Document:

Asia Green Agriculture Corp.: Exhibit 10.7 - Filed by newsfilecorp.com

Exhibit 10.7

Min Nong Xin No.: 910 Ren Wang Da Print in 2010 

MORTGAGE LOAN CONTRACT 

Contact No.:Song Lian Bu Nong Xin Di Jie Zi No. 2011A0805

HT905101030110002663 

Borrower: Fujian Yada Food Co., Ltd. (福建亚达食品开发有限公司)

Lender (Mortgagee): Songxi County Rural Credit Cooperative
Union Business Office 

(松溪县农村信用合作联社营业部) 

Mortgagor: Fujian Yada Food Co., Ltd. (福建亚达食品有限公司) 

Pursuant to relevant applicable laws and regulations and based
upon full consultations with each other, the Parties hereby agree to enter into
this Contract. 

ARTICLE 1

Lender agrees to provide a loan to Borrower as follows: 

	1. 	
      Amount of loan (in words): RMB Six Million Yuan
      only;

	 	 
	2. 	
      Purpose of loan: Purchasing fresh farm
      products;

	 	 
	3. 	
      Loan term: Commencing from August 17, 2011 and
      ending at February 14, 2012;

     The loan term and repayment
period under this Contract are detailed in the following table. Additional table
may be attached in case of insufficient space and shall be regarded as an
integral part of this Contract if any. 

  	 Loan 	 Repayment 
	Year 
	Month 
	Day 
	Amount 

        (RMB Yuan) 	Year 
	Month 
	Day 
	Amount 

        (RMB Yuan) 
	2011 	August 	   17 	6,000,000.00 	2011 	February 	14 	6,000,000.00 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

Exhibit 10.7

     In the event of any discrepancy
between the details concerning the amount of loan, term of loan and interest of
loan recorded under this Contract and those recorded in relevant loan
certificate, the loan certificate shall prevail. The loan certificate shall be
integral part of this Contract and have equal legal effect with this
Contract.

4. Calculation and payment of interests 

(1)The interest rate of the loan is a monthly
(monthly/annually) rate of the 1st of the following kinds: 

	 	(i) 	
      A fixed interest rate of 8.641667 ‰;

	 	 	 
	 	(ii) 	
      A floating interest rate, which shall be the benchmark
      rate _\_ (plus/ minus) _\_% (at the date of this contract, the benchmark
      rate is _\_, and the exercise rate is _\_). In the event of an adjustment
      of the interest rate, the rate adjusting date shall be date _\_: a) after
      the announcement by the People’s Bank of China of the newly adjusted
      benchmark rate, the official implementation date of the new benchmark
      rate; b) next _\_ (month/quarter/year) after the adjustment of the
      benchmark rate; or c) other dates:
  _________________________

(2)The interests accrued under this Contract shall be
calculated on quarterly basis and the settlement date of interest shall be the
20th day of each quarter;

(3)The rate of interest will not be changed in case of an early
repayment of the loan by the Borrower and the Lender shall have the right to
calculate and collect interests in accordance with the loan terms set forth in
this Contract.

(4)The benchmark rate means the loan interest rate at the
corresponding time and level on the date it was announced and implemented by the
People’s Bank of China. If the People’s Bank of China no longer makes such, the
benchmark interest rate will be the loan interest rate recognized by inter-banks
or at the usual and corresponding time and level, unless both Parties agree
otherwise. 

(5)When the exercise interest rate under this contract is
adjusted according to the benchmark rate of the People’s Bank of China, the
Lender will not notify the Borrower. 

ARTICLE 2

Rights and obligations of the Borrower: 

	1. 	
      The Borrower shall have the right to obtain and use the
      loan in accordance with the terms and conditions set forth in this
      Contract, the Borrower shall use the loan for the purpose agreed under this Contract only
      and shall not use such loan for other purposes without an approval of the
  Lender;

Exhibit 10.7

	2. 	
      The Borrower shall fulfill the debt according to the
      agreement set forth in this Contract;

	 	 
	3. 	
      The Borrower shall provide the Lender with the authentic,
      complete and effective income certificate, assets certificate or financial
      statements, all information about account union (bank) and account and all
      other relevant information;

	 	 
	4. 	
      The Borrower shall make available for the Lender to
      examine and supervise the utilization of the loan and all kinds of
      relevant production, operation and financial activities of the
      Borrower;

	 	 
	5. 	
      The Borrower shall not illegally withdraw the capital,
      transfer the assets or assign or transfer shares of the Borrower for the
      purpose of evading their obligations against the Lender;

	 	 
	6. 	
      The Borrower shall give a prior notice to the Lender in
      the event of providing guarantee for his or other’s debts, and it shall
      not affect the fulfillment of the debt of the Lender; the Borrower shall
      not provide guarantee with the assets formed under this contract without
      the written consent of the Lender;

	 	 
	7. 	
      The Borrower shall notify the Lender in written with any
      change of the Borrower's name, legal representative, articles of
      association, legal address, scope of business, its registered capital and
      so forth 10 days before such changes;

	 	 
	8. 	
      The Borrower may not change its operation and management
      modes or ownership structure due to contracting, leasing, joint
      operations, equity restructuring, splitting, merger and acquisition,
      assets disposing, significant connected transaction, financing leading to
      a substantial increase of debt and outward investment, unless the Borrower
      gives thirty (30) days’ prior notice to the Lender, obtains the approval
      of the Lender and puts forward arrangements for a debt
repayment;

	 	 
	9. 	
      The Borrower shall inform in writing the Lender of any
      event, other than the above mentioned events, which may cause adverse
      impact on its normal operation or ability to discharge its repayment
      obligation under this Contract, such as closedown, shutdown, cancellation
      of its registration certificate, revocation of its business license,
      illegal acts of its legal representative or main persons in charge,
      involvement in legal or arbitral proceedings, exceptional difficulty of
      its production and operation, deterioration of its financial standing and
      significant cross default, and shall put forward relevant repayment
      measures which are approved by the Lender;

	 	 
	10. 	
      If the collaterals are damaged, destroyed, depreciated in
      value or expropriated, the mortgage houses are removed or the occurrence
      of any other events which might affect the mortgage, the Borrower shall put forward
      security measures according to the requirement of the Lender;

Exhibit 10.7

	11. 	
      The Borrower shall bear all costs of solicitation,
      insurance, carriage, assessment, registration, storage, appraisal,
      notarization and so forth related to the contract and the mortgage under
      the contract.

ARTICLE 3 

Rights and Obligations of Lender: 

	1. 	
      The Lender has the right to ask the Borrower to provide
      such information as the operation condition, financial and accounting
      statement, and has the right to supervise the Borrower's operation
      condition, financial activity, usage of loan and so forth.

	 	 
	2. 	
      For the fees that shall be paid by the Borrower according
      to this Contract, the Lender shall have the right to deduct such amount
      directly from any account of the Borrower (by consulting with other
      account banks/institutions). (This provision shall be deemed as the
      authorization of the Borrower to the Lender, and no further letter of
      authorization will be made.)

	 	 
	3. 	
      The Lender shall grant to the Borrower the loan timely
      and fully under this Contract in accordance with the schedule and amount
      set forth in this Contract, except for the reasons not caused by the
      Lender that the Lender is allowed not to obey the above
  provision;

	 	 
	4. 	
      The Lender shall keep confidentiality of all commercial
      secrets related to the production and operation of the Borrower as the
      Borrower requested, except for the internal usage of the Lender or
      otherwise requested by national law;

	 	 
	5. 	
      In the event of the occurrence of such circumstances as
      set forth in article 2 item 9, 10 of this Contract, which affects the
      fulfillment of the Lender’s right of debt and the right of guarantee, the
      Lender has the right to request the Borrower to rectify within a specified
      period, provide securities, stop providing loans which has not been
      provided yet and declare the loan to be due in
advance.

ARTICLE 4

The early repayment of the loan by the Borrower shall be
approved by the Lender.

In the event that the Borrower requests to extend the loan
term, the Borrower shall submit a written extension application prior to the
original maturity date of the loan for approval by the Lender. If such
application is approved by the Lender, an extension agreement shall be signed.

ARTICLE 5

Exhibit 10.7

Representations and warranties of Mortgagor: 

	1. 	
      The Mortgagor voluntarily provides guarantee with the
      properties set forth in the attached Collaterals List of this Contract for
      the Loan formed under Article 1 of this contract for the Lender. The
      effectiveness of mortgage extends to fruits, ancillaries, subrogation of
      the collaterals and other properties and rights set by laws and
      regulations. The Mortgagor guarantees to fully own the right of property
      and the right of disposition of the collaterals, and the collaterals are
      not under ownership dispute, seizure, detainment, supervision and so
      forth. The Lender is under no dispute or limitation concerning the
      disposition of the collaterals. In the event that the collaterals are all,
      or in part, rented, mortgaged before the date of this contract, the
      Mortgagor shall give prior notice to the Lender. The evaluation price of
      the collaterals is RMB (in word) Thirteen Million and Fifty Two
      Thousand. When the Lender disposes the collateral according to law,
      the estimated value of disposing shall base on the estimated value listed
      in the Collaterals list, which shall constitute no limitation of the
      Lender’s disposition of the collaterals. The final value shall be subject
      to the pure income when the right of mortgage is exercised. The Mortgagor
      has acquired the consent of the joint owners of the collaterals concerning
      the collaterals under this Contract.

	 	 
	2. 	
      The scope of mortgage shall include the principal of the
      loan, interest thereon, and penalty interest, liquidated damages, damages
      and all costs and expenses incurred by the Lender to realize its rights
      under this Contract and other payable fees (include but not limited to
      litigation fees, arbitration fees, property preservation fees, fees of
      lawyer, fees of travel, fees of execution, evaluation fees and auction
      fees etc.);

	 	 
	3. 	
      The Mortgagor agrees to be liable jointly and severally
      for all debts under this Contract regardless of the purposes of such a
      loan, and has the obligation to supervise the usage the loan of the
      Borrower.

	 	 
	4. 	
      The collaterals under this contract do not (do/do
      not) need to be insured. If insurance is needed, it shall subject to the
      following agreement: during the effective period of the mortgage, the
      Mortgagor shall cover the insurance of the collaterals according to the
      insurance type and amount selected by the Lender, and under no reason
      shall the Mortgagor suspend or rescind the insurance. The Mortgagor shall
      be liable to renew the insurance if it is expired before all the debts
      under the contract have been repaid. During the effective period of the
      mortgage, the Lender shall keep the original insurance policy. The
      Mortgagor shall require the insurer to list the Lender as the primary
      beneficiary (namely first beneficiary). If the collateral is already
      insured, but the Lender is not listed as the primary beneficiary, the
      Mortgagor shall change the first beneficiary to the Lender or list the
      Lender as the first beneficiary. In the event of the occurrence of the
      insured event, the Mortgagor shall notify the Lender within 2 days, and is
      responsible for the recourse of the indemnification. The indemnity shall be paid directly to
      the designated account of the Lender, and processed according to item 8 of
  this article.

Exhibit 10.7

	5. 	
      The Mortgagor shall keep the safety and integrity of the
      properties during the period of mortgage and make available for the Lender
      to examine and supervise the mortgaged properties. If the collaterals are
      damaged, destroyed or any other reason to cause its value to be
      depreciated for reasons of the Mortgagor, the Mortgagor shall notify the
      Lender within 3 days in a written form, and the Lender has the right to
      request the Mortgagor to recover the property value of the collaterals or
      provide corresponding guarantee within 15 days.

	 	 
	6. 	
      If the collaterals, for reasons of a third party, are
      damaged, destroyed, depreciated in value or expropriated, the mortgage
      houses will be removed, the Mortgagor shall notify the Lender within 3
      days (from the issuance of relevant announcements) in written form, the
      indemnity or the compensation for removal shall be deposited into the
      designated account of the Lender, and processed according to item 8 of
      this article. The remaining collateral remains the mortgage for the debt
      under this contract. If the indemnity, the compensation and the value of
      the remains are not enough for repaying the debts, the Borrower shall be
      liable to provide corresponding guarantee. If the mortgage houses are
      removed, and the Mortgagor and the remover reach an agreement of
      relocation, the Lender has the right to set the house for relocation as
      the collateral for the debts under this contract. If the value of the
      house for relocation is not enough for repaying the debts, the Borrower
      shall be liable to provide another guarantee.

	 	 
	7. 	
      During the mortgage period, the Mortgagor shall not
      bestow, transfer, lease, set another mortgage on, remove or dispose the
      collateral in any other way without the written consent of the Lender. The
      income gain from the Mortgagor’s disposition of the collateral with the
      consent of the Lender shall be processed according to Item 8 (1), (2), (4)
      of this article.

	 	 
	8. 	
      The Lender can process the (insurance) indemnity,
      compensation, income from the disposition of the collaterals by any of the
      following methods: (1) repaying or repaying in advance the debts and
      relevant costs under this contract; (2) transferring it into a fixed
      deposit and pledge the deposit receipt for the debts under this contract;
      (3) recovering the value of the collaterals; (4) submitting it to a third
      party appointed by the Lender.

	 	 
	9. 	
      The Mortgagor shall notify the lender within 3 days in
      written form in the event of: the Mortgagor’s merger, division, joint
      operation, stock transformation or other means to change its operation and
      management modes or ownership structure; the Mortgagor’s applying for
      bankruptcy, reform, settlement, being dissolved, cancellation of its
      business license, being ordered to close down or any of the situations for
      dissolution; the collaterals’ being under seizure, detainment, supervision or other compulsory
measures; other circumstances which might affect the mortgage of the Lender.

Exhibit 10.7

ARTICLE 6 

Realization of the mortgage 

1. In the event of the following, the Lender is entitled to
exercise the right of mortgage, dispose the collaterals by auction, sell or
convert the collaterals into money by agreement to seek preferred payment. If
the income is not enough to repay all the secured debts under the contract, the
Lender has the right to choose to use the income to repay the principal,
interest, penalty interest or relevant fees: 

(1) The term for fulfilling the debts under this contract is
due, but the Lender is not fully been repaid. “The term for fulfilling the debts
under this Contract is due” includes the term of fulfilling the debts agreed in
the contract is due, or the circumstances where the Lender declares the term of
the debts is due in advance according to laws and regulations and the provisions
under this Contract. 

(2) The acceptance by the People’s Court of the Borrower’s or
the Mortgagor’s bankruptcy application or ruling of settlement. 

(3) The Borrower or the Mortgagor is dissolved, ordered to
close down, its business license is canceled or other reasons for dissolution
occur. 

(4) The death, declaration of missing or death of the Borrower
or the Mortgagor. 

(5) The collaterals are under seizure, detainment, supervision
or other compulsory measures. 

(6) The Borrower or the Mortgagor violates the provisions under
this contract. 

(7) Other circumstances which serious affect the realization of
the mortgagor. 

2. If mortgages are set on multiple properties for the debts
under this contract, the Lender has the right to exercise the right of mortgage
towards any one or several of these properties. The Lender has the right to
require the Mortgagor to bear its mortgage liability directly regardless of
whether the debt under this Contract has other securities (including but not
limited to guarantee, mortgage, pledge, etc.). 

3. If the Borrower also provided real security for the debts
under this Contract, and the Lender gives up the security interest or sequence
of the security interest or changes the security interest, the Mortgagor shall
continue to provide mortgage according to the provisions under this contract.
“The security interest” refers to the security interest formed by the Borrower’s
providing of real security for the debts under this contract. 

Exhibit 10.7

4. The security liability of the Mortgagor will not be exempted
or lessened by the Borrower’s merger, splitting, contracting, leasing, joint
operation, equity reconstruction, change in name or capital or other changes of
operation and management modes or ownership structure. 

ARTICLE 7

Liabilities of breach of Contract: 

Once the contract comes into effect, any party who breaches the
contract shall bear the corresponding legal consequences and compensate the
economic losses of the other party. 

	(1) 	
      Default liabilities of the Borrower

	 	 	 
		(i) 	
      If the Borrower doest not use the loan for the purpose as
      agreed in this Contract, additional interests will be collected by the
      Lender at a rate of 100 percent more than contract interest rate
      during the misappropriation or diversion of the loan, or at the rate of
      _____ on ____ (daily/monthly/yearly) basis. (In case that the legal
      interest rate is adjusted, the interest shall be calculated as stipulated
  by the People’s Bank of China);

	 	 	 
			
      If the Borrower fails to use the loan in the agreed
      purpose after the extended period, an additional 100% interest will be
      charged to the Borrower based on the interest rate of the extended period
      from the breach day.

	 	 	 
		(ii) 	
      If the Borrower fails to repay the principal of the loan
      as per the schedule, the Borrower shall pay interest at a rate of 50
      percent more than contract interest rate calculated from the day of
      delay of repayment of the principal of the loan, or at the rate of
      _____ on ____ (daily/monthly/yearly) basis. (In the case that the
      legal interest rate is adjusted, the interest thereon shall be calculated
    as stipulated by the People’s Bank of China);

	 	 	 
			
      If the Borrower fails to repay the principle and interest
      after the extended period, an additional 50% interest will be charged to
      the Borrower based on the interest rate of the extended period from the
      overdue day.

	 	 	 
		(iii) 	
      If the Borrower fails to pay the interest of the loan on
      schedule as set forth in this Contract, additional interest will be
      charged on any amount of such delayed interest at the penalty interest
      rate set forth in this Contract;

(2)        If the Borrower
and the Mortgagor breach the contract, the Lender is entitled to request them to
rectify within a limited period of time, provide corresponding guarantee,
exercise the right to mortgage in advance, terminate any amount of the Annex I
loan which has not been granted and collect the principal
accrued but not matured in advance; for the evasion of the Lender’s supervision,
default debts and other serious breach of contract, the Lender has the right to
carry out credit sanction, inform the relevant authorities, organizations and
financial counterparts, announce notice of collection on news media and use
other preservation measures. 

Exhibit 10.7

(3) If the Borrower and the Mortgagor have implemented the obligations
  under this Contract and have completed relevant loan guarantee procedures as
  required by the Lender, but the Lender fails to grant the loan to the Borrower
  as per the schedule and amount set forth in this Contract, the Lender shall
  pay damages in the amount calculated at the daily rate of ten-thousandths of
the defaulted amount multiplying the days of such delay; 

ARTICLE 8

The Mortgagor shall conduct the mortgage registration procedure
at relevant registration authorities within ___ work days after the signing date
of this contract. The certification of other rights of the collaterals, the
original of the mortgage registration documents and other certification of
rights shall be kept by the Lender. After all the debts under this contract have
been paid off, the Lender, together with the Mortgagor, shall handle the
mortgage deregistration procedure promptly.

ARTICLE 9

Loan Payment 

According to the regulations of the supervision departments,
the following agreements of this article do (do/do not) apply to this
contract: 

1. The loan payment under this contract shall be conducted
according to the following methods: 

(1) Entrusted payment by the Lender. This refers to the payment
of loan by the Lender to the trading partner of the Borrower whose usage of the
loan is in accordance with the agreed purpose under the contract, upon the
application of withdraw or the entrustment of payment of the Borrower. 

(2) Self payment by the Borrower. According to the Borrower’s
application, the Lender pays the loan to the account of the Borrower, and the
Borrower pays to counterparty of the transaction that is in accordance with the
agreed purpose under the contract by itself. 

Detailed payment method of loan shall be subject to the Loan
Payment Application Form approved by the Lender. 

2. If the payment method is self payment by the Borrower, the
Borrower shall report to the Lender on the payment of loan ______ (monthly /
quarterly); if the payment method is entrusted payment by the Lender, the Borrower shall
provide proof of usage of loan according to the requirement of the Lender, such
as business contracts. 

Exhibit 10.7

3. The Lender is entitled to supervise, manage and control the
payment of loan. If the payment method is entrusted payment by the Lender, the
Lender has the right to review whether the payment application and proof of
usage of loan fund provided by the Borrower are the same with actual usage of
loan fund according to the Contract. If the payment method is self payment by
the Borrower, the Lender has the right to check whether the payment of loan is
complied with the usage agreed herein by account analysis, voucher examination,
spot field investigation and so on. 

4. If the Borrower does not repay the loan in the way agreed
herein and circumvent entrusted payment by breaking up the whole into parts or
abnormal situations occurs in the usage of loan fund, the Lender has the right
to require the Borrower to revise such a situation within a definite time,
provide additional mortgage or suspend to pay the loan fund that has not
released yet, change the term and method of payment of loan fund or announce
early expiration of the Loan. 

ARTICLE 10

Miscellaneous 

1. The Lender has the right to provide the credit information
to the basic data base of individual credit information of the People’s Bank of
China, basic data base of corporate credit information and other data bases
established upon the approval of the administrative department of credit
investigation and has the right to inquire such data bases or relevant
institutions, departments and individual about the credit information of the
Borrower and the Mortgagor. The credit report acquired through such inquiry
should only be used for the purpose within the scope set by the Interim
Measures for the Administration of the Basic Data of Individual Credit
Information and the Interim Measures for the Administration of the Basic
Data of Corporate Credit Information issued by the People’s Bank of China.

2. Any changes of the contact information of the Borrower and
the Mortgagor occurs, the Lender shall be notified within 10 days in written
form. Otherwise, if the Lender sends notices according to the original contact
information, it shall be deemed that the Borrower and the Mortgagor have
received the notice. 

3. In the event that the Lender transfers a part of the debt,
it has the right to choose not to transfer the corresponding part of the right
of mortgage. 

4.
___________________________________________________________________

ARTICLE 11

Dispute Resolution 

Exhibit 10.7

Any dispute arising out of the execution of the Contract can be
settled by mutual negotiation, or resolved by the 1st of the following
methods: 1. Litigation. Governed by the people’s court in the place where the
domicile of the Lender is located. 

2. Arbitration. Submit to ________________________ (the full
name of arbitration institution) and arbitrate according to its arbitration
rule. 

During litigation or arbitration, provisions under this
contract which are not disputed shall still be fully executed. 

ARTICLE 12

This Contract shall come into force upon the execution and
sealing by the Borrower, the Lender and the Mortgagor.

ARTICLE 13

This Contract is made in triplicate and the Borrower,
the Mortgagor and the registration authority shall hold one respectively, the
Lender holds one copy.

ARTICLE 14

Statement 

1. The Borrower and the Mortgagor all clearly understand the
scope of business and the right of pledge of the Lender. 

2. The Borrower and the Mortgagor have read all provisions
under this contract, and the Lender has made corresponding explanation according
to the requirement of the Borrower and the Mortgagor. The Borrower and the
Mortgagor fully and comprehensively understand the meaning of the provisions
under this contract and corresponding legal consequences. 

3. The Borrower and the Mortgagor promise to have the capacity
for civil right and capacity for civil conduct to sign and execute this contract
independently or with legal authorization, otherwise, the Borrower and the
Mortgagor shall indemnify all damages of the Lender. 

Attachment: 

Registration Form of Mortgage Assets 

Written Decision on the Value of Mortgage 

Exhibit 10.7

  	 Borrower: Fujian Yada Food Co., Ltd 

      (福建亚达食品开发有限公司)  
	 Lender(Mortgagee): Songxi County
      Rural Credit Cooperative Union Business Office 松溪县农村信用合作联社营业部  

	(seal) 	(seal) 
	Legal representative: Zhan Youdai 	Legal representative: (seal) 
	(sign/seal) 	  
	Authorized Agent: 	Authorized Agent: 
	 	 
	
        Mortgagor: Fujian Yada Food Co., Ltd. (福建亚达食品开发有限公司)           (seal) 

        Legal representative: Zhan Youdai (sign/seal) 

        Authorized Agent:

 

Signing Date: August 17, 2011 

Location of Signing: Union Business OfficeAsia Green Agriculture Corporation: Exhibit 10.8 - Filed by newsfilecorp.com

Exhibit 10.8

DOMESTIC LETTER OF CREDIT OPENING CONTRACT

	Contract No.: 2011 Jiang Ping Song Guo Xin Kai Zi No. 1
  
	  
	Party A: Fujian Yada Group Co., Ltd 
 
	Registered Address: Shuinan Industrial Park, Songxi County
      
 
	Legal Representative (Responsible Person): Zhan Youdai
    
 
	Basic Opening Bank: Songxi Branch of China Construction
      Bank Corporation Ltd. 
 
	Number of Account Opened at Party B: 35001677607059558888
      
 
	Telephone: 0599-2332688 
 
	Fax: 0599-2332598 
 
	Zip Code: 353500 
 
	  
 
	Party B: Songxi Branch of China Construction Bank
      Corporation Ltd. 
 
	(individually, a “Party”, collective with Party A, the
      “Parties”) 
 
	Address: No. 121, Jiefang Street, Songyuan Town, Songxi
      Province 
 
	Responsible Person: Liu Liquan 
 
	Telephone: 0599-2324250670 
 
	Fax: 0599-2322644 
 
	Zip Code: 353500 

Exhibit 10.8

In order to enhance the cooperation between Party A and Party B
in the area of domestic Letter of Credit ( the “L/C”) business, upon Party A’
application, Party B agrees to open a L/C to Party A when certain conditions are
met. Pursuant to relative laws, regulations and rules, the Parties enter into
the Letter of Credit Opening Contract (this “Contract”) with mutual consent to
confirm the rights and obligations of each Party, and each Parties shall comply
to this Contract.

SECTION 1 AMOUNT OF L/C

According to Party A’ application, Party B opens a documentary
L/C with the amount of RMB (in words) Ten Million yuan and float
amount of RMB (in words) Zero yuan, which is irrevocable and
non-transferable.

SECTION 2 RIGHTS AND OBLIGATIONS OF THE PARTIES

1. When Party A apply to open a L/C with Party B, Party A shall
provide relevant trading documents and materials according to the requirements
of Party B and promises that such documents are authentic.

2. Settlement under the L/C applied by Parties A shall be in
RMB and shall be settled through Party B.

3. Party A agrees to deal with matters of the L/C according to
Measures for Settlement by Domestic Letter of Credit issued by People’s Bank of
China.

4. Party A guarantees to repay the debt owned to Party B. The
debt under this section includes, but not limit to trade accounts payable,
relevant handling charges, fees of electronic remittance and transfer,
incidental expenses, the deferred interest, penalty and compensation paid by
Party B for Party A, bank fees that the Beneficiary reject to afford and fees
for realizing the debt by Party B (including but not limited to fees of
litigation, arbitration, property preservation, traveling, execution,
evaluation, auction and so on.).

5. If the L/C need to be amended, Party A shall provide Party B
with Amendment Application of Letter of Credit and original written proof of the
Beneficiary’s consent on such 

Exhibit 10.8

amendment. Party A shall be responsible for the verity of the
original written proof of the Beneficiary’s consent and guarantee to pay for all
expenses arising from amendment of the L/C (including relevant bank fee that the
Beneficiary reject to pay).

6. Party B will review documents required by the L/C to check
whether those documents are in compliance with terms of the L/C after receiving
of such documents from the Negotiation Bank or Consignment Collection Bank. If
there is any discrepancy between/among those documents, those documents shall be
deemed not conform to terms of the L/C. Party has final and independent right to
decide and dispose whether the documents exist discrepancy and external
payment/deferred payment.

7. Party B is entitled to pay from the margin account or other
account opened by Party A at Party B, or any other account opened by Party A at
China Construction Bank when conduct an external payment. If Party A does not
pay off amount payable, Party B has the right to exercise its rights of guaranty
and any other measures to realize its claim.

8. Party A shall provide Party B with a disposal opinion by
written notice within the time limit specified in the L/C Documents Arrival
Notice. Even though Party A does not send a notice to Party B in time, Party B
has the right to decide to conduct an external payment/confirm deferred
payment/refusal of payment by itself, and Party A shall bear all liabilities and
results.

9. If Party A intends to request Party B to refuse
payment/refuse confirmation of deferred payment because of the discrepancy
between documents and the L/C, Party A should make a written request of refusal
of payment and reasons thereof with Party B by listing all the discrepancies
within the period as specified by the L/A Documents Arrival Notice. Meanwhile,
Party A shall return all materials sent by Party B. However, Party B has the
right to decide and dispose whether there is any discrepancy finally and
independently.

10. Party A promises that, if the L/C it applied to open is
Sight L/C and Party B deems that there is no discrepancy, Party A will pay off
all the payment and relevant fees to Party B within one banking working day
after receiving the L/C Documents Arrival Notice from Party B, except that Party
B has done external payment and has realized its credits according to Section
2.7.

Exhibit 10.8

     Party A promises that, if the L/C
it applied to open is a Deferred L/C and Party B deems that there is no
discrepancy, Party A will deposit adequate amount at the account opened at Party
B before the payment due date, and pay off all the payment and relevant fees to
Party B at the payment due date.

11. Party A shall inform Party B promptly if there is any
change of name, legal representative (person in charge), domicile, business
scope, and registered capital of Party A.

12. If there is any circumstance impacting the realization of
Party B’s claim, such as contracting, leasing, stock system reform, joint
operation, combination, merger, division, joint venture, application of
suspension, dissolution and bankruptcy, etc., Party A shall inform Party B by
written notice ten days in advance and ask for Party B’s consent, and Party A
shall put repayment and guarantee of liability under this Contract into practice
according to Party B’s requirement.

13. If there is any circumstance impacting the realization of
Party B’s credits, such as production suspension, close down, cancellation of
registration, revocation of business license, engagement of illegal activities
of legal representative or person in charge, involving in significant
litigation, seriously hardship on production and management, degeneration of
financial situation, etc., Party A shall inform Party B by written notice
promptly and shall put repayment and guarantee of liability under this Contract
into practice according to Party B’s requirement. 

14. Party A shall not sign any contract with third party that
will damage Party B’s interests under this Contract.

15. Party A shall be responsible for any damage of Party B
caused by any dispute or fraud of any underlying contract which this L/C is
based up on, and any third-party reason. 

16. Party B would not be responsible for consequence of any
delay or missing during the delivery of any telegrams, letters or documents,
neither the delay, incomplete or any other mistakes during the delivery of
telecommunications.

Exhibit 10.8

17. The L/C Opening Application and Amendment Application of
L/C, as well as other documents, shall be in Chinese. Party B would not be
responsible for any ambiguity caused by the part in English while such part
should be in Chinese.

18. Party A will be responsible for any consequence resulted
from illegibility or ambiguity of the L/C Opening Application, Amendment
Application of L/C and other documents.

19. In the event that the guarantor breach the security
contract or lose the ability to provide security, Party A shall immediately
provide new security recognized by Party B.

20. Party B bears no responsibility for the form, integrity,
accuracy, authenticity or legal effect of the documents. Party B bears no
responsibility for the condition of the relevant cargos, the credibility and
ability of the of the persons related to the transportation of the cargos in the
documents.

21. Party B bears no responsibility for all consequences of a
suspension of business caused by force majeure such as major flooding or
earthquake.

SECTION 3 SECURITY

The securities provided for the debts under the Contract shall
be in the form of the first and the second of the following:

1. Party A shall provide the deposit for issuing the L/C at a
rate of 30% of the total amount of the L/C plus a floating amount (if
applicable), which is RMB (in words) Three Million Yuan.

2. Guarantee. 

3. Mortgage. 

4. Pledge.

5. Other:    blank   .

SECTION 4 PREMISES OF PARTY B’S ISSUING L/C TO PARTY
A

Exhibit 10.8

Except that Party B gives up in total or in part, Party B has
the obligation to issue a L/C for Party A only when the following conditions are
met:

(1) Party A has completed all the relevant approvals,
registrations and other procedures required by laws under the Contract,
according to the relevant laws and regulations.

(2) The security contract and other means of security according
to the requirement of Party B have come into effect. 

(3) Party A did not breach any provision under this
Ccontract.

(4) Other conditions: blank .

SECTION 5 LIABILITIES FOR BREACHING CONTRACT

1. If Party A’s breach of contract causes Party B to advance
certain fees, Party B not only has the right to request Party A to repay all the
founds and fees under the L/C, but also can request Party A to pay an overdue
interest on the unpaid amount since the date of the payment of the advanced
fees. The overdue interest should be calculated on a daily basis, and the rate
thereof is Five of Ten Thousand per day, which should be settled
daily.

2. If Party A fails to fulfill all the payment under the
Contract according to the agreement in the Contract, Party B has recourse to one
or several of the following methods:

(1) Deduct directly from the account for deposit Party A set up
at Party B’s, or from other accounts Party B set up in China Construction Bank,
or other accounts due of Party A.

(2) Dispose the cargos and documents under the L/C.

(3) Dispose the collaterals or recover from the guarantor.

SECTION 6 THE REVISION, SUPPLEMENT AND CONSTRUAL OF THE
CONTRACT

1. Any revision or supplement of this Contract shall be agreed
upon by both Parties in a written form, and constitutes a part of this
Contract.

Exhibit 10.8

2. This Contract shall be construed according to its purpose,
the terms used, relevant provisions, trading usage and the principle of
good-faith in order to carry out its authentic meaning.

SECTION 7 DISPUTE RESOLUTION

All disputes arising out of or related to this Contract can be
resolved through negotiations, in the event that the parties failed to reach an
agreement through a negotiation, the dispute shall be resolved by the First
of the following methods:

(1) initiate a legal action in the People’s Court of the
domicile of Party B.

(2) submit the dispute to blank arbitration committee (the
place of arbitration is blank ) , and arbitrate according to the applicable
rules of the arbitration committee at the time of the submission.

During litigation or arbitration, other sections of this
Contract which are not under or related to the dispute shall still be
performed.

SECTION 8 THE EXECUTION OF CONTRACT

This Contract shall come into effect upon meeting the following
conditions:

(1) this Contract is signed and sealed by the legal
representative (the person responsible) or authorized agent of Party A;

(2) signed and sealed by the person responsible for the
authorized agent of Party B; or, if Party B authorizes one of its branch to sign
the contract, the Contract shall be signed and sealed with the official stamp of
the branch by the person responsible of the branch.

SECTION 9 MISCELLANEOUS

1. Party A states that it did not have any conduct which
violates the laws, regulations and rules on environmental protection, energy
saving and emission reduction, or pollution control as of the date of the
Contract, and promised to strictly follow such laws, regulations and rules
hereafter; if the above statement of Party A is false or is not performed, or
Party A has the risk of energy consumption or pollution, Party B has the right
to suspend the credit extension to Party A 

Exhibit 10.8

(including but not limited to: refuse to grant loans, provide
finance, issue L/G, L/C, or BA), or declare the principal and interest of its
credits (including but not limited to: loans, finances, advance payments that
already happened or could happen) due in advance, or other remedies in
accordance with the provisions under this Contract or laws.

2. A procedural fees of three out of a thousand of the total
of L/C amount plus floating amount will be charged for this domestic
negotiate L/C.

SECTION 10 This contract is made in
duplicate.

SECTION 11 STATEMENT

1. Party A understands the business scope and the scope of
authorization of Party B.

2. Party A has read all the sections under this Contract. Party
B has explained the sections of this documents according to the request of Party
A. Party A fully understands all the meanings and consequences of the
articles.

3. Party A is entitled to sign this Contract.

 

Party A (official seal):

Legal Representative (Person Responsible) or Authorized Agent
(signature):

April 27, 2011

 

Party B (official seal):

Legal Representative (Person Responsible) or Authorized Agent
(signature):

April 27, 2011

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