Document:

Asia Green Agriculture Corporation - Exhibit 10.2 - Filed by newsfilecorp.com

Exhibit 10.2 

Guarantee Contract 

(Natural Person Guarantee) 

 

 

 

Fujian Branch of China Construction Bank 

 

1 

Exhibit 10.2 

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:

	 	 	 	 
	 		1. 	
      Party B or the debtor has undergone change of formality,
      merging, integration, separation, capital increase/reduction, joint
      venture, joint business operation and name change;

	 	 	 	 
	 		2. 	
      Party B has entrusted a third party to fulfill its due
      obligations under the Main Contract.

	 	 	 	 
	 	III. 	
      In case of invalidation, cancellation or voidance of any
      transfer of debts or credits under the Main Contract, Party A shall
      continue to be jointly and severally responsible as a guarantor for Party
      B according to this Contract.

	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.

2 

Exhibit 10.2 

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

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

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

Before total repayment of Party B’s
credits:

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

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

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

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

	 	 	 
	 	VI. 	
      If the debtor has other loans from Party B other than the
      loans under the Main Contract, Party B has the right to receive the
      debtor’s RMB or other currency expenses in the account established in the
      system of China Construction Bank to satisfy any expired debt. Party A’s
      guaranty responsibilities are not reduced or
exempted.

	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.

3 

Exhibit 10.2 

	 	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.

	 	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.

4 

Exhibit 10.2 

Even if Party B fails to exercise or
delays exercising of any rights under the main contract or fails to completely
utilize any rescue operation under the main contract, Party A’s guaranty
responsibilities under the contract can not be reduced or exempted; however,
once Party B reduces or exempts the debts under the main contract, Party A’s
guaranty responsibilities under the contract are reduced and exempted
accordingly.

	 	VI. 	
      Debtor’s dissolution or
bankruptcy

In the event that Party A knows that
the debtor has entered into dissolution or bankruptcy procedure, it shall
immediately notify Party B to report the debts; at the same time, it shall
participate in the dissolution or bankruptcy procedure in a timely manner and
exercise the claim right in advance. If Party A knows or should have known that
the debtor has entered into dissolution or bankruptcy procedure but fails to
exercise the claim right in advance, Party A shall be responsible the incurred
losses.

In spite of Article 5 (2), if Party B
and debtor reach a reconciliation agreement in the debtor’s bankruptcy procedure
or a restructuring plan, Party B’s rights under the contract are not affect by
reconciliation agreement or restructuring plan; Party A’s guarantee
responsibilities are not reduced or exempted. Party A can not defend against
Party B’s claim of right through the conditions stipulated in the reconciliation
agreement and restructuring plan. As for the credits compromised by Party B in
the reconciliation agreement and restructuring plan to the debtor without
repayment, it still has the right to require Party A for continuous
repayment.

	 	VII. 	
      In case of any changes in Party A’s communication address
      or contact method, it shall immediately notify Party B in written form; in
      case of any losses arising from timely notification failure, Party A shall
      bear relevant losses by itself.

	 	 	 
	 	VIII. 	
      If Party A or debtor fails to strictly comply with
      relevant laws, stipulations or regulations concerning environmental
      protection, energy saving, discharge reduction and pollution reduction or
      in case of any possible energy consumption and pollution risks, Party B
      has the right to exercise the guaranty rights under this Contract in
      advance and adopt other remedial measures permitted by the contract or
      law.

	 	 	 
	 	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.

5 

Exhibit 10.2 

Particular Signing Provisions 

This Natural Person Guarantee Contract is numbered 2012 Jian
Ping Song Dai CZ Zi Bao Zi No.1-1 

Article
10        INFORMATION OF
CONTRACTORS

Guarantor (Party A): Zhan Youdai, Zhou Liufeng 

Certificate Name and No: ID number: 352128196909072016,
352128197111071529 

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

Post Code: 353500 

Tel: 2325600 

 

Creditor (Party B): 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 Capital Loan
Contract (hereinafter referred to as the Main Contract, No.:
(2012) Jian Ping Song CZ Zi No.01) entered into by and between Fujian
Yada Group Co., Ltd (hereinafter referred to as Debtor) and Party B,
Party A agrees to assume the jointly guarantee liability for the debt under this
contract. The Parties hereby agree to enter into this contract based on the
mutual consent of consultation and comply with the terms hereof. 

	Article 11 	AGREEMENTS TO ARTICLE 
	 	 
	  	The contract guaranty scope includes the
      following Type II: 

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

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

	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.

6 

Exhibit 10.2 

	 	(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 TRIPLICATE 
	 	 
	Article 14 	OTHER AGREED ITEMS 
	 	 
	 	
      This field is left blank. 

7 

Exhibit 10.2 

Party A or authorized agent (Signature): Zhanyoudai Zhouliufeng

Date: February 14, 2012 

 

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

Responsible person or authorized agent (Signature): Liu Liquan

Date: February 14, 2012 

 

 

 

 

8Asia Green Agriculture Corporation - Exhibit 10.3 - Filed by newsfilecorp.com

Exhibit 10.3 

RMB Liquid Capital Loan Contract 

 

Contract No.: (2012) Jian Ping Song Dai CZ Zi No.3 

 

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

Domicile (Address): Shuinan Industrial District, Songxi County
Zip Code: 353500 

Legal Representative: Zhan Youdai 

Fax: 2332598 Tel: 2332688 

 

Lender (Party B): Songxi Branch of China Construction Bank
Corporation Ltd.

Domicile (Address): No. 121, Jiefang Street, Songyuan Town, Zip
Code: 353500 

Songxi Province 

Legal Representative: Liu Liquan 

Fax: 2322644 Tel: 2322670 

1 

Exhibit 10.3 

For the purpose of required working capital, Party A hereby
applies to Party B for a loan, and Party B agrees to release the loan to Party A
(the “Loan”). This Contract is made in line with relevant laws and
regulations to specify the rights and obligations of parties involved.

ARTICLE 1 AMOUNT OF LOAN 

Party A borrows RMB (In words) Eleven Million and Five
Hundred Thousand from Party B. 

ARTICLE 2 USAGE OF LOAN AND SOURCE OF REPAYMENT 

The Loan shall be used for working capital purposes.

Purpose of the Loan, source of the repayment under the Contract
will be referred to in Annex 1 named “Basic Information of the Loan”. 

ARTICLE 3 TERM OF LOAN 

The term of loan under this Contract is Twelve months,
commencing from February 22, 2012, and ending on February 22, 2013. 

In the event that the commencement date of the Loan under this
Contract conflicts with the archived document (loan receipt), the actual issuing
date of the Loan demonstrated on the Loan archived document at the first time of
issuance of such a loan shall govern and the aforementioned maturity date of the
Loan shall change accordingly. 

The archived document is part of the Contract with equal legal
effect.

ARTICLE 4 INTEREST RATE OF THE LOAN, PENALTY INTEREST RATE,
CALCULATION AND SETTLEMENT 

1.           
Interest Rate of the Loan 

The interest of the loan under this Contract is calculated on a
per annum basis in accordance with the section (2) as follows: 

(1)           
Fixed rate at ___%, within the term of the Loan, this rate will not be adjusted;

(2)            The
interest rate shall be the benchmark rate at the commencing date of the interest
(the “Commencement Rate”) at the corresponding level plus (plus/
minus) 17%, such interest rate will not change within the term of the
Loan; 
(3)           
Floating rate shall be the benchmark rate at the Commencement Date at the
corresponding level ___ (plus/ minus) __%, and such floating rate
shall be adjusted once ___ months in accordance with the benchmark rate of the
rate adjusting date as well as the above plus/ minus level from the interest
commencing date to the liquidation date of fulfilling all the principal and
interests under the Contract; or

2 

Exhibit 10.3 

(4)           
__________. 

2.           
Penalty Interest Rate 

(1)           
In the event that Party A does not use the Loan in accordance with this
Contract, the penalty interest rate will be the interest rate of the Loan plus
100%. If the interest rate of the Loan has been adjusted in line with the
above section (3), the penalty interest rate will be adjusted based upon the
above interest rate and the corresponding level accordingly.

(2)            The
penalty interest rate of the overdue Loan will be the interest rate of the Loan
plus 50%. If the interest rate of the Loan has been adjusted in line with
the above section (3), the penalty interest rate will be adjusted based upon the
above interest rate and the corresponding level accordingly.

(3)            In the
condition that both the loan becomes overdue and there is misuse of the Loan,
the penalty rate or a double rate should be imposed subject to the severity.

3.           
The Commencement Date hereof means the date when the initially issued Loan is
archived to the loan issuing account (the “Loan Issuing Account”) as
agreed in Article 6 of the Contract.

The benchmark interest rate at the first time of issuance of
the Loan means the loan interest rate at the corresponding time and level
announced by the People’s Bank of China. Thereafter, when the aforementioned
interest rate is adjusted, the benchmark interest rate means the loan interest
at the corresponding time and level announced by the People’s Bank of China on
the adjustment date. If the People’s Bank of China does not announce the loan
interest at the corresponding time and level, the benchmark interest rate will
be the loan interest rate recognized by inter-banks or at the usual and
corresponding time and level on the adjusting date, unless both Parties agree
otherwise. 

4.           
The interest of the Loan will commence from the date when the Loan is archived
to the Loan Issuing Account. The interest of the Loan will be calculated on a
daily basis (daily interest rate=annual interest rate/360). If Party A fails to
pay for the interest on the settlement date as agreed under this Contract, the
compound interest rate will be collected from the following day. 

5.           
Settlement of Interest 

(1)           
A loan with a fixed interest rate shall be settled in accordance with the agreed
interest rate. For a loan with a floating interest rate, the interest rate shall
be decided based upon the interest rate in each floating
term.
(2)           
This Contract shall settle the interest based upon section (i) as follows:

3 

Exhibit 10.3 

          
(i)            monthly
settlement of the interest; the settlement date will be 20th day of
each
month; 
          
(ii)           quarterly
settlement of the interest; the settlement date will be 20th day of
the last month of each quarter;
or 
          
(iii)          __________.

ARTICLE 5 ISSUANCE AND PAYMENT OF THE LOAN 

1.           
Precondition of Issuing Loan 

Unless the following preconditions are consecutively satisfied
or Party B gives up the whole or part of such preconditions, Party B is
obligated to issue the Loan as long as: 

(1)           
Party A has fulfilled related approvals, registrations, deliveries, insurance
and other legal procedures as required under this Contract;

(2)            If the
Contract requires any guarantee, such guarantee meeting Party B’s requirements
has been effective and continues to be effective;

(3)            Party
A has opened an account for withdrawing and depositing money as required by
Party B;

(4)            Party
B does not breach the Contract;

(5)            No
situation that will harm the credit of Party A as agreed under the Contract has
occurred;

(6)           
Issuance of the Loan under the Contract by Party B is not prohibited or limited
by laws, regulations or competent authorities;

(7)            The
financing index of Party A consecutively meets the requirements as addressed in
Annex 2 titled “Financing Index Binding Provision”;

(8)            Party
A has submitted relevant materials as agreed in the Contract prior to issuing
the Loan;

(9)            The
materials provided by Party A to Party B are legal, authentic, integrated,
accurate, effective and meet the other requirements of Party B; and

(10)          Other
pre-conditions: _____________________. 

2.           
Loan-paying Plan 

Loan paying means Party B issues the Loan to the Loan Issuing
Account in accordance with the requirements of Party B and as agreed in the
Contract. 

Loan-paying plan shall be decided in accordance with the second
method as follows:

(1)           
Loan-paying Plan: 

	(i) Date 	Amount: 
	(ii) Date 	Amount 
	(iii) Date 	Amount 
	(iv) Date 	Amount 
	(v) Date 	Amount 

4 

Exhibit 10.3 

	(vi) Date 	Amount 

	(2)           
      Loan-paying Plan: 	  
	(i) From February, 22, 2012 to March 22, 2012 	 
	Amount: RMB Eleven Million and Five Hundred Thousand; 	 
	(ii) From______to 	Amount 
	(iii) From______to 	Amount 
	(iv) From______to 	Amount 
	(v) From______to 	Amount 
	(vi) From______to 	Amount 

(3) Paying at any time as required by Party A; or 
(4)
_______________.

3.           
Party A shall use the Loan in accordance with the above Loan-paying Plan set
forth in section (2). Unless Party B agrees in writing, Party A shall not
accelerate, postpone, split or cancel the Loan. 

4.           
If Party A divides and uses the Loan more than once, the expiration date of the
Loan shall be decided in accordance with Article 3 of the Contract. 

5.           
Materials Provided by Party A. 

Party A and Party B choose to use the No.2 item as
follows (item No.1 or No.2) regarding the agreement on Party A’s providing
materials: 

No.1 

(1)           
Only satisfying the requirement: 

          
(i)            Single use
of the Loan exceeds RMB10,000,000 and any payment under such Loan exceeds
RMB10,000,000; 
          
(ii)           __________________.

Party A shall provide Party B the following materials no later
than _____working days prior to using such Loan: 

          
(i)            Loan
archived documents and payment settlement certificates signed and chopped by
Party A; 
          
(ii)           Transactional
documents including, but not limited to, goods, services, capital contracts
and/or invoices in writing or in electronic format that can be evidence for the
capital and use of such Loan; 

5 

Exhibit 10.3 

and other documents by Party A as required by Party B
(including, but no limited to, business licenses, power of attorney, bylaws,
shareholders resolutions, board resolutions and other materials of the parties
having transactions with Party A). 

(2)           
Except for the above agreements or that Party B decides that Party A is
authorized to decide the payment as agreed in section 7 hereinafter based upon
Party B’s reviewing the materials provided by Party A, Party A shall provide the
following materials to Party B no later than ________working days prior to using
such Loan: 

          
(i)             Plan
of using the Loan in line with the proposed Loan (Form of Plan of using is
specified in Annex 3
hereto); 
          
(ii)            Loan
archived documents signed and chopped by Party A. 

No.2 

Regardless of the amount of each Loan, Party A shall provide
Party B with the following materials no later than 2 working days prior
to using such Loan: 

(i)           
Loan archived documents and payment settlement certificates signed and chopped
by Party A;

(ii)           Transactional
documents (including, but not limited to, goods, services, capital contracts
and/or invoices in writing or in electronic format that can evidence the capital
and use of the Loan; 

and other documents by Party A as required by Party B
(including, but no limited to, business licenses, power of attorney, bylaws,
shareholders resolutions, board resolutions and other materials of the parties
having transactions with Party A). 

6.           
Entrusted Payment of Party B 

(1)           
Application of Entrusted Payment of Party B 

In the event that a single payment meets the requirement of
section (ii), such payment should be entrusted to Party B, i.e. Party A
irrevocably entrusts Party B to pay the capital to a third party who has a
transaction with Party A. Party A is prohibited to extend such a payment to its
cooperator or any third party. 

          
(i)            A single
payment that exceeds RMB10,000,000, any payment within the scope of such capital
to a third party exceeds RMB10,000,000, and Party B approves the payment to the
payee based upon materials provided by Party
A; 
          
(ii)           Regardless
the amount of each Loan, Party B is entrusted to fulfill the
payment; 
          
(iii)          ____________________.

6 

Exhibit 10.3 

(2)           
In the event that Party B is entrusted to fulfill the payment, Party B shall
archive such capital to the Loan Issuing Account and pay the Loan to the account
of the cooperator of Party A directly. Party A shall not dispose the Loan in any
manner (including, but not limited to, transferring and withdrawing deposit).

(3)           
Party B will conduct a formal examination on the amount of payment, time of the
payment, the payee, the method of payment and the underlying accounting based
upon materials provided by Party A. After Party B finishes such an examination
of the above elements and decides that such elements meet Party B’s
requirements, Party B shall pay for the partner of Party A. Once the Loan is
archived into the account of the partner, it will deem that Party B fulfills the
obligation of the entrusted payment. Party A shall confirm whether such a
payment is successful within one (1) working day after the payment in a timely
manner. If the payment fails, Party A shall inform Party B at once. Party A
shall guarantee that the partner and use of the Loan are in line with the
transactional documents. 

(4)           
The formal examination of the above elements of payment means that neither
confirms Party B the authenticity and legal compliance of any transaction nor
intervenes with any dispute between Party A and its cooperator or any other
third party or any responsibility and duty burdened by Party A. For any damages
suffered by Party B due to the entrustment, Party A shall compensate Party B.

(5)           
In the event that any payment was not successfully or timely archived into the
account of Party A’s cooperator due to the materials provided by Party A not
being integrated, authentic, in compliance with the specific use of the capital,
or the conflicts exist in the materials provided by Party A, which are not the
fault of Party B, both Parties shall follow the agreements below: 

          
(i)            all the
damages, including, but not limited to, failure of paying the Loan or failure of
paying the Loan in a timely manner, shall be burdened by Party A. Party B shall
not be liable for such damages and any loss suffered by Party B shall be
compensated by Party
A; 
          
(ii)           Party A
shall not dispose such a Loan in any manner (including, but not limited to,
transferring and withdrawing
deposit); 
          
(iii)          Party A shall
provide new materials and correct information within _2_ working days as
required by Party B. 

If Party A breaches any of the above agreement, Party B is
authorized to recover such loan capital ahead of the schedule. 

(6)           
Any failure, mistake, delay of paying the Loan, other risks, liabilities and
damages shall be burdened by Party A and Party B shall not be liable for the
aforementioned. Party A shall compensate Party B all the damages arise hereof.

7 

Exhibit 10.3 

7.           
Payment by Party A 

In the event that does not satisfy the requirements addressed
in the above section 6(1) regarding the entrusted payment, Party A is authorized
to pay by itself, i.e. Party A will pay for its cooperator after Party B’s
archiving the loan capital into the Loan Issuing Account based upon Party A’s
application for withdrawing deposit. Party A shall guarantee that the cooperator
and use of the Loan are in line with the transactional documents. 

8.           
Regardless of whether the payment is made by Party A or entrusted to Party B,
once the loan capital is archived into the Loan Issuing Account, it is deemed
that Party B has fulfilled its obligation of issuing the capital. Party A shall
guarantee that the status of the Loan Issuing Account is normal (including, but
not limited to, freezing by competent authorities, deducting and so on). Any
freezing or deducting conducted by the relevant authorities after the loan
capital is archived into the Loan Issuing Account, other risks, liabilities and
loss shall be shouldered by Party A. All the damages suffered by Party B shall
be compensated by Party A. 

9.           
When any of the following events occur, Party B is authorized to change the
method of paying the loan capital, including, but not limited to, adjusting the
entrusted payment (such as, adjusting the standard amount of the entrusted
payment), altering the payment method of a single loan capital and so on: 

          
(i)             
Party A breaches any agreement under this
Contract; 
          
(ii)             Any
event that could harm the credit of Party B as agreed under this
Contract;
           
(iii)            Other
situations where Party B deems that it is necessary to change the payment method
of the loan capital. 

When Party B changes the payment method, Party A shall provide
new materials as agreed under this Contract and required by Party B. 

ARTICLE 6 USE AND SUPERVISION OF THE ACCOUNT 

1.           
Loan Issuing Account 

The Loan Issuing Account under this Contract shall be decided
in accordance with the No.2 method as follows: 

          
(i)            Within
____ working days after the Contracts becomes effective and prior to the first
loan issuance, Party A shall open a special capital issuing account under the
services of Party B. This account shall specialize in issuing and paying all the
loans under the Contract. 

8 

Exhibit 10.3 

          
(ii)            Other
accounts of Party A opened under the services of Party B (Account No.:
35001677607059558888). 

2.           
Capital Collecting Account 

(1)           
Within ___ working days after the Contract becomes effective, Party A shall open
a capital colleting account or use an existing account (Account No.:
35001677607059558888) as the capital collecting account under the
services provided by Party B.

(2)            Party
A shall report the fund flows of the capital colleting account to Party B
quarterly (“monthly” or “quarterly”) as a circle. Party A shall collect
and report the fund flows of the last circle to Party B no later than fifteen
(15) working days at the beginning of each circle.

(3)            Party
B is bestowed to manage the fund flows of the capital collecting account,
concretely; the capital collecting account shall meet the (i), (ii), (iii)
and (vi) requirement as follows: 

          
(i)             
Average capital stock in the account: No less than RMB2,400,000 per
day. 
          
(ii)             Time of
the collecting fund: Prior to the maturity date of the
Loan. 
          
(iii)            Ratio of
total sale amount of Party A collected into the account: No less than
the ratio between the balance of Party B’s loan to Party A and the
collective balance of Party A’s loan from all
banks.
          
(iv)           
Limitation on a single amount in the account payable to the outside:
_______ 
          
(v)            
Limitation on amount in the account per day payable to the outside:
_______ 
          
(vi)           
Limitation on signing with online banks: Consent from Party B is
required if paying through online
banks. 
          
(vii)          Any payment of the
capital of the account to the outside shall be agreed by Party
B. 
          
(viii)         Such an account shall
only be used for collecting or paying loans under the Contract and is not
allowed to be used for any other
purpose.
          
(ix)           
_______________________________________________________
          
(x)            Other
requirements provided by Party
B; 
          
(xi)           Shall execute
any related arrangement in line with the account management agreement entered
into by Party A and Party B. 

ARTICLE 7 REPAYMENTS 

1.           
Sequence of Repayment 

The repayment by Party A under the Contract shall be in
accordance with the following rules: 

9 

Exhibit 10.3 

Party B has the right to require Party A to repay any fee that
should have been burdened by Party A but advanced by Party B as agreed under the
Contract, and fees incurred to realize the credit of Party B. The remainder of
the repayment shall be used to repay the interest first and then repay the
principal in line with the rule of clearing the interest with the principal.
However, as to the overdue principal and interest for ninety (90) days without
being collected or other loans as regulated by laws, regulations and ordinances,
Party A shall repay the principal first and then repay the interest after
fulfilling the above fees. 

2.           
Repayment of Interest 

Party A shall repay Party B the interest at the date of
settling such interest. The first day of repaying the interest is the first day
of settling the interest after issuing the Loan. At the last time of repaying
the Loan, the interest shall be repaid together with the principal. 

3.           
Plan of Repaying Principal 

The plan of repaying principal shall be decided in accordance
with the No. 2 method: No. 1 method: 

	(1) 	 Date , amount ;

	(2) 	 Date____________, amount _____________;

	(3) 	 Date____________, amount _____________;

	(4) 	 Date____________, amount _____________;

	(5) 	 Date____________, amount _____________;

	(6) 	 Date____________, amount _____________;

No. 2 method: One-time repayment on maturity date.

4.           
Method of Repayment 

Party A shall prepare enough capital in the capital colleting
account or other accounts opened under the services of Party B prior to the
repayment date and make such accounts automatically transferred (Party B is
authorized to draw the repayment in the account), or Party A shall repay the
Loan via other accounts on the repayment date as agreed under this Contract.

5.           
Pre-repayment (early payment or prepayment) Prepayment of the loan 

In the event that Party A decides to repay the Loan ahead of
schedule, it shall inform Party B the prepayment in writing thirty (30)
working days in advance. After Party B’s consent, Party A is authorized to repay
the partial or whole of the interest and principal ahead of schedule. 

10 

Exhibit 10.3 

The amount of the prepayment by Party A shall be computed based
upon the actual days of using the Loan and the interest of the Loan shall be in
accordance with the Contract. 

In the event that Party B agrees to the prepayment of the loan
by Party A, Party A is authorized to charge Party B compensation that shall be
decided in according with the 1st standard as follows:

(1)           
Amount of compensation = amount of the repayment principal*number of repayment
months*1‰, less than a month will be deemed as a month. 

(2)           
____________. 

If Party A repays the Loan in installments and repays part of
the principal, it shall repay the Loan in an opposite sequence. After
prepayment, the interest on the remainder of the Loan shall be decided in
accordance with the Contract. 

ARTICLE 8 RIGHTS AND OBLIGATIONS OF PARTY A 

1.           
Rights of Party A 

(1)           
Party A is authorized to require Party B to issue the Loan in accordance with
the Contract;

(2)            Party
A is authorized to use the Loan in line with the Contract;

(3)            Party
A is authorized to propose extending the term of the Contract by meeting the
requirements of Party B;

(4)            Party
A is authorized to require Party B to keep trade secrets regarding materials of
accounting information and operation provided by Party A confidential, except
for otherwise required by laws, regulations, competent authorities or agreed by
both Parties;

(5)            Party
A is authorized to prohibit any attempt at bribery by Party B and its employees
and to report any behavior by Party B that breaches the laws and regulations
relating to credit and loan interest, services charge and other behaviors to
relevant authorities. 

2.           
Obligations of Party A 

(1)           
Withdraw deposits in line with the agreements under the Contract, fulfill
repayment of the interest and principal of the Loan as well as the burden of any
fees incurred under the Contracts;

(2)           
Provide relevant accounting information, materials of business operation and
other documents as required by Party B, including, but not limited to, the
quarterly balance sheet and income statement (income and expenditure
statement for a public institution) of last quarter within the initial
fifteen (15) days of first month of each quarter, provide the cash flow
of each fiscal year as of or as at the end of the current fiscal year, and
guarantee that all the materials provided are legal, authentic, integrated,
accurate and effective. 

11

Exhibit 10.3 

(3)            In the
event that disadvantaged matters that will harm the debt paying ability of Party
A or the credit of Party B occur, or the name, legal representative
(supervisor), residence, business scope, registered capital, bylaws of company
and other changes relating to administration on industry and commerce, Party A
shall inform Party B within three (3) working days in written and provide
materials after such changes;

(4)            Party
A shall use the Loan in line with the Contract without the diversion or
embezzling of funds, illegally engaging in business and transactions, investing
in fixed assets or equity interests via the Loan, using the Loan in the areas of
production and operation prohibited by the State, using the Loan for exchange of
the debts incurred in the course of investing in the fixed assets and equity
interests of Party A; Party A shall coordinate and accept the examination and
supervision by Party B regarding the business operation and accounting
activities, use and payment of the Loan under the Contract, and relevant
management requirements by Party B after issuing the Loan; Party A shall not
rescind funds, transfer assets or take advantage of affiliated transactions to
avoid any debt; Party A shall not use any false contracts entered into with its
affiliates and credits of any negotiation or debt receivable to obtain any
discount or pledge from a bank and extract any bank capital or credit; Party A
shall repay the Loan in accordance with the Contract and shall not avoid the
entrusted payment of Party B via breaking down into elements.

(5)            If
Party A uses the Loan under the Contract to engage in production, Party A shall
obey relevant national regulations of environment protections;

(6)            Party
A shall not provide a guarantee to a third party by using the assets under the
Contract without obtaining the consent from Party B prior to repaying the
interest and the principal of the Loan;

(7)            If
Party A is a group client, Party A shall report any affiliated transactions
accounting for 10% or more of Party A’s net assets, including (i) the
relationship of each transaction party; (ii) essential transactional items;
(iii) amount of the transactions or relevant ratio; (iv) pricing policies
(including those transactions without amount or with only nominal amount);

(8)            Prior
to Party A’s merger, spin-off, transfer of equity interests, investment,
material increase of debt financing and other significant events, Party A shall
obtain a written consent from Party B. However, such consent of Party B will not
affect any right to remedies asserted by Party B when Party B deems that the
above events may harm the credit of Party B;

(9)            Party
A shall report the use and repayment of the Loan to Party A. Party A shall
report the use and repayment of the Loan of last month to Party B within the
initial ten (10) working days of each month and provide actual use of the
Loan until such Loan has been fulfilled. The format of such report is specified
in Annex 4 hereto.

12 

Exhibit 10.3 

ARTICLE 9 RIGHTS AND OBLIGATIONS OF PARTY B 

1.           
Party B is authorized to require Party A to repay the principal, interest and
fees in a timely manner, manage and control the capital flow of the Loan,
actively monitor the whole fund flow of Party A, collect the repayment ahead of
schedule based upon the capital collecting of Party A, exercise other rights
under the Contract and require Party A to perform other obligations under the
Contract; 

2.           
Party B is authorized to participate in the big financing of Party A (i.e. the
total amount exceeds RMB50,000,000 or the equivalent currency), assets sale,
merger, spin-off, restructure of equity interests, bankruptcy, liquidation and
other activities to safeguard the credit of Party B. The details of the plan of
participation shall be according to 1st and
3rd item: 

(1)           
When Party A engages in the above activities, it shall obtain the consent of
Party B;

(2)            Party
B shall arrange for the big financing of Party A;

(3)            The
sale price of Party A’s assets and buyer shall be in line with the following
requirements: The sale price of Party A’s assets shall be no less than the
price evaluated by a professional assessment agency;

(4)            Other
methods that Party B deems appropriate to adopt. 

3.           
Party B shall issue the Loan in line with the Contracts, except for any delay or
failure caused by Party A or which cannot be imputed to Party B; 

4.           
Party B shall keep trade secrets regarding accounting information and business
operation provided by Party A confidential except for otherwise required by
laws, regulations, competent authorities or agreed by both Parties; 

5.           
Neither shall Party B attempt to bribe Party A and its employees nor seek,
accept any bribery attempted by Party A; 

6.           
Neither shall Party B perform dishonestly or harm Party A’s legal rights. 

ARTICLE 10 BREACH OF CONTRACT AND REMEDIES WHEN SITUATIONS
THAT MAY HARM CREDIT OF PARTY B HAPPEN 

1.           
Breach of Contract by Party B and Liabilities 

(1)           
In the event that Party B does not issue the Loan in line with the Contract
without legitimate reasons, Party A is authorized to require Party B to fulfill
the specific performance of issuing the Loan according to the Contract; 

13 

Exhibit 10.3 

(2)           
If Party B charges unnecessary interest and fees by disobeying national laws or
prohibitive regulations, Party A is authorized to require Party B to return such
expenses. 

2.           
Breach of Contract by Party A 

(1)           
Party A breaches any agreement under the Contract or any legal obligation;

(2)            Party
A expresses or demonstrates by its conduct that Party A will not perform any of
the obligation under the Contract; 

3.           
Situations that May Harm Credit of Party B 

(1)           
Party B will deem the following events potentially harmful to the credit of
Party B under the Contract: occurrence of contract, trust (take over), lease,
shareholding reform, decrease of registered capital, investment, association,
merger, acquisition, purchase and restructure, spin-off, joint venture,
substantial increase of debt financing, suspension of business, application for
dissolution, revocation, application for bankruptcy, change of control of the
actual shareholder or controller, transfer of material assets, winding up,
closing of business, stiff fines by competent authorities, de-registration,
revocation of business license, involving in significant legal disputes,
difficulties of business operation or deterioration accounting, descending of
credibility, inability to perform the normal obligations by the legal
representative or the supervisor;

(2)            Party
B will deem the following events potentially harmful to the credit of Party B
under the Contract: Party A fails to fulfill other maturity debts (including the
debts to the entities of the China Construction Bank at each level and other
debts to any third party), transfer the properties at a low price or without
consideration, lessen or exempt credits of a third party, reluctantly perform
other credits or rights, provide guarantee to a third party; Party A’s financial
index does not consecutively meet the requirement addressed in the Annex 2 named
“Financing Index Binding Provision”; the fund flow of any account of Party A
becomes abnormal (including, but not limited to, the capital collecting account
and other accounts supervised by Party B); Party A materially breaches the
Contract; The profitability of Party A falls; Use of the Loan becomes abnormal;

(3)            Party
A abuses the independent status of the legal entity or the limited liability of
shareholders;

(4)            Any
pre-condition of consecutively issuing loan by Party B under the Contract does
not satisfy;

(5)            Party
B will regard the following situations of the guarantor of the Contract as the
events that may harm the credit of Party B under the Contract: 

          
(i)            Breach of
any agreement under the guarantee agreement or the warranties and
representations have any false statement, mistake, or omission; 

14 

Exhibit 10.3 

          
(ii) Occurrence of contract, trust (take over), lease, shareholder reform,
decrease of registered capital, investment, association, merger, acquisition,
purchase and restructure, spin-off, joint venture, substantial increase of debt
financing, suspension of business, application for dissolution, revocation,
application for bankruptcy, change of control of the actual shareholder or
controller, transfer of material assets, winding up, closing of business, stiff
fines by competent authorities, de-registration, revocation of business license,
involvement in significant legal disputes, difficulties of business operation or
deterioration accounting, fall in credibility, inability to perform the normal
obligations by the legal representative or the
supervisor; 
          
(iii) Other events of losing or potentially losing of the ability to guarantee.

(6)           
Party B will regard the following situations of the mortgage and pledge as the
events that may harm the credit of Party B under the Contract: 

          
(i)            Damages,
loss and decrease of value of the property under mortgage or pledge due to the
behavior of any third party, expropriation by the State, confiscation,
condemnation, re-collection without compensation, removal, market changes or
other
reasons; 
          
(ii)           
Properties under mortgage or pledge are attached, detained, frozen, deducted,
under liens, auctioned, supervised by administrative authorities, or their
ownerships are under
disputes; 
          
(iii)           
Mortgagee or pledgor breaches any agreement under the mortgage or pledge
agreement or the warranties and representations have any false statement,
mistake, or
omission; 
          
(iv)            Other
events that may harm the realization of Party A’s credit in the mortgage or
pledge. 

(7)           
Failure of formation, ineffectiveness, invalid, revocation, and cancellation of
the Contract, guarantor’s breaches or expression that he will not perform his
duties, or the guarantor deems that any event that may harm the credit under the
Contract; or 

(8)           
Any other events that Party B deems could harm the credit of Party B under the
Contract. 

4.           
Measures of Remedies for Party B 

In the event that the following section (2) and section (3)
occur, Party B is authorized to a right or some of the rights as stated above:

(1)           
Terminating the Loan;

(2)           
Supplementing the conditions regarding issuing the Loan and payment;

(3)           
Altering the payment method of the Loan; 

15 

Exhibit 10.3 

(4)           
Declaring an immediate maturity of the Loan and requiring Party A to repay any
principal, interest and fee regardless whether such Loan has been due under the
Contract; (5)           
When Party A fails to use the Loan in accordance with the Contract, Party B is
authorized to require Party A to pay a penalty fee equivalent to 0.05% per
day of the amount that is used not in line with the Contract and to refuse
any capital that has not been withdrawn by Party A under the Contract;

(6)            In the
event that Party A does not use the Loan in line with the Contract, Party B is
allowed to charge interest and compound interest according to the penalty rate
and agreements of the interest settlement under the Contract commencing from the
date when the Loan is not used as agreed in the Contract to the date when both
the principal and the interest have been repaid;

(7)            When
any overdue repayment occurs and Party A fails to fulfill the repayment of the
loan principal and interest (including the loan capital and interest that have
been declared as partial or whole maturity), Party B is authorized to charge
Party A the interest and the compound interest according to the penalty rate and
agreements of the interest settlement under the Contract commencing from the
date when the Loan is not used as agreed in the Contract to the date when both
the principal and the interest have been repaid. An overdue loan means that
Party A fails to repay the loan or fulfill the loan installments in line with
the Contract. 
Prior to the maturity of the Loan, any overdue interest of
Party A shall be collected at a compound interest in according with the interest
rate and the method of settlement under the Contract:

(8)            Other
measures of remedies, including, but not limited to: 

          
(i)            Party B is
authorized to withdraw RMB or other equivalent currency from the account of
Party A opened in the banking system of the China Construction Bank without
informing Party A in
advance; 
          
(ii)           
Exercising rights of the
guarantee; 
          
(iii)           Party A is
required to provide new guarantees for all the debts under the
Contract; 
          
(iv)           Refusal of
Party A’s disposing of relevant deposit in the bank account of opened in the
banking system of the China Construction
Bank; 
          
(v)           
Dissolution of the Contract. 

ARTICLE 11 MISCELLANEOUS 

1.           
Burden of Fees 

Any fee of legal services, insurance, evaluation, registration,
safeguarding, appraisal, notary, tax, technology, environment, commission of
settlement of payment relating to the Contract or its guarantee agreements shall
be burdened by Party A except for otherwise agreed. 

16 

Exhibit 10.3 

All the fees actually incurred in the course of realizing Party
A’s credit (including, but not limited to, litigation fees, arbitration fees,
property preservation fees, business trip expenses, execution fees, evaluation
fees, auction fees, notary fees, delivery fees, announcement fees, legal service
fees and other fees) shall be the responsibility of Party A. 

2.           
Use of Party A’s Information 

Party A vests rights of inquiry of the credibility of Party A
in the relevant credibility database established and approved by the Bank of
China and administrations of credit investigation or with other relevant
entities and departments in Party B, and also authorizes Party B to submit any
information of Party A to credibility databases set up and approved by the Bank
of China and administrations of credit investigation. Party A also authorizes
Party B to use and disclose Party A’s information for purpose of business in a
reasonable manner. 

3.           
Announcement and Collection 

Party B is authorized to report any overdue loan or other
breach of contract of Party A to the relevant department or entity, and to
collect the overdue repayments by means of announcement and through the news
media. 

4.           
Evidentiary Effect of Party B’s Record 

Unless any reliable and definite evidence exists, internal
accounting records of Party B regarding the principal, interest, fees and
records of repayment, receipts and certificates produced or reserved by Party B
in the course of providing services of any withdraw, repayment, payment of
interest for Party A, and records and certificates in the course of collecting
the loan will constitute valid evidence of the credit relationship between Party
A and Party B. Party A can not challenge such evidence by reason of Party B’s
unilaterally conducting or reserving the above records, receipts or
certificates. 

5.          
Reservation of Rights 

Any tolerance, extension, preference of any breach or delay of
the Contract or postponing of the performance of any right under the Contract
can neither be regarded as giving up any right or benefit under the Contract or
permission or acknowledgement of any breach of the Contract, nor limiting,
prohibiting or halting the consecutive performance of such right and other
rights or incurring that Party B’s burdening the responsibilities and
liabilities of Party A. 

6.           
Except for the debts under the Contract, in the event that Party A is also the
creditor of Party B of other debts which have expired, Party B is authorized to
collect RMB or equivalent currency in the account of Party A opened in
the banking system of the China Construction Bank. Party B shall not challenge
that right of Party A. 

17 

Exhibit 10.3 

7           .
In the event that Party A changes its business address or notice, it shall
inform Party B in writing in a timely manner. Any damage incurred due to delayed
notice shall be burdened by Party A. 

8.           
Collection of Accounts Payable 

For all the accounts payable of Party A under the Contract,
Party B is authorized to withdraw RMB or other equivalent currency from the
account of Party A opened in the banking system of the China Construction Bank
without informing Party A in advance. When the foreign currency needs to go
through foreign exchange settlement or procedures of sale of foreign currency,
Party A shall coordinate such settlements and procedures. The exchange risk rate
shall be the responsibility of Party A. 

9.           
Dispute Resolutions 

Any dispute occurs in the course of performing the Contract.
Such dispute could be resolved by negotiation otherwise, it will be resolved via
the 1st method as follows: 

(1)           
File a suit in the People’s Court where Party B resides. 

(2)           
Submit the dispute to ______________Arbitration Commission (the location is
____________________) in accordance with current and valid rules implemented by
the Commission. The arbitral verdict is final and binding for both Parties. 

In the course of a litigation or arbitration, other sections
not involved in the dispute shall still be performed. 

10.          Pre-condition
of Effectiveness 

The Contract will be effective after signed and chopped by both
the legal representative (supervisor) of Party A or its authorized power of
attorney and the legal representative (supervisor) of Party B or its authorized
power of attorney. 

11.          The
Contract is in five duplicates. 

12.          Other
agreed items. 

1.           
Overdue date under this Contract means the expiry date of the Loan. 

2.           
Party A shall complete withdrawing all deposit within the guaranteed period
agreed in Loan-paying plan under the Contract. The amount without withdrawn in
time shall become void automatically.

18 

Exhibit 10.3 

3.           
The credit under this Contract is within the scope of the Maximum Mortgage
Agreement titled 2012 Jian Ping Song Gao Di Zi No.1. 

ARTICLE 12 CLARIFICATION PROVISIONS 

1.           
Party A clearly understands the business and limited authorization of Party B.

2.           
Party A has reviewed all the provisions under the Contract. As required by Party
A, Party B has provided relevant explanation of provisions of the Contract.
Party A has fully understood and acknowledged the meaning of the provisions
under the Contract and the legal consequence hereof. 

3.           
The signing and performing of the obligations under the Contract by Party A
satisfy laws, regulations, ordinances and articles of association or internal
documents of Party A. Party A has obtained the approval by both its internal
department and/or competent State authorities. 

4.           
The production and operation of Party A are in compliance with laws and
regulations. 

5.           
Party A is capable of a consecutive operation and legal sources of repayment the
Loan. 

6.           
Party A covenants that the Loan under the Contract demonstrates the real need of
using the Loan and does not exceed the actual need. 

7.           
Good credibility of both Party A and its controlling shareholder without any bad
records. 

8.           
Party B is authorized to entrust other branches of the China Construction Bank
to issue the Loan under the Contract, perform and fulfill the obligations and
duties under the Contract. Party A shall not object such entrustment. 

9.           
Party A covenants that, at the time of making this Contract, no behavior or
event of breaking any laws, regulations and ordinances regarding environment
protection, energy saving and emission reduction and reduction of pollution, and
Party A will strictly obey relevant laws, regulations and ordinances regarding
environment protection, energy saving and emission reduction and reduction of
pollution. If Party A falsely makes the above statements, fails to perform the
above covenants, or any possibility that any occurrence of energy consumption or
risk of pollution, Party B is authorized to stop issuing the Loan, declare the
maturity of the credit ahead of schedule, or resort to other remedies as agreed
under this Contract or permitted by laws. 

19 

Exhibit 10.3 

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

Legal Representative (Supervisor) or Authorized Proxy
(Signature): 

Date: February 22, 2012 

 

Party B (office seal): Songxi Sub-branch of China Construction
Bank Corporation Limited

Legal Representative (person-in-charge) or Authorized Proxy
(Signature): 

Date: February 22, 2012 

20 

Exhibit 10.3 

Annex 1 

Basic Situation of the Loan 

1.           
Detailed Use of the Loan under the Contract 

Daily operation capital for payment of goods, etc. 

Unless obtaining a written consent by Party B, Party A can not
change the detailed use of the Loan. 

2.           
Source of the Repayment under the Contract 

Business Income 

Party A shall guarantee the authenticity, legality of the
source of the repayment and flow of the repayment shall be stable and
sufficient. 

3.           
Others: 

None. 

21 

Exhibit 10.3 

Annex 2 

Financial Index Binding Provisions 

Financial index of Party A shall consecutively satisfy the
following restrictions: 

The liquidity ratio is no less than 1.0, the quick ration is
no less than 0.5 and the asset-liability ratio is no more than 60%. 

Party B is authorized to change the above restrictions upon
informing Party A twenty (20) days in advance. 

22 

Exhibit 10.3 

Annex 3 

Loan-using Plan 

  	Contract
        No. 	  	  	 
	Loan-using Date
      	 	  	  	 
	No. 	Planned Usage 	Planned 

        Amount 	Planned Payee 

        (If any) 	Notes 
	1 	  	  	  	 
	2 	  	  	  	 
	Total 	RMB______(in words:                        
        ) 
	
 
	
 

        Name of the Borrower (Seal): 

23 

Exhibit 10.3 

Annex 4 

Report of Payment by Party A 

  	Contract No. 	  
	Submission Date 	  
	

        No. 	

        Actual Use 	

        Payee 	

        Amount 	

        Certificate 	Planned Event or 

        Not 
	1 	  	  	  	  	  
	2 	  	  	  	  	  
	Total 	RMB______ (in letters:                           
        ) 
	

        Name of the Borrower (Seal): 

	

        Result 

        of 

        Internal 

        Review 
	
 

        Account Manager (Signature): 
	
 

        Issuance and Payment Reviewed by (Signature): 

24

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