Document:

f8k021111a1ex4vi_chinagri.htm

Exhibit 4.6

 

ESCROW AGREEMENT

 

This Escrow Agreement, dated as of July 22, 2010 (this “Agreement”), is entered into by and among China Agricorp, Inc., a Nevada corporation (the “Company”), Primary Capital, LLC (the “Placement Agent”), and Interwest Transfer Company, Inc. (the “Escrow Agent”).

WITNESSETH:

WHEREAS, the Company, through the Placement Agent, is offering 10% convertible promissory notes in the principal amount of up to $4,500,000 (the “Maximum Amount”) due one year after the date of the first closing of the sale thereof (the “Notes”) on a “best efforts” basis (the “Offering”);

WHEREAS, there is no minimum amount of subscriptions which must be accepted in order for the Company to accept any subscriptions and sell Notes, and the Maximum Amount may be increased to $4,950,000 by the mutual consent of the Company and the Placement Agent;

WHEREAS, the Company and the subscribers of the Notes (the “Subscribers”) desire to deposit the subscription monies with the Escrow Agent, to be held in escrow pursuant to the terms of this Agreement; and

WHEREAS, Escrow Agent is willing to hold such subscription monies in escrow in subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises herein contained and intending to be legally bound, the parties hereby agree as follows:

1.   Appointment of Interwest Transfer Company.

1.1           The Company hereby appoints the Escrow Agent as escrow agent in accordance with the terms and conditions set forth herein, and

 the Escrow Agent hereby accepts such appointment.

1.2           The parties hereto shall establish a non-interest bearing escrow account (the “Escrow Account”) with the Escrow Agent, bearing the designation “China Agricorp. Subscription Escrow Account.”

 

  

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2.   Delivery of the Escrowed Funds.

2.1           The Company will direct the Subscribers to deliver their subscription funds to the Escrow Agent by check or wire transfer.   All such checks shall be made payable to “Interwest Transfer Company, Inc.” and shall be delivered to the Escrow Agent at its address set forth on Exhibit A hereto.  All such wires shall be sent as follows:

Domestic Wires

Account Name:                        Interwest Transfer Co, Inc Escrow Agent F/B/O China Agricorp,Inc.

Bank:                                          ___________________

Account No.:                            ___________________

ABA No:                                   ___________________

 

International Wires

SWIFT No.:                               ___________________

Beneficiary Bank:                     ___________________

Account Name:                        ___________________

Account No.:                            ___________________

2.2           In addition to the remittance of its subscription funds, each Subscriber shall deliver to the Escrow Agent a written account of subscription in the form attached hereto as Exhibit B (the “Subscription Information”).

2.3           Any checks which are received by the Escrow Agent that are made payable to a party other than the Escrow Agent shall be returned directly to the Company together with any documents delivered therewith.  Each check received by the Escrow Agent from a Subscriber shall be deposited in the Escrow Account by noon of the business day next following receipt of such check; provided that such check shall not be deemed deposited in the Escrow Account until the Escrow Agent has received the Subscription Information from such Subscriber.  The Escrow Agent will notify the Company and the Placement Agent if any subscription check received by it is not preceded or accompanied by the Subscriber’s Subscription Information.  If the Escrow Agent does not receive the Subscription Information relating to an Subscriber prior to close of business on the fifth business day (days other than a Saturday or Sunday or other day on which the Escrow Agent is not open for business in the State of Utah) after notifying Company thereof, the Escrow Agent shall return the subscription funds to the Subscriber.

2.4           In the event a wire transfer is received by the Escrow Agent and the Escrow Agent has not received the Subscriber’s Subscription Information, the Escrow Agent shall notify the Company and the Placement Agent.  A Subscriber’s wire transfer of subscription funds to the Escrow Agent shall not be deemed deposited in the Escrow Account until the Escrow Agent has received the Subscription Information from such Subscriber.  If the Escrow Agent does not receive the Subscription Information relating to an Subscriber prior to close of business on the fifth business day (days other than a Saturday or Sunday or other day on which the Escrow Agent is not open for business in the State of Utah) after notifying Company thereof, the Escrow Agent shall return the subscription funds to the Subscriber.

 

  

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2.5           The Escrow Agent shall deposit all subscription funds received by it into the Escrow Account.  All subscription funds deposited in the Escrow Account which have cleared the banking system are referred to as the “Escrowed Funds.”

3.  Disbursement of Escrowed Funds.   The Escrow Agent will disburse the Escrowed Funds as follows:

 

3.1           Upon receipt by the Escrow Agent of joint written notice from the Company and the Placement Agent (the “Closing Notice”) stating that the Company has accepted subscriptions for Notes, which notice shall set forth the principal amount of the Notes for which subscriptions were so accepted (the “Accepted Amount”), the Escrow Agent shall deliver to the Company that portion of the Escrowed Funds equal to the Accepted Amount, less (a) 11% of such Accepted Amount, which shall be delivered to the Placement Agent or its designees in payment of its fees and non-accountable expense allowance, (b) 7.5% of such Accepted Amount, which will held by the Escrow Agent in a subaccount to the escrow account (the “Subaccount”) pursuant to this Agreement and used to pay the first three scheduled quarterly interest payments on such Notes, and (c) 10% of such Accepted Amount, which will held by the Escrow Agent in the Subaccount pursuant to this Agreement and used to pay certain expenses of the Company as determined by the Placement Agent.  It is contemplated that subscriptions may be accepted on more than on occasion during the Offering, and that the Company and the Placement Agent may issue more than one Closing Notice to the Escrow Agent pursuant to this Section 3.1, but in no event shall (i) the aggregate of all Accepted Amounts exceed the Maximum Amount, or (ii) the aggregate amount retained pursuant to Section 3.1(c) exceed $450,000.

 

3.2           The Escrow Agent shall remit monies from the Subaccount for the payment of interest on the Notes upon the receipt of written instructions from the Placement Agent in substantially the form of Exhibit C hereto.   In addition, the Escrow Agent shall remit monies from the Subaccount for the payment of certain other expenses of the Company upon the receipt of written instructions from the Placement Agent in substantially the form of Exhibit D hereto.

3.3           If subscriptions are received in excess of the Maximum Amount, then the Escrow Agent shall notify the Company and the Placement Agent thereof, and shall remit to those subscribers whose subscriptions are not being accepted that portion of their subscription funds that were rejected, without interest thereon or deduction therefrom, as set forth in written instructions delivered to the Escrow Agent by the Placement Agent.

 

3.4           In the event this Agreement, the Escrowed Funds or the Escrow Agent (in its role as escrow agent hereunder) becomes the subject of litigation, or if the Escrow Agent shall desire to do so for any other reason, the Company authorizes the Escrow Agent, at its option, to deposit the Escrowed Funds with the clerk of the court in which the litigation is pending, or a court of competent jurisdiction if no litigation is pending, and thereupon the Escrow Agent shall be fully relieved and discharged of any further responsibility with regard thereto.  The Company also authorizes the Escrow Agent, if it receives conflicting claims to the Escrowed Funds, is threatened with litigation in connection with its role as escrow agent, or if the Escrow Agent shall desire to do so for any other reason, to interplead all interested parties in any court of competent jurisdiction and to deposit the Escrowed Funds with the clerk of that court and thereupon the Escrow Agent shall be fully relieved and discharged of any further responsibility hereunder to the parties from which they were received.

 

  

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3.5           In the event that the Escrow Agent does not receive a Closing Notice with respect to Escrowed Funds (i.e., Escrowed Funds exceeding the aggregate of all Accepted Amounts) by July 31, 2010 (or such later date as shall be agreed to in writing by all of the parties to this Agreement), then all such Escrowed Funds shall be returned to the parties from which they were received, without interest thereon or deduction therefrom.

4.           Exculpation and Indemnification of Escrow Agent

4.1           The Escrow Agent shall have no duties or responsibilities other than those expressly set forth herein.  The Escrow Agent shall have no duty to enforce any obligation of any person to make any payment or delivery, or to direct or cause any such payment or delivery to be made, or to enforce any obligation of any person to perform any other act.  The Escrow Agent shall be under no liability to the other parties hereto or anyone else, by reason of any failure, on the part of any party hereto or any maker, guarantor, endorser or other signatory of a document or any other person, to perform such person’s obligations under any such document.  Except for amendments to this Agreement referenced below, and except for written instructions given to the Escrow Agent relating to the Escrowed Funds as provided herein, the Escrow Agent shall not be obligated to recognize any agreement between or among the Placement Agent, the Company, or any Subscriber, notwithstanding that references thereto may be made herein and whether or not it has knowledge thereof.

4.2           The  Escrow Agent shall not be liable to the Company, any Subscriber or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith and acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report, or other paper or document, which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons.  The  Escrow Agent shall not be bound by any of the terms thereof, unless evidenced by written notice delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall give its prior written consent thereto.

 

  

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4.3           The  Escrow Agent shall not be responsible for the sufficiency or accuracy of the form, or of the execution, validity, value or genuineness of, any document or property received, held or delivered to it hereunder, or of any signature or endorsement thereon, or for any lack of endorsement thereon, or for any description therein; nor shall the Escrow Agent be responsible or liable to the Company, any Subscriber, the Placement Agent or to anyone else in any respect on account of the identity, authority or rights, of the person executing or delivering or purporting to execute or deliver any document or property or this Agreement. The Escrow Agent shall have no responsibility with respect to the use or application of the Escrowed Funds pursuant to the provisions hereof.

4.4           The Escrow Agent shall have the right to assume, in the absence of written notice to the contrary from the proper person or persons, that a fact or an event, by reason of which an action would or might be taken by the Escrow Agent, does not exist or has not occurred, without incurring liability to the  Company, any Subscriber, the Placement Agent or to anyone else for any action taken or omitted to be taken or omitted, in good faith and in the exercise of its own best judgment, in reliance upon such assumption.

4.5           To the extent that the Escrow Agent becomes liable for the payment of taxes, including withholding taxes, in respect of income derived from the investment of the Escrowed Funds (other than taxes with respect to interest income retained by the Escrow Agent hereunder), or any payment made hereunder, the Escrow Agent may pay such taxes; and the Escrow Agent may withhold from any payment of the Escrowed Funds such amount as the Escrow Agent estimates to be sufficient to provide for the payment of such taxes not yet paid, and may use the sum withheld for that purpose.  The Escrow Agent shall be indemnified and held harmless against any liability for taxes and for any penalties in respect of taxes, on such investment income or payments in the manner provided in Section 4.6

4.6           The  Escrow Agent will be indemnified and held harmless by the  Company from and against all expenses, including all counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or proceedings involving any claim, or in connection with any claim or demand, which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, except for claims relating to gross negligence by Escrow Agent or breach of this Agreement by the Escrow Agent, or the monies or other property held by it hereunder.  Promptly after the receipt of the Escrow Agent of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent shall, if a claim in respect thereof is to be made against the Company, notify the Company thereof in writing, but the failure by the Escrow Agent to give such notice shall not relieve the Company from any liability which it may have to the Escrow Agent hereunder.  Notwithstanding any obligation to make payments and deliveries hereunder, the Escrow Agent may retain and hold for such time as it deems necessary such amount of monies or property as it shall, from time to time, in its sole discretion, seem sufficient to indemnify itself for any such loss or expense and for any amounts due it under Section 7.

 

  

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4.7           In the event that the Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions, claims or demands which, in its opinion, are in conflict with any of the provisions of this Agreement, it shall be entitled to refrain from taking any action, other than to keep safe the subscriptions and subscription payments received, until the questions regarding its duties and rights are clarified to its satisfaction or it shall be directed otherwise by a final judgment of a court of competent jurisdiction.

 

 

4.8           No provision of this Agreement shall require the Escrow Agent to risk or advance its own funds or otherwise incur any financial liability or potential financial liability in the performance of its duties or the exercise of its rights under this Agreement.

4.9           Notwithstanding any other provision of this Agreement, the Escrow Agent shall not be obligated to perform any obligation hereunder and shall not incur any liability for the nonperformance or breach of any obligation hereunder to the extent that the Escrow Agent is delayed in performing, unable to perform or breaches such obligation because of acts of God, war, terrorism, fire, floods, strikes, electrical outages, equipment or transmission failures, or other causes reasonably beyond its control.

4.10           IN NO EVENT SHALL THE ESCROW AGENT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL LOSSES OR DAMAGES OF ANY KIND WHATSOEVER (INCLUDING BUT NOT LIMITED TO LOST PROFITS), EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE FORM OF ACTION.

4.11           For purposes hereof, the term “expense or loss” shall include all amounts paid or payable to satisfy any claim, demand or liability, or in settlement of any claim, demand, action, suit or proceeding settled with the express written consent of the Escrow Agent, and all costs and expenses, including, but not limited to, counsel fees and disbursements, paid or incurred in investigating or defending against any such claim, demand, action, suit or proceeding.

5.           Termination of Agreement and Resignation of Escrow Agent

5.1           This Agreement shall terminate upon disbursement of all of the Escrowed Funds, provided that the rights of the Escrow Agent and the obligations of the  Company under Section 4 shall survive the termination hereof.

 

  

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5.2           The  Escrow Agent may resign at any time and be discharged from its duties as Escrow Agent hereunder by giving the Company at least five (5) business days written notice thereof (the “Notice Period”).  As soon as practicable after its resignation, the Escrow Agent shall, if it receives notice from the Company within the Notice Period, turn over to a successor escrow agent jointly appointed by the Company and the Placement all Escrowed Funds (less such amount as the Escrow Agent is entitled to retain pursuant to Section 7) upon presentation of the document appointing the new escrow agent and its acceptance thereof.  If no new agent is so appointed within the Notice Period, the Escrow Agent shall deposit the Escrowed Funds with the clerk of the court of competent jurisdiction.

6.           Form of Payments by Escrow Agent

6.1           Any payments of the Escrowed Funds by the Escrow Agent pursuant to the terms of this Agreement shall be made by wire transfer unless directed to be made by check by the party or parties authorized hereunder to give instructions to the Escrow Agent with respect to such remittance.

6.2           All amounts referred to herein are expressed in United States dollars and all payments by the Escrow Agent shall be made in such dollars.

7.           Compensation.  The Escrow Agent shall be entitled to the following compensation from the Company in full consideration for its services hereunder:

7.1           The Company shall pay a $1,000 documentation fee to the Escrow Agent concurrently with the delivery of the first Closing Notice.

7.2 The Company shall pay a $150 closing fee to the Escrow Agent concurrently with the delivery of each Closing Notice.

7.3           The Company hereby agrees that Escrow Agent shall retain 100% of the interest earned during the time the Escrowed Funds are held in escrow hereunder.

8.           Notices.   Any notice herein required or permitted to be given shall be in writing and shall be delivered personally, by nationally-recognized overnight courier or by facsimile machine confirmed telecopy to the applicable addresses set forth below (or to such other address as a party may designate by written notice in accordance with the provisions of this Section 8), and shall be deemed given and effective on the earliest of (a) the date of transmission if such notice or communication is delivered by fax prior to 5:30 p.m. (Eastern Time) on a business day, (b) the next business day after the date of transmission if such notice or communication is delivered via fax on a day that is not a business day or later than 5:30 p.m. (Eastern Time) on a business day, (c) the first  business day after the date of mailing if sent by U.S. nationally recognized overnight courier service for next business day delivery, or (d) upon actual receipt by the party to whom such notice is required to be given.  The addresses for such communications shall be as set forth in Exhibit A hereto.

 

  

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9.           Further Assurances      From time to time on and after the date hereof, the  Company shall deliver or cause to be delivered to the Escrow Agent such further documents and instruments and shall do and cause to be done such further acts as the Escrow Agent shall reasonably request (it being understood that the Escrow Agent shall have no obligation to make any such request) to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

10.           Consent to Service of Process        The Company hereby irrevocably consents to the jurisdiction of the courts of the State of Utah and of any Federal court located in such state in connection with any action, suit or proceedings arising out of or relating to this Agreement or any action taken or omitted hereunder, and waives personal service of any summons, complaint or other process and agrees that the service thereof may be made in the manner set forth in section 8 above.

11.           Miscellaneous

11.1           This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing such instrument to be drafted.  The  terms “hereby,” “hereof,” “hereunder,” and any similar terms, as used in this Agreement, refer to the Agreement in its entirety and not only to the particular portion of this Agreement where the term is used.  The word “person” shall mean any natural person, partnership, corporation, government and any other form of business of legal entity.  All words or terms used in this Agreement, regardless of the number or gender in which they were used, shall be deemed to include any other number and any other gender as the context may require.  This Agreement shall not be admissible in evidence to construe the provisions of any prior agreement.

11.2           This Agreement and the rights and obligations hereunder of the Company may not be assigned.  This Agreement and the rights and obligations hereunder of the Escrow Agent and the Placement Agent may be assigned by the Escrow Agent or the Placement Agent, respectively.  This Agreement shall be binding upon and inure to the benefit of each party’s respective successors and permitted assigns. No other person shall acquire or have any rights under or by virtue of this Agreement. This Agreement may not be changed orally or modified, amended or supplemented without an express written agreement executed by the parties hereto.  This Agreement is intended to be for the sole benefit of the parties hereto and their respective successors and permitted assigns, and none of the provisions of this Agreement are intended to be, nor shall they be construed to be, for the benefit of any third person.

 

  

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11.3           This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Utah. The representations and warranties contained in this Agreement shall survive the execution and delivery hereof and any investigations made by any party.  The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect any of the terms thereof.

12.           Execution of Counterparts          This Agreement may be executed in a number of counterparts, by facsimile, each of which shall be deemed to be an original as of those whose signature appears thereon, and all of which shall together constitute one and the same instrument.  This Agreement shall become binding when one or more of the counterparts hereof, individually or taken together, are signed by all the parties.

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the day and year first above written.

INTERWEST TRANSFER COMPANY, INC.

By: /s/ Kurtis Hughes______________________

Kurtis Hughes, Vice-President

CHINA AGRICORP, INC.

By: /s/ Hexi Feng_________________________

Hexi Feng, President and Chief Executive Officer

PRIMARY CAPITAL, LLC

By: /s/ John Leo__________________________

John Leo, President

  

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EXHIBIT A

 

PARTIES TO AGREEMENT

China Agricorp, Inc.

[address]

Facsimile:  _______________

Interwest Transfer Company, Inc.

1981 Murray Holladay Road, Suite 100

Salt Lake City, UT 84117

Facsimile:

Primary Capital, LLC

80 Wall Street, 5th Floor

New York, NY 10005

Facsimile:

  

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EXHIBIT B

SUBSCRIPTION INFORMATION

 

 

Name of Subscriber                 ________________________________

Address of Subscriber            ________________________________

                                                    ________________________________

                                                                    ________________________________

Amount of Securities

Subscribed                                ________________________________

US Dollar Amount

Submitted                                  ________________________________

Taxpayer ID Number/

Social Security Number           ________________________________

  

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EXHIBIT C

INTEREST RELEASE INSTRUCTIONS

Pursuant to that certain Escrow Agreement (the ”Escrow Agreement”), dated as of July [22], 2010, by and among China Agricorp, Inc., Primary Capital, LLC (the “Placement Agent”), and Interwest Transfer Company, Inc. (the “Escrow Agent”), the Placement Agent hereby instructs the Escrow Agent to release funds from the Subaccount (as defined in the Escrow Agreement) for the payment of interest on the Notes in the amount and manner described below.

Please disburse to:                   ________________________________

Amount to disburse:               ________________________________

Form of distribution:                ________________________________

Payee:

                               Name:                         ________________________________

                              Address:                     ________________________________

                              City/State:                   ________________________________ 

                              Zip:                               ________________________________ 

                                        Bank:                            ________________________________

                                                          ________________________________

Statement of event or condition which calls for this request for disbursement:

_______________________________________________________________

_______________________________________________________________

Disbursement approved by:

Primary Capital, LLC

 

_______________________________  

_______________________________  

Name:                                                                                     Date

Title:

  

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EXHIBIT D

EXPENSE RELEASE INSTRUCTIONS

Pursuant to that certain Escrow Agreement (the ”Escrow Agreement”), dated as of July [22], 2010, by and among China Agricorp, Inc., Primary Capital, LLC (the “Placement Agent”), and Interwest Transfer Company, Inc. (the “Escrow Agent”), the Placement Agent hereby instructs the Escrow Agent to release funds from the Subaccount (as defined in the Escrow Agreement) for the payment of certain expenses in the amount and manner described below.

Please disburse to:                  ________________________________

Amount to disburse:               ________________________________

Form of distribution:                ________________________________

Payee:

                              Name:                           ________________________________

                              Address:                     ________________________________

                              City/State:                   ________________________________

                              Zip:                               ________________________________

                              Bank:                            ________________________________

                                                          ________________________________

Statement of event or condition which calls for this request for disbursement:

_______________________________________________________________

_______________________________________________________________

Disbursement approved by:

Primary Capital, LLC

_______________________________ 

_______________________________ 

Name:                                                                            Date

Title:

  

13f8k021111a1ex10i_chinagri.htm

Exhibit 10.1

 

STOCK PLEDGE AGREEMENT

 

THIS STOCK PLEDGE AGREEMENT (this "Agreement") is made and entered into effective as of the ___th day of ______, 2010, by and among China Agricorp, Inc., a Nevada corporation (the “Company”), the stockholders of the Company listed on Schedule 1 attached hereto (each, a “Pledgor” and collectively, the “Pledgors”), the investors listed on Schedule 2 attached hereto (collectively, the “Secured Parties”), and Robert Brantl, Esq. as collateral agent for the Secured Parties (“Collateral Agent”).

BACKGROUND

 

A.           Each Secured Party entered into a Subscription Agreement (with respect to each such Secured Party, the “Subscription Agreement”) with the Company pursuant to which the Secured Party subscribed to purchase from the Company a 10% convertible promissory note (each, a “Note”).

B.           Each Pledgor owns the number of shares of the Company’s common stock (the “Common Stock”) forth opposite the name of such Pledgor on Schedule 2 (collectively, the “Shares”), and will derive direct and indirect economic benefits from the transactions contemplated under each Subscription Agreement.

C.           As condition to each Secured Party’s obligation to purchase a Note pursuant to its Subscription Agreement, and in consideration of the benefits which will accrue to the Pledgors as a result thereof, each Pledgor has guaranteed the Company’s obligations under the Notes pursuant to a Non-Recourse Guaranty, dated the date hereof, in favor of the Secured Parties (the “Guaranty”).

D.    In order to secure the timely payment and performance of all of the Pledgor’s obligations and liabilities under the Guaranty, including, without limitation, all fees, costs, and expenses in connection with any collection actions related thereto (collectively, the “Obligations”), each of the Pledgors desires to grant the Secured Parties a perfected and continuing security interest in such Pledgor’s Shares.

 

 

E.           The continuing Security Interest, as hereinafter defined, in the Shares shall be evidenced by this Agreement.  With respect to the Company and each Secured Party, capitalized terms used but not defined in this Agreement have the meanings set forth in such Secured Party’s Subscription Agreement.

 

  

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                  F.           The Secured Parties have appointed the Collateral Agent as representative of and agent for the Secured Parties for purposes of possession of the Shares pledged hereunder.

 

NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

AGREEMENT

1. Recitals.  The parties hereto agree that the aforementioned  recitals, together with the definitions set forth therein and in the preamble to this Agreement, are hereby incorporated into this Agreement by this reference.

 

2. Additional Shares.  All references to the Shares shall be appropriately adjusted to reflect any stock split, distribution, recapitalization or other similar arrangement affecting the Shares after the date of this Agreement.  In the event that a Pledgor receives, or becomes entitled to, any property (whether real or personal, tangible or intangible) in connection with, related to, or in exchange for his Shares in any way, then any such property shall be considered Shares under this Agreement.  Each Pledgor covenants that he shall promptly deliver to the Collateral Agent any such additional Shares received prior to the Termination Date (defined herein).  The Company agrees that, if prior to the Termination Date, it distributes any shares, dividends, or other property to its shareholders, it will deliver any such property due to a Pledgor to the Collateral Agent instead.

 

3. Creation of Security Interest.  Each Pledgor hereby affirms, acknowledges, ratifies, grants and assigns in favor of the Secured Parties a first, prior and sole lien and security interest (the "Security Interest") in such Pledgor’s Shares, in all accessions, substitutions, replacements and proceeds thereof, including, without limitation, whether by law, merger, exchange or otherwise, and in all certificates or other instruments evidencing the same, to secure the Obligations.

 

4.  Perfection of Security Interest.  The Security Interest in the Shares shall be perfected by the Secured Parties, or the Collateral Agent, as agent for the Secured Parties, taking possession of the certificates representing the Shares (the “Certificates”).  Simultaneously with the execution of this Agreement, each Pledgor is delivering to the Collateral Agent the Certificates evidencing his Shares, accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Secured Parties.

 

  

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5. Proxy.  Each Pledgor hereby irrevocably constitutes and appoints the Collateral Agent, as agent for the Secured Parties, whether or not the Shares have been transferred into the name of the Secured Parties, as such Pledgor's proxy and attorney-in-fact with respect to his Shares, with full power to (a) attend meetings of the holders of the Common Stock held after the date of this Agreement, and to vote the Shares at those meetings in such manner as such attorney-in-fact shall, in his sole and absolute discretion, deem appropriate, (b) consent or withhold consent, in the sole and absolute discretion of such attorney-in-fact, to any action for which consent of the shareholders of the Company is or may be necessary or appropriate, and (c) do all things and exercise all rights, powers, privileges  and remedies to which an owner of the Shares would be entitled, giving and granting unto such attorney-in-fact full power of substitution and revocation.  Notwithstanding the provisions contained in the preceding sentence (hereinafter referred to as the "Proxy Rights"), neither the Collateral Agent, nor the Secured Parties, nor any of them, shall have the right to perform, exercise, take or assert any of the Proxy Rights unless and until there shall have occurred an Event of Default (as that term is defined below).  Except upon the occurrence and during the continuation of an Event of Default, each Pledgor shall be entitled to exercise any and all voting and/or consensual rights and powers accruing to an owner of the Shares or any part thereof for any purpose.  Each Pledgor hereby revokes all proxies heretofore given and agrees not to grant any proxy to any person or persons with respect to his Shares other than as granted herein for so long as this Agreement is in force.  The appointment of the Secured Parties and the Collateral Agent as proxy and attorney-in-fact is coupled with an interest and shall be irrevocable until all of the Obligations have been satisfied.  The Proxy Rights shall be effective, automatically and without the necessity of any action (including any transfer of any Shares on the record books of the Company) by any person (including the Company or any officer or agent thereof), upon the occurrence and during the continuance of an Event of Default.  Notwithstanding the foregoing, neither the Collateral Agent nor any Secured Party shall have any duty to exercise any Proxy Right or to preserve the same and shall not be liable for any failure to do so or for any delay in doing so.

 

6. Ordinary Care by the Secured Parties.  The Secured Parties and/or the Collateral Agent shall use ordinary care in the custody and preservation of the Shares in their possession.

 

7. Event of Default.  An event of default shall occur upon the happening of any of the following (each, an “Event of Default”):

 

(a) A breach of the Guaranty or this Agreement by a Pledgor  which, if capable of being cured, is not cured within five (5) Business Days after written notice thereof to such Pledgor;

 

(b) An Event of Default under the Notes; or

 

(c) The transfer or encumbrance, by any means, of any of the Shares or any interest in the Shares other than in favor of the Secured Parties.

 

  

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8. Remedies.  Upon the occurrence and during the continuation of an Event of Default, the Collateral Agent, acting on behalf of the Secured Parties, shall be entitled to exercise all of the rights, powers and remedies (whether vested in him by this Agreement or by law) for the protection and enforcement of the rights of the Secured Parties in respect of the Shares, and shall also be entitled, without limitation, to:

 

(a) at his option, without notice to or demand upon any Pledgor, transfer and register the Shares in his name or in the Secured Parties’ own names (or in the names of their respective nominees), on a pro rata or any other basis agreed to by the Secured Parties, and to exchange certificates or instruments representing or evidencing Shares for certificates or instruments of smaller or larger denominations;

 

(b) exercise all the rights and remedies of a secured party under the Uniform Commercial Code ("UCC") in effect in the State of New York at the time, including the right to sell the Shares at public or private sale as provided by and in accordance with the UCC;

 

(c) collect, receive and retain all sums owing the Pledgors on the Shares and endorse or execute for such purpose in the name of the Pledgors any instrument of payment or release received with respect thereto, such endorsement and execution to be effective as that of the Pledgors for all purposes, and to collect, receive and retain all dividends and other distributions made on the Shares; and

 

(d) vote any or all of the Shares (whether or not transferred into the name of the Secured Parties) and give all consents, waivers and ratifications in respect of the Shares and otherwise act with respect thereto as though he were the outright owner thereof.

 

9. Covenants of each Pledgor.  During the term of this Agreement:

 

(a) No Pledgor shall sell, assign, transfer, hypothecate, or otherwise dispose of, grant an option or other right with respect to, or mortgage, pledge or otherwise encumber his Shares or any interest therein, or contract to do any of the foregoing.

 

(b) No Pledgor shall take any action with respect to his Shares that is inconsistent with the provisions or purpose of this Agreement or that would adversely affect the rights of Secured Parties or the Collateral Agent under this Agreement.  Without limiting the foregoing, (i) each Pledgor agrees to the maximum extent permitted by applicable law that following the occurrence and during the continuance of an Event of Default he will not at any time plead, claim or take the benefit of any appraisal, valuation, stay, extension, moratorium or redemption law now or hereafter in force in order to prevent or delay the enforcement of this Agreement, or the absolute sale of any or all of the Shares or the possession thereof by any purchaser at any sale hereunder, and such Pledgor waives the benefit of all such laws to the extent he lawfully may do so, and (ii) each Pledgor agrees that he will not interfere with any right, power and remedy of the Collateral Agent or the Secured Parties provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the Collateral Agent or the Secured Parties of any one or more of such rights, powers or remedies.

 

  

4

  

 

(c) Each Pledgor will, at his expense, promptly execute, acknowledge and deliver all such instruments and take all such actions as the Secured Parties or the Collateral Agent from time to time may reasonably request in order to ensure to the Secured Parties the benefit of the Security Interest in and to the Shares intended to be created by this Agreement, including the filing of any necessary financing statements, which may be filed by the Collateral Agent or any Secured Party with or (to the extent permitted by law) without the signature of such Pledgor, and will cooperate with the Secured Parties and the Collateral Agent, at such Pledgor’s expense, in obtaining all necessary approvals and making all necessary filings under federal, state, local or foreign law in connection with the Security Interest or any sale or transfer of the Shares.

 

(d) Each Pledgor will defend the title to his Shares and the Security Interest of the Secured Parties in his Shares against the claim of any person or entity, and will maintain and preserve such Security Interest.

 

10. Limited Responsibilities of the Collateral Agent.

 

(a) The rights of the Secured Parties in the Shares may be exercised by the Collateral Agent as agent for Secured Parties.  In such capacity, from time to time and at any time, Collateral Agent may, in the Collateral Agent’s sole discretion, take any and all actions, exercise any and all rights and remedies, give any and all waivers and forbearances, and make any and all determinations and elections that the Secured Parties are entitled to exercise under this Agreement and the Notes.  The Collateral Agent shall exercise his authority herunder within his sole discretion, and shall not be subject to the direction or discretion of any Secured Party.  Each Pledgor will be entitled to rely solely on the actions of Collateral Agent as binding all Secured Parties.

 

(b) The Collateral Agent shall not be a fiduciary of any Secured Party and shall have no obligation to the Secured Parties other than an obligation of ordinary care.  The Collateral Agent shall have no obligation to undertake any investigation of facts, notwithstanding the occurrence of evidence of a default in the Obligations, but may rely entirely on the information provided to him by the other parties to this Agreement.

 

(c) The Collateral Agent may rely conclusively on, and shall be protected in acting upon, any document or instrument delivered to him by the Company or by any third party and believed by the Collateral Agent in good faith to be genuine.

 

  

5

  

 

(d) The Company agrees to save harmless, defend and indemnify the Collateral Agent against all claims, costs, damages, judgments, attorneys' fees, expenses, obligations, taxes, assessments, liabilities, actions, suits or charges made against the Collateral Agent by reason of any act or omission to act by him hereunder or in connection with any of the transactions contemplated hereby and against any loss he may sustain in carrying out the terms of this Agreement, other than as a result of his gross negligence or willful misconduct.

 

(e) The Collateral Agent shall have no duties or obligations under this Agreement except as expressly set forth herein, shall be responsible only for the performance of such duties and obligations, shall not be required to take any action other than in accordance with the terms hereof and shall not be in any manner liable or responsible for any loss or damage arising by reason of any act or omission to act by him hereunder or in connection with any of the transactions contemplated hereby, including, but not limited to, any loss that may occur by reason of forgery, false representations, the exercise of his discretion in any particular manner or for any other reason except for his gross negligence or willful misconduct.  In particular, the Collateral Agent shall incur no liability to any Secured Party by reason of his failure to enforce any remedy hereunder or the manner in which he enforces any remedy hereunder unless his conduct is reckless or he derives a personal benefit from the misconduct.

 

(f) The Collateral Agent shall not be bound by any notice of, or demand with respect to, any waiver, modification, amendment, termination, cancellation, rescission or supersession of this Agreement, unless the same shall be in writing and signed by all parties hereto.  In the event of any controversy or dispute arising hereunder or with respect to the construction hereof or any action to be taken by the Collateral Agent hereunder, the Collateral Agent shall incur no liability from any action or omission to act by him in good faith.  The Collateral Agent shall not be personally liable for any act the Collateral Agent may do or omit to do hereunder as the Collateral Agent while acting in good faith, and any act done or omitted by the Collateral Agent pursuant to the advice of the Collateral Agent’s attorneys-at-law shall be conclusive evidence of such good faith.

 

(g) If the Collateral Agent receives a notice from any party that a dispute exists with respect to the delivery and/or ownership or right of possession of the Shares, the Collateral Agent shall retain the Shares in his possession and shall deliver such Shares in accordance with the joint written instructions of the Pledgors and the Secured Parties or a final order, decree or judgment of a court of competent jurisdiction.  The Collateral Agent shall be under no duty whatsoever to institute or defend any such proceedings with respect to any Shares.

 

(h) The Collateral Agent may resign and be discharged of his duties hereunder at any time by giving written notice to all of the parties hereto.  Such resignation shall take effect twenty (20) days after the giving of such notice or upon the earlier receipt by the Collateral Agent of an instrument of acceptance executed by a successor collateral agent and upon delivery by the Collateral Agent of the Shares to such successor.  The Collateral Agent shall also be discharged of his duties and obligations hereunder upon deposit in a court of competent jurisdiction, as provided in Section 16(a) hereof, of the Shares then held by him hereunder and any other documents, instruments or funds then held by the Collateral Agent hereunder.

 

  

6

  

 

(i) The Collateral Agent shall be entitled to employ such legal counsel and other experts as the Collateral Agent may deem necessary to advise the Collateral Agent in connection with the Collateral Agent’s duties hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefore.  The Company shall reimburse the Collateral Agent for all such expenses upon invoice.

 

11. Notice by Company to Collateral Agent.  The Company shall give the Collateral Agent prompt written notice of any of the following events:

 

	
-  

	
The payment of interest on the Notes;

 

	
-  

	
Receipt by the Company from any Secured Party of a notice of default under any Note;

 

	
-  

	
The occurrence of an Event of Default under any Note;

 

	
-  

	
The conversion of any Note into any other security;

 

	
-  

	
The satisfaction in full of any Note;

 

	
-  

	
The transfer of any Note on the Company’s transfer records; or

 

	
-  

	
The occurrence of any event of the character described in Section 2 of this Agreement.

 

12. Collateral Agent Fees and Expenses.  As compensation for all services prior to any Event of Default, the Company shall pay the Collateral Agent a fee of $2500, which shall be due and payable upon the execution of this Agreement and the closing of a sale of a Note.  From and after the occurrence of an Event of Default (unless cured prior to the initiation of remedial action), the Company shall pay the Collateral Agent a fee of $375 per hour (pro rata for partial hours) for any services performed by the Collateral Agent on behalf of the Secured Parties.  The Company shall also reimburse the Collateral Agent for any out-of-pocket expenses incurred by him in connection with his performance of services as Collateral Agent.  All such payments shall be due upon the Company’s receipt of an invoice from the Collateral Agent.  In order to secure the Company’s obligations to the Collateral Agent, the Company shall, upon the closing of the offering of the Notes, deliver to the Collateral Agent a wire transfer in the amount of $7,500, which shall serve as a refundable advance fee.  The Collateral Agent shall hold the fee in escrow until it is earned pursuant to this Agreement.  Upon rendering any invoice to the Company for services or expenses, the Collateral Agent will drawn from his escrow account in payment of the invoice any amount of the refundable advance remaining in escrow, but upon liquidation of the refundable advance the Company shall thereafter pay all invoiced amounts when due.

 

  

7

  

 

13. Termination of this Security Interest and Agreement.  This Agreement and the Security Interest created hereby shall terminate immediately on the satisfaction of all of the Obligations (the “Termination Date”), and the Collateral Agent shall then immediately thereafter return to the Pledgors all certificates, and related stock powers, with respect to the Shares in his possession or control.

 

14. Equitable Relief.  Each Pledgor agrees that a breach of any of its covenants contained in this Agreement will cause irreparable injury to the Secured Parties, that the Secured Parties shall have no adequate remedy at law in respect of such breach and, as a consequence, agrees that each and every covenant of such Pledgor contained in this Agreement shall be specifically enforceable against such Pledgor, and such Pledgor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that the Obligations are not then due and payable in accordance with the agreements and instruments governing and evidencing such Obligations.

 

15. Pledgor’s Obligations Not Affected.  The obligations of each Pledgor under this Agreement shall remain in full force and effect without regard to, and shall not be impaired or affected by (a) any subordination, amendment, extension, renewal, or modification of, or addition or supplement to, any Subscription Agreement, the Notes, the Guaranty, any other Transaction Document, or the Obligations, or any assignment or transfer of any thereof; (b) any exercise or non-exercise by the Secured Parties of any right, remedy, power or privilege under or in respect of this Agreement, any Subscription Agreement, the Notes, the Guaranty, any other Transaction Document, or the Obligations, or any waiver of any such right, remedy, power or privilege; (c) any waiver, consent, extension, indulgence or other action or inaction in respect of this Agreement, any Subscription Agreement, the Guaranty, the Obligations, or the Notes or the other Transaction Documents; (d) any lack of validity or enforceability of the Notes, any Subscription Agreement, any other Transaction Document or any other agreement or instrument governing or evidencing any Obligations, (e) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like, of a Pledgor, a Secured Party, or the Company, or the making by the Company, a Secured Party or a Pledgor of an assignment for the benefit of creditors, (f) the existence or continuance, or discontinuance, of the Company as a legal entity; (g) the death or incompetency of a Pledgor, or the termination of modification of a Pledgor’s relationship with the Company; or (h) the acceptance, alteration, release or substitution by a Secured Party (or the Collateral Agent) of any security for the Obligations, whether provided by the Company, Guarantor or any other person, whether or not such Pledgor shall have notice or knowledge of any of the foregoing.

 

  

8

  

 

16. Miscellaneous Provisions.

 

(a) Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed in the State of New York.  The parties hereto irrevocably consent to the jurisdiction of the United States federal courts and state courts located in the State of New York and County of New York in any suit or proceeding based on or arising under this Agreement or the transactions contemplated hereby and irrevocably agree that all claims in respect of such suit or proceeding may be determined in such courts.  Each party hereto irrevocably waives the defense of an inconvenient forum to the maintenance of such suit or proceeding in such forum.  Each party further agrees that service of process mailed by the first class mail in accordance with paragraph (l) below shall be deemed in every respect effective service of process in any suit or proceeding arising hereunder.  Nothing herein shall affect the right of a party hereto to serve process in any other manner permitted by law.  The parties hereto agree that a final non-appealable judgment in any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner.  The parties hereto irrevocably waive any right to a trial by jury under applicable law.

 

(b) Effect of Invalidity of Particular Provisions.  The unenforceability or invalidity of any provision or provisions of this Agreement shall not render any other provision or provisions herein contained unenforceable or invalid.

 

(c) Cumulative Rights, Powers and Remedies.  The rights, powers and remedies given to the Secured Parties (and the Collateral Agent as agent for the Secured Parties) by this Agreement shall be in addition to all rights, powers and remedies given the Secured Parties by virtue of any statute or rule of law.

 

(d) Waiver.  Any forbearance, failure, or delay by the Secured Parties in exercising any right, power or remedy under this Agreement shall not be deemed to be a waiver of such right, power or remedy, and any single or partial exercise of any right, power or remedy, under this Agreement shall not preclude the further exercise thereof; and every right, power and remedy of the Secured Parties shall continue in full force and effect until such right, power or remedy is specifically waived by an instrument in writing executed by the Collateral Agent or the Secured Parties.

 

(e) Binding Effect; Assignment.  This Agreement shall be binding upon the heirs, executors, personal representatives, and successors of the Pledgors and shall inure to the benefit of the Secured Parties, all future holders of the Notes (or any note or other instrument issued in substitution or replacement thereof), and their respective heirs, executors, and personal representatives, successors and assigns.  The Pledgees may not assign, sell, hypothecate or otherwise transfer any interest in or obligation under this Agreement.

 

  

9

  

 

(f) Entire Agreement.  This Agreement constitutes the entire agreement among the parties with respect to the subject matter of this Agreement, and supersedes all agreements, representations, warranties, statements, promises and understandings with respect to such subject matter.  No party hereto has in any way relied, nor shall in any way rely, upon any oral or written agreements, representations, warranties, statements, promises or understandings not specifically set forth herein.

 

(g) Amendments.  Neither this Agreement nor any term hereof may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the Pledgors and the Secured Parties (or the Collateral Agent acting on their behalf).

 

(h) Headings.  The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

(i) Further Assurances.  The parties hereto agree that they shall sign such additional and supplemental documents to implement the transactions contemplated pursuant to this Agreement when requested to do so by any party to this Agreement.

 

(j) Counterparts and Execution.  This Agreement may be executed in counterparts, each of which shall be regarded as the original and all of which shall constitute one and the same agreement.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

(k) Reinstatement.  This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against a Pledgor for liquidation or reorganization, should a Pledgor become insolvent or make an assignment for the benefit of any creditor or creditors, or should a receiver or trustee be appointed for all or any significant part of a Pledgor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made.  In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

 

  

10

  

 

(l) Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder will be in writing and shall be delivered personally, by nationally-recognized overnight courier for next Business Day delivery, or by facsimile machine confirmed telecopy to, in the case of any Pledgor, the address of such Pledgor set forth on such Pledgor’s signature page hereto and, in the case of the Collateral Agent, Robert Brantl, Esq., 52 Mulligan Lane, Irvington, NY 10533-1106 (telephone:  914-693-3026; fax:  914-693-1807) (or to such other address as a party may designate by written notice in accordance with the provisions of this Section), and will be deemed given and effective on the earliest of (i) the date of transmission if such notice or communication is delivered by fax prior to 5:30 p.m. (Eastern Time) on a Business Day, (ii) the next Business Day after the date of transmission if such notice or communication is delivered via fax on a day that is not a Business Day or later than 5:30 p.m. (Eastern Time) on a Business Day, (iii) the 1st Business Day after the date of mailing if sent by U.S. nationally recognized overnight courier service for next Business Day delivery, or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

17. Representations, Warranties and Covenants of Pledgor.  Each Pledgor represents, warrants and covenants to the Secured Parties as follows:

 

(a) Such Pledgor is the record and beneficial owner of, and has good and marketable title to, his Shares pledged hereunder, free of any and all liens, charges, encumbrances and security interests of every kind and nature;

 

(b) Such Pledgor has good right and legal authority to pledge the Shares owned by such Pledgor in the manner hereby done or contemplated;

 

(c) No authorization, approval, or other action by, and no notice to or filing with, any third party, governmental authority or regulatory body is required for the validity of the pledge by such Pledgor of his Shares pursuant to this Agreement or for the execution, delivery or performance of this Agreement by such Pledgor;

 

(d) This Agreement constitutes the legal, valid and binding obligation of such Pledgor, enforceable against such Pledgor in accordance with its terms, and the pledge and security interest effected hereby is effective to vest in the Secured Parties the rights in such Pledgor’s Shares as set forth herein;

 

(e) There are no existing purchase agreements, warrants, options, or other rights, agreements, arrangements or commitments of any character (whether or not exercisable), or obligations (whether formal or informal, written or oral, firm or contingent) or restrictions of any nature (other than restrictions on transferability under federal securities laws), relating to such Pledgor’s Shares;

 

  

11

  

 

(f) Such Pledgor is not a party to any agreement, arrangement or understanding, written or oral, creating rights in respect of any his Shares in any person or entity or relating to the voting of his Shares; and

 

(g) Such Pledgor’s Shares represent such Pledgor’s entire ownership interest in the Company.

 

All representations, warranties and covenants made by each Pledgor contained in this Agreement shall survive the execution, delivery and performance of this Agreement until the Termination Date.

  

12

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	 	CHINA AGRICORP, INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ Hexi Feng	 
	 	 	Name: Hexi Feng	 
	 	 	Title: President and Chief Executive Officer 	 
	 	 	 	 

 

	 	PLEDGORS:	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 See attached Signature Pages	 

 

	 	SECURED PARTIES	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 	 See attached Signature Pages	 

 

	 	COLLATERAL AGENT:	 
	 	 	 	 
	
 

	
By: 

	/s/ Robert Brantl	 
	 	 	Name: Robert Brantl	 
	 	 	Title:	 
	 	 	 	 

 

  

13

  

 

PURCHASER SIGNATURE PAGE TO  STOCK PLEDGE AGREEMENT

 

IN WITNESS WHEREOF, the parties have executed this Stock Pledge Agreement as of the date first written above.

 

	 	NAME OF INVESTING ENTITY	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

[Please refer to the Schedules attached hereto]

  

14

  

PLEDGOR SIGNATURE PAGE TO  STOCK PLEDGE  AGREEMENT

The Pledgor signing below represents that:

	
  

	
(a)

	
the Pledgor’s representations and warranties contained in this Agreement are complete and accurate and may be relied upon by the Secured Parties and the Collateral Agent;

	
  

	
(b)

	
the Pledgor will notify the Collateral Agent immediately of any change in any of such representations and warranties, as well as any change to the information contained in this signature page;

	
  

	
(c)

	
the Pledgor hereby accepts and adopts the provisions of this Agreement and agrees to be bound thereby; and the Pledgor hereby assumes and agrees to satisfy and discharge, as applicable, any and all obligations applicable to the Pledgor under the Agreement;

	
  

	
(d)

	
the Pledgor has delivered the Certificates evidencing his Shares, accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Secured Parties Shares to the Collateral Agent; and

	
  

	
(d)

	
the Pledgor agrees to execute such further and other assurances and to do such other acts as may reasonably be required to implement the intentions of the Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement on this _______ day of ____________, 2010.

 

Name of Pledgor: Sky Harmony Ecological Technology Limited

Address of Pledgor: Fengshou Road West, Jiefang District, Jiaozuo, Henan Province, PRC 454000__________________________________________________________

By: /s/ Hexi Feng____________________________

        Signature of Pledgor

  

15

  

Schedule 1

	 	
Name of Pledgor

	 	
Number of Shares Pledged

	 	
Sky Harmony Ecological Technology Limited

	 	
7,473,808 shares

	 	  	 	  
	 	  	 	  
	 	  	 	  

 

  

16

  

 

Schedule 2

List of Investors

The following table sets forth for each Investor which is a beneficiary of the stock pledge, the name of the Investor and the dates of the Stock Pledge Agreement with such Investor:

	  	 	 	
Name of  Investor

	
 Date of Agreement

	
1

	 	 	
Atlas Tubular. L.P.

	
8/26/2010

	
2

	 	 	
Barry A. Morguelan

	
8/26/2010

	
3

	 	 	
Billy or Edda Campbell

	
8/26/2010

	
4

	 	 	
Cheryl K. Browning

	
8/26/2010

	
5

	 	 	
Craig J. Gordon

	
8/26/2010

	
6

	 	 	
Dale Cripps

	
8/26/2010

	
7

	 	 	
Daniel W. Gottlieb, M.D.

	
8/26/2010

	
8

	 	 	
David J. Beyer

	
8/26/2010

	
9

	 	 	
Frank P. Cutrone / Barbara K. Cutrone

	
8/26/2010

	
10

	 	 	
Howard Reinsch

	
8/26/2010

	
11

	 	 	
John J. DiLorenzo

	
8/26/2010

	
12

	 	 	
RBC Capital Markets Corp. Custodian for Matthew Garren (IRA)

	
8/26/2010

	
13

	 	 	
RBC Capital Markets custodian for Bruce R. Schafer IRA

	
8/26/2010

	
14

	 	 	
Richard G. Kramer

	
8/26/2010

	
15

	 	 	
Robert T. Cleveland or Glenna Cleveland

	
8/26/2010

	
16

	 	 	
Robert V. Baylis

	
8/26/2010

	
17

	 	 	
Ron Dilks

	
8/26/2010

	
18

	 	 	
Scott Sammis

	
8/26/2010

	
19

	 	 	
Scott Sammis and Suzanne Patrola

	
8/26/2010

	
20

	 	 	
Steven Hribar

	
8/26/2010

	
21

	 	 	
Troy T. Palmer

	
8/26/2010

	
22

	 	 	
John W. Trone

	
8/26/2010

	
23

	 	 	
Ulif Sorvik

	
8/26/2010

	
24

	 	 	
Tommy I. Dilling

	
8/26/2010

	
25

	 	 	
Timothy O'Donnell

	
8/26/2010

	
26

	 	 	
PK Solutions AB

	
8/26/2010

	
27

	 	 	
Olive or Twist Limited

	
8/26/2010

	
28

	 	 	
Minti Global Investments

	
8/26/2010

	
29

	 	 	
Kentlof Holdings, Ltd.

	
8/26/2010

	
30

	 	 	
Kari Ekholm

	
8/26/2010

	
31

	 	 	
J&J Ventures, Limited

	
8/26/2010

	
32

	 	 	
Joachim Jaginder

	
8/26/2010

	
33

	 	 	
Jan Eric Palmqvist

	
8/26/2010

	
34

	 	 	
Jakob Anders Lindquist

	
8/26/2010

	
35

	 	 	
Henrik Gumaelius

	
8/26/2010

	
36

	 	 	
Heinrich H. Foerster

	
8/26/2010

	
37

	 	 	
Garolf AB

	
8/26/2010

	
38

	 	 	
Enebybergs Revisionbyra AB

	
8/26/2010

	
39

	 	 	
Peter Gustafsson

	
8/26/2010

	
40

	 	 	
Peter J.L. Lawrence

	
8/26/2010

	
41

	 	 	
Arthur A.Mitchell Jr.

	
9/30/2010

	
42

	 	 	
Richmond Capital LP

	
9/30/2010

	
43

	 	 	
Issc Management, Inc.

	
9/30/2010

	
44

	 	 	
Randall Toig Trust

	
9/30/2010

	
45

	 	 	
Linda Alexander

	
9/30/2010

	
46

	 	 	
RBC Capital Markets Corp. Custodian Craig Frankson IRA

	
9/30/2010

	
47

	 	 	
RBC Capital Markets Corp. Custodian Charlene Frankson IRA

	
9/30/2010

	
48

	 	 	
RBC Capital Markets Corp. Custodian Daniel & Deborah Gibson IRA

	
9/30/2010

	
49

	 	 	
Vincent Cafici

	
9/30/2010

	
50

	 	 	
RBC Capital Markets Corp. Custodian William Scott Hine IRA

	
9/30/2010

	
51

	 	 	
Wade M. & Tracey L. Harris

	
9/30/2010

	
52

	 	 	
RBC Capital Markets Corp. Custodian Scott R. Schneider IRA

	
9/30/2010

	
53

	 	 	
Scott Forsberg

	
9/30/2010

	
54

	 	 	
Steven T. & Renee B. Stubbs

	
10/8/2010

  

17

  

 

AMENDMENT TO STOCK PLEDGE AGREEMENT

 

  

18

  

 

ROBERT BRANTL, ESQ.

52 Mulligan Lane

Irvington, New York 10533-1106

February 11, 2011

Sky Harmony Ecological

    Technology Limited

Fengshou Road West

Jiefang District

Jiaozuo, PRC 454000

Gentlemen:

Reference is made to the Stock Pledge Agreements, dated August 26, 2010 and September 30, 2010 (the “Pledge Agreements”) between us and the secured parties named therein (the “Secured Parties”). Pursuant to the Pledge Agreements the undersigned, as collateral agent for the Secured Parties, is holding a certificate for 7,473,808 shares of Agricorp common stock registered in the name of Sky Harmony Ecological Technology Limited (“Sky Harmony”) (the “Sky Harmony Agricorp Shares”).

The undersigned has been informed that American Telstar, Inc., a Nevada corporation (“Telstar”), China Agricorp, Inc. (“Agricorp”) and all of the shareholders of Agricorp, including Sky Harmony have entered into a Share Exchange Agreement dated as of the date hereof (the “Share Exchange Agreement”) pursuant to which all of the outstanding shares of common stock of Agricorp will be transferred to Telstar in exchange for an equivalent number of shares of common stock to be issued to each shareholder. A copy of the Share Exchange Agreement is attached hereto.

In accordance with and pursuant to Section 10(a) of the Pledge Agreements, the undersigned hereby agrees that, notwithstanding anything to the contrary contained in the Pledge Agreements, the Sky Harmony Agricorp Shares may be assigned, sold and transferred to Telstar pursuant to the Share Exchange Agreement in exchange for the issuance to Sky Harmony of 7,473,808 shares of common stock of Telstar (the “Sky Harmony Telstar Shares”) and, upon delivery to the undersigned of a certificate or certificates representing the Sky Harmony Telstar Shares together with duly executed instruments of transfer or assignment of such shares in blank, the undersigned shall deliver to Guzov Ofsink, LLC, 900 Third Avenue, New York, New York 10022, Attn: Stephanie Lin, Esq., all of the Sky Harmony Agricorp Shares as well as all related stock powers held by the undersigned.

 

The undersigned further agrees that the Pledge Agreements are hereby amended so that  all references to “Shares” shall mean the Sky Harmony Telstar Shares. Except as amended hereby ,the Pledge Agreements shall remain in full force and effect.

Please indicate your agreement with all of the foregoing by signing in the appropriate place below and returning to the undersigned one copy of this letter.

Very truly yours,

/s/ Robert Brantl

Robert Brantl, Esq.

TERMS AGREED TO:

SKY HARMONY ECOLOGICAL TECHNOLOGY LIMITED

By: /s/ Hexi Feng_____________________

       Hexi Feng

  

19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]