Liquan 

Fax: 0599-2322644 

Tel: 0599-2322670

To ensure the performance of the RMB Liquid Fund Loan
Contract with the Number of (2011) Jian Ping Song CZ Zi No.8
(hereinafter referred to as the Main Contract) entered into by and between
Fujian Yada Group Co., Ltd (hereinafter referred to as Debtor) and
Party B, Party A agrees to assume the jointly guarantee liability for the debt
under this contract. The Parties hereby agree to enter into this contract based
on the mutual consent of consultation and comply with the terms hereof.

	Article 11 	AGREEMENTS TO ARTICLE

The contract guaranty scope includes
the following Type II: 

	 	I. 	
      All the debts under the main contract include (but not
      limited to) total principal, interest (including compound interest and
      penalty interest), breach penalty, compensation, other expense paid by
      debtor to Party B (including but not limited to relevant handling fee,
      telecom expense, sundry expense and relevant bank expense rejected by
      foreign beneficiary), Party B’s expense in realizing credits and guaranty
      rights (including but not limited to lawsuit expense, arbitration expense,
      property safeguard expense, travel expense, implementation expense,
      evaluation expense, auction expense, notarization expense, transportation
      expense, announcement expense and lawyer’s expense).

	 	 	 
	 	II. 	
      The principal under the main contract (currency: RMB) (In
      Words: RMB Three Million and Six Hundred Thousand yuan) and
      interest (including compound interest and penalty interest), breach
      penalty, compensation, other expense paid by debtor to Party B (including
      but not limited to relevant handling fee, telecom expense, sundry expense
      and relevant bank expense rejected by foreign beneficiary), Party B’s
      expense in realizing credits and guaranty rights (including but not
      limited to lawsuit expense, arbitration expense, property safeguard
      expense, travel expense, implementation expense, evaluation expense,
      auction expense, notarization expense, transportation expense,
      announcement expense and lawyer’s expense).

Exhibit 10.3

	Article 12 	DISPUTE SETTLEMENT 

Any and all disputes arising in the
performance of the Contract shall be settled through negotiation. In case that
no settlement can be reached through negotiation, the disputes shall be settled
by the first method as follows.

	 	(1) 	
      Instituting legal proceedings in the People’s Court of
      competent jurisdiction at Party B’s domicile.

	 	 	 
	 	(2) 	
      Submitting to (left blank) Arbitration Commission (place
      of arbitration: (left blank) ) for arbitration in accordance with the
      arbitration rules of the Arbitration Commission in force at the time of
      application. The arbitration award shall be final, and binding upon both
      parties.

During the process of litigation or
arbitration, the Parties shall continue to implement this contract, except for
the matters in dispute.

	Article 13 	THIS CONTRACT SHALL BE PREPARED IN THREE
      DUPLICATES 
  
	Article 14 	OTHER AGREED ITEMS 

This filed is left blank. 

Exhibit 10.2

Party A (Official seal): 

Legal representative (Person-in-charge) or authorized agent
(Signature): Zhan Youdai, Zhou 
Liufeng (Signature) 
Date: August 4,
2011

 

Party B (Official seal): China Construction Bank Co., Ltd.
Songxi Branch (Seal affixed) 
Responsible person or authorized agent
(Signature): Liu Liquan 
Date: August 4, 2011Asia Green Agriculture Corporation: Exhibit 10.4 - Filed by newsfilecorp.com

Exhibit 10.4

RMB Liquid Fund Loan Contract

Contract No.: (2011) Jian Ping Song Dai CZ Zi No.7

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

 	  
	Domicile (Address): Shuinan Industrial Road, Songxi County
      
 	Zip Code: 353500 
	Legal Representative: Zhan Youdai 
 	  
	Fax: 2332598 	Tel: 2332688 

 

 

	Lender (Party B): Songxi Branch of China Construction
    
 	  
	Bank Corporation Ltd. 
 	  
	Domicile (Address): No. 121, Jiefang Street, Songyuan Town,
      
 	Zip Code: 353500 
	Songxi Province 
 	  
	Legal Representative: Liu Liquan 
 	  
	Fax: 2322644 	Tel: 2322670 

     Exhibit 10.4 

For the necessity of funds turnover of Fujian Yada Group Co.,
Ltd., Party A hereby applies to Party B for a loan, and Party B agrees to
release the loan to Party A (the “Loan”). This Contract is made in line
with Contract Law of the People's Republic of China and the General Provisions
of Loans to specify the rights and obligations of parties involved. 

ARTICLE 1 AMOUNT OF LOAN

Party A borrows RMB (In words) One Million and Four Hundred
Thousand from Party B.

ARTICLE 2 USAGE OF LOAN AND SOURCE OF REPAYMENT

Purpose of the Loan, source of the repayment under the Contract
will be referred to Annex 1 named “Basic Information of the Loan”.

ARTICLE 3 TERM OF LOAN

The term of loan under this Contract is 6 months, commencing
from August 4, 2011, and ending on February 4, 2012.

In the event that the commencement date of the Loan under this
Contract conflicts with the archived document (loan receipt), the actual issuing
date of the Loan demonstrated on the Loan archived document at the first time of
issuance of such a loan shall govern and the aforementioned maturity date of the
Loan shall change accordingly.

The archived document is part of the Contract with equal legal
effect. 

ARTICLE 4 INTEREST RATE OF THE LOAN, PENALTY INTEREST RATE,
CALCULATION AND SETTLEMENT

1. Interest Rate of the Loan

The interest of the loan under this Contract is calculated on a
per annum basis in accordance with the section (2) as follows: 
(1) Fixed
rate at _blank__%, within the term of the Loan, this rate will not be
adjusted;
 (2) The interest rate shall be the benchmark rate at the
commencing date of the interest at the corresponding level plus (plus/
minus)    blank   %, such interest rate will not change within the term of
the Loan; 
(3) Floating rate shall be the benchmark rate at the Commencement
Date at the corresponding level    plus    (plus/ minus)  15 %, and
such floating rate shall be adjusted once __1_ months in accordance with the
benchmark rate of the rate adjusting date as well as the above plus/ minus level
from the interest commencing date to the liquidation date of fulfilling all the
principal and interests under the Contract; or 
(4) ____Blank______.

2. Penalty Interest Rate

     Exhibit 10.4 

(1) In the event that Party A does not use the Loan in
accordance with this Contract, the penalty interest rate will be the interest
rate of the Loan plus 100%. If the interest rate of the Loan has been
adjusted in line with the above section (3), the penalty interest rate will be
adjusted based upon the above interest rate and the corresponding level
accordingly.
(2) The penalty interest rate of the overdue Loan will be the
interest rate of the Loan plus 50%. If the interest rate of the Loan has
been adjusted in line with the above section (3), the penalty interest rate will
be adjusted based upon the above interest rate and the corresponding level
accordingly.
(3) In the condition that both the loan becomes overdue and
there is misuse of the Loan, the penalty rate or a double rate should be imposed
subject to the severity.

3. The Commencement Date hereof means the date when the
initially issued Loan is archived to the loan issuing account (the “Loan
Issuing Account”) as agreed in Article 6 of the Contract.

The benchmark interest rate at the first time of issuance of
the Loan means the loan interest rate at the corresponding time and level
announced by the People’s Bank of China. Thereafter, when the aforementioned
interest rate is adjusted, the benchmark interest rate means the loan interest
at the corresponding time and level announced by the People’s Bank of China on
the adjustment date. If the People’s Bank of China does not announce the loan
interest at the corresponding time and level, the benchmark interest rate will
be the loan interest rate recognized by inter-banks or at the usual and
corresponding time and level on the adjusting date, unless both Parties agree
otherwise.

4. The interest of the Loan will commence from the date when
the Loan is archived to the Loan Issuing Account. The interest of the Loan will
be calculated on a daily basis (daily interest rate=annual interest rate/360).
If Party A fails to pay for the interest on the settlement date as agreed under
this Contract, the compound interest rate will be collected from the following
day.

5. Settlement of Interest

(1) A loan with a fixed interest rate shall be settled in
accordance with the agreed interest rate. For a loan with a floating interest
rate, the interest rate shall be decided based upon the interest rate in each
floating term.
(2) This Contract shall settle the interest based upon section
(i) as follows: 
     (i) monthly settlement of
the interest; the settlement date will be 20th day of each month;

     (ii) quarterly settlement of the interest; the
settlement date will be 20th day of the last month of each quarter;
or 
     (iii) ___Blank_______.

ARTICLE 5 ISSUANCE AND PAYMENT OF THE LOAN

1. Precondition of Issuing Loan

Unless the following preconditions are consecutively satisfied
or Party B gives up the whole or part of such preconditions, Party B is
obligated to issue the Loan as long as:

     Exhibit 10.4

(1) Party A has fulfilled related approvals, registrations,
deliveries, insurance and other legal procedures as required under this
Contract; 
(2) If the Contract requires any guarantee, such guarantee meeting
Party B’s requirements has been effective and continues to be effective; 
(3)
Party A has opened an account for withdrawing and depositing money as required
by Party B; 
(4) Party B does not breach the Contract; 
(5) No situation
that will harm the credit of Party A as agreed under the Contract has occurred;

(6) Issuance of the Loan under the Contract by Party B is not prohibited or
limited by laws, regulations or competent authorities; 
(7) The financing
index of Party A consecutively meets the requirements as addressed in Annex 2
titled “Financing Index Binding Provision”; 
(8) Party A has submitted
relevant materials as agreed in the Contract prior to issuing the Loan; 
(9)
The materials provided by Party A to Party B are legal, authentic, integrated,
accurate, effective and meet the other requirements of Party B; and 
(10)
Other pre-conditions: ______Blank_______________.

2. Loan-paying Plan

Loan paying means Party B issues the Loan to the Loan Issuing
Account in accordance with the requirements of Party B and as agreed in the
Contract.

Loan-paying plan shall be decided in accordance with the
first method as follows: 
(1) Loan-paying Plan:

	(i) August 4, 2011 	Amount: RMB 1,400,000 
	(ii) Date 	Amount 
	(iii) Date 	Amount 
	(iv) Date 	Amount 
	(v) Date 	Amount 
	(vi) Date 	Amount 
	(2) 	Loan-paying Plan: 	  
	  	  	  
	(i) From ______to 	Amount 
	(ii) From______to 	Amount 
	(iii) From______to 	Amount 
	(iv) From______to 	Amount 
	(v) From______to 	Amount 
	(vi) From______to 	Amount 

(3) Paying at any time as required by Party A; or 
(4)
________Blank_______.

3. Party A shall use the Loan in accordance with the above
loan-paying plan. Unless Party B agrees in writing, Party A shall not
accelerate, postpone, split or cancel the Loan.

4. If Party A divides and uses the Loan more than once, the
expiration date of the Loan shall be decided in accordance with Article 3 of the
Contract.

Exhibit 10.4

5. Materials Provided by Party A.

Party A and Party B choose to use the    blank    item as
follows (item No.1 or No.2) regarding the agreement on Party A’s providing
materials:

No.1

(1) Only satisfying the    blank    requirement:

     (i) Single use of the Loan
exceeds RMB30,000,000 and any payment under such Loan exceeds RMB30,000,000;

     (ii) _________Blank_________.

Party A shall provide Party B the following materials no later
than __blank___ working days prior to using such Loan:

     (i) Loan archived documents and
payment settlement certificates signed and chopped by Party A;

     (ii) Transactional documents including, but not
limited to, goods, services, capital contracts and/or invoices in writing or in
electronic format that can be evidence for the capital and use of such Loan;

and other documents by Party A as required by Party B
(including, but no limited to, business licenses, power of attorney, bylaws,
shareholders resolutions, board resolutions and other materials of the parties
having transactions with Party A).

(2) Except for the above agreements or that Party B decides
that Party A is authorized to decide the payment as agreed in section 7
hereinafter based upon Party B’s reviewing the materials provided by Party A,
Party A shall provide the following materials to Party B no later than
   blank    working days prior to using such Loan:

      (i) Plan of using the Loan in line
with the proposed Loan;
      (ii) Loan archived
documents signed and chopped by Party A.

No.2

Regardless of the amount of each Loan, Party A shall provide
Party B with the following materials no later than __blank___ working days prior
to using such Loan:

     (i) Loan archived documents and
payment settlement certificates signed and chopped by Party A;

     (ii) Transactional documents (including, but not
limited to, goods, services, capital contracts and/or invoices in writing or in
electronic format that can evidence the capital and use of the Loan;

     Exhibit 10.4 

and other documents by Party A as required by Party B
(including, but no limited to, business licenses, power of attorney, bylaws,
shareholders resolutions, board resolutions and other materials of the parties
having transactions with Party A).

6. Entrusted Payment of Party B

(1) Application of Entrusted Payment of Party B

In the event that a single payment meets the requirement of
___(ii)____, such payment should be entrusted to Party B, i.e. Party A
irrevocably entrusts Party B to pay the capital to a third party who has a
transaction with Party A. Party A is prohibited to extend such a payment to its
cooperator or any third party.

     (i) A single payment that exceeds
RMB30,000,000, any payment within the scope of such capital to a third party
exceeds RMB30,000,000, and Party B approves the payment to the payee based upon
materials provided by Party A; 
     (ii) Regardless the
amount of each Loan, Party B is entrusted to fulfill the payment;

     (iii) _________Blank___________.

(2) In the event that Party B is entrusted to fulfill the
payment, Party B shall archive such capital to the Loan Issuing Account and pay
the Loan to the account of the cooperator of Party A directly. Party A shall not
dispose the Loan in any manner (including, but not limited to, transferring and
withdrawing deposit).

(3) Party B will conduct a formal examination on the amount of
payment, time of the payment, the payee, the method of payment and the
underlying accounting based upon materials provided by Party A. After Party B
finishes such an examination of the above elements and decides that such
elements meet Party B’s requirements, Party B shall pay for the partner of Party
A. Once the Loan is archived into the account of the partner, it will deem that
Party B fulfills the obligation of the entrusted payment. Party A shall confirm
whether such a payment is successful within one (1) working day after the
payment in a timely manner. If the payment fails, Party A shall inform Party B
at once. Party A shall guarantee that the partner and use of the Loan are in
line with the transactional documents.

(4) The formal examination of the above elements of payment
means that neither confirms Party B the authenticity and legal compliance of any
transaction nor intervenes with any dispute between Party A and its cooperator
or any other third party or any responsibility and duty burdened by Party A. For
any damages suffered by Party B due to the entrustment, Party A shall compensate
Party B.

(5) In the event that any payment was not successfully or
timely archived into the account of Party A’s cooperator due to the materials
provided by Party A not being integrated, authentic, in compliance with the
specific use of the capital, or the conflicts exist in the materials provided by
Party A, which are not the fault of Party B, both Parties shall follow the
agreements below:

     Exhibit 10.4 

     (i) all the damages, including, but
not limited to, failure of paying the Loan or failure of paying the Loan in a
timely manner, shall be burdened by Party A. Party B shall not be liable for
such damages and any loss suffered by Party B shall be compensated by Party A;

     (ii) Party A shall not dispose such a Loan in any
manner (including, but not limited to, transferring and withdrawing deposit);

     (iii) Party A shall provide new materials and
correct information within ___3__ working days as required by Party B.

If Party A breaches any of the above agreement, Party B is
authorized to recover such loan capital ahead of the schedule.

(6) Any failure, mistake, delay of paying the Loan, other
risks, liabilities and damages shall be burdened by Party A and Party B shall
not be liable for the aforementioned. Party A shall compensate Party B all the
damages arise hereof.

7. Payment by Party A

In the event that does not satisfy the requirements addressed
in the above section 6(1) regarding the entrusted payment, Party A is authorized
to pay by itself, i.e. Party A will pay for its cooperator after Party B’s
archiving the loan capital into the Loan Issuing Account based upon Party A’s
application for withdrawing deposit. Party A shall guarantee that the cooperator
and use of the Loan are in line with the transactional documents.

8. Regardless of whether the payment is made by Party A or
entrusted to Party B, once the loan capital is archived into the Loan Issuing
Account, it is deemed that Party B has fulfilled its obligation of issuing the
capital. Party A shall guarantee that the status of the Loan Issuing Account is
normal (including, but not limited to, freezing by competent authorities,
deducting and so on). Any freezing or deducting conducted by the relevant
authorities after the loan capital is archived into the Loan Issuing Account,
other risks, liabilities and loss shall be shouldered by Party A. All the
damages suffered by Party B shall be compensated by Party A.

9. When any of the following events occur, Party B is
authorized to change the method of paying the loan capital, including, but not
limited to, adjusting the entrusted payment (such as, adjusting the standard
amount of the entrusted payment), altering the payment method of a single loan
capital and so on:

     (i) Party A breaches any agreement
under this Contract;
     (ii) Any event that could
harm the credit of Party B as agreed under this Contract;

     (iii) Other situations where Party B deems that it
is necessary to change the payment method of the loan capital.

When Party B changes the payment method, Party A shall provide
new materials as agreed under this Contract and required by Party B.

ARTICLE 6 USE AND SUPERVISION OF THE ACCOUNT

Exhibit 10.4

1. Loan Issuing Account

The Loan Issuing Account under this Contract shall be decided
in accordance with the No.2 method as follows:

     (i) Within _blank___ working days
after the Contracts becomes effective and prior to the first loan issuance,
Party A shall open a special capital issuing account under the services of Party
B. This account shall specialize in issuing and paying all the loans under the
Contract.
     (ii) Other accounts of Party A opened
under the services of Party B (Account No.: 35001677607059558888).

2. Capital Collecting Account

(1) Within _blank__ working days after the Contract becomes
effective, Party A shall open a capital colleting account or use an existing
account (Account No.: 35001677607059558888) as the capital collecting
account under the services provided by Party B.
(2) Party A shall report the
fund flows of the capital colleting account to Party B quarterly
(“monthly” or “quarterly”) as a circle. Party A shall collect and report the
fund flows of the last circle to Party B no later than ___15___ working
days at the beginning of each circle.
(3) Party B is bestowed to manage the
fund flows of the capital collecting account, concretely; the capital collecting
account shall meet the ___(iii)___ requirement as follows:

     (i) Average capital stock in the
account: ______________________________
     (ii) Time of
the collecting fund: _____________________________
    
(iii) Ratio of total sale amount of Party A collected into the account: Ratio
of total sale amount of Party A collected into the account should be not
less than the loan proportion provided by Party
B.
     (iv) Limitation on a single amount in
the account payable to the outside: _______
     (v)
Limitation on amount in the account per day payable to the outside:
_______
     (vi) Limitation on signing with online
banks: ____________________________
     (vii) Any
payment of the capital of the account to the outside shall be agreed by Party B:

    
_____________________________________________________________
    
(viii) Such an account shall only be used for collecting or paying loans under
the Contract and is not allowed to be used for any other purpose:
______
     (ix)
_____________________________________________________________
    
(x) Other requirements provided by Party B;

     (xi) Shall execute any related arrangement in line with
the account management agreement entered into by Party A and Party B.

ARTICLE 7 REPAYMENTS

1. Sequence of Repayment

The repayment by Party A under the Contract shall be in
accordance with the following rules:

     Exhibit 10.4 

Party B has the right to require Party A to repay any fee that
should have been burdened by Party A but advanced by Party B as agreed under the
Contract, and fees incurred to realize the credit of Party B. The remainder of
the repayment shall be used to repay the interest first and then repay the
principal in line with the rule of clearing the interest with the principal.
However, as to the overdue principal and interest for ninety (90) days without
being collected or other loans as regulated by laws, regulations and ordinances,
Party A shall repay the principal first and then repay the interest after
fulfilling the above fees.

2. Repayment of Interest

Party A shall repay Party B the interest at the date of
settling such interest. The first day of repaying the interest is the first day
of settling the interest after issuing the Loan. At the last time of repaying
the Loan, the interest shall be repaid together with the principal.

3. Plan of Repaying Principal

The plan of repaying principal shall be decided in accordance
with the 1st method:

	(1) 	
      February 4, 2012, amount RMB
    1,400,000;

	(2) 	
      Date____________, amount _____________;

	(3) 	
      Date____________, amount _____________;

	(4) 	
      Date____________, amount _____________;

	(5) 	
      Date____________, amount _____________;

	(6) 	
      Date____________, amount
_____________;

4. Method of Repayment

Party A shall prepare enough capital in the capital colleting
account or other accounts opened under the services of Party B prior to the
repayment date and make such accounts automatically transferred (Party B is
authorized to draw the repayment in the account), or Party A shall repay the
Loan via other accounts on the repayment date as agreed under this Contract.

5. Pre-repayment (early payment or prepayment) Prepayment of
the loan

In the event that Party A decides to repay the Loan ahead of
schedule, it shall inform Party B the prepayment in writing    30    working days in advance. After Party B’s consent, Party A is authorized to
repay the partial or whole of the interest and principal ahead of schedule.

The amount of the prepayment by Party A shall be computed based
upon the actual days of using the Loan and the interest of the Loan shall be in
accordance with the Contract.

In the event that Party B agrees to the prepayment of the loan
by Party A, Party A is authorized to charge Party B compensation that shall be
decided in according with the 1st standard as
follows:

     Exhibit 10.4 

(1) Amount of compensation = amount of the repayment
principal*number of repayment 

months × __0.5‰__, less than a month will be deemed as a
month.

(2) _____Blank_______.

If Party A repays the Loan in installments and repays part of
the principal, it shall repay the Loan in an opposite sequence. After
prepayment, the interest on the remainder of the Loan shall be decided in
accordance with the Contract.

ARTICLE 8 RIGHTS AND OBLIGATIONS OF PARTY A

1. Rights of Party A

(1) Party A is authorized to require Party B to issue the Loan
in accordance with the Contract; 
(2) Party A is authorized to use the Loan
in line with the Contract; 
(3) Party A is authorized to propose extending
the term of the Contract by meeting the requirements of Party B; 
(4) Party A
is authorized to require Party B to keep trade secrets regarding materials of
accounting information and operation provided by Party A confidential; 
(5)
Party A is authorized to prohibit any attempt at bribery by Party B and its
employees and to report any behavior by Party B that breaches the laws and
regulations relating to credit and loan interest, services charge and other
behaviors to relevant authorities.

2. Obligations of Party A

(1) Withdraw deposits in line with the agreements under the
Contract, fulfill repayment of the interest and principal of the Loan as well as
the burden of any fees incurred under the Contracts; 
(2) Provide relevant
accounting information, materials of business operation and other documents as
required by Party B, including, but not limited to, the quarterly balance sheet
and income statement (income and expenditure statement for a public institution)
of last quarter within the initial    15    days of first month of each
quarter, provide the cash flow of each fiscal year as of or as at the end of the
current fiscal year, and guarantee that all the materials provided are legal,
authentic, integrated, accurate and effective.
(3) In the event that
disadvantaged matters that will harm the debt paying ability of Party A or the
credit of Party B occur, or the name, legal representative (supervisor),
residence, business scope, registered capital, bylaws of company and other
changes relating to administration on industry and commerce, Party A shall
inform Party B within 3 working days in written and provide materials after such
changes; 
(4) Party A shall use the Loan in line with the Contract without
the diversion or embezzling of funds, illegally engaging in business and
transactions, investing in fixed assets or equity interests via the Loan, using
the Loan in the areas of production and operation prohibited by the State, using
the Loan for exchange of the debts incurred in the course of investing in the
fixed assets and equity interests of Party A; Party A shall coordinate and
accept the examination and supervision by Party B regarding the business
operation and accounting activities, use and payment of the Loan under the
Contract, and relevant management requirements by Party B after issuing the
Loan; Party A shall not rescind funds, transfer assets or take advantage of
affiliated transactions to avoid any debt; Party A shall not use any false
contracts entered into with its affiliates and credits of any negotiation or
debt receivable to obtain any discount or pledge from a bank and extract any
bank capital or credit; Party A shall repay the Loan in accordance with the
Contract and shall not avoid the entrusted payment of Party B via breaking down
into elements.
 

     Exhibit 10.4 

(5) If Party A uses the Loan under the Contract to engage in
production, Party A shall obey relevant national regulations of environment
protections; 
(6) Party A shall not provide a guarantee to a third party by
using the assets under the Contract without obtaining the consent from Party B
prior to repaying the interest and the principal of the Loan; 
(7) If Party A
is a group client, Party A shall report any affiliated transactions accounting
for 10% or more of Party A’s net assets, including (i) the relationship of each
transaction party; (ii) essential transactional items; (iii) amount of the
transactions or relevant ratio; (iv) pricing policies (including those
transactions without amount or with only nominal amount); 
(8) Prior to Party
A’s merger, spin-off, transfer of equity interests, investment, material
increase of debt financing and other significant events, Party A shall obtain a
written consent from Party B. However, such consent of Party B will not affect
any right to remedies asserted by Party B when Party B deems that the above
events may harm the credit of Party B; 
(9) Party A shall report the use and
repayment of the Loan to Party A. Party A shall report the use and repayment of
the Loan of last month to Party B within the initial    15    working
days of each month and provide actual use of the Loan until such Loan has been
fulfilled.

ARTICLE 9 RIGHTS AND OBLIGATIONS OF PARTY B

1. Party B is authorized to require Party A to repay the
principal, interest and fees in a timely manner, manage and control the capital
flow of the Loan, actively monitor the whole fund flow of Party A, collect the
repayment ahead of schedule based upon the capital collecting of Party A,
exercise other rights under the Contract and require Party A to perform other
obligations under the Contract;

2. Party B is authorized to participate in the big financing of
Party A (i.e. the total amount exceeds RMB50,000,000 or the equivalent
currency), assets sale, merger, spin-off, restructure of equity interests,
bankruptcy, liquidation and other activities to safeguard the credit of Party B.
The details of the plan of participation shall be according to
1st item:

(1) When Party A engages in the above activities, it shall
obtain the consent of Party B; 
(2) Party B shall arrange for the big
financing of Party A; 
(3) The sale price of Party A’s assets and buyer shall
be in line with the following requirements:

___________Blank_____________________; 
(4) Other methods that Party B
deems appropriate to adopt.

3. Party B shall issue the Loan in line with the Contracts,
except for any delay or failure which can be imputed to neither Party A or Party
B;

Exhibit 10.4

4. Party B shall keep trade secrets regarding accounting
information and business operation provided by Party A confidential except for
otherwise required by laws, regulations, competent authorities or agreed by both
Parties;

5. Neither shall Party B attempt to bribe Party A and its
employees nor seek, accept any bribery attempted by Party A;

6. Neither shall Party B perform dishonestly or harm Party A’s
legal rights.

ARTICLE 10 BREACH OF CONTRACT

1. Breach of Contract by Party B and Liabilities

(1) In the event that Party B does not issue the Loan in line
with the Contract without legitimate reasons, Party A is authorized to require
Party B to fulfill the specific performance of issuing the Loan according to the
Contract; 
(2) If Party B charges unnecessary interest and fees by disobeying
national laws or prohibitive regulations, Party A is authorized to require Party
B to return such expenses.

2. Breach of Contract by Party A

(1) Party A breaches any agreement under the Contract or any
legal obligation;
(2) Party A expresses or demonstrates by its conduct that
Party A will not perform any of the obligation under the Contract;

3. Situations that May Harm Credit of Party B

(1) Party B will deem the following events potentially harmful
to the credit of Party B under the Contract: occurrence of contract, trust (take
over), lease, shareholding reform, decrease of registered capital, investment,
association, merger, acquisition, purchase and restructure, spin-off, joint
venture, substantial increase of debt financing, suspension of business,
application for dissolution, revocation, application for bankruptcy, change of
control of the actual shareholder or controller, transfer of material assets,
winding up, closing of business, stiff fines by competent authorities,
de-registration, revocation of business license, involving in significant legal
disputes, difficulties of business operation or deterioration accounting,
descending of credibility, inability to perform the normal obligations by the
legal representative or the supervisor; 
(2) Party B will deem the following
events potentially harmful to the credit of Party B under the Contract: Party A
fails to fulfill other maturity debts (including the debts to the entities of
the China Construction Bank at each level and other debts to any third party),
transfer the properties at a low price or without consideration, lessen or
exempt credits of a third party, reluctantly perform other credits or rights,
provide guarantee to a third party; Party A’s financial index does not
consecutively meet the requirement addressed in the Annex 2 named “Financing
Index Binding Provision”; the fund flow of any account of Party A becomes
abnormal (including, but not limited to, the capital collecting account and
other accounts supervised by Party B); Party A materially breaches the Contract;
The profitability of Party A falls; Use of the Loan becomes abnormal;

     Exhibit 10.4 

(3) Party A abuses the independent status of the legal entity
or the limited liability of shareholders; 
(4) Any pre-condition of
consecutively issuing loan by Party B under the Contract does not satisfy;

(5) Party B will regard the following situations of the guarantor of the
Contract as the events that may harm the credit of Party B under the
Contract:

      (i) Breach of any agreement
under the guarantee agreement or the warranties and representations have any
false statement, mistake, or omission; 
     (ii)
Occurrence of contract, trust (take over), lease, shareholder reform, decrease
of registered capital, investment, association, merger, acquisition, purchase
and restructure, spin-off, joint venture, substantial increase of debt
financing, suspension of business, application for dissolution, revocation,
application for bankruptcy, change of control of the actual shareholder or
controller, transfer of material assets, winding up, closing of business, stiff
fines by competent authorities, de-registration, revocation of business license,
involvement in significant legal disputes, difficulties of business operation or
deterioration accounting, fall in credibility, inability to perform the normal
obligations by the legal representative or the supervisor;

     (iii) Other events of losing or potentially losing
of the ability to guarantee.

(6) Party B will regard the following situations of the
mortgage and pledge as the events that may harm the credit of Party B under the
Contract:

     (i) Damages, loss and decrease of
value of the property under mortgage or pledge due to the behavior of any third
party, expropriation by the State, confiscation, condemnation, re-collection
without compensation, removal, market changes or other reasons;

     (ii) Properties under mortgage or pledge are
attached, detained, frozen, deducted, under liens, auctioned, supervised by
administrative authorities, or their ownerships are under  disputes;

     (iii) Mortgagee or pledgor breaches any agreement
under the mortgage or pledge agreement or the warranties and representations
have any false statement, mistake, or omission; 
    
(iv) Other events that may harm the realization of Party A’s credit in the
mortgage or pledge.

(7) Failure of formation, ineffectiveness, invalid, revocation,
and cancellation of the Contract, guarantor’s breaches or expression that he
will not perform his duties, or the guarantor deems that any event that may harm
the credit under the Contract; or

(8) Any other events that Party B deems could harm the credit
of Party B under the Contract.

4. Measures of Remedies for Party B

In the event that the following section (2) and section (3)
occur, Party B is authorized to a right or some of the rights as stated
above:

(1) Terminating the Loan;
(2) Supplementing the conditions
regarding issuing the Loan and payment; 
(3) Altering the payment method of
the Loan;

     Exhibit 10.4 

(4) Declaring an immediate maturity of the Loan and requiring
Party A to repay any principal, interest and fee regardless whether such Loan
has been due under the Contract; 
(5) When Party A fails to use the Loan in
accordance with the Contract, Party B is authorized to require Party A to pay a
penalty fee equivalent to 1% of the amount that is used not in line with
the Contract and to refuse any capital that has not been withdrawn by Party A
under the Contract; 
(6) In the event that Party A does not use the Loan in
line with the Contract, Party B is allowed to charge interest and compound
interest according to the penalty rate and agreements of the interest settlement
under the Contract commencing from the date when the Loan is not used as agreed
in the Contract to the date when both the principal and the interest have been
repaid; 
(7) When any overdue repayment occurs and Party A fails to fulfill
the repayment of the loan principal and interest (including the loan capital and
interest that have been declared as partial or whole maturity), Party B is
authorized to charge Party A the interest and the compound interest according to
the penalty rate and agreements of the interest settlement under the Contract
commencing from the date when the Loan is not used as agreed in the Contract to
the date when both the principal and the interest have been repaid. An overdue
loan means that Party A fails to repay the loan or fulfill the loan installments
in line with the Contract.
Prior to the maturity of the Loan, any overdue
interest of Party A shall be collected at a compound interest in according with
the interest rate and the method of settlement under the Contract: 
(8) Other
measures of remedies, including, but not limited to:

     (i) Party B is authorized to
withdraw RMB or other equivalent currency from the account of Party A opened in
the banking system of the China Construction Bank without informing Party A in
advance; 
     (ii) Exercising rights of the guarantee;

     (iii) Party A is required to provide new guarantees
for all the debts under the Contract; 
     (iv) Refusal
of Party A’s disposing of relevant deposit in the bank account of opened in the
banking system of the China Construction Bank; 
     (v)
Dissolution of the Contract.

ARTICLE 11 MISCELLANEOUS

1. Burden of Fees

Any fee of legal services, insurance, evaluation, registration,
safeguarding, appraisal, notary, tax, technology, environment, commission of
settlement of payment relating to the Contract or its guarantee agreements shall
be burdened by Party A except for otherwise agreed.

All the fees actually incurred in the course of realizing Party
A’s credit (including, but not limited to, litigation fees, arbitration fees,
property preservation fees, business trip expenses, execution fees, evaluation
fees, auction fees, notary fees, delivery fees, announcement fees, legal service
fees and other fees) shall be the responsibility of Party A.

2. Use of Party A’s Information

Party A vests rights of inquiry of the credibility of Party A
in the relevant credibility database established and approved by the Bank of
China and administrations of credit investigation or with other relevant entities and departments in Party B, and also
authorizes Party B to submit any information of Party A to credibility databases
set up and approved by the Bank of China and administrations of credit
investigation. Party A also authorizes Party B to use and disclose Party A’s
information for purpose of business in a reasonable manner.

     Exhibit 10.4 

3. Announcement and Collection

Party B is authorized to report any overdue loan or other
breach of contract of Party A to the relevant department or entity, and to
collect the overdue repayments by means of announcement and through the news
media.

4. Evidentiary Effect of Party B’s Record

Unless any reliable and definite evidence exists, internal
accounting records of Party B regarding the principal, interest, fees and
records of repayment, receipts and certificates produced or reserved by Party B
in the course of providing services of any withdraw, repayment, payment of
interest for Party A, and records and certificates in the course of collecting
the loan will constitute valid evidence of the credit relationship between Party
A and Party B. Party A can not challenge such evidence by reason of Party B’s
unilaterally conducting or reserving the above records, receipts or
certificates.

5. Reservation of Rights

Any tolerance, extension, preference of any breach or delay of
the Contract or postponing of the performance of any right under the Contract
can neither be regarded as giving up any right or benefit under the Contract or
permission or acknowledgement of any breach of the Contract, nor limiting,
prohibiting or halting the consecutive performance of such right and other
rights or incurring that Party B’s burdening the responsibilities and
liabilities of Party A.

6. Except for the debts under the Contract, in the event that
Party A is also the creditor of Party B of other debts which have expired, Party
B is authorized to collect RMB or equivalent currency in the account of Party A
opened in the banking system of the China Construction Bank. Party B shall not
challenge that right of Party A.

7. In the event that Party A changes its business address or
notice, it shall inform Party B in writing in a timely manner. Any damage
incurred due to delayed notice shall be burdened by Party A.

8. Collection of Accounts Payable

For all the accounts payable of Party A under the Contract,
Party B is authorized to withdraw RMB or other equivalent currency from the
account of Party A opened in the banking system of the China Construction Bank
without informing Party A in advance. When the foreign currency needs to go
through foreign exchange settlement or procedures of sale of foreign currency,
Party A shall coordinate such settlements and procedures. The exchange risk rate
shall be the responsibility of Party A.

Exhibit 10.4

9. Dispute Resolutions

Any dispute occurs in the course of performing the Contract.
Such dispute could be resolved by negotiation otherwise, it will be resolved via
the 1st method as follows:

(1) File a suit in the People’s Court where Party B
resides.

(2) Submit the dispute to ______blank________Arbitration
Commission (the location is _________blank___________ ) in accordance with
current and valid rules implemented by the Commission. The arbitral verdict is
final and binding for both Parties.

In the course of a litigation or arbitration, other sections
not involved in the dispute shall still be performed.

10. Pre-condition of Effectiveness

The Contract will be effective after signed and chopped by both
the legal representative (supervisor) of Party A or its authorized power of
attorney and the legal representative (supervisor) of Party B or its authorized
power of attorney.

11. The Contract is in __four__ duplicates.

12. Other agreed items.

The credit under this Contract is within the scope of the
Maximum Mortgage Agreement titled 2009 Jian Ping Song Gao Di Zi
No.1.

ARTICLE 12 CLARIFICATION PROVISIONS

1. Party A clearly understands the business and limited
authorization of Party B.
2. Party A has reviewed all the provisions under
the Contract. As required by Party A, Party B has provided relevant explanation
of provisions of the Contract. Party A has fully understood and acknowledged the
meaning of the provisions under the Contract and the legal consequence
hereof.

3. The signing and performing of the obligations under the
Contract by Party A satisfy laws, regulations, ordinances and articles of
association or internal documents of Party A. Party A has obtained the approval
by both its internal department and/or competent State authorities.

4. The production and operation of Party A are in compliance
with laws and regulations.

5. Party A is capable of a consecutive operation and legal
sources of repayment the Loan.

6. Party A covenants that the Loan under the Contract
demonstrates the real need of using the Loan and does not exceed the actual
need.

Exhibit 10.4

7. Good credibility of both Party A and its controlling
shareholder without any bad records.

8. Party B is authorized to entrust other branches of the China
Construction Bank to issue the Loan under the Contract, perform and fulfill the
obligations and duties under the Contract. Party A shall not object such
entrustment.

9. Party A covenants that, at the time of making this Contract,
no behavior or event of breaking any laws, regulations and ordinances regarding
environment protection, energy saving and emission reduction and reduction of
pollution, and Party A will strictly obey relevant laws, regulations and
ordinances regarding environment protection, energy saving and emission
reduction and reduction of pollution. If Party A falsely makes the above
statements, fails to perform the above covenants, or any possibility that any
occurrence of energy consumption or risk of pollution, Party B is authorized to
stop issuing the Loan, declare the maturity of the credit ahead of schedule, or
resort to other remedies as agreed under this Contract or permitted by laws.

Party A (office seal): Fujian Yada Group Co., Ltd

Legal Representative (person-in-charge) or Authorized Proxy
(Signature): Zhang Youdai

Date: August 4, 2011

Party B (office seal): China Construction Bank Corporation
Limited Songxi Sub-branch

Legal Representative (person-in-charge) or Authorized Proxy
(Signature): Liu Liquan

Date: August 4, 2011

Exhibit 10.4

Annex 1

Basic Situation of the Loan

1. Detailed Use of the Loan under the Contract

 Purchasing 18L bamboo shoot and canned bamboo
shoot.

Unless obtaining a written consent by Party B, Party A can not
change the detailed use of the Loan.

2. Source of the Repayment under the Contract 

Business Income

Party A shall guarantee the authenticity, legality of the
source of the repayment and flow of the repayment shall be stable and
sufficient.

3. Others: 

None.

Exhibit 10.4

Annex 2

Financial Index Binding Provisions

Financial index of Party A shall consecutively satisfy the
following restrictions:

The liquidity ratio is no less than 1, the quick ration is
no less than 0.5 and the asset-liability ratio is no more than
60%.

Party B is authorized to change the above restrictions upon
informing Party A fifteen (15) days in advance.

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