Document:

Contract
of mortgage of maximum amount

    

    Xin Ying
Gan Gong Ye- Gao Di

    Serial
No. : 20080009

     

    
      Mortgager: Nanchang
Branch, Industrial Bank Co., Ltd.

       

      Head:
_________________________

       

      Domicile:
______________________

       

      Post
Code: _____________________

       

      Telex: ____________________

       

      Contact
Number: ______________

       

      Fax: ____________________

       

       

      Mortgagee: Guixi
Yixin Copper Co., Ltd.

       

      Legal
Representative: ____________

       

      Domicile:
_____________________

       

      Post
Code: ____________________

       

      Telex: ____________________

       

      Contact
Number: _______________

       

      Fax: ____________________

       

       

       

      Signing
location:_________________________

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

    

    In order
to ensure the settlement of the debts successively arising within particular
period between the mortgager ( referred to as the “creditor”) and the debtor
Guixi Yixin Copper
Co., Ltd., the mortgagee is voluntary to provide guarantee to the
mortgager by its own property. Both parties hereof establish the contract after
negotiation in accordance with provisions of applicable laws.

    Article
1 Definition and interpretation

    Otherwise
indicated in the contract, or:

    (1)
“Claims between the mortgagee and the mortgager” include the claims (including
principal, interest, penalty rate, compound interest, penalty, damage indemnity
and expense for the mortgager’s realization of claims, etc.) formed relating to
the financing operations such as local and foreign currency borrowing, loan,
trade financing (application for letter of credit, trust receipt, packing loan,
export bill purchase, export collection bill purchased and import documentary
credit), acceptance, discount, bills repurchase and guarantee,
etc.)

    (2)
“Mortgage value period of validity” is an uninterrupted successive period fixed
expressly by both parities involving in the contract to specify the claim period
of mortgage and guarantee. During the proposed period, any claim arising,
irrespective of whether single liability of the creditor exceeds the period, the
mortgagee promises to bear the obligation of mortgage and guarantee for all debt
balances under the maximum mortgage principal limit through the guaranty
hereof.

    (3)
“Principal” means the debt principal caused when the debtor transacting the
business, which includes but not limited to the principal of local or foreign
currency borrowings, principal of trade financing, amount of bank acceptances,
amount of bill discount, advances arising under letter of credits and debt
principal led to guarantee obligation under the mortgager’s guarantee to the
debtor, etc.), but excludes guarantee deposit, deposit bills or national debts
provided by the creditor or third person to guarantee corresponding claim
principal and discount of bank acceptances or credit balance impawned
hereby.

    (4)
“Mortgage maximum principal limit” means the maximum principal amount fixed
expressly by both signing parties in order to clarify the scope of the claim
under mortgage and guarantee. Under the principal limit, regardless the times of
the credits appearing between the mortgager and the debtor, the mortgagee will
bear the guarantee obligation for overall credit balance hereof (including the
principal, interest, penalty rate, compound interest, penalty, damage indemnity
and expenses for the mortgager’s realization of claims, etc.).

    (5)
“Expenses for the mortgager’s realization of claim” includes but no limited to
lawsuit cost, arbitration expense, property preservation expense, execution
application cost, attorney fee, handling fee, announcement expense, evaluation
expense, identification expense, auction fee, realization expense, guaranty
disposal fee, transfer fee, communication fee and travel expense,
etc.

    (6) The
mortgager practices balance control to the credit of the debtor. The balance
means the debt balance sum of the debtor to the mortgager within the period of
validity of mortgage and guarantee, which comprises the two parts, namely, the
unexpired balance and the due unpaid balance as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1. The
unexpired balance means various to-be-paid debts formed when the debt
performance term is not expired yet.

    2. The
due unpaid balance means the entire debt balance unsettled by the debtor and the
mortgager when the debt performance term is expired.

    (7) “Main
contract” means the contract singed by the mortgager and the debtor, within the
period of validity of the mortgage rate, to detail amount of each debt, debt
performance period and other rights and obligates, and the credit and debt
contract of mortgage guarantee at maximum amount which existed before
establishing the maximum amount hypothec and carried forward upon the approval
of the mortgager.

    

    Article
2 The credit under mortgage guarantee

    The
credit under mortgage guarantee of the contract is all claims incurred, under
the mortgage maximum principal limit, between the mortgager and the debtor
within the Mortgage value period of validity.

    The
following credits, existing prior to the establishment of the maximum amount
hypothec, are approved by the mortgager to be carried forward into the credit
scope of mortgage guarantee at maximum specified in the contract.

    1.
Mortgage Nme:_______ Serial No.:__________ Type:__________ Currency:__________
Amount:____________ Interest Rate:__________ Period:_________

    2.
Mortgage Nme:_______ Serial No.:__________ Type:__________ Currency:__________
Amount:____________ Interest Rate:__________ Period:_________

    3.
Mortgage Nme:_______ Serial No.:__________ Type:__________ Currency:__________
Amount:____________ Interest Rate:__________ Period:_________

    

    Article
3 Mortgage value period of validity

    (1) The
mortgage value period of validity is from September 27, 2008 to Sep. 27,
2009.

    (2)
Otherwise indicated in the contract, the occurrence date of the debts guaranteed
by the guaranty shall be within the mortgage value period of validity. The date
of expiration of each debt is allowed to exceed the date of expiration of the
mortgage value period of validity, which means no matter unit debt of the debtor
exceeds the date of expiration of the mortgage value period of validity or not,
the mortgager promises to bear the obligation of mortgage and guarantee for all
debt balances under the maximum mortgage principal limit through the guaranty
hereof.

    

    Article
4 Mortgage maximum principal limit

    i. In the
contract, the mortgage maximum principal limit applies the currency of _RMB_, with an amount
(in word) of _Six
million yuan only.

    ii. In
the mortgage maximum principal limit, irrespective of the time and each amount
of the credits between the mortgager and the debtor, the obligation of mortgage
guarantee covers all credit balances under the mortgage maximum principal limit
(including the principal, interest, penalty rate, compound interest, penalty,
damage indemnity and expenses for the mortgager’s realization of claims,
etc.).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
5 Guaranty

    The
mortgager is voluntary to set the mortgage by land. See the Guaranty List (Annex) for details of the
guaranty. The efficacy of the guaranty covers the accessory items of the
guaranty from right, subrogation right, attachments, mixtures, processed items
and yields.

    During
the duration of the mortgage, the efficacy of the hypothec covers the yields
generated by the guaranty (including natural yields separated from the guaranty
and legal yields that can be received by mortgager upon the
guaranty.

    

    Article
6 Guarantee scope

    The
guarantee scope of mortgage covers all credit balances arising within the
mortgage valve period of validity and under the mortgage maximum principal limit
( including but not limited to the principal, interest, penalty rate, compound
interest, penalty, damage indemnity and expenses for the mortgager’s realization
of claims, etc.).

    The
credits of the mortgage guarantee at maximum amount which existed before
establishing the maximum amount hypothec and carried forward into the contract
upon the approval of the mortgagee.

    Regardless
of various guarantees (including mortgage, hypothecation and warranty) under the
items of the main contract, the mortgage shall guarantee for the debt above by
all guaranties hereof. In case that the mortgage registration authority requires
to make the guaranty guarantee partial debts of the main contract, the
requisition has no legal efficacy to the mortgagee and the mortgager and will
not be deemed as modification to the agreed scope of mortgage guarantee in the
contract.

    

    Article
7 Mortgage period

    (i) The
hypothec exists simultaneously with the debt under guarantee. The hypothec is
eliminated only after the s the debt is settled.

    (ii)
Under the requisition of the mortgage registration authority, the mortgage
period is registered from Sep. 27, 2008 to Sep 27, 2009. When the mortgage
period expires but the debtor does not clear the debt:

    
      	
              1.

            	
              The
      hypothec possessed by the mortgager according to laws in unchanged;
      and

            

    

    
      	
              2.

            	
              The
      mortgagee shall complete the registration procedures for continued
      mortgage.

            

    

    

    Article
8 Occupation of guaranty

    1. The
mortgaged property under the contract should be occupied and preserved by
mortgager, and the mortgagee agrees to receive the inspection on mortgaged
property from mortgager at any time.

    2. The
mortgagee should keep, maintain and protect the mortgaged property well, and
adopt effective measures to guarantee the safety and integrity of the mortgaged
property. If the mortgaged property is needed to be repaired, the mortgager
should immediately repair it, and bear the expense incurred.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3. During
the mortgage period, the mortgager is entitled to levy and occupy the yields of
guaranty.

    

    Article
9 Insurance of guaranty

    
      	
              1.

            	
              Before
      the guaranty is delivered to the mortgager by mortgagee, if the
      guaranty is required to be insured by mortgager, the guaranty should be in
      full insurance according to the insurance type required by
      mortgager.

            

    

    
      	
              2.

            	
              In
      the period of validity for the contract, mortgagee should keep the
      insurance continuity. If the mortgagee discontinues the insurance, the
      mortgager has the right to continue insurance, and the related expenses
      will be paid by mortgagee, and mortgagee will take full responsibility for
      all losses due to discontinued
insurance.

            

    

    
      	
              3.

            	
              Mortgager
      is the first beneficiary for the insurance of guaranty. If the insurance
      compensation is not enough for the settlement of the guaranty mortgage
      loan at maximum amount, the mortgager will have the right of recourse
      against the debtor.

            

    

    

    Article
10 Mortgage registration

    
      
        	
                1.

              	
                Within 1 working days
      after signing the contract, mortgagee should transact the mortgage
      registration procedures in related authority along with the contract in
      accordance with Property
      Law of the People's Republic of China and Guarantee Law of the People's
      Republic of China.

              

      

    

    
      
        	
                2.

              	
                After
      the registration procedure for mortgaged property is transacted by
      mortgagee, the related registration documents will be occupied by
      mortgager.

              

      

    

    
      
        	
                3.

              	
                The
      mortgagee will transact the mortgage registration at maximum amount for
      guaranty, which is effective for each debt in the maximum amount, and the
      mortgagee will not transact the mortgage registration procedure one by
      one, except as otherwise stipulated by two Parties or mortgage
      registration department.

              

      

    

    
      
        	
                4.

              	
                If
      the guaranty yield is needed to transact the mortgage registration
      procedure, the mortgagee should transact the mortgage registration
      procedure for the guaranty yield
well.

              

      

    

    

    Article
11 Expenses

    All the
expenses under the contract (including but not limited to mortgage registration
fee, contract survey’s fee, and the expenses for insurance, transportation,
storage, keeping, evaluation, maintenance and punishment of the mortgage
property,) will be assumed by mortgagee, except as otherwise stipulated by
contracting parties.

    

    Article
12 Realization of hypothec

    
      	
               
      

            	
              1.
      If one of the following circumstances occurs, the mortgager will be
      authorized to directly dispose the guaranty by the mortgagee (including
      but not limited to guaranty discount or direct auction, and guaranty
      sales), and the obtained money will be used to pay for the
      debts.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      (1) The
debtor does not pay off the mortgaged debts according to the main contract
(including the interest on principal for debts which is declared to come to end
because of the violation of debtor and mortgagee):

    

    (2) The
value of guaranty is reduced or will be reduced due to the factors like market
changes;

    (3) The
operation condition of the debtor becomes seriously worse, and the debtor loses
the business honor or has the possibility or probably looses the
performance ability, the mortgager is needed to collect the mortgaged debts
in advance;

    (4) Other
situations that the mortgager has right to dispose the guaranty in accordance
with the laws and regulations or the contract.

    
      
        	
                2.

              	
                If
      there are more than two mortgagees, the mortgager will have right to
      dispose any or each mortgagee’s guaranty when implementing the
      hypothec.

              

      

    

    

    
      Article
13 Statement and promise of the mortgagee

    

    
      	
               
      

            	
              1.

            	
              Mortgagee
      is a legal entity, legally registered and established and validly
      existing, and has legal guarantor qualification and is capable of settling
      debts, which is voluntary to assume and carry out the guarantee
      liability.

            

    

    
      	
               
      

            	
              2.

            	
              The
      mortgagee has been already approved by the governing units such as upper
      authority or company’s board of directors to sign the contract, and has
      obtained all necessary
authorizations.

            

    

    
      	
               
      

            	
              3.

            	
              The
      mortgagee signs and implements the contract, not violating any provision
      or agreement which has restraining force to the assets, not violating any
      guarantee agreement and other agreements signed by mortgagee and other
      people, and not violating any other document, agreement and promise
      contents which have restraining force to
  mortgagee.

            

    

    
      	
               
      

            	
              4.

            	
              The
      mortgagee will provide all exact, true, complete and valid documents,
      data, reports and vouchers to the mortgager, and will receive mortgager’s
      inspection and supervision on the business activities and financial
      conditions.

            

    

    
      	
               
      

            	
              5.

            	
              Leasing,
      mortgage, pledge or other right limitations are not settled for the
      guaranty, and the currency for guaranty is not limited by law and the
      agreement. The property, which is not in accordance with the law or the
      agreement having restraining force to the mortgagee, can not be circulated
      or is limited to be circulated.

            

    

    
      	
               
      

            	
              6.

            	
              Mortgagee
      has complete ownership for the guaranty. If the guaranty belongs to joint
      property, the joint owners have already agreed the mortgage at maximum
      amount under the contract in written, and the mortgagee shall take full
      legal responsibilities caused by the right disputes of the
      guaranty.

            

    

    
      	
               
      

            	
              7.

            	
              The
      mortgagee clearly knows the business scope and the limits to authorization
      of the debtor.

            

    

    
      	
               
      

            	
              8.

            	
              The
      mortgagee has already recognized all the items of the contract fully, and
      has paid more attention to the items in boldface of the contract. The
      mortgager has provided necessary interpretations to the articles of the
      contract on the require of mortgagee, and the mortgagee has already knew
      and fully understood the definitions of the contract items and the
      corresponding legal consequences, and is voluntary to provide guaranty
      mortgage for the main contract’s debtor and carry out the joint settlement
      liability in accordance with the
contract.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              9.   

            	
              If
      the event of causing the guaranty value reduced occurs, such as market
      change, and natural disaster etc, the mortgagee will immediately notify
      the mortgager in written within 3 days after the happening of the event.
      If the mortgagee does not notify the mortgager in time, the mortgager will
      have right to require the mortgagee to assume the responsibility of breach
      to contract.

            

    

    
      	
              10.

            	
              Mortgagee
      has the right to claim repayment from the debtor on the basis of not
      affecting the further debts repayment of the debtor after implementing the
      mortgage liability. However, if the debtor simultaneously faces repayment
      from mortgagee and any payment requirement from the mortgager under the
      contract, the mortgagee will agree the debtor to pay mortgager’s debts
      preferentially.

            

    

    
      	
              11.

            	
              If
      the debtor and the mortgagee has already signed or will sign the
      counter-guarantee agreement on the guarantee obligations under the
      contract, the counter-guarantee agreement should not damage any right
      enjoyed by the mortgager under the contract legally or
      actually.

            

    

    
      	
              12.

            	
              If
      the mortgaged property is lost or it’s value is obviously reduced, which
      is caused by natural disaster, accident, violation or other situations,
      the mortgagee should immediately adopt measures to prevent the loss from
      further enlargement, and in time notify the mortgager in
      written.

            

    

    
      	
              13.

            	
              Before
      completing the settlement of mortgaged debts, if the guaranty value is
      obviously reduced, the mortgagee will adopt effective measures to make up
      the guaranty value or provide new full-amount and effective mortgage
      according to mortgager’s
requirement.

            

    

    
      	
              14.

            	
              Before
      completing the settlement of mortgaged debts, the mortgagee shall ensure
      to keep, use and maintain the guaranty well, and will ensure not to
      dispose the guaranty in the manner of renting, lending, re-mortgaging,
      pledge, and sales without the agreement from the
  mortgager.

            

    

    
      	
              15.

            	
              When
      the main debtor does not carry out the debts legally, no matter whether
      the mortgager has other mortgages on the debts under the main contract
      (including but not limited to guarantee, mortgage, pledge, letter of
      guarantee, standby and any other assure means), the mortgagee will take
      full security liabilities.

            

    

    

    Article
14 Mortgager’s rights

    
      	
               
      

            	
              1.

            	
              Mortgager
      has right to require the mortgagee to provide the financial report,
      financial statement and other data reflecting the business circumstance
      and credit circumstance at any
time.

            

    

    
      	
               
      

            	
              2.

            	
              If
      there are more than two mortgagees, the mortgager has right to dispose any
      or each mortgagee’s guaranty when implementing the
    hypothec.

            

    

    
      	
               
      

            	
              3.

            	
              When
      the main debtor does not carry out the debts legally, no matter whether
      the mortgager has other mortgages on the debts under the main contract
      (including but not limited to guarantee, mortgage, pledge, letter of
      guarantee, standby and any other assure means), mortgager shall have right
      to directly require the mortgagee to take full security liabilities under
      the mortgage contract, and is not needed to firstly carry out other
      guarantee rights.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              4.

            	
              Before
      confirming the obligatory right mortgaged and guaranteed at maximum
      amount, the mortgagee has right to transfer partial or full obligatory
      rights and the corresponding hypothec without the prior consent of
      mortgagee.

            

    

    

    Article
15 Alteration of main contract under mortgage

    The
mortgagee confirms that the alteration of main contract agreed by the mortgager
and debtor is regarded as having obtained prior consent with mortgager without
notification of the mortgager, and the liability to guarantee for the mortgagee
shall not be reduced thereby.

    

    Article
16 Liability for breach of contract

    In case
that the mortgagee violates any term herein, the mortgager reserves the right to
adopt one or several measures listed below:

    
      	
              (1)

            	
              Request
      the mortgagee to correct contract violation in a limited
      period;

            

    

    
      	
              (2)

            	
              Request
      the mortgagee to provide new, sufficient and effective
      guarantee;

            

    

    
      	
              (3)

            	
              Withdraw
      partial or all guaranteed liabilities in advance, process the guaranty and
      settle the guaranteed liabilities with the
  proceeds;

            

    

    
      	
              (4)

            	
              Request
      the mortgagee to compensate for
losses;

            

    

    
      	
              (5)

            	
              Deduct
      payment from any account of the mortgagee and pay the mortgagee indemnity
      and other expenses due.

            

    

    

    Article
17 Independence of warrantor’s obligations

    
      	
              (1)

            	
              The
      mortgagee guarantees that the debtor performs all obligations stipulated
      in the main contract, and in case of any violation of terms of the main
      contract (including but not limited to the usage of liability fund by the
      debtor not in accordance with the term of the main contract), the
      performance of guarantee obligations under the contract conducted by the
      mortgagee shall not be affected.

            

    

    
      	
              (2)

            	
              The
      obligations of the mortgagee under the contract is independent and not be
      affected by relationship between any party of the contract and a third
      party, unless otherwise agreed
herein.

            

    

    

    Article
18 Governing, applicable law and dispute settlement

    
      	
              (1)

            	
              The
      laws of the People's Republic of China apply to the conclusion, validity,
      interpretation, performance and dispute settlement under the
      contract.

            

    

    
      	
              (2)

            	
              Any
      dispute or controversy incurring in the performance of the contract or
      relevant to the contract shall be settled through negotiation; in case
      that negotiation fails, it shall be settled according to 1
      method:

            

    

    
      
        	
                
                

              	
                o

              	
                File
      a lawsuit to the people’s court in the location of the
      mortgagee.

              

      

    

    
      
        	
                
                

              	
                o

              	
                Submit
      to            arbitration
      committee (arbitration place:            )
      for arbitration, which shall be conducted in accordance with the existing
      effective arbitration provisions. The arbitration ruling is final and
      binding on all parties.

              

      

    

    
      
        	
                
                

              	
                o

              	
                Other
      methods:

              

      

    

    

    Article
19 Notice

    
      	
              (1)

            	
              Any
      notice or communication under the mortgage contract shall be delivered to
      the other party in writing as the communication address recorded on the
      cover the contract.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              (2)

            	
              Any
      alteration of the communication address of any party of the contract shall
      be notified to the other party within 3 days after the date of alteration,
      otherwise the party shall undertake all legal
  consequences.

            

    

    
      	
              (3)

            	
              Any
      notice or communication delivered as the aforesaid address shall be
      regarded as being delivered on the following
  date:

            

    

    
      
        	
                
                

              	
                o

              	
                The
      fifth working day upon the delivery of registration in case of
      letter;

              

      

    

    
      
        	
                
                

              	
                o

              	
                The
      date on which the other party receives, confirms and feeds it back in case
      of telex;

              

      

    

    
      
        	
                
                

              	
                o

              	
                The
      date on which the addressee signs in in case of special-purpose delivery
      by a worker.

              

      

    

    (4) In
case that any alteration of the mortgagee name, legal representative, address
and other matters is not notified to the mortgager in writing, that the
mortgager delivers all notices or documents to the mortgagee per the materials
recorded in the contract shall be regarded having delivered.

    

    Article
20 Execution of the contract and miscellaneous

    
      	
              (1)

            	
              The
      contract shall go into effect upon signing or sealing of both
      parties.

            

    

    
      	
              (2)

            	
              In
      accordance with rules and regulations in China, in case of any mortgage in
      need of registration under the contract, the mortgagee shall handle
      legitimate registration procedure in conjunction with the mortgager
      immediately upon signing the
contract.

            

    

    
      	
              (3)

            	
              During
      the effectiveness of the contract, any tolerance, grace, preference or
      delayed execution of the rights and interests under the contract offered
      by the mortgager to the debtor and warrantor shall not harm, affect or
      limit all rights and interests enjoyed by the mortgager in accordance with
      relevant laws, stipulations of administrative rules and regulations, and
      terms of the contract, shall not be regarded as abandonment of any right
      and interest of the mortgager under the contract, and shall not affect any
      obligation of the mortgagee under the
contract.

            

    

    
      	
              (4)

            	
              Annexes
      herein are the integral part of the contract and shall have the same legal
      effect as the text of the contract.

            

    

    
      	
              (5)

            	
              “Working
      day” in the contract refers to the business day of the bank. During
      execution of the contract, in case of a certain withdrawal or payment date
      is a non-business day, it shall apply to the next business
      day.

            

    

    
      	
              (6)

            	
              The
      contract shall terminate upon liquidation of all liabilities guaranteed
      under the contract. Upon termination of the contract, the mortgagee shall
      return the ownership certificate of the guaranty in store to the
      mortgager.

            

    

    
      	
              (7)

            	
              During
      the period agreed in Article 3 (1) of the contract, any contract,
      agreement and other legal documents signed for the formation of
      debtor-creditor relationship of the mortgager and debtor, if not confirmed
      in relevant contract, agreement and other legal document for the usage of
      guaranty mortgage herein, shall be deemed as guaranty mortgage for the
      contract.

            

    

    
      	
              (8)

            	
              The
      contract original is made in three copies
      held by the mortgagee, mortgager and the registration department
      respectively with equal legal
force.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
21 Supplementary provision

    
      	
                Mortgager
      (official seal):

               

                Industrial
      Bank Co., Ltd. Nanchang Branch

               

                Head
      or authorized agent (seal): Zheng Zhiming

               

              
                Date:                              

                 

              

            
	
                Mortgagee
      (official seal): Guixi Yixin Copper Co., Ltd.

               

                Legal
      representative or authorized agent (seal): Hu Shihong

               

              
                Date:                              

                 

              

            
	
                Registration
      department (official seal):

               

                Head
      (seal):

               

              
                Date:                              

                 

              

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Annex 1
:

    Uner the
No.____________ Mortgage Contract at Maximum Amount:

    

    Guaranty
List (Real Estate)

     

    
      	
              Guaranty
      name

            	
              

                 
      Land

              

            
	
              Owner

            	
              

                 
      Guixi Yixin Copper Co., Ltd.

              

            
	
              User

            	 
      
	
              Type

            	 
      	
                Service
      life

            	 
      
	
              Domicile

            	 
      
	
              Metes
      and bounds

            	
                East

            	 
      	
                West

            	 
      
	
                South

            	 
      	
                North

            	 
      
	
              Floor
      area

              (square
      meter)

            	 
      67943	
                Building
      area

                (square
      meter)

            	
               

            
	
              Structure

            	 
      	
                Floor
      

                number

            	 
      	
                Level  

            	 
      
	
              Construction
      cost (RMB Yuan)

            	 
      	
                Present
      value 

                (RMB
      Yuan)

            	 
      
	
              Property
      

              certificate
      

              number

            	
            
	
              Issuing
      authority

            	  Gui
      Ta Xiang 2008
	
              Issuing
      date

            	 
      
	
              Insurance
      type

            	 
      

    

     

    Mortgagee
(seal): Guixi Yixin Copper Co., Ltd.

    

    Mortgager
(official seal): Industrial Bank Co., Ltd. Nanchang Branch

    

    Bank
operator (signature):

     

    
      	
              Filling date: 

            	 	 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Annex 2
:

    Uner the
No.____________ Mortgage Contract at Maximum Amount:

    

    Guaranty
List (Intangible Assests)

    
      
         

        
          	
                  Guaranty
      Name

                	 
      	
                  Unit

                	 
      	
                  Quantity

                	 
      	
                  Quality

                	 
      	
                  Domicile

                	 
      	
                  Owner

                	 
      	
                  User

                	 
      	
                  Service
      Life

                	 
      	
                  Cost
      (¥)

                	 
      	
                  Present
      Value (¥)

                	 
      	
                  Insurance

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

        

      

    

    

    Mortgagee  (seal):
Guixi Yixin Copper Co., Ltd.

    

    Mortgagor  (official
seal):

    

    Bank
operator (signature):

     

    
      	
              Filling date:Execution
Copy

    

     

    Second
Amendment To Amended and

    Restated
Credit Agreement and Waiver

     

    This
Second Amendment To Amended and Restated Credit Agreement and Waiver
(this “Amendment”) is
entered into as of November 4, 2008, by and among Apio,
Inc., a Delaware corporation (“Borrower”), and Wells
Fargo Bank, National Association (“Bank”).

     

    Recitals

     

    Whereas,
Borrower is currently indebted to Bank pursuant to the terms and conditions of
that certain Amended and Restated Credit Agreement, dated as of November 1,
2005, by and among Borrower and Bank (as amended, modified and/or supplement
from time to time, the “Credit
Agreement”).

     

    Whereas,
Landec Corporation, a California corporation (“Original Parent”) is a party
to that certain Continuing Guaranty, dated as of November 1, 2005, executed by
Original Parent (as “Guarantor”) in favor of Bank
(as amended, modified and/or supplement from time to time, the “Continuing Guaranty”), which
Continuing Guaranty was delivered to Bank in connection with the Credit
Agreement.

     

    Whereas,
Original Parent is a party to that certain Subordination Agreement, dated as of
September 1, 2004, by and among Borrower, Original Parent (as “Creditor”) and Bank (as
amended, modified and/or supplement from time to time, the “Subordination Agreement”),
which Subordination Agreement was delivered to Bank in connection with the
Credit Agreement.

     

    Whereas,
Original Parent is a party to that certain Licensor Agreement, dated as of
September 1, 2004, executed by Original Parent (as “Licensor”) in favor of Bank
(as amended, modified and/or supplement from time to time, the “Licensor Agreement”), which
Licensor Agreement was delivered to Bank in connection with the Credit
Agreement.

     

    Whereas,
Borrower has informed Bank that Original Parent intends to consummate a merger
(the “Landec Merger”)
with a newly formed Delaware corporation named Landec Corporation, a Delaware
corporation (“Parent”)
and, following the Landec Merger, Original Parent shall merge into Parent,
Parent shall be the surviving entity and Original Parent shall cease to
exist.

     

    Whereas,
Borrower has further informed Bank that following the Landec Merger, Parent
shall assume and perform all of Original Parent’s agreements, obligations and
duties to Bank, including, without limitation, all of Original Parent’s
obligations, duties, contracts and agreements under the Guaranty, the
Subordination Agreement and the Licensor Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Whereas,
since Original Parent shall cease to exist following the Landec Merger, an Event
of Default will arise under Section 7.1(r) of the Credit Agreement (the “Merger
Default”).

     

    Whereas,
Bank has agreed to waive the Merger Default and Bank and Borrower have agreed to
certain changes in the terms and conditions set forth in the Credit Agreement
and have agreed to amend the Credit Agreement to reflect such
changes.

     

    Now,
Therefore, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree that the Credit
Agreement shall be amended as follows:

     

    1. Definitions.  Each
capitalized term used and not otherwise defined herein has the meaning ascribed
thereto in the Credit Agreement.

     

    2. Waiver.  Subject to
the satisfaction of the conditions precedent set forth in Section 7 hereof,
Bank hereby agrees that the Merger Default, if any, under Section 7.1(r) of
the Credit Agreement directly resulting from the Landec Merger shall be deemed
waived.  The waiver set forth herein shall not extend to any matters
other than as set forth in this Section 2.

     

    3. Amendments to Credit
Agreement.   Subject to the satisfaction of the conditions
precedent set forth in Section 7 hereof Section 1.1 of the Credit Agreement
is hereby amended and follows:

     

    (a) the
definitions of “Guarantor(s)”, “Line of Credit Maturity
Date”, “Licensor
Agreement”, “Parent” and “Subordination Agreement” as
found in Section 1.1 of the Credit Agreement are hereby amended and
restated in their entirety as follows:

     

    “Guarantor(s)” means Original
Parent, Parent and any other Person now or hereafter guarantying the Obligations
or assuming any obligations under any Guaranty.

     

    “Licensor Agreement” means
that certain Licensor Agreement, dated as of September 1, 2004, executed by
Original Parent in favor of Bank, with respect to all licensing agreements
between Original Parent, Parent and Borrower.

     

    “Line of Credit Maturity
Date” means August 31, 2009.

     

    “Parent” means Landec
Corporation, a Delaware corporation.

     

    “Subordination Agreement”
means the Subordination Agreement of even date herewith, among Original Parent,
Bank and Borrower, and any other subordination agreement accepted by Bank from
time to time.

     

    (b) the
following definition of “Original Parent” is hereby
added to the Section 1.1 of the Credit Agreement in alphabetical
order:

     

    “Original Parent” means
Landec Corporation, a California corporation.

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

     

    Borrower
and Bank hereby confirm and agree that the references to “Parent” in the provisions of
Section 6.1 of the Credit Agreement regarding the financial statements to be
provided to Bank shall be deemed to mean “Original Parent” for the
period up to the Landec Merger and shall be deemed to mean the “Parent” for all periods
following the date of the Landec Merger. 

     

    (c)
Schedules 5.1, 5.2, 5.5, 5.11, 6.4 and 6.5 to the Credit Agreement are each
replaced in their entirety with the corresponding Schedule attached hereto as
Exhibit C and
all references in the Credit Agreement and the other Loan Documents to any such
Schedule shall be interpreted as a reference to the corresponding Schedule
hereto.

     

    4. Assumption.  Immediately
following the consummation of the Landec Merger, Borrower shall cause Parent to
execute and deliver to Bank the following: (i) the Assumption and Consent
Agreement attached hereto as Exhibit A whereby Parent confirms its agreement to
assume and be bound by all of Original Parent’s obligations and duties under
each of the Continuing Guaranty, Subordination Agreement and Licensor Agreement;
(ii) a Secretary’s Certificate from Parent attaching certified copies of (a) a
recent good standing certificate for Parent from the Secretary of State of
Delaware and (b) copies of Parent’s certificate of incorporation and by-laws;
(iii) an incumbency certificate for the officer executing the Assumption and
Consent Agreement; and (iv) a corporate resolution from Parent authorizing the
execution and delivery of the Assumption and Consent Agreement and the
transactions contemplated therein.  

     

    5. Survival of Terms;
Interpretation.  Except as specifically provided herein, all
terms and conditions of the Credit Agreement remain in full force and effect,
without waiver or modification.  This Amendment and the Credit
Agreement shall be read together, as one document.  The Recitals
hereto, including the terms defined therein, are incorporated herein by this
reference and acknowledged by Borrower to be true, correct and
accurate.

     

    6. Representations, Warranties and
Covenants.  Borrower hereby remakes all representations and
warranties contained in the Credit Agreement (except to the extent that such
representations and warranties relate solely to an earlier date and after giving
effect to the amendments to the Credit Agreement set forth in this Amendment)
and reaffirms all covenants set forth therein.  Borrower further
certifies that as of the date of this Amendment (after giving effect to the
waiver set forth in Section 2 hereof) there exists no Event of Default as
defined in the Credit Agreement, nor any condition, act or event which with the
giving of notice or the passage of time or both would constitute any such Event
of Default.

     

    7. Effective
Date.  This Amendment will become effective as of the date
first set forth above (the “Effective Date”), provided
that all of the following conditions precedent have been satisfied on or before
November 6, 2008:  (a) Bank shall have received a duly
executed original (or, if elected by Bank, an executed facsimile copy, to be
followed promptly by delivery of an executed original) of this Amendment,
executed by Borrower; (b) Bank shall have received a duly executed original
(or, if elected by Bank, an executed facsimile copy, to be followed promptly by
delivery of an executed original) of the Assumption and Consent Agreement in the
form attached hereto as Exhibit A, executed
by Parent in favor of Bank; (c) Bank shall have received a duly executed
original (or, if elected by Bank, an executed facsimile copy, to be followed
promptly by delivery of an executed original) of the Second Modification to Line
of Credit Note in the form attached hereto as Exhibit B, executed
by Borrower; (c) all of the representations and warranties contained herein
(or incorporated herein by reference) are true and correct as of the Effective
Date.

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

     

    8. Counterparts.  This
Amendment may be executed in two or more counterparts, each of which shall be
deemed to be an original but all of which together shall constitute one and the
same instrument.  Delivery of an executed counterpart of a signature
page to this Amendment by telefacsimile shall be as effective as delivery of a
manually executed counterpart of this Amendment.

     

    9. Severability.  If
any term or provision of this Amendment shall be deemed prohibited by or invalid
under any applicable law, such provision shall be invalidated without affecting
the remaining provisions of this Amendment or the Credit Agreement.

     

    10. Governing
Law.  This Amendment shall be governed by and construed in
accordance with the internal laws of the State of California.

     

    11. Non-Impairment.  Except
as expressly provided herein, nothing in this Amendment shall alter or affect
any provision, condition, or covenant contained in the Loan Documents or affect
or impair any rights, powers, or remedies of Bank, it being the intent of the
parties hereto that the provisions of the Loan Documents shall continue in full
force and effect except as expressly modified hereby.

     

    [Signatures
on Next Page]

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

    In
Witness Whereof, the parties hereto have caused this Amendment to be
executed as of the day and year first written above.

    

    
      
        
          
            
              	
                      Apio,
      Inc.

                    	 
      	
                      Wells
      Fargo Bank,

                    
	 
      	 
      	
                      National
      Association

                    
	 
      	 
      	 
      
	
                      By:

                    	 
      	 
      	
                      By:

                    	 
      
	 
      	
                      Kathleen
      Morgan

                    	 
      	 
      	
                      Tim
      Palmer

                    
	 
      	
                      Chief
      Financial Officer

                    	 
      	 
      	
                      Vice
      President

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