Document:

Asia Green Agriculture Corporation: Exhibit 10.41 - Filed by
   newsfilecorp.com

Exhibit 10.41

RMB Fund Loan Contract

 

 

Fujian Branch of China Construction Bank

Exhibit 10.41

Borrower (Party A): See Article 12 hereof.

Lender (Party B): See Article 12 hereof. 

The Borrower applies to the Lender for funding facilities; the Lender agrees to advance loans to the Borrower. Therefore, through mutual agreement by both parties, this Contract is hereby concluded and abided by in accordance with PRC laws,
regulations and rules. 

Article 1       AMOUNT OF LOAN

See Article 13 hereof.  

Article 2        PURPOSE OF LOAN  

See Article 14 hereof.  

Article 3        LOAN PERIOD 

See Article 15 hereof. 

Article 4        LENDING INTEREST RATE,
PENALTY INTEREST RATE, CALCULATION AND SETTLEMENT OF INTEREST 

I.
       Lending Interest Rate See Article 16 hereof. 

II.
       Penalty Interest Rate See Article 17 hereof. 

III.
       The Interest Commencement Day under this Article 4 means the Day when the loans initially advanced hereunder are remitted into the bank account designated by Party A.  

   
       The prime rate of the initial loans hereunder shall be the benchmark lending interest rate at the same level and over the same period published by the People's Bank of China; when the lending interest rate is adjusted in accordance with the
preceding provisions, the prime rate thereafter shall be the benchmark lending interest rate at the same level and over the same period published by the People's Bank of China on the adjusting Day; in the event that the People's Bank of China no
longer publishes benchmark lending interest rate for the same level and the same period, the prime rate shall be the commonly recognized inter-bank lending interest rate applied on the adjusting Day or the usual lending interest rate at the same
level and for the same period, unless otherwise stated by both parties. 

IV.
       The lending interest rate shall commence from the Day when the loans are remitted into the bank account designated by Party A. The lending interest rate hereunder shall be calculated on a daily basis, while the daily interest rate shall be
annual interest rate/360. In the event that Party A fails to pay the interest by the Interest Settling Day herein, a compound interest rate shall commence from the day immediately following the Interest Settling Day.  

V.
       Settlement of Interest 

(a)
       The interest of the loans with fixed interest rates shall be settled in line with the stipulated

Exhibit 10.41

interest rate. The interest of the loans with floating interest rates shall be settled in pursuance of the respective interest rates confirmed in the various floating periods; in the event of multiple interest rate floats in a single interest
settlement period, the interest for this whole settlement period shall be the combination of the interest under the respective floating periods on the Interest Settling Day. 

(b)
       See Article 18 hereof.  

Article 5        Advance and Withdrawal of
the Loans 

I.        Conditions Precedent to the Advance of the Loans 

See Article 19 hereof.

II.
       Plan for Application of the Loans

See Article 20 hereof. 

III.
       Party A shall apply the loans in accordance with Article 5.2, and shall not advance, defer or cancel the withdrawal of the loans without written consent of Party B. 

IV.
       In the event of multiple applications of the loans by Party A, the ending Day of the lending shall
be confirmed in pursuance of Article 3 thereunder.

Article 6       Repayment of the Loans

I.
       Principle of Repayment 

   
       Party A shall make repayment in line with the following principle:

Party B is entitled to apply the repayments made by Party A in reimbursement of any and all the costs and expenses to be paid by Party A as stipulated herein or fees for the realization of Party B’s credit. The remaining amount of Party
A’s repayment shall cover the interest incurred and then the principal of the loans, while any outstanding interest shall be paid off when the principal of the loans are all covered. However, the application of Party A’s repayment shall
obey the principle of “Interest-after- Principal” for the loans whose principal or interest are overdue for over 90 days or the loans upon which there are other stipulations by applicable laws, rules and regulations.  

II.
       Payment of Interest 

   
       Party A shall pay the interest due to Party B on the Interest Settling Day. The initial interest
payment day shall be the first Interest Settling Day following the advance of the loans. All the outstanding interest shall be paid by the last repayment of Party A. 

III.
       Plans for Repayment of Principal 

   
       See Article 21 hereof. 

IV.
       Manners of Repayment 

   
       Prior to the repayment day of each period hereunder, Party A shall remit enough funds into the
bank account of Party B so as to create a reserve fund to repay the loans for those periods through automatic transfer (while Party B is entitled to draw the amount from the account), or Party A shall repay the loans on the repayment day hereunder through transferring an amount from other bank account(s). 

Exhibit 10.41

V.
       Advanced Repayment 

(a)
       Any advanced repayment of the principal by Party A shall be subject to Party B’s approval in 20 days’ written notice. With Party B’s consent, Party A may make advanced repayment of the principal in part or in whole. 

Related interest shall be calculated to the advanced repayment of principal by Party A in accordance with the number of days of the actual application of loans and the lending interest rate stipulated herein. 

(b)
       See Article 22 hereof. 

Article 7        PARTY A’S RIGHTS AND
RESPONSIBILITIES

I.
       Party A’s Rights 

(a)
       To require Party B to advance the
loan in accordance hereof; 

(b)
       To use the loans in pursuance
hereof; 

(c)
       To have Party B keep confidential
all the financial materials provided by Party A and the trade secrets with
regard to Party A’s business operation, unless otherwise stipulated by laws,
rules and regulations, or otherwise required by governmental authorities or
agreed by both parties;  

(d)
       To reject the requirement by Party B
or its employees from briberies, and to report to relevant authorities about the
above illegalities of Party B or any other violation of Party B to the national
laws and rules in connection with facility interest rates and service fees.  

II.
       Party A’s Responsibilities 

(a)
       To withdraw the loans in accordance
hereof, to repay the principal and interest in full, and to bear all the fees
and expenses stipulated herein; 

(b)
       To provide materials showing its
finance and accounting, and business operations as required by Party B,
including but not limited to providing to Party B within 20 working days prior
to the first month of each quarter the balance sheet and income statement of the
preceding quarter, and provide to Party B at the end of each year the annual
statement of cash flow, and to be responsible for the authenticity, accuracy and
the effectiveness of the financial statements it provides to Party B; 

(c)
       To notify Party B in writing of any changes of registration in the Administration of Industry
and Commerce of Party A within 5 working days following such changes, including Party A’s name, legal representative, domicile, scope of business, registered capital or Articles of Association, and to provide corresponding post-change
materials; 

Exhibit 10.41

(d)        To apply the loans in
pursuance hereof without any misappropriation or application in illegal or
irregular trade of the loans; to accept and assist with Party B in the
examination and supervision of its business operations and financial activities
as well as its the application of loans; not to avoid repayment of the loans by
affiliated transactions; not to acquire funding or credits from banks via
discount or pledge of notes receivable, accounts receivable without actual trade
or transactions or through false contract with its affiliates; 

(e)
       To obey the rules of environmental
protection in the event of applying the loans hereunder in manufacturing or in
construction; 

(f)
       Not to provide any third party with
guarantees with the assets from the loans hereunder without consent of Party B
prior to the full repayment of the principal and interest; 

(g)
       To report to Party B promptly about
any of its affiliated transactions accounting for more than 10% of its net
assets where Party A is a group enterprise, including without limitation: (i)
the affiliate relationships between the parties of the transactions; (2) the
content and nature of the transactions; (3) the amount or proportion of the
transactions; (4) pricing policies (including the transactions without amount or
with nominal price); 

(h)        To promise that the
proposed construction project has been granted all the necessary governmental
approvals and would not violate any laws and regulations, the capital or other
amounts would be collected within the required timeline in full, in the event
that the loans hereunder are fixed asset loans or project loans. 

Article 8        PARTY B’S RIGHTS AND
RESPONSIBILITIES 

I.
       Party B is entitled to require Party A repay the principal, interest and related fees of the loans and
to exercise all its rights stipulated herein; 

II.
       Party B is entitled to advance the
loans in pursuance hereof, except for the delay pertaining to Party A or other
causes not attributable to Party B; 

III.
       Party B shall keep confidential all
the financial materials provided by Party A and the trade secrets with regard to
Party A’s business operation, unless otherwise stipulated by laws, rules and
regulations, or otherwise required by governmental authorities or agreed by both
parties; 

IV.
       Party B shall not offer briberies to
Party A or its employees, or require or accept briberies from Party A ; 

V.        Party B shall not act in bad
faith or do harm to Party A. 

Article 9        LIABILITIES OF BREACH OF
CONTRACT AND REMEDIES TO PARTY B'S CREDITS 

I.
       Party B’s Breach of Contract and related Liabilities 

(a)        In the event that Party B does not advance the loans without due causes, Party A is entitled to have Party B continue to advance the loans in accordance hereof; 

Exhibit 10.41

(b)        In the event that Party B collects any interest or fees in violation to national laws and rules from Party A, Party A is entitled to have Party B pay back the amount. 

II. 
       Party A’s Breach of Contract 

(a)
       Party A’s violation of any of its responsibilities hereunder or any statutory liabilities; (b) Party A’s clear expression or implication by its conducts of its refuse to undertake any of its responsibilities hereunder. 

III.
       Deteriorations to Party B’s Credits 

(a)
       If Party A is in any of the
following circumstances, which is deemed by Party B to be deterioration of it
credits hereunder: contracting, indenture, lease, decrease of registered
capital, investment, joint-venture, merger, acquisition, restructuring,
spin-off, cease of business, rectification, dissolution, revocation, insolvency,
change of controlling shareholder or actual controller, transfer of material
assets, cease of production, termination, imposition of large fines, revocation
of business registration, revocation of business license, being involved into
material legal dispute, business operation difficulties, incapability of legal
representative to undertake responsibilities;  

(b)
       If Party A is in any of the
following circumstances, which is deemed by Party B to be a deterioration of its
credit hereunder: failure to undertake any other due liabilities (including the
due liabilities against the branches and subdivisions of China Construction Bank
or any third parties), transfer of assets at a low price or for free, waiver of
credits toward any third party, reluctance to exercise credits or other rights,
or provide guarantee with any third party;  

(c)
       Abuse of limited liability
provisions with respect to shareholders of a limited liability company or the
independent status of Party A as a legal person by any shareholder of Party A to
avoid undertaking liabilities, which is deemed by Party B to be a deterioration
of its credit hereunder;  

(d)
       Non-continuous satisfaction of any
of the conditions precedent to the advance of loans stipulated herein;  

(e)
       Any of the following circumstances
that is deemed by Party B to be a deterioration of its credits hereunder:  

(i)
       The guarantor is in violation to any of the stipulations in the Guarantee Agreement or any of the representations and warranties therein is false, mistaken or missing;  

(ii)
       The guarantor is in any of the
following circumstances: contracting, indenture, lease, decrease of registered
capital, investment, joint-venture, merger, acquisition, restructuring,
spin-off, cease of business, rectification, dissolution, revocation, insolvency,
change of controlling shareholder or actual controller, transfer of material
assets, cease of production, termination, imposition of large fines, revocation
of business registration, revocation of business license, being involved into
material legal dispute, business operation difficulties, incapability of legal
representative to undertake responsibilities; 

(iii)
        Any other circumstances that
lead or might lead to the incapacity of the guarantee made by the guarantor. 

Exhibit 10.41

(f)
       Any of the following circumstances
in respect of the mortgage or pledge of the loans, that is deemed by Party B to
be deterioration of its credit hereunder: 

(i) 
       Damage, losses or devaluation of the collaterals due to the conduct of any
third party, appropriation, confiscation, taking-back or removal by the state,
change of market, or any other causes; 

(ii) 
       The collaterals are under freeze, seal-up, deduction, lien, auction,
administrative monitoring, or title dispute; 

(iii)
        The
mortgagor or pledgor is in violation to any of the stipulations in the Mortgage
Agreement or Pledge Agreement, or any of the representations and warranties
therein is false, mistaken or missing; 

(iv) 
       Any other circumstances that prevent or might prevent Party B from
exercising its mortgage right or pledge right. 

(g)
       The mortgage, pledge or guaranty is invalid, ineffective, revoked or terminated, the mortgagor, pledgor or guarantor refuses to undertake any of its responsibilities by expression or implication of conducts, the mortgagor, pledgor or guarantor
loses in part or in whole its guaranty capability, devaluation of the collaterals, or. 

(h)
       Any other circumstances deemed by
Party B to show deteriorating credit hereunder.

 IV.
       Remedies by Party B 

Under any of the circumstances stipulated in Article 9.2 or Article 9.3, Party B
is entitled to exercise any of the following rights: 

(a)        To cease advancing the
loans; 

(b)        To declare that the loans
are due immediately and require Party A to repay all the principal, interest and
fees in connection with the liabilities hereunder, due or undue; 

(c)        See Article 23 hereof; 

(d)
       Where Party A applies the loans
beyond the stipulated plan for application herein, Party B is entitled to
calculate and collect the penalty interest and compound interest for the portion
misappropriated by Party A in line with the manner of interest settlement herein
based on the penalty interest rate and the number of days from the date when the
loans are initially misappropriated to the date when all the principal and
interest are repaid; 

(e)
       When the loans are overdue, Party B
is entitled to calculate and collect the penalty interest and compound interest
for the principal and interest not promptly repaid by Party A 

Exhibit 10.41

(including the principal and interest declared to be due in advance) in accordance with the manner of interest settlement herein based on the penalty interest rate and the number of days from the date when the loans are initially overdue to the date
when all the principal and interest are repaid. “The loans are overdue” means Party A does not repay the loans in accordance with the terms or the principal-repaying installment periods herein. 

Prior to the due date of the loans, Party B is entitled to calculate and collect the compound interest for the interest not promptly repaid by Party A in pursuance of manner of interest settlement herein based on the lending interest rate (f) Other
remedies of Party B as follows: (i) Draw a corresponding amount in RMB or other currency from the account of Party A opened in the system of China Construction Bank without prior notification; (ii) To exercise its guarantee rights; (iii) To have
Party A provide to Party B a new guarantee satisfying Party B’s requirements concerning all the liabilities hereunder; (iv) To terminate this Contract. 

Article 10        MISCELLANEOUS 

I.
       Bearing of expenses 

Unless otherwise stipulated by both Parties hereto, all the fees and expense in connection with this Contract and the related guarantees shall be borne by Party A, including without limitation the legal fees, insurance fees, appraisal fees,
registration fees, custodian fees, verification fees, notarization fees. 

All the fees and expense with respect to the realization of Party B’s credits (including but not limited to litigation fees, arbitration fees, asset-preservation fees, travel expenses, implementation fees, appraisal fees, auction fees,
notarization fees, service fees, announcement expenses, legal fees, etc.) shall also be borne by Party A. 

II.
       Use of Party A’s Information 

Party A hereby agrees that Party B will check with the credit database established by People’s Bank of China and the relevant authorities or other entities and governmental departments about Party A’s credit status, and that Party B would
provide such information about Party A to the credit database established by People’s Bank of China and the relevant authorities. Party A further agrees that Party B may use and disclose Party A’s information in a reasonable manner for the
sake of Party B’s business operation. 

III.
       Collection via Announcement 

Party B is entitled to report to relevant authorities or entities about Party A’s late repayment of the principal and interest of the loans or any other breach of contract, and it is entitled to announce in public media such late repayment to
collect the amount thereunder. 

Exhibit 10.41

IV.
       Effect of Evidence regarding Party B’s Records 

Unless there is reliable and confirming evidence to the contrary, Party B’s internal records of principal, interest, fees and repayment, the notes and vouchers produced or kept by Party B in respect of Party A’s withdrawal, repayment and
payment of interest, as well as the records and vouchers of Party B’s collection of the loans shall constitute the confirming evidences to prove the credit-debt relationship by and between Party A and Party B. Party A shall not disagree on the
ground that the abovementioned records, notes and vouchers are unilaterally produced or kept by Party B. 

V.
       No-waiver  

The rights of Party B under this Contract shall not influence or exclude any other rights it is entitled to in pursuance of laws and regulations and other contracts or agreements. Any forgiveness or preference to the breach of contract hereto, or
delayed exercise of any rights hereunder shall not be construed as waiver of such rights and privilege or permission to or recognition of any violation to this Contract, and shall not limit, prejudice or prevent the exercise of such rights and
privilege or any other rights, and shall not result in Party B’s responsibilities or liabilities against Party A. 

VI.
       In the event of any liabilities due by Party A against Party B other than those hereunder, Party B is entitled to draw from Party A’s account opened in the system of China Construction Bank without prior notification a sum in RMB or other
currencies corresponding to the aforementioned due liabilities. 

VII.
       Party A shall make immediate written notification of a change of its address or contact information to Party B, and it shall bear any losses due to its failure of prompt notification. 

VIII.
       Collection of Amount Payables 

Party B is entitled to draw from Party A’s account opened in the system of China Construction Bank without prior notification a sum in RMB or other currency corresponding to any amount payables by Party A hereunder. Party A shall assist with
Party B in the settlement of foreign exchange or similar procedures as necessary, and shall undertake the risks pertaining thereto. 

IX.        Conditions to the Effectiveness of this Contract 

This Contract shall be effective upon the execution of the respective legal representatives or authorized representatives of Party A and Party B and affixing their respective company seals. 

X.
       Party A hereby states that as of the execution hereof, it has not been violation of any laws, rules or regulations with regard to environmental protection, energy-saving and emission deduction, as well as pollution prevention, and Party A further
promises that it will in strict compliance with the laws, rules or regulations with regard to environmental protection, energy-saving and emission deduction, as well as pollution prevention. In the event that the above statement of Party A is not
true or the aforesaid promise has not been fulfilled, or Party A might be in energy-consuming or pollution producing position, Party B is entitled to cease providing crediting to Party A (including but not limited to refusal of offering loans,
financing, issuance of letters of guarantee or letters of credit or bills of exchange) or declare its credit (including without limitation loans, financing, payment on behalf of Party A) are due in advance, or take any other remedies as stipulated
hereunder or permitted by laws. 

Exhibit 10.41

Article 11       STATEMENTS

I.
       Party A has clearly known the business scope and authorization of Party B. 

II.
       Party A has read all the clauses herein, and Party B has explained this Contract to Party A upon
Party A’s request. Therefore, Party A has had full knowledge and understanding of meaning and legal consequence of all the clauses herein. 

III.
       Party A’s execution of this Contract and its performance of liabilities hereunder is in pursuance of laws, administrative rules and regulation, and the Articles of Association or constitutional documents of Party A, and is approved by the
internal and/or national authorities. 

SPECIAL CLAUSES

Category of facility: Industrial Enterprise Working Capital Facility

Article 12        INFORMATION ABOUT THE
PARTIES 

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

Address: Shuinan Gongye Road, Songxi County 

Post Code: 353500

Legal Representative (Person-in-charge): Zhan Youdai

Fax: 2332598

Tel: 2325688 

Lender (Party B): China Construction Bank Corporation Limited Songxi Sub-branch Address: 121 Jiefang Street, Songyuan Town, Songxi County 

Post Code: 353500 

Person-in-charge: Ou Wenbin  

Fax: 0599-2322644 

Tel: 0599-2322670 

Article 13
       STIPULATIONS ON ARTICLE 1

Party A borrows a loan of RMB (in words) THREE MILLION AND ONE HUNDRED THOUSAND YUAN from Party B.  

Article        14   STIPULATIONS ON ARTICLE 2

Party A shall utilize the loan for the purpose of production and business operation, and may not change the purpose of loan without the written consent of Party B.  

Exhibit 10.41

Article 15
       STIPULATIONS ON ARTICLE 3

Loan period as specified herein shall be twelve months, from February 11, 2010 to February 11,2011.

In case of discrepancies between the commencement date of loan period hereunder and the loan redeposit voucher (loan receipt, the same below), the actual advancing date as reflected on the loan redeposit voucher at the time of the first release, and
maturity date of the loan as specified in Paragraph 1 of this Article shall be adjusted accordingly.  

The loan redeposit voucher shall be an integral part hereof, and shall be equally binding to this Contract.  

Article 16        STIPULATIONS ON ARTICLE
4.1

Lending interest rate hereunder shall be the annual interest rate, as the second item as follows:  

I.        Fixed interest rate, left blank %, and such interest rate shall keep unchangeable within the loan period;  

II.
       Fixed interest rate, 10% above (inserting “above” or “down”) the benchmark interest rate as of
the value date, and such interest rate shall keep unchangeable within the loan period;

III.
       Floating interest rate, left blank% left blank (inserting “above” or “down”) the benchmark interest rate as of the value
date, and from the value date to the date of full payment of the principal and interests hereunder, adjustment shall be made once
left blank months at the benchmark interest rate as of the date of interest rate adjustment and
the foregoing above/down ratio. Date of interest rate adjustment shall be the corresponding date of the value date in the adjustment month, if there is no date corresponding to the value date, the last date of the current month shall be the date of
interest rate adjustment.  

Article 17        STIPULATIONS ON ARTICLE
4.2

I.
       In case Party A utilizes the loan for purpose other than agreed in the Contract, penalty interest rate shall be the interest rate plus 100% in case of adjustment of the interest rate pursuant to Item 3 of Paragraph 1 of this Article,
penalty interest rate shall be adjusted accordingly according to the adjusted interest rate and the foregoing floating-up extent.  

II.
       Penalty interest rate in case of overdue loan under this Contract shall be the interest rate plus 50%, in case of adjustment of the interest rate pursuant to Item 3 of Paragraph 1 of this Article, penalty interest rate shall be adjusted
accordingly according to the adjusted interest rate and the foregoing floating-up extent.  

III.
       In case of overdue loan and misappropriated loan at the same time, penalty interests and compound interests shall be calculated and charged according to the severe circumstances.  

Article 18        STIPULATIONS ON ARTICLE
4.5.2  

Exhibit 10.41

Interests on the loan hereunder shall be settled in the first manner below:  

I.
       Interests shall be settled monthly on the 20th day of each month;  

II.
       Interests shall be settled quarterly on the 20th day of the last month of each quarter;  

III.
       Other methods left blank.  

Article 19        STIPULATIONS ON ARTICLE
5.1  

Unless Party B wholly or partially waives its rights, Party B shall give out a
loan only after the following preconditions are satisfied continuously: 

(a)
       Party A has properly handled the
approvals, registration, delivery, insurance and other legal procedures in
connection with the loan hereunder; 

(b)        Where guarantee is
established under this Contract, the guarantee that meets the requirements of
Party B has become effective and will be effective continuously; 

(c)
       Party A has opened an account for
withdrawal and repayment as required by Party B; 

(d)        Party A does not breach the
contract or commit any activities specified herein which may adversely impact
Party B’s credit; 

(e)
       No laws and regulations, rules or
competent authorities forbid or restrict Party B to grant the loan under this Contract to Party A;

(f)
       Other conditions: Left blank. 

Article 20        STIPULATIONS ON ARTICLE
5.2  

Plans for applications of the loans:  Left blank 

Article 21        STIPULATIONS ON ARTICLE
6.3  Plans for Repayment of principal:  Left blank 

Article 22        STIPULATIONS ON ARTICLE
6.5.2  

Where Party B allows Party A to prepay the principal, it shall have the right to charge Party A a prepayment penalty, which shall be determined according to the following first standard:  

(a)
       Amount of penalty = amount of prepaid principal x
number of months remaining in the term as of the date of prepayment x 0.5‰, if the remaining time is less than one month, calculation shall be made according to one month;  

(b)
        Left blank.  

Where Party A makes repayment in installments, such as prepaying partial loan principal, repayment shall be made in the reverse order of the repayment plan. After such prepayment, the outstanding loan shall still be subject to the interest rate as
specified herein.  

Exhibit 10.41

Article 23   STIPULATIONS ON ARTICLE 9.4.3  

In case Party A fails to utilizes the loan as specified herein, Party B may require Party A to pay liquidated damages equal to 0.05% of the amounts which fail to be utilized as specified herein, and forbids Party A to use the amount not yet
withdrawn under this Contract.  

Article 24   DISPUTE RESOLUTIONS 

Any and all disputes arising in the implementation of the Contract shall be resolved through consultation. In case that no settlement can be reached through negotiation, the disputes shall be resolved in the first
manner below:  

(a)
       Filing a lawsuit to the People’s
Court of Party B’s domicile.  

(b)
       Applying to (left blank) Arbitration Commission (place of arbitration: (left blank)) for arbitration in accordance with the then arbitration rules of the Arbitration Commission in force as of the application. The arbitration award
shall be final and binding upon both parties.  

During the legal proceedings or arbitration, terms and conditions hereof other than those under the disputes shall be implemented continually.  

Article 25
        THIS CONTRACT IS MADE OUT IN FOUR COPIES.  

Article 26
        MISCELLANEOUS  

Exhibit 10.41

	For and on behalf of Party A (Common Seal): 	For and on behalf of Party B (Common
      Seal): 
	 Fujian Yada Group Co., Ltd. 	     China Construction
      Bank Corporation Limited 
	  	     Songxi Sub-branch
  
	Legal Representative (Person-in-charge) 	  
	or Authorized Representative (Signature): 	Legal Representative (Person-in-charge)
    
	             
                         
                       Zhan Youdai 	or Authorized Representative
      (Signature): 
	  	                                               Guo Rongbiao 
	February 10, 2010 	February 10, 2010Asia Green Agriculture Corporation: Exhibit 10.42 - Filed by newsfilecorp.com

Exhibit 10.42 

 

 

 

Natural Person Guarantee Contract

 

 

 

Fujian Branch of China Construction Bank 

Exhibit 10.42 

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.

	 	 	 	 
	 	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. 

     Exhibit 10.42 

	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.

	 	 	 
	 	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. 

  

     Exhibit 10.42 

	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

	 	 	 
	 		
      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.

Exhibit 10.42 

	 	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.

	 	 	 
	 	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.

Exhibit 10.42 

	 	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 10.42 

Particular Signing Provisions 

No. of this personal guarantee contract is 2010 Jian Ping Song
Dai Zi Bao Zi No.1-1 

	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: Ou Wenbin 
Fax: 0599-2322644 

  Tel: 0599-2322670 

To ensure the performance of the Bank’s Acceptance
Agreement (hereinafter referred to as the Main Contract, No.:
(2010) Jian Ping Song Dai Zi No.01) 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 one 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 10.42 

	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 DUPLICATE 
	 	 
	Article 14 	OTHER AGREED ITEMS 
	 	 
	  	This filed is left blank.
  

Exhibit 10.42 

 

Party A (Official seal): 

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

  Date: February 10, 2010 

 

Party B (Official seal): China Construction Bank Co., Ltd. Songxi
  Branch (Seal affixed) 

  Responsible person or authorized agent (Signature): Ou Wenbin (Signature) 

  Date: February 10, 2010

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