Document:

Exhibit 10.3

 

THE MAXIMUM MORTGAGE CONTRACT

 

AGRICULTURAL DEVELOPMENT BANK OF CHINA

 

 

Mortgagor (in full): Daqing Borun
Biology Science and Technology Co., Ltd

 

Business License Number: 230606100202936

 

Legal Representative (Main Responsible Officer): Wang
Jinmiao

 

Address: Jubao Village, Zhusan Township, Datong District,
Daqing

 

Postal code: 163000

 

Bank of Basic Deposit Account and Account Number: Datong
Branch of Daqing Commercial Bank with the Account No. 09020120218000105

 

Tel and Fax: 0459-6989217

 

Mortgagee (in full): [] Branch of
Agricultural Development Bank of China

 

Legal Representative (Main Responsible Officer): Wang
Weidong

 

Address: Jianshe Road, [] District, Daqing City, Hei
Longjiang Province

 

Postal code: 163316

 

Tel and Fax: 0459-6297123

 

In order to ensure the proper performance of the
obligation of Daqing Borun Biology Science and Technology Co., Ltd (hereafter
referred to as “Debtor”) under several business contracts (hereafter referred to as “Principal Contracts”),
which were entered into between and by the Debtor and the Mortgagee, within the
period provided in the Article 1 hereunder and within the limitation of
the maximum amount of credit, to guarantee the realization of the credit of the
Mortgagee, the Mortgagor is willing to provide security guarantees to the
Mortgagee. To specify the rights and obligations of the both parties, the
Mortgagor and Mortgagee enter into this Mortgage contract upon consensus
through the consultation on the basis of equality in accordance with Contract Law
of People’s Republic of China, Security Law of People’s Republic of China and
other relevant laws and regulations.

 

Article 1                               Type and Amount of the Principal Credit to be Secured

 

1.1         The principal credit to be secured hereunder refers to the credit, commencing
from August 26, 2009 to August 25, 2010, formed when the Debtor
managed the agreed business operation under the Principal Contracts at the
Creditor’s, the maximum amount of the principal is RMB (in words)
13,500,000.00. The aforementioned period shall only refer to the execution date
of the contracts excluding due time of the debt.

 

1.2         The business type of principal credit to be secured hereunder, which
includes short-term grain loans to the leading enterprises, shall comply with
the provisions under this Principal Contracts.

 

 

Article 2                               Duration
of the Performance of the Liabilities by the Debtor

 

Duration shall be provided in the Principal Contracts
respectively.

 

Article 3                               Security Scope

 

3.1         The scope to be secured hereunder shall include the principal, interest,
compound interest, default interest, liquidated damages, damage awards and
expenses incurred due to the realization of credit by the creditor and all
other sums, including but not limited to expenses or fees of litigation,
arbitration, property preservation, assessment, auction, execution, transfer
and agency.

 

3.2         Regardless of whether there is the guarantee of real right under the
credit secured, the Mortgagor shall fully bear joint and several liabilities in
accordance with the type and amount of the principal credit provided in the Article 1
hereunder.

 

Article 4                               Mortgage Property

 

4.1         The Mortgagor, of its own free will, mortgages to the Mortgagee all the
properties listed in the Mortgage List hereunder, which shall constitute integral
parts hereof.

 

4.2         The agreements with respect of the value of the mortgage properties under
the Mortgage List shall not be regarded as the assessment basis when such
mortgage properties are disposed and shall not constitute any constraint on the
mortgagee regarding the enforcement of the mortgage right. The final value of
the mortgage properties shall be subject to the net income of the actual
disposal of the mortgage properties when such mortgage right is realized.

 

Article 5                               Effectiveness of the Mortgage Right

 

The effectiveness of the mortgage right hereunder shall
govern the ancillary components, accessory rights, subrogated rights,
affiliated things, compounds, processed things and fructus.

 

Article 6                               Mortgage Registration

 

6.1         Should the mortgage properties hereunder be subject to the mortgage
registration in accordance with laws and regulations, the Mortgagor shall,
within fifteen (15) days after the execution of this Mortgage Contract, go to
the competent authorities to handle the mortgage registration along together
with the Mortgagee.

 

6.2         In the event the mortgage properties hereunder are not subject to the
mortgage registration, however the two parties hereto voluntarily are willing
to manage the mortgage registration, the Mortgagor shall, within fifteen (15)
days after the execution of

 

 

this Mortgage Contract, go to the competent authorities to
handle the mortgage registration along together with the Mortgagee.

 

6.3         Where any changes occur to the items under the mortgage registration and
such changes are subject to the registration of alteration, the Mortgagor
shall, within fifteen (15) days after the alteration of the items under
mortgage registration, go to the competent authorities to handle the mortgage
registration of alteration along together with the Mortgagee.

 

Article 7                               Occupation and Keeping of the Mortgaged Property

 

7.1         The certificates of mortgage rights hereunder, the original copies of the
mortgage registration documentation and other materials relating to the
mortgaged properties shall be kept by the Mortgagee after confirmation by the
Mortgagor and Mortgagee. The mortgagee shall keep such certificates and
documents of mortgage rights appropriately. If, due to the improper care, such
certificates and documents of mortgage rights are damaged or lost, the
post-registration fees shall be borne by the Mortgagee.

 

7.2         The Mortgagor shall keep the mortgaged properties properly and maintain
the mortgage properties intact, and shall accept supervision and inspection of
the Mortgagee at any time.

 

7.3         Without the prior written consent of the Mortgagee, the Mortgagor shall
not donate, alienate, lease, re-mortgage, pledge or otherwise dispose of the
Mortgaged properties hereunder by any means. Where a mortgagor alienates, upon
the prior written consent of the mortgagee, the mortgaged properties, the money
generated from such alienation shall be used to pay off debts to the Mortgagee
in advance or be deposited to a bank account designated by the Mortgagee with
the purpose of assuring the performance of the obligations under the Principal
Contract continuously.

 

7.4         In case the mortgaged properties are damaged or lost, the Mortgagor shall
promptly take measures so as to prevent the expansion of the losses thereof and
shall, at the same time, notice the Mortgagee. The insurance benefits and
compensatory payment arising from or in connection with such losses shall be
used to pay off principal debts to the Mortgagee in advance or be deposited to
a bank account designated by the Mortgagee with the purpose of assuring the
performance of the obligations under the Principal Contract continuously.

 

7.5         In case the value of the mortgaged properties reduces, the Mortgagor
shall resume such mortgaged properties to the original value status or provide
the necessary guarantee equal to the reduced value upon the confirmation of the
Mortgagee. In case any such request of the Mortgagee is refused, the Mortgagee
shall be entitled to exercise the mortgage right in advance. In case there are
still losses after the excise of the mortgage right in advance, the Mortgagor
shall undertake the compensation liabilities. Should the Mortgagor be
indemnified against the losses in relation to the reduced value of the
mortgaged properties, the Mortgagor shall provide security to the Mortgagee
within the

 

 

extent of the indemnity that it has thus obtained. The
part of the mortgaged properties that have not reduced shall still constitute
the security of the Principal Contract.

 

7.6              In the event that the mortgaged properties are expropriated as the needs
of the state construction, the compensation thereof obtained by the Mortgagor
shall be used to pay off debts to the Mortgagee in advance or be deposited to a
bank account designated by the Mortgagee with the purpose of assuring the
performance of the obligations under the Principal Contract continuously.

 

Article 8                               Mortgage Insurance

 

8.1              The mortgagor shall, within fifteen (15) days after the execution of this
contract, go to relevant insurance institutions to make the mortgaged
properties, which are considered by the Mortgagee as necessary and have access
to the property insurance, covered by the property insurance in favor of the
Mortgagee as the first beneficiary subject to the requirements of the Mortgagee
with respect to the insurance type and amount. The period of the insurance
shall not be shorter than of the performance period of this contract and the
insurance amount shall not less than the principal and interest of the loan
under the Principal Contract.

 

8.2              The mortgagor shall deliver to the Mortgagee the original copies of the
insurance policies, which shall not include the provisions that constrain the
rights and benefits of the Mortgagee.

 

8.3              The Mortgagor shall not cancel or otherwise terminate the insurance for
any reason during the period of this contract. In case the Mortgagor cancels or
otherwise terminates the insurance, the Mortgagee shall be entitled on their
behalf to purchase the insurance with all cost thus incurred to be borne by the
Mortgagor.

 

8.4              During the period of this contract, if insurance accidents occur to the
mortgaged properties, the insurance compensation thereof obtained by the
Mortgagor shall be used to pay off debts to the Mortgagee in advance or be
deposited to a bank account designated by the Mortgagee with the purpose of
assuring the performance of the obligations under the Principal Contract
continuously.

 

Article 9                               Enforcement of Mortgage Right

 

9.1              Upon the expiration of the duration of the debts under the Principal
Contract, or in case the credits secured by the maximum mortgage is confirmed,
or when the Mortgagee requires to pay-off the credits under the Principal
Contract in advance, should the Debtor fail to pay-off the principal and
interest as well as all other expenses, the Mortgagee shall be entitled to
auction or sell the mortgaged properties and be paid back first through the
payment arising from such activities, or, through the consultation with the
Mortgagor, realize its rights through converting the mortgaged properties into money.

 

9.2              Should the Mortgagee
fail to be paid when the Principal Contract is terminated by the

 

 

Mortgagee in accordance with the provisions therein or
laws and regulations, the Mortgagee shall be entitled to auction or sell the
mortgaged properties and be paid back first through the payment arising from
such activities, or, through the consultation with the Mortgagor, realize its
rights through converting the mortgaged properties into money.

 

9.3              The part of payment incurred due to the disposition of the mortgaged
properties hereunder exceeding the principal and interest and all other
relevant expenses shall be attributed to the Mortgagee.

 

9.4              When the Mortgagee disposes the mortgaged properties hereunder the
Mortgagor shall offer proper cooperation and shall not set any obstacle.

 

Article 10                        Representations and Warranties of the Mortgagor

 

10.1        The Mortgagor understands and agrees any and all provisions hereof and,
of its own will, provides the security for the Debtor. All the declaration of
intention hereunder is true.

 

10.2        The Mortgagor is the complete, valid and legal owner of the mortgaged
properties hereunder or the authorized business operator by the government and
no any dispute regarding the ownership or the rights of business operation
exists upon the mortgaged properties. Such properties are free to be mortgaged
in compliance with laws and regulations without being subject to any
limitations, upon which no such circumstances as cancellation from use,
detention, custody, lease, tax or construction cost in default or other
circumstances that may impact the realization of the mortgage right of the
Mortgagee exist.

 

10.3        Should the Principal Contract be the Bank Acceptance Agreement, the
Mortgagor undertakes that any disputes arising from or in connection with the
bills or otherwise disputes occurring to the Debtor, the holder of the
acceptance bills, endorser or other relevant persons shall not jeopardize the
security liabilities borne by the Mortgagor to the Mortgagee in compliance with
this contract.

 

10.4        The Mortgagor shall notice the Mortgagee in writing in the event the
following issues occur:

 

10.4.1                  In case
that there are modifications with respect to the business operation system,
including but not limited to contracting mechanism, lease, joint operation,
merger, separation, joint stock enterprise reform, cooperation with foreign
investors and so on, or business scope or registered capital modifications,
shareholding changes, the Mortgagor shall notice the Mortgagee at least fifty
(50) days in advance.

 

10.4.2                  In case
that there are significant economic disputes or disputes with respect to the
ownership or preservation measures upon the mortgaged properties, bankruptcy,
business close, dissolution, business cancellation and reorganization, cancellation
of business license or changes of address,

 

 

telephones and legal representatives, the Mortgagor shall
notice the Mortgagee within five (5) days since the occurrence of the
aforementioned issues.

 

10.5             Provided that the issues referred in Article 10.4.1 or some other
issues occur to the Mortgagor during the valid period of this Contract, the
Mortgagor shall undertake the security liabilities hereunder continuously.

 

10.6             In the event that the Debtor fails to perform the obligations, regardless
of whether the Mortgagee possesses other security rights upon the credits under
the Principal Contract, the Mortgagee shall be entitled to require the
Mortgagor to bear the security obligations to the extent of the security
hereunder.

 

10.7             In case that the mortgage right suffers or potentially will suffer the
damages incurred from any other third party, the Mortgagor shall notice
immediately or assist the Mortgagee to avoid such damages.

 

10.8             Should the agreement regarding the modification of this contract be
reached between the Mortgagor and the Mortgagee, except for the extension of
this contract or the increase of the credit under the Principal Contract, the
Mortgagor shall still be liable for the security obligations within the extent
of the obligations hereunder without being subject to the agreement of the
Mortgagor.

 

10.9             All the relevant expenses hereunder, including but not limited to fees of
legal counsel, identification, notarization, assessment, registration,
transfer, custody or litigation shall be borne by the Mortgagor.

 

Article 11                        Default Liabilities

 

11.1             Once this contract comes into effective, both parties hereunder shall
perform such liabilities as agreed under this contract. Any party, which fails
to perform such liabilities hereof or perform such liabilities incompletely as
agreed under this contract, shall bear the liabilities for breach of this
contract.

 

11.2             The Mortgagor shall indemnify the Mortgagee for all the economic losses
incurred due to the false representations declared by the Mortgagor in the Article 10.1
and 10.2 hereunder.

 

11.3             In the event that this contract becomes invalid not caused by the faults
of the Mortgagee, the Mortgagor and the Debtor shall bear the joint and several
liabilities to indemnify the Mortgagee for all the economic losses. In case
that the Mortgagor and the Debtor fail to undertake the joint and several
liabilities, the Mortgagee shall be entitled to dispose of the mortgaged
properties and be paid first within the extent of the suffered economic losses.

 

Article 12                        Effectiveness, Modification, and Termination of Contract

 

12.1        This contract
shall enter into effective on the date
when both parties sign and stamp on

 

 

it. Should the mortgage registration is required in
compliance with laws and regulations it becomes valid upon the mortgage
registration.

 

12.2        Upon the effectiveness of this contract, except as otherwise provided,
neither the Mortgagor nor the Mortgagee could modify or terminate this contract
without the prior consent of the other party. Provided that the modifications
or the termination of this contract is needed, the notice shall be delivered in
writing and the written agreements in respect thereof shall be reached upon
consensus through the negotiation between two parties.

 

Article 13                        Resolution of Disputes

 

13.1        Any disputes arising out of, or in connection with the execution of this
contract shall be settled through the consultations between two parties; where
the agreements fail to be reached through such consultation, such disputes shall
be settled through the following ways as provided under Article 13.1.1:

 

13.1.1                  Instituting
a legal proceeding to the People’s court located at the premise of the
Mortgagee.

 

13.1.2                  Submitting
to [    ] commission of arbitration with the arbitration premise
at [    ] in accordance with the arbitration rules at
that time.

 

Article 14                        Miscellaneous

 

14.1        During the valid period of this contract, prior to the confirmation of
the maximum mortgage security, provided that the Mortgagee assigns any part of
the principal credit in compliance with laws, the Mortgagor shall still
undertake the liabilities of maximum mortgage security to the extent of the
original mortgage security.

 

14.2 [    ]

 

14.3 [    ]

 

Article 15                        Supplementary

 

15.1        Except as otherwise provided hereunder, all the notices between the
Mortgagor and Mortgagee shall be delivered in writing. Upon any of the telexes
and telegrams are sent, or the postal letters are delivered to the post offices
by the Mortgagee to the Mortgagor, such telexes, telegrams and postal letters
shall be deemed as reached by the Mortgagor.

 

15.2        The appendix hereto shall constitute integral parts hereof and shall be
as valid and effective as this contract.

 

15.3        The contract is
executed in quadruplicate. Each party hereto shall hold one (1) counterpart.
The other two counterparts shall be submitted to the Housing Management

 

 

Bureau
and Land Resources Bureau for each respectively. Each counterpart has equally
authentic.

 

Article 16                                        Special Instructions

 

The Mortgagee has reminded the Mortgagor of understanding
the provisions hereunder comprehensively and accurately and made explanations
regarding the relevant provisions according to the requirements of the
Mortgagor. There is no any discrepancy in connection with the understanding of
the provisions hereof between the two parties.

 

 

	
  The Mortgagor (seal)

  	
   

  	
  The Mortgagee (seal)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Legal Representative (Main Responsible Officer) or
  Authorized Agent:

  	
   

  	
  Legal Representative (Main Responsible Officer)
  Authorized Agent:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Authorized Person

  	
   

  	
  /s/ Authorized Person

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: September 30, 2008

  	
   

  	
  Date: September 30, 2008

  

 

 

List of Collateral

 

	
  To:Agricultual Development

  	
   

  	
   

  	
   

  
	
  Bank of China

  	
   

  	
  Submission Date : August, 2009

  	
  Unit: RMB

  

 

	
  Land
  Owner

  	
   

  	
  Land User

  	
   

  	
  Land Use

  Certificate

  Available?

  	
   

  	
  Land Area(m1)

  	
   

  	
  Land Use Type

  (Grant,Allocate,Le

  ase)

  	
   

  	
  Collateral

  Value

  	
   

  	
  Pricing per

  Unit

  	
   

  	
  Collateral Rate

  	
   

  	
  Location

  	
   

  	
  Collateral Loan

  Amount

  	
   

  
	
  Stated-Owned

  	
   

  	
  Daqing Borun Biotechnology Co., Ltd

  	
   

  	
  Yes

  	
   

  	
  61432.8

  	
   

  	
  Grant

  	
   

  	
  7433368.8

  	
   

  	
  121

  	
   

  	
  50

  	
  %

  	
  Daqing City,  Datong District

  	
   

  	
  3000000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7433368.8

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,000,000.00

  	
   

  

 

	
  Property Owner

  	
   

  	
  Name of
  the

  Building (Application)

  	
   

  	
  Property

  Certifiacte

  Available?

  	
   

  	
  Building
  Area

  	
   

  	
  Pricing
  Per Unit

  	
   

  	
  Bulinging

  Structure

  	
   

  	
  Completion

  Time

  	
   

  	
  Collateral

  Value

  	
   

  	
  Collateral
  Rate

  	
   

  	
  Collateral
  Loan

  Amount

  	
   

  
	
   

  	
   

  	
  Zi
  Di No.NA352401 Office  Building

  	
   

  	
  Yes

  	
   

  	
  2769.35

  	
   

  	
  1654.5215

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4581949

  	
   

  	
  0.5

  	
   

  	
  2250000

  	
   

  
	
   

  	
   

  	
  Zi
  Di No.NA352402 Workshop

  	
   

  	
  Yes

  	
   

  	
  2106.08

  	
   

  	
  1341.2786

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2824840

  	
   

  	
  0.5

  	
   

  	
  1400000

  	
   

  
	
   

  	
   

  	
  Zi
  Di No.NA352413 Workshop

  	
   

  	
  Yes

  	
   

  	
  4281.48

  	
   

  	
  1341.2785

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5742657

  	
   

  	
  0.5

  	
   

  	
  2800000

  	
   

  
	
   

  	
   

  	
  Zi
  Di No.NA352411 Workshop

  	
   

  	
  Yes

  	
   

  	
  1771.35

  	
   

  	
  1341.2787

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2375874

  	
   

  	
  0.5

  	
   

  	
  1100000

  	
   

  
	
   

  	
   

  	
  Zi
  Di No.NA352408 Workshop

  	
   

  	
  Yes

  	
   

  	
  580.02

  	
   

  	
  1089.9279

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  632180

  	
   

  	
  0.5

  	
   

  	
  300000

  	
   

  
	
   

  	
   

  	
  Zi
  Di No.NA352405 Boiler Plant

  	
   

  	
  Yes

  	
   

  	
  3694.99

  	
   

  	
  1351.6207

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4994225

  	
   

  	
  0.5

  	
   

  	
  2400000

  	
   

  
	
   

  	
   

  	
  Zi
  Di No.NA352399 Canteen

  	
   

  	
  Yes

  	
   

  	
  474.58

  	
   

  	
  1122.9150

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  532913

  	
   

  	
  0.5

  	
   

  	
  250000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  21684638

  	
   

  	
   

  	
   

  	
  10500000Exhibit
10.4

 

FORM OF
INDEPENDENT DIRECTOR AGREEMENT

 

                THIS INDEPENDENT DIRECTOR AGREEMENT
(this “Agreement”)
is made and entered into this          day
of            , 2010, by
and between CHINA NEW BORUN CORPORATION, a
company established under the laws of the Cayman Islands (the “Company”)
and                                   ,
an individual residing at                                             
(the “Director”).

 

RECITALS:

 

WHEREAS, the Company has confidentially
submitted a Registration Statement on Form F-1 with the U.S. Securities
and Exchange Commission for the purpose of completing an initial public
offering (the “IPO”) of American depositary shares representing the
Company’s ordinary shares, par value US$0.001 per share (“Common Stock”);
and

 

WHEREAS, the Company [desires to appoint][has
appointed] the Director to serve on the Company’s board of directors (the “Board”)
and the Director desires to accept such appointment to serve on the Board; and

 

WHEREAS, the Director [has been][may be]
appointed as a member of one or more committees of the Board; and

 

WHEREAS, the Director [has been][may be]
appointed to serve as Chairman of one or more committees of the Board.

 

AGREEMENT:

 

NOW,
THEREFORE, in
consideration of the foregoing and the Director’s services to the Company as a
member of the Board, as a member of such Committees of the Board to which he
may be appointed from time to time and as Chairman of one or more committees to
which he may be appointed in such capacity from time to time, and intending to
be legally bound hereby, the Company and the Director hereby agree as follows:

 

1.             Term.   The Company
hereby appoints the Director, and the Director hereby accepts such appointment
by the Company, for the purposes and upon the terms and conditions contained in
this Agreement. The term of such appointment shall commence upon the date that
the IPO has been officially completed (the “Commencement Date”) and
shall expire one (1) year from the Commencement Date (the “Expiration
Date”), unless terminated prior to the Expiration Date pursuant to the
Director’s earlier resignation or removal from office in accordance with the
Company’s then current Certificate of Incorporation and Memorandum and Articles
of Association. In the event that the Director’s successor has not been elected
and qualified as of the Expiration Date, the Director shall continue to serve
hereunder until such successor has been duly elected and qualified.

 

2.             Compensation. 
The Company agrees to compensate the Director, and the Director agrees
to accept, an annual compensation fee in the amount of US$                             for his service as (a) a member of the Board, (b) as
a member of each committee of the Board to 

 

 

which he may be
appointed and (c) as Chairman of each committee of the Board to which he
may be appointed (collectively referred to hereinafter as the “Annual Fee”).  The Annual Fee shall be payable in cash and
shall be paid to the Director, pro rata, on the last day of each fiscal
quarter.  In the event that the Director
serves less than a full year on the Board, the Company shall only be obligated
to pay the pro rata portion of such Annual Fee to the Director for his services
performed during such year.

 

3.             Independence. 
The
Director acknowledges that his appointment hereunder is contingent upon the
Board’s determination that he is “independent” with respect to the Company, as
such term is defined by Section 303A.02 of the New York Stock Exchange’s
Listed Company Manual, and that his appointment may be terminated by the
Company in the event that the Director does not maintain such independence.

 

4.             Duties.  The Director shall exercise his powers in good
faith and in the best interests of the Company, including but not limited to,
the following:

 

(a)           Conflicts of Interest. In the event that the Director has a direct or
indirect financial or personal interest in a contract or transaction to which
the company is a party, or the Director is contemplating entering into a
transaction that involves use of corporate assets or competition against the
Company, the Director shall promptly disclose such potential conflict to the
applicable Board committee and proceed as directed by such committee.

 

(b)           Corporate Opportunities. Whenever the Director becomes aware of a
business opportunity, related to the Company’s business, which one could
reasonably expect the Director to make available to the Company, the Director
shall promptly disclose such opportunity to the applicable Board committee and
proceed as directed by such committee.

 

(c)           Candor. The Director shall ensure that, through the
appropriate legal channels, he provides to the Company’s shareholders all
material relevant information known to him when a voting or investment decision
has been submitted to the shareholders.

 

(d)           Confidentiality.  The Director
agrees and acknowledges that, by reason of the nature of his duties as
Director, he will have or may have access to and become informed of
confidential and secret information which is a competitive asset of the Company
(“Confidential Information”), including without limitation any lists of
customers or suppliers, distributors, financial statistics, research data or
any other statistics and plans or operation plans or other trade secrets of the
Company and any of the foregoing which belong to any person or company but to
which the Director has had access by reason of his relationship with the
Company.  The Director agrees faithfully
to keep in strict confidence, and not, either directly or indirectly, to make
known, divulge, reveal, furnish, make available or use (except for use in the
regular course of his employment duties) any such Confidential
Information.  The Director acknowledges
that all manuals, instruction books, price lists, information and records and
other information and aids relating to the Company’s business, and any and all
other documents containing Confidential Information furnished to the Director
by the Company or otherwise acquired or developed by the Director, shall at all
times be the property of the Company. 
Upon termination of the Director’s services hereunder, the Director
shall return to the Company any such property or documents which are in his
possession, custody or control, but his obligation of confidentiality shall
survive 

 

2

 

such termination until
and unless any such Confidential Information shall have become, through no
fault of the Director, generally known to the public.  The obligations of the Director under this
subsection are in addition to, and not in limitation or preemption of, all
other obligations of confidentiality which the Director may have to the Company
under general legal or equitable principles.

 

5.             Expenses.  Upon
submission of adequate documentation by the Director to the Company, the
Director shall be reimbursed for all reasonable expenses incurred by him in
connection with his positions as a member of the Board and for his services as
a member of each committee of the Board to which he may be appointed.

 

6.             Withholding.  The Director
agrees to cooperate with the Company to take all steps necessary or appropriate
for the withholding of taxes by the Company required under law or regulation in
connection herewith, and the Company may act unilaterally in order to comply
with such laws.

 

7.             Binding Effect.  This
Agreement shall be binding upon and inure to the benefit of the Company and its
successors and assigns.

 

8.             Recitals.  The recitals
to this Agreement are true and correct and are incorporated herein, in their
entirety, by this reference.

 

9.             Validity. 
The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

 

10.           Headings and Captions. 
The titles and captions of paragraphs and subparagraphs contained in
this Agreement are provided for convenience of reference only, and shall not be
considered terms or conditions of this Agreement.

 

11.           Neutral Construction. 
Neither party hereto may rely on any drafts of this Agreement in any
interpretation of the Agreement. Both parties to this Agreement have reviewed
this Agreement and have participated in its drafting and, accordingly, neither
party shall attempt to invoke the normal rule of construction to the
effect that ambiguities are to be resolved against the drafting party in any
interpretation of this Agreement.

 

12.           Counterparts. 
This Agreement may be executed in one (1) or more counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

 

3

 

13.           Miscellaneous.  This
Agreement shall be construed under the laws of the State of New York, without
application to the principles of conflicts of laws.  This Agreement constitutes the entire
understanding between the parties with respect to its subject matter, and there
are no prior or contemporaneous written or oral agreements, understandings, or
representations, express or implied, directly or indirectly related to this
Agreement that are not set forth or referenced herein.  This Agreement supersedes all negotiations,
preliminary agreements, and all prior and contemporaneous discussions and understandings
of the parties hereto and/or their affiliates. 
The Director acknowledges that he has not relied on any prior or
contemporaneous discussions or understandings in entering into this
Agreement.  The terms and provisions of
this Agreement may be altered, amended or discharged only by the signed written
agreement of the parties hereto.

 

[Remainder of Page Intentionally
Left Blank]

 

4

 

                IN WITNESS WHEREOF, the parties hereto have executed this
Independent Director Agreement as of the day and year first above written.

 

	
  CHINA
  NEW BORUN CORPORATION, a

  Cayman Islands company

  	
   

  	
  DIRECTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name: Mr. WANG
  Jinmiao

  	
   

  	
   

  
	
  Title:   President and Chief Executive Officer

  	
   

  	
   

  
					

 

5

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