Document:

Asia Green Agriculture Corporation: Exhibit 10.5 - Filed by newsfilecorp.com

Exhibit 10.5

Guarantee Contract 
(Natural Person Guarantee)

 

 

Fujian Branch of China Construction Bank

Exhibit 10.5

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

Exhibit 10.5

the Main Contract, Party A shall
continue to be jointly and severally responsible as a guarantor for Party B
according to this Contract. 

	Article 6 	GUARANTORS’ LIABILITIES

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

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

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

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

Before total repayment of Party B’s
credits: 

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

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

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

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

	 	 	 
	 	VI. 	
      If the debtor has other loans from Party B other than the
      loans under the Main Contract,

Exhibit 10.5

Party B has the right to receive the
debtor’s RMB or other currency expenses in the account established in the system
of China Construction Bank to satisfy any expired debt. Party A’s guaranty
responsibilities are not reduced or exempted. 

	Article 7 	PARTY A’S OTHER OBLIGATIONS
  

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

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

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

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

	Article 8 	MISCELLANEOUS 

	 	I. 	
      Allocation and charging of payable expense

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

	 	 	 
	 	II. 	
      Use of Party A’s information

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

	 	 	 
	 	III. 	
      Collection by Public Notice

	 	 	 
	 		
      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 10.5

	 	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,

Exhibit 10.5

	 		
      Party B has the right to exercise the guaranty rights
      under this Contract in advance and adopt other remedial measures permitted
      by the contract or law.

	 	 	 
	 	IX. 	
      Conditions for the effectiveness of the
Contract

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

	Article 9 	PARTY A’S REPRESENTATIONS AND GUARANTEES
    

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

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

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

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

Exhibit 10.5

Particular Signing Provisions

This personal guarantee contract is 2011 Jian Ping Song Dai CZ
Zi Bao Zi No.7-7

	Article 10 	INFORMATION OF CONTRACTORS

Guarantor (Party A): Zhan Youdai, Zhou Liufeng

Certificate Name and No: ID number: 352128196909072016,
352128197111071529 

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

Post Code: 353500 

Tel: 2325600

 

Creditor: China Construction Bank Co., Ltd Songxi Branch 

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

Post Code: 353500 

Principal: Liu Liquan 

Fax: 0599-2322644 

Tel: 0599-2322670

To ensure the performance of the RMB Liquid Fund Loan
Contract with the number of (2011) Jian Ping Song CZ Zi No.7
(hereinafter referred to as the Main Contract) entered into by and between
Fujian Yada Group Co., Ltd (hereinafter referred to as Debtor) and
Party B, Party A agrees to assume the jointly guarantee liability for the debt
under this contract. The Parties hereby agree to enter into this contract based
on the mutual consent of consultation and comply with the terms hereof.

	Article 11 	AGREEMENTS TO ARTICLE

The contract guaranty scope includes
the following Type II: 

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

	 	 	 
	 	II. 	
      The principal under the main contract (currency: RMB) (In
      Words: RMB One Million and Four 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 10.5

	Article 12 	DISPUTE SETTLEMENT 

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

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

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

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

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

This filed is left blank. 

Party A (Official seal): 

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

Date: August 4, 2011

 

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

Responsible person or authorized agent (Signature): Liu Liquan

Date: August 4, 2011Asia Green Agriculture Corp: Exhibit 10.6 - Fied by newsfilecorp.com

Exhibit 10.6

DOMESTIC COMMERCIAL INVOICE DISCOUNT FINANCING 

APPLICATION
LETTER 

No.: YD-009 Guo Nei Shang Tie Zi 2011

To: Bank of China Limited Nanping Branch

According to the Domestic Commercial Invoice Discount Agreement
(No. YFR11-001 Nan Shang Tie Zi 2011) between Bank of China Limited Nanping
Branch (the “Bank”) and Fujian Yada Group Co., Ltd. (the “Company”), on the
basis of transferring all the following receivables to the Bank, the Company
applies for discount credits. 

ARTICLE 1. Relevant contents of receivable account of
conducting domestic commercial invoice discount: 

  Details of the Invoices for
      Discount   

	No. 	Invoice No. 	Date 	Amount 	Expiration 	Applied Credit 	Note 
	  	  	  	  	Date 	Amount 	  
	1 	00091660 	2011-7-2 	168,716.40 	2012-1-2 	151844.76 	  
	2 	00091661 	2011-7-2 	69,795.20 	2012-1-2 	62815.68 	  
	3 	00091662 	2011-7-2 	71,012.40 	2012-1-2 	63912.06 	  
	4 	00091663 	2011-7-4 	6,600.00 	2012-1-2 	5940.00 	  
	5 	00091664 	2011-7-4 	123,420.00 	2012-1-2 	111078.00 	  
	6 	00091665 	2011-7-4 	25,320.00 	2012-1-2 	22788.00 	  
	7 	00091666 	2011-7-7 	176,880.00 	2012-1-2 	159192.00 	  
	8 	00091667 	2011-7-7 	134,970.00 	2012-1-2 	121473.00 	  
	9 	00091668 	2011-7-7 	24,378.90 	2012-1-2 	21941.01 	  
	10 	00091669 	2011-7-11 	321,970.00 	2012-1-2 	289773.00 	  
	11 	00091670 	2011-7-11 	94,198.50 	2012-1-2 	84778.65 	  
	12 	00062735 	2011-7-11 	45,292.00 	2012-1-2 	40762.80 	  
	13 	00062736 	2011-7-11 	95,614.20 	2012-1-2 	86052.78 	  
	14 	00062737 	2011-7-11 	44,421.00 	2012-1-2 	399978.90 	  
	15 	00062751 	2011-7-14 	139,923.90 	2012-1-2 	125931.51 	  
	16 	00052756 	2011-7-18 	138,663.00 	2012-1-2 	124796.70 	  
	17 	00062757 	2011-7-18 	14,364.00 	2012-1-2 	12927.60 	  
	18 	00062758 	2011-7-18 	169,979.20 	2012-1-2 	152981.28 	  
	19 	00062759 	2011-7-18 	137,160.00 	2012-1-2 	123444.00 	  
	20 	00062760 	2011-7-18 	83,138.40 	2012-1-2 	74824.56 	  
	21 	00062761 	2011-7-18 	96,225.00 	2012-1-2 	86602.50 	  
	22 	00062764 	2011-7-20 	201,630.00 	2012-1-2 	181467.00 	  
	23 	00062765 	2011-7-20 	88,535.70 	2012-1-2 	79682.13 	  
	24 	00062766 	2011-7-20 	50,518.00 	2012-1-2 	45466.20 	  
	25 	00062771 	2011-7-21 	103,254.60 	2012-1-2 	92929.14 	  
	26 	00062772 	2011-7-21 	27,495.00 	2012-1-2 	24745.50 	  
	27 	00062779 	2011-7-22 	64,150.00 	2012-1-2 	57735.00 	  
	28 	00062780 	2011-7-22 	88,142.10 	2012-1-2 	79327.89 	  
	29 	00062781 	2011-7-22 	59,600.00 	2012-1-2 	53640.00 	  
	30 	00062782 	2011-7-22 	86,295.00 	2012-1-2 	77665.50 	  
	31 	00062783 	2011-7-22 	69,680.00 	2012-1-2 	62712.00 	  
	32 	00062784 	2011-7-22 	60,984.00 	2012-1-2 	54885.60 	  
	33 	00062792 	2011-7-25 	89,810.00 	2012-1-2 	80829.00 	 

	34 	00062793 	2011-7-25 	79,002.30 	2012-1-2 	71102.07 	 
	35 	00063415 	2011-7-28 	336,787.50 	2012-1-2 	303108.75 	 
	36 	00063416 	2011-7-28 	55,000.00 	2012-1-2 	49500.00 	 
	Total 	  	  	  	  	
    Y3,278,634.57

	 

Exhibit 10.6

ARTICLE 2. DISCOUNT AMOUNT

The amount of discount is (amount in words): RMB Three
Million Two Hundred Seventy Eight Thousand Six Hundred Thirty Four Yuan Five
Jiao and Seven Fen (amount in number): Y3,278,634.57 

ARTICLE 3. TERM OF DISCOUNT

Term of discount: 178 days after the first credit issued by the
Bank. 

ARTICLE 4. The Interest Rate of Discount Credit and
Interest Settlement 

1. Discount Interest Rate 

Fixed interest rate, an annual interest rate of 5.85%, the
contract’s interest rate is fixed within the term of discount credit. 

2. Interest Calculation 

The calculation of interest starts from the date when the Bank
pays the credit fund, based on the actual credit amount and actual days. 

Calculation Formula of the Interest: interest= principal *
actual days * daily rate 

The calculation base of the daily rate is 360 days, reduction
formula: daily rate= annual rate / 360. 

3. Interest Settlement 

The Company will settle the interest according to the
3rd of the following methods: 

(1) Quarterly settlement, the settlement date will be the
20th day of the last month of a quarter, and the interest payment
date will be the 21st day hereof. 

(2) Monthly settlement, the settlement date will be the
20th day of each month, and the 21st day is the interest
payment date. 

(3) Collecting together with the principal when the term
expires. 

(4) Collecting the interest in advance and settling the
interest when the term expires.

If the payment date of the last term of the credit principal is
not an interest payment date, then such a payment date is deemed as the interest
payment date, and the Company shall pay all the interest payable. 

4. Penalty Interest 

(1) In the event of an overdue in the payment of the credit
funds, a penalty interest rate as set forth in this article will be imposed on
the overdue amount starting from the date of the overdue, till all the principal
and the interest has been paid off. 

(2) The interest and penalty interest that cannot be paid off
in time by the Company shall be settled according to the Article 3 of this
section, and a double interest will be charged according to the penalty interest
rate set forth in this section. 

(3) Penalty interest rate 

Exhibit 10.6

A. The penalty interest rate of this product is a floating interest rate. For the financing with a fixed interest rate whose term is within (including) a year, the floating term of the penalty interest rate is the original credit term; for financing
with a fixed interest rate whose term exceeds a year, the floating term is one year. In a re-pricing month, the re-pricing day will correspond to the day when the financing term expires; if there’s no such a corresponding date in that month,
the re-pricing date shall be the last day of that month. 

B. Within the first floating term, the penalty interest rate for overdue credit is the agreed credit interest rate set forth in the first paragraph of Article 1 plus 50%. 

C. After each floating term, the benchmark interest rate of the next floating term shall be the loan interest at the corresponding level announced by the People’s Bank of China on the re-pricing date
plus /
minus (select one) 50%, the overdue
credit penalty interest rate shall be the benchmark interest rate plus 50%. 

The Bank reserves the recourse right to take all necessary actions for the credit principal and interests from the Company. 

It is restated herein that in the event that the above circumstances mentioned in the Domestic Commercial Invoice Discount Agreement occur so that the Bank fails to withdraw the relevant funds in time, the Bank has the right to initiatively withhold
funds from the Company’s bank account opened at the Bank (Account No. ) or take other recourse measures. 

Contact: 

Contact Number:

Fujian Yada Group Co., Ltd.

(Signature and seal) 

August 15th, 2011

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