Document:

Asia Green Agriculture Corp.: Exhibit 10.8 - Filed by newsfilecorp.com

Exhibit 10.8

Contract No. 0021 Jian Yang (Bao) Zi 2010

Maximum Amount Guarantee Contract

 

Important Notice: this Contract is concluded by both parties through negotiations on an equal and voluntary basis according to law, and all the provisions herein set forth with both parties’ true intent. In order to safeguard the
guarantor’s legal interests, the creditor hereby requests the guarantor to pay special attention to the bolded part of the provisions herein. 

Exhibit 10.8

Creditor: Industry and Commerce Bank of China, Jiangyang Branch (“Party A”) 

Person-in-charge: Qiu Ansheng 

Place of Business: 5 Renmin Road, Jianyang City 

Tel. and Fax: 

Guarantor: Fujian Yada Group Co., Ltd. (“Party B”)

Legal Representative: Zhan Youdai 

Place of Business or Domicile: Shuinan Industry Park, Songxi County 

Tel. and Fax: 

In order to guarantee the fulfillment of Party A’s credit right, Party B hereby voluntarily provides the guarantee (counter-guarantee) to Party A. Both parties reach this Contract through negotiation on the basis of equality in accordance with
the Contract Law, the Guarantee Law and other related laws and regulations.

ARTICLE 1      SECURED PRINCIPAL CREDITOR’S RIGHTS 

1.1
      The principal creditor’s rights secured by Party B shall be Party A’s creditor’s rights against the Debtor pursuant to the financial derivatives agreements such as domestic or foreign currency loan contracts, foreign exchange
re-finance contracts, bank acceptance agreements, L/C issuance contracts, guarantee agreements, foreign or domestic trade finance agreements, forward foreign exchange settlement and sales agreements, as well as other financing documents (hereinafter
referred to as the “Master Contract”) signed with Fujian Yaxin Food Co., Ltd. (hereinafter referred to as the “Debtor”) within the maximum balance of RMB 20,000,000 (in words: RMB TWENTY MILLION YUAN) (in case of any
discrepancies between the amount in figures and in words, the amount in words shall prevail) during such period as from June 28th, 2010 to June 27th, 2013 (including the commencement date and expiration date thereof), whether such creditor’s
rights are due upon expiration of the foregoing period. 

1.2       The maximum balance as mentioned above means the total balance in RMB converted from the creditor’s rights in different currencies at the exchange middle rate published by Party A as of the date of determination of the principal
creditor’s rights for which Party B shall assume the guarantee responsibility. 

ARTICLE 2       GUARANTEE METHODS

Party B shall assume a joint and several guarantee liability for the Party A’s principal creditor’s rights. 

ARTICLE 3       SCOPE OF THE GUARANTEE 

Maximum guarantee provided by Party B covers the principal and interest, penalty interest, compound interest, liquidated damages, loss damages, exchange loss (relevant loss incurred due to the change of exchange rate) as well as the costs for
enforcing the creditor’s rights (including but not limited to litigation costs, attorney’s fees, and etc.), provided that, the costs for enforcing the creditor’s rights shall be excluded from the maximum balance as specified in
Article 1.1. 

Exhibit 10.8

ARTICLE 4       GUARANTEE PERIOD

4.1
      In case the Master Contract is a loan contract, the guarantee period hereunder shall be within two years as of the next day of the maturity date under the Master Contract; provided that Party A announces early maturity of the loan under the
Master Contract in accordance with such Contract, the guarantee period shall be within two years as of the next day of such early maturity date. 

4.2
      In case the Master Contract is a bank acceptance contract, the guarantee period hereunder shall be within two years from the next day following the date of Party A’s acceptance. 

4.3
      In case the Master Contract is a guarantee issuance contract, the guarantee period hereunder shall be within two years from the next day following the date when Party A performs its guarantee liability. 

4.4
      In case the Master Contract is a L/C issuance agreement/contract, the guarantee period hereunder shall be within two years as of the next day of the date of Party A’s payment of the amount under the L/C. 

4.5
      In case the Master Contract is any other finance instrument, the guarantee period hereunder shall be within two years from the next day following the (early) maturity date of the credit right under the Master Contract. 

ARTICLE 5       REPRESENTATIONS AND WARRANTIES
OF PARTY B 

Party B hereby makes the following representations and warranties to Party A: 

5.1
      Party B has the legal capacity of a guarantor, and it has obtained all necessary authorizations or approvals for the guarantee it provides for Party A according to the procedures and power limits stipulated in the Party B’s Articles of
Association and in compliance with the laws, regulations and other relevant stipulations.

5.2
      Once it is a listed company or subsidiary of a listed company, it promises to fulfill information disclosure obligations to the guaranteed matters in a timely manner according to the Securities Law of the People’s Republic of China, Stock
Listing Stipulations of Securities Exchange of the People’s Republic of China, relevant laws, stipulations and regulations. 

5.3
      Party B is fully capable to undertake the guarantee liability, which will not be relieved or exempted due to any change of instruction, financial state or any agreement entered into with any third party. 

5.4       Party B has fully understood the purpose of the loan under the Master Contract, and it is on a voluntary basis and based on its true intent that Party B provides the guaranty. Party B acknowledges that the basic transaction pursuant to which the
foreign or domestic transaction finance is contemplated are true and without any fraud. 

Exhibit 10.8

5.5       All the aspects of the materials or information it provides for Party A are true, accurate and complete, and without any false record, material omission or misleading statement. 

5.6
      If the principal creditor’s rights hereunder are based on international trade finance provided by Party A to the Debtor, Party B accepts and acknowledges the corresponding international practices. 

5.7       If Party B is a natural person, it also represents and warrants that: 

	
 	
A. 		
it has full capacity for civil conduct;

	
	 	 	 
	
 	
B. 		
it has a legal income source and full capability for repayment of the debt;

	
	 	 	 
	
 	
C. 		
there is no malicious delayed repayment of bank loan principal and interest, or credit card
overdraft;

	
	
 	
 	
 
	
 	
D. 		
there is no gambling, drug abuse and other records of misconduct or crimes;

	
	 	 	 
	
 	
E. 		
the guaranty it provides for Party A has been approved by Party B’s spouse.

	

ARTICLE 6       UNDERTAKINGS OF PARTY B 

Party B hereby undertakes the following to Party A: 

6.1
      In case of any of the following conditions, Party B has to continue to fulfill guarantee obligations unconditionally within 5 working days upon Party A’s notice:

	
 	
A. 		
Principal creditor’s rights are mature (including early maturity) while the Debtor fails to repay the loan;

	
	 	 	 
	
 	
B. 		
Party B or the Debtor is filed for bankruptcy, or is liquidated, or ceases or suspends operations, dissolves, or its business license is cancelled or revoked;

	

6.2       If Party A’s principal creditor’s right is secured by collateral, it is entitled to require Party B to assume its guarantee liability first, whether such collateral is provided by the Debtor or by any third party, and Party B
undertakes not to raise any defense against such requirement. In case that Party A gives up, changes or loses its security interests, Party B’s guarantee liability shall still remain effective without being mitigated or invalidated. 

6.3
      Party B shall provide Party A at its request with financial materials, tax payment receipts and other materials reflecting its financial status in a timely manner. 

6.4
      Party B shall continue to fulfill its guarantee obligations hereunder if any of the following circumstances occurs: 

	
 	
A. 		
Party A and the Debtor modify the Master Contract through consultation, which does not increase Party B’s debts or extend the repayment period;

	
	 	 	 
	
 	
B. 		
Party A and the Debtor make changes to the L/C related to the Master Contract under foreign or domestic trade finance circumstance, which does not increase the Debtor’s repayment obligation under the L/C or extend the
repayment period;

	
	 	 	 
	
 	
C. 		
Party A assigns the principal creditor’s right to a third party.

	

Exhibit 10.8

6.5
      Any guaranty provided to any third party in any form shall not prejudice Party A’s right and interest hereunder. 

6.6
      Party B shall not conduct a consolidation, split, capital decrease, stock equity change, material asset and creditor’s right transfer, significant outward investment, substantial debt-increasing finance and other activities that may have
adverse effect on Party A’s interests without Party A’s prior written consent or before making an arrangement satisfactory to Party A with connection to its guarantee liability hereunder. 

6.7 
      Party B shall notify Party A of any of the following circumstances:

		
A. 		
Any change in the Articles of Association, business scope, registered capital, legal representative, or stock equity;

	
	 	 	 
		
B. 		
Business closure, disbandment, settlement, business shutdown for rectification, revocation of business license, cancellation or filing for bankruptcy;

	
	 	 	 
		
C. 		
Circumstances that concern or may involve serious economic disputes, lawsuits and arbitration or sealing, confiscation or supervision of properties according to law;

	
	 	 	 
		
D. 		
If Party B is a natural person, its address, working place and contact are changed;

	
	 	 	 
		
E. 		
Offering enterprise bond, company bond, short-term commercial paper or the indebtedness becomes more severe due to any other direct financing means;

	
	 	 	 
		
F. 		
Other large-amount loan or external guarantee occurs.

	

6.8  
      Party B shall sign the receipt of Party A’s written notice in a timely manner.

6.9  
      In domestic L/C, buyer financing under domestic L/C, import L/C and import bill
advance/re-financing for import transactions, Party B shall assume its guarantee liability without any right of defense once any of the following circumstances occurs, and Party B shall not claim exemption of liability or defense because of any
injunction against repayment obligation under the L/C imposed by, or any measure to seize, distrain or freeze any asset related to the L/C or similar measures taken by any judicial or administrative authority:

	
 	
A. 		
Any person designated or authorized by Party A has made a bona fide payment under Party A’s instruction;

	
	 	 	 
	
 	
B. 		
Party A or its designated or authorized person has issued an acknowledgement of the payment due for the goods under the domestic L/C on a bona fide basis, or has made a bona fide acceptance for the vouchers under the export
L/C;

	
	 	 	 
	
 	
C. 		
The confirming bank of the L/C has made a bona fide payment;

	
	 	 	 
	
 	
D. 		
The negotiating bank of the L/C has made a bona fide negotiation of the L/C.

	

6.10
      Under transactions of delivery against bank guarantee, bill of lading endorsement, authorization for delivery of goods, Party B shall not claim exemption of liability or defense because of Debtor’s refusal of payment of the amount under
the L/C. 

ARTICLE 7       UNDERTAKINGS OF PARTY A 

Party A hereby undertakes to keep confidential relevant documents and financial materials delivered by Party B in the course of fulfilling the obligations and other secret information in
other relevant materials unless otherwise stipulated in relevant laws and regulations or other agreement in this Contract. 

Exhibit 10.8

ARTICLE 8       DETERMINATION OF THE PRINCIPAL
CREDITOR’S RIGHTS 

The creditor’s rights secured by maximum amount guarantee shall be determined once any of the following circumstances occurs: 

	
 	
A. 		
The period specified in Article 1.1 herein expires;

	
	 	 	 
	
 	
B. 		
There is no possibility that new creditor’s right will happen;

	
	 	 	 
	
 	
C. 		
The Debtor or Party B is announced bankruptcy or is revoked;

	
	 	 	 
	
 	
D. 		
Other situations for determining the creditor’s rights as prescribed by any other law occurs.

	

ARTICLE 9       BREACH OF CONTRACT

9.1       Either party’s failure to perform any of its obligations hereunder, or breach of any of the representation, warranty or undertaking it makes hereunder after this Contract becomes effective shall constitute a breach of contract. The party in
breach shall compensate for the loss of the other party (if any) incurred therefrom. 

9.2       If Party B fails to perform its guarantee obligation hereunder, Party A has the right to deduct the money in all the accounts opened by Party B with ICBC and its branches to repay the debts under the Master Contract. When the currency of the
deducted amount is different from the currency specified in the Master Contract, the amount to be deducted shall be calculated based on the exchange rate applicable to the relevant currency announced by Party A on the deduction date. The interest
and other fees incurred during the period from the deduction date to the repayment date (the date when Party A converts the deducted amount into the currency specified in the Master Contract in accordance with SAFE policies and repays the debts
under the Master Contract), together with the difference incurred during such period of time due to the fluctuation of exchange rate shall be borne by Party B. 

9.3
      In case of breach of contract of either party, the other party shall be eligible to any remedy provided by PRC laws, regulations and rules, unless otherwise provided by this Contract.

ARTICLE 10       VALIDATION, CHANGE AND
TERMINATION 

10.1
      This Contract becomes valid from the date of signature.

10.2
      Both Parties to the Contract have to negotiate for any contractual changes and reach a
written agreement. The changed provisions or agreement constitute a part of this Contract and have equal legal effect as this Contract. The provisions remain valid except for the changed content; the original contractual provisions shall remain
valid before the changed content become effective.

10.3
      Any failure of any contractual provision to be validated or fulfilled shall not affect the validity and enforceability of the other provisions as well as the validity of the whole Contract.

Exhibit 10.8

10.4
      The change and termination of this Contract shall not
prejudice the right of compensation of both Parties. The termination of this
Contract shall not prejudice the effect of the dispute settlement provisions
herein.

ARTICLE 11       DISPUTE
RESOLUTION

The conclusion, effect, interpretation, performance and dispute
resolution of this Contract shall be governed by applicable PRC laws. Party A
and Party B shall negotiate for the settlement of all the disputes arising from
or with connection to this Contract; in case such negotiation fails, both
parties shall settle the dispute according to the second method
below:

	 	A. 	Submit the dispute to _________/_________arbitration commission and for
      arbitration in (location of arbitration) in
      accordance with the then effective arbitration rules of such Commission. The
      arbitration award shall be final and legally binding upon both Parties. 
	 	  	 
	 	B. 	File a lawsuit with the court
      in the place where Party A is located. 

ARTICLE 12       MISCELLANEOUS 

12.1
      Party B shall not assign all or part of its rights or
obligations hereunder without Party A’s written approval.

12.2      Party A’s failure to exercise, or partial exercising or
delay of exercising any of its contractual rights shall not constitute any
waiver or change to such rights or any other rights; neither will such failure
prejudice its further performance of such right or any other rights.

12.3
      Party A has the right to provide relevant contractual
information and other information for the basic credit information database of
People’s Bank of China or any other lawful credit database pursuant to relevant
laws, stipulations, standard documents or requirements of financial supervision
and management institution and serve for the qualified institution or individual
for searching and utilization. Party A has the right to search Party B’s
relevant information through the basic credit information database of People’s
Bank of China or other credit database set up according to law for the purpose
of executing and fulfilling the Contract.

12.4
      The Contract is made in three counterparts which are
equally authentic, and each party shall hold one.

ARTICLE 13       OTHER MATTERS
AGREED BY BOTH PARTIES 

13.1
      ___________________________________________________

13.2
      ___________________________________________________

Exhibit 10.8

Party A: Industry and Commerce Bank of China, Jiangyang Branch (“Party A”)

Signature: Qiu Ansheng (signature or chop) 

Party B: Fujian Yada Group Co., Ltd. 

 Legal Representative (Authorized Representative): Zhan Youdai (signature or chop)

 

 

Date: June 28, 2010Asia Green Agriculture Corporation: Exhibit 10.9 - Filed by newsfilecorp.com

Exhibit 10.9 

Contract No.: 14060408-2011(EPD) 00018 

DOMESTIC FACTORING CONTRACT 

[Recourse Factoring/Non-recourse Factoring]

 

SPECIAL INSTRUCTIONS: THE CONTRACT IS ENTERED INTO BY BOTH
PARTIES UPON A MUTUAL AND VOLUNTARY BASIS AND NEGOTIATIONS IN ACCORDANCE WITH
LAWS. ALL THE ARTICLES OF THE CONTRACT INDICATE AUTHENTIC INTENTS OF BOTH
PARTIES. FOR PURPOSE OF PROTECTING LEGAL RIGHTS OF PARTY B, PARTY A HEREBY DRAWS
PARTY B’S ATTENTION ON ALL ARTICLES HEREOF REGARDING DUTIES AND RESPONSIBILITIES
OF EACH PARTY, PARTICULARLY THOSE SECTIONS IN BOLD. 

Exhibit 10.9 

PARTY A: Industrial and Commercial Bank of China
Limited Jianyang Branch 
DOMICILE (ADDRESS): No. 5 Ren Min
Road, Jianyang City 
PERSON IN CHARGE: Qiu Ansheng 

PARTY B: Fujian Yaxin Food Co., Ltd

DOMICILE (ADDRESS): Ta Xia Industrial Garden District Jianyang
City 
LEGAL REPRESENTATIVE: Ye Wenyue 

WHEREAS: Party B applies for domestic recourse
factoring [recourse factoring/non-recourse factoring] services with Party A
based upon account receivables formed between Party B, as the seller, and a
purchaser. For purpose of clarifying responsibilities and adhering to credits,
both Party A and Party B enter into this Domestic Factoring Contract (the
“Contract”) based upon mutual negotiations in accordance with Contracts
Law of People’s Republic of China and relevant laws and regulations. 

ARTICLE 1     DEFINITIONS 

Except for otherwise agreed under the Contract, the following
terms shall have the following respective meanings: 

1.1     Recourse Factoring means that Party
B transfers to Party A its account receivables that originate from product sales
to purchasers, provision of services by Party B as well as based upon other
reasons. Party A will provide Party B with account receivables financing
services and related comprehensive financing services. If any purchaser fails to
pay off account receivables within an agreed period, Party A is authorized to
collect the outstanding receivables; 

1.2     Non-recourse Factoring means that
Party B transfers to Party A its account receivables that originate from product
sales to purchasers, provision of services by Party B as well as based upon
other reasons. Party A will provide Party B account receivables financing
services and related comprehensive financing services. If any purchaser fails to
pay off account receivables within an agreed period due to accounting or credits
reasons, Party A is not authorized to collect the outstanding receivables; 

1.3     Purchase and Sale or Service
Contract means any contracts entered into by and between Party B and purchasers,
upon which account receivables under the Contract occur; 

1.4     Account Receivables means sole,
concrete, specific and exclusive, undisputable and legitimate credits deriving
from authentic, legitimate transactions and relationship of debts and credits
that exist between Party B and purchasers and then transferred from Party B to
Party A; 

1.5     Actual Amount of Account
Receivables Invoice means the balance between the invoice amount and any loan
that has been paid off; 

1.6     Amount of Factoring Financing means
financing amount of account receivables provided by Party A to Party B under the
Contract; 

Exhibit 10.9 

1.7     Settlement Day means that the date
for colleting nonrecurring interests will be the date when Party A issues the
financing; the date for colleting monthly interests will be the twentieth day of
each month; the date for collecting quarterly interests will be the twentieth
day of the third month of each quarter. 

1.8     Factoring Balance means the
remaining fund after account receivables actually collected by Party deducts
financing principal, financing interest, overdue fines and relevant fees. 

1.9     Factoring Account means a special
account that is opened by Party A under Party B’s services and used for
collecting account receivables, deducting principal and interests of factoring
financing, paying factoring balance, which is the solely legitimate account for
collecting account receivables under this Contract; 

1.10     Commission Fee of Factoring means
fees that are collected by Party A for providing financing and other services to
Party B in accordance with the Contract. 

ARTICLE 2     REPRESENTATIONS AND
WARRANTIES OF PARTY B 

2.1     Party B is a duly organized legal
person and validly existing under the laws of the place of its incorporation or
establishment (or a branch legally authorized by a legal person). Party B has
valid business license and assets, and conduct legal business.

2.2     Party B has all the requisite power
to fulfill rights and obligations under the Contract. 

2.3     Signing and execution of the
Contract will not disobey or conflict with any laws and regulations which Party
B should obey; execution of the Contract will not cause Party B to disobey any
other contracts or documents and bylaws which approve Party B’s establishment.

2.4     All the materials provided by Party
B to Party A are authentic, accurate and integrated without any concealment or
any material debt that is not disclosed to Party A.

2.5     It is authentic, legitimate, valid
and undisputable for the relationship of debts and credits originating from any
Purchase and Sale Service Contract based upon which Account Receivables
transferred from Party B to Party A exist. 

2.6     No provisions in any Purchase and
Sale Service Contract will prohibit assignment of Account Receivables. 

2.7     The ownership of the Account
Receivables transferred from Party B to Party A is clean and unencumbered
without any pledge for a third party or other priority claims. 

2.8     When the Contract becomes
effective, there does not exist any pending litigation, arbitration or other
potential material dispute that are against Party B and may trigger objectively
disadvantaged effects on Party B in any manner. 

2.9     The most updated financial
statements provided by Party A are made in accordance with applicable Chinese
laws and ordinances as well as accounting standards, which integratedly,
authentically and fairly reflect financial situation and achievements as of
certain financial period. After the date of the financial statements, business
or financial status of Party B shall not materially change in a disadvantaged
manner. 

Exhibit 10.9 

2.10     The purpose for the Factoring
Account No. 1406040819600040756 opened by Party B under the services of
Party A is to collect relevant Account Receivables and deduct both principle and
interests of factoring financing. Without Party A’s consent, Party B is not
allowed to withdraw any amount from the Factoring Account or issue an order of
payment from such Factoring Account.

2.11     Party B vests in Party A’s conduct
daily supervision over the Factoring Account, including, but not limited to, the
acknowledgement and record of the capital income and payment of such Factoring
Account and assist Party A to verify each collected payment. 

2.12     In the following events, Party A
is authorized to directly deduct corresponding principal and interest and other
related fees: 

	 	(1) 	
      As of the Settlement Day as specified in the Contract,
      Party B fails to pay off interest due;

	 	 	 
	 	(2) 	
      As of the financing maturity day (including when Party A
      declares an acceleration of maturity), Party B fails to pay the total
      principal and interest of the financing capital;

	 	 	 
	 	(3) 	
      The corresponding Account Receivables of the financing
      paid reach the Factoring Account in advance.

2.13     In the event that as of the
financing maturity day, the amount in the Factoring Account is not enough to pay
off the corresponding factoring principle and interest, Party A is authorized to
deduct the respective amount from any account of Party B opened under services
of Party A or in other branches of Industrial and Commercial Bank of China
Limited to pay off all the principle and interest of the financing loan and
other due fees. This Article will be inapplicable to Non-recourse Factoring save
that Party A notices Party B to buyback the Account Receivables in accordance
with Article 6.3 of the Contract. 

2.14     The purpose of financing under the
Contract is purchase of raw materials. Party B is not allowed to use the
financing capital for other purposes. 

ARTICLE 3     AMOUNT OF FACTORING
FINANCING AND TERM 

3.1     Party B shall transfer credits of
the Account Receivables and relevant rights to Party A. After Party A’s
examination and rectification, Party A shall issue RMB2,600,000 (amount in
words: Two Million and Six Hundred Thousand, amount in words shall govern
in the event that amount in figures conflicts with amount in words) factoring
financing to Party B in a lump sum in accordance with the corresponding Amount
of Factoring Financing with respect to invoice of each of the Account
Receivables under the Contract (please refer to the appendix named Transfer List
of Account Receivables).

3.2     The term of each corresponding
factoring financing with respect to the invoice of each of the Account
Receivables issued by Party A to Party B will be from the factoring financing issuance day to the financing repayment day as agreed
by both Party A and Party B. Please also refer to the Transfer List of Account
Receivables. 

Exhibit 10.9 

3.3     The actual financing issuance day
and the repayment day shall be in accordance with the receipt for loan. The
receipt for loan is one of the parts of the Contract and has equal legal effect.
If the receipt for the loan conflicts with the Transfer List of Account
Receivables with respect to the Amount of Factoring Financing, the term of
factoring financing and so on, the receipt for loan shall govern. 

ARTICLE 4     INTEREST RATE, INTEREST AND
FEES OF FACTORING FINANCING 

4.1     The interest rate of the factoring
financing shall be in accordance with the Transfer List of Account Receivables.

4.2     The interest rate of the factoring
financing shall be in accordance with item 4.2.(2): 

	 	(1) 	
      Three months Shanghai Interbank Offered Rate announced
      one working day prior to the financial issuance day plus ____ basis point
      (BP) (annual interest rate of ____% or monthly interest rate of ____ ‰
      ).

	 	 	 
	 	(2) 	
      Benchmark rate of financing issuance day plus floating
      range. The benchmark rate shall adjust up zero% (up/down/zero)
      based upon the RMB loan interest rate at the corresponding level announced
      by the People’s Bank of China within a certain period, in accordance with
      the term of the factoring financing as agreed in Article
  3.2.

4.3     In the event that the benchmark
interest rate is adjusted after the issuance of the factoring financing, the
interest rate is decided in accordance with Article 4.2(2) shall be adjusted in
accordance with the section (3): 

	 	(1) 	
      The interest rate will be adjusted once a
      cycle,_________(1 month/3 months/6 months/12 months) shall be a cycle. The
      first interest determination day shall be the financing issuance day. The
      second interest determination day shall be the corresponding date after
      the first cycle expires and the determination day for the other cycles
      shall be calculated accordingly. If no corresponding day exists in the
      month when the interest rate is adjusted with respect to the financing
      issuance day, the last day of the month shall be the corresponding day. In
      each day with a determined interest, the financing interest rate shall be
      adjusted and the interest shall be calculated based upon different period
      in accordance with a valid benchmark interest rate of that day and the
      floating range as specified under this Article.

	 	 	 
	 	(2) 	
      On each of June 21 and December 21 after the financing
      issuance day, the interest rate shall be adjusted based upon a valid
      benchmark interest rate and floating range as specified in this Article on
      that day.

	 	 	
       
	 	(3) 	
      The financing interest rate will not be adjusted during
      the term of the Contract.

	 	 	 
	 	(4) 	
      ________________________________________________________

Exhibit 10.9 

4.4     In the event that the financing
expires and Party B fails to pay off such financing, the above interest rate
shall also be applicable for the overdue part of the financing.

4.5     If the People’s Bank of China
updates the loan interest rate, relevant rules of People’s Bank of China shall
be applied. 

4.6     The interest of the financing under
the Contract shall be settled in accordance with_________: 

	 	(1) 	
      Settling the interest at the time of issuing the
      financing;

	 	 	 
	 	(2) 	
      After the issuance of the financing, the interest shall
      be settled _____(daily interest rate=annual interest rate/360), the
      monthly interest rate (monthly/quarterly). In the event that the
      financing matures, the interest shall be paid off in accordance with the
      principle. Please see the Transfer List of Account Receivables. If the
      interest is settled monthly, the settlement date is the twentieth day of
      each month; if the interest is settled quarterly, the settlement date
      shall be the twentieth day of each quarter ( that is March, June,
      September, and December).

4.7     If the interest is settled in
accordance with Article 4.6(1), Party A shall deduct the financing interest at
the time of issuing the financing; if the interest is settled in accordance with
Article 4.6(2), Party B shall deposit the interest to the Factoring Account
prior to the Settlement Day and Party A is authorized to directly deduct the
interest from the Factoring Account. On the maturity day, unsettled interest
shall be paid off together with the principal.

ARTICLE 5     REPURCHASE OF THE ACCOUNT
RECEIVABLES 

5.1     The Account Receivables hereunder
shall be collected in the second way provided below, which is specified
in the Transfer List of the Account Receivables: 

	 	(1) 	
      Party A shall be responsible for the management and
      collection of the Account Receivables;

	 	 	 
	 	(2) 	
      Party B shall urge the purchaser to deposit the Account
      Receivables into the factoring account in a timely
  manner.

5.2     Party A shall, after it receives
the full payment of the purchaser, check the factoring finance items
corresponding to the Account Receivables item by item. If there is no conflict
after making the check, the factoring finance items corresponding to the Account
Receivables shall be crossed out from the Transfer List of the Account
Receivables. Party A shall pay the factoring balance, if any, to Party B in a
timely manner. 

Exhibit 10.9 

ARTICLE 6     CONDITIONS, METHOD AND
PROCEDURE OF REPURCHASE OF THE ACCOUNT RECEIVABLES

6.1     Party B shall conduct a purchase of
the factoring services in accordance with the Party’s notice in the event that
Party B’s false representations or guarantees adversely affect the repayment of
the Account Receivables under the Contract. 

6.2     Except for Article 6.1, Party B
shall conduct a repurchase the recourse factoring services satisfying the
following requirements in line with Party A’s notice: 

	 	(1) 	
      The purchaser challenges the repayment of the Account
      Receivables under the Contract due to damages of products or other reasons
      and refuses to pay for or fully pay for the Account Receivables;

	 	 	 
	 	(2) 	
      On the maturity day of the factoring financing, Party A
      does not receive any payment from the purchaser or the payment by the
      purchase fails to fully pay off the principal, interest, fine or other
      fees of the financing;

	 	 	 
	 	(3) 	
      The financing of the Account Receivables is declared
      mature by Party A in the event that any breach of the Contract occurs as
      specified in Article 9 hereof.

6.3     Party B shall repurchase the
Account Receivables as per Party A's notice in case of any Non-recourse
Factoring business which satisfies the following conditions: 

	 	(1) 	
      the purchaser raises challenges to the repayment of the
      Account Receivables hereunder due to the loss of the goods or any other
      reason with no regard to financial and credit condition, and further
      refuses to pay or underpay the Account Receivables;

	 	 	 
	 	(2) 	
      any trade dispute (including but not limited to dispute
      over quality, technology and service), debt dispute and debt recourse
      arising between Party B and the purchaser or between Party B and other
      debtors leads to the purchaser's failure to pay the Account Receivables
      within the time limit specified in the Purchase and Sale or Service
      Contract;

	 	 	 
	 	(3) 	
      after the execution of this Contract, Party A finds that
      the Account Receivables used to transact the Non-recourse Factoring
      business fail to satisfy the conditions provided
herein.

6.4     Party B shall repurchase the
corresponding Account Receivables in accordance with Party A’s requirements
within three (3) days upon Party B’s receipt of Party A’s notice of repurchasing
the Account Receivables; If Party B repurchases the Account Receivables in full,
the Contract shall terminate when Party A and Party B enter into a written
document to confirm the repurchase of the Account Receivables and the repurchase
amount has been collected. 

 

 

Exhibit 10.9 

ARTICLE 7     RIGHTS AND OBLIGATIONS OF
PARTY B  

7.1     Party B shall exercise the rights
and perform the obligations as follows: 

	 	(1) 	
      Party B has the right to require Party A to provide
      financing as agreed herein;

	 	 	 	 
	 	(2) 	
      Party B shall pay a factoring business handling charge,
      factoring financing interest, delayed repayment interest and other related
      fees as provided herein, and perform its repurchase obligation
      hereunder;

	 	 	 	 
	 	(3) 	
      Party B shall reach agreement with the purchaser that the
      accounts receivable shall be directly remitted to the factoring account by
      the purchaser; as for the those that cannot be transferred directly into
      the factoring account through the settlement by bill, Party B shall ensure
      that it transfers the money into the factoring account once it receives
      such money in a timely manner;

	 	 	 	 
	 	(4) 	
      Party B shall actively coordinate with Party A for its
      investigation of Party B’s operation and financial conditions, and
      promptly provide Party A with accounting and financial statements and
      other materials at Party A’s request;

	 	 	 	 
	 	(5) 	
      Party B shall provide necessary assistance in Party A’s
      payment collection measures or action against the purchaser;

	 	 	 	 
	 	(6) 	
      Party B shall provide Party A with a guarantee for
      performance of its obligations hereunder, which is satisfactory to Party
      A. If the guarantee provided by Party B is a maximum amount guarantee, the
      name of such guarantee contract is: Maximum Guarantee Contract, and its
      contract number shall is 0021 Jian Yang (Di) Zi 2010.

	 	 	 	 
	 	(7) 	
      Party B shall notify Party A of any of the following
      events within 5 days upon occurrence of such event, and shall provide
      materials with respect to such event:

	 	 	 	 
	 	 	
    	
      Any event resulting in breach of contract

	
      Any anticipatory breach or any event which may damage
      Party A’s interests hereunder;

	
      Being involved in any litigation, arbitration procedures
      or claim in any form in which Party B is accountable for an amount of more
      than RMB ________or other currencies equivalent;

	
      Change of the company’s name, domicile, registered
      capital, business scope, type and amendment of company’s Articles of
      Association, or shareholding restructuring, contracting, leasing,
      consolidation, split, joint operation, contract or equity joint venture,
      or any significant change to company’s financial status, alteration of
      stock equity and other major events;

    
	 	 	 	 
	 	(8) 	
      If the guarantee is in any form provided by the purchaser
      or any third party for Party B’s Account Receivables is assignable, Party
      B shall assign the guarantee to Party A; if the guarantee is not
      assignable, Party B shall assist Party A with recoursing the debt when
      necessary.

	 	 	
       
	 	(9) 	
      Besides the Account Receivables and the related rights
      assigned to Party A, Party B shall continue to perform other obligations
      under the Purchase and Sale or Service Contract;

	 	 	 
	 	(10) 	
      Party B shall not execute any agreement or document which
      is sufficient to damage Party A’s interests hereunder, or conduct any act
      which is sufficient to damage Party A’s interests after this Contract
      becomes effective.

Exhibit 10.9 

7.2     Except as provided in Article 7.1
herein, Party B shall bear ultimate repayment liability for the financing under
Recourse Factoring business. Any reason which causes failure to collect the
Account Receivables in time and in full amount, shall not prejudice Party A’s
excising and realizing its right of recourse against Party B. 

ARTICLE 8     RIGHTS AND OBLIGATIONS OF
PARTY A 

8.1     Party A shall exercise the rights
and perform the obligations as follows: 

	 	(1) 	
      After this Contract becomes effective, the Account
      Receivables shall be assigned to Party A, and Party A shall enjoy all the
      rights with respect to the Account Receivables;

	 	 	 
	 	(2) 	
      If Party B fails to repurchase the Account Receivables
      which should be repurchased, Party A has the right to exercise its right
      of offset and right of recourse; namely, Party A may directly deduct the
      amount to be repurchased from any account of Party B opened with Party A
      or any other branches of ICBC, or recourse the money overdue;

	 	 	 
	 	(3) 	
      Party A has the right to obtain and keep the original
      invoices of the Account Receivables until the principal and interest of
      the factoring finance hereunder is paid off; after the principal and
      interest of the factoring finance is paid off, Party A shall return the
      corresponding original invoices of the Account Receivables to Party B in a
      timely manner;

	 	 	 
	 	(4) 	
      Party A shall advance the factoring finance to Party B
      and provide other services as stipulated by this Contract;

	 	 	 
	 	(5) 	
      Party A shall keep confidential the information and
      materials regarding the debts, financial status, operation and production
      provided by Party B, except as otherwise provided herein or by
  law.

 

Exhibit 10.9 

8.2     Besides the rights provided in
the preceding article, Party A is also entitled to the following rights in
Recourse Factoring business: 

	 	 	(1) 	
      Before the principal and interest of the factoring finance is paid off,
      Party A has the right to directly deduct the principal from the factoring
      account and collect a factoring procedure fee, factoring finance interest,
      overdue penalty interest and other fees, if Party B fails to repay the
      factoring finance and pay the related fees;
	 	 	 	
       
	 		(2) 	
      Party A is entitled to learn, inspect and supervise the
      implementation of Party B’s plans of production, operation and management,
      and its financial revenue and other information;

	 	 	 	 
	 		(3) 	
      If the payment of goods received by Party A on the
      maturity date is not sufficient to pay the principal, interest, overdue
      penalty interest and other related fees of the factoring finance, Party A
      has the right to decide whether to recourse against the purchaser at its
      sole discretion. Party A’s decision to exercise its right of recourse
      against the purchaser shall not exempt Party B from performing its
      repurchase obligation; provided that Party A has already obtained part or
      all of the payment of goods from the purchaser, the repurchase amount to
      be paid by Party B shall be reduced accordingly. Party A shall pay Party B
      the factoring balance (if any) in a timely manner.

	 	 	 	 
	
    8.3     Besides the rights provided in
      Article 8.1, Party A is also entitled to the following rights in
      Non-recourse Factoring business:

	 	 	 	 
	 		(1) 	
      In the event that a purchaser has failed to pay in time
      consecutively two (or more) account receivables towards Party B, Party A
      shall be entitled to cease factoring finance to Party B with respect to
      the account receivables hereunder between Party B and such
    purchaser.

	 	 	 	 
	 		(2) 	
      ___________________________________________________________

ARTICLE 9     BREACH OF CONTRACT AND
LIABILITIES 

9.1     General principle: Violation by
either Party A or Party B hereto constitutes a breach of contract by such party,
and the breaching party hereto shall bear the relevant liabilities in pursuance
of the laws or this Contract. 

9.2     Any of the following items shall be
deemed as breach of contract by Party B: 

	 	(1) 	
      Party B has not undertaken its liabilities hereunder or
      has violated its representations, warranties or covenants
herein;

	 	 	 	 
	 	(2) 	
      “Cross Default Event” including any of the
    followings:

	 	 	 	 
	 	 	
    	
      Any other debt of Party B exceeding ___ RMB is payable or
      declared due prior to the maturity date;

	
      Any other debt of Party B can not be paid prior to the
      maturity day;

	
      Any other creditor has obtained in whole or in part the
      ownership of the business or assets of Party B, or any judgment of ruling
      in respect of the assets of Party B is enforced mandatorily, materially
      influencing Party B’s abilities to undertake its liabilities
    hereunder.

    

Exhibit 10.9 

	 	(3) 	
      “Anticipatory Breach Event” including any of the
      followings:

	 	 	 	 
	 	 	
    	Party B ceases or may cease its business operation or any
      significant portion thereof, or Party B disposes its business operation or
      any significant portion thereof, resulting in material adverse influence
      upon its abilities to bear its liabilities hereunder;
	There has been any material adverse influence upon its
      business operation or financial status, or upon its abilities to bear its
      liabilities hereunder;
	There has been accidences arising out of Party B’s
      violation of the laws, regulations or industrial standards with regard to
      food safety, safe production, environment protection, etc, leading to
      material adverse influence upon its abilities to undertake its liabilities
      hereunder;
	Party B is or may be involved in economic disputes with
      large monetary amounts, or its assets are seized, retained or enforced
      mandatorily, leading to material adverse influence upon its abilities to
      undertake its liabilities hereunder;
	There has been any negative change in the guarantees
      hereunder towards Party A, and Party B has not provided any other
      guarantee as required by Party A;
	Any of the following which has or may have material
      influence on Party B’s its liability undertaking hereof or Party A’s
      interest herein: Party B or any of its affiliate has been investigated or
      levied penalties by judicial authorities or administrative departments
      concerning tax or industry and commerce; there is any change in the
      controlling relationship between Party B and its affiliates; any of Party
      B’s affiliates are or may be involved into significant economic disputes,
      litigations or arbitrations; any major individual investor or key
      management of Party B is investigated or in restriction of activities by
      judicial authorities due to involvement in illegality or crime, or any
      abnormal change thereof; any other matters upon Party B’s affiliates that
      may adversely influence Party B.
	Party B has turned around its liabilities to Party A
      through affiliated transactions, or has obtained Party A’s money or credit
      by factoring with false (trade) contracts with affiliates;

    
	 	 	 	 
	 	(4) 	
      Aside from those set forth in Article 9.2 (3),
      Anticipatory Breach Event under Recourse Factoring shall also include the
      followings:

	 	 	 	 
	 		
    	There is any negative circumstance of the crediting of
      Party B or the purchaser including overdue payment, advance and failure
      of payment of interest;
	The rate of bad accounts has been rising in no less than two (2)
      consecutive months of Party B’s account receivables against a purchaser;
	The outstanding account receivables of Party B against a purchaser
      accounts for no less than five percent (5%) of the balance of account
      receivables thereof;
	Party B has failed no less than two times to re-purchase the account
      receivables in full;
	Any other circumstances influence or may have influenced upon Party
      B’s ability to undertake its responsibilities hereof.

    

Exhibit 10.9 

9.3     In the event of any of the
abovementioned breach hereto, Party A shall be entitled to take one or more of
the measures below: 

	 	(1) 	
      Require Party B to make the correction within a
      specific period;

	 	 	 	 
	 	(2) 	
      Cease to perform the factoring towards Party
    B;

	 	 	 	 
	 	(3) 	
      Declare the performed factorings are due promptly
      and require Party B to re-purchase the outstanding account
      receivables;

	 	 	 	 
	 	(4) 	
      Retain corresponding amounts in Party B’s
      accounts opened in Party A or any other branches or
      subsidiaries of Industry and Commercial Back of China to cover all the
      factoring principals and interest as well as other fees
  payable;

	 	 	 	 
	 	(5) 	
      Require Party B to further provide legal, effective
      and full guarantees;

	 	 	 	 
	 	(6) 	
      Claim directly against the purchaser upon maturity of
      the account receivables;

	 	 	 	 
	 	(7) 	
      Other measures as stipulated by laws and regulations,
      or set forth herein, or deemed necessary by Party
A.

9.4     For Recourse Factoring, to the
extent that Party B has not repaid in time the principal and interest of the
factoring hereunder (including those declared matured in advance), or, for
Non-recourse Factoring, to the extent that Party B has not re-purchased the
account receivables in accordance hereof, Party A shall be entitled to receive a
penalty interest calculated with 30% (30% - 50%) above the
factoring interest rate hereunder and number of days since the overdue date, and
to receive a compound interest for the overdue interests calculated based on the
penalty interest rate stipulated in this Article 9. 

9.5     In the event that Party B has
misappropriated the money under the factorings, Party A shall be entitled to
receive a penalty interest calculated with 50% (50% - 100%) above
the factoring interest rate hereunder and number of days since the date of
misappropriation; further to the above, should Party B have not paid the interest
during the period of misappropriation, Party A would then be entitled to receive
a compound interest calculated based on the penalty interest rate stipulated in
this Article 9. 

Exhibit 10.9 

9.6     For the purpose of exercise of
its credit rights hereunder, Party A is entitled to retain corresponding amounts
in the accounts in RMB or foreign exchanges of Party B opened in Party A or any
other Industry and Commercial Bank of China branches or subsidiaries to cover
the payments of Party B. In the event of difference of currencies between the
retained amount and the one hereof, a conversion shall be made adhering to the
exchange rate applied by Party A on the retaining day. Party B shall bear the
interest and other expenses arising out between the retaining day and the
Settlement Day, as well as the balance thereof due to the change of exchange
rate ( “Settlement Day” means the day when Party A has convert the currency of
the retained amount into the one hereof in conformity with the national policies
of foreign exchange administration and has cleared all the debts of Party B).

ARTICLE 10     MISCELLANEOUS

10.1     Party A will record the
principal, interest, fees and any other amounts of Party B as well as the
payment by the purchaser in its internal financial books; the above records and
all the notes and vouchers arising out of and kept during the factoring business
between Party A and Party B constitute the effective evidence of the performance
hereof by Party A and Party B. 

10.2     Party B shall not assign its
rights or delegate its obligations hereunder to any third party without prior
written consent of Party A. 

10.3     Party A is entitled to assign its
rights in whole or in part to a third party. 

10.4     Party A's failure or delay in
exercising any right or deciding power hereunder shall not operate as a waiver
thereof, and any single or partial exercise by Party A of any right or deciding
power shall not preclude the exercise of such right or deciding power in the
future. The rights and remedies hereof are cumulative, and shall not preclude
any other rights or remedies as stipulated by law. 

10.5     Party A is entitled to provide the
information hereunder and other relevant information of Party B to the credit
system of People’s Bank of China and other legally established credit
information databases in line with applicable laws and regulations or upon the
requirement by financial supervising authorities, for the inquiries and usage of
qualified institutions or individuals. Party A is also entitled to, for the
purpose of formation and performance hereof, inquire about related information
to Party B via the credit system of People’s Bank of China and other legally
established credit information databases. 

10.6     Where Party A notifies the
purchaser(s) of the assignment of its rights in relation to the account
receivables, it is entitled to deliver the written notice directly to such
purchaser(s) without consent of Party B. 

Exhibit 10.9 

ARTICLE 11     DISPUTE RESOLUTIONS

11.1     The execution, effectiveness,
explanation and performance of this Contract shall be governed by the laws of
the People’s Republic of China. Any dispute arising in the performance of the
Contract shall be settled through negotiation. In case that no settlement can be
reached through negotiation, the dispute shall be settled by the second
method as follows. 

	 	(1) 	
      Submitting to _______Arbitration Commission for
      arbitration in accordance with the arbitration rules thereof in
      _______(place of arbitration). The arbitral award is final and binding
      upon both parties.

	 	 	 
	 	(2) 	
      Instituting legal proceedings in the People’s Court in
      the place where Party A is located.

ARTICLE 12     THE EFFECTIVENESS,
MODIFICATION, DISSOLUTION AND TERMINATION OF THE CONTRACT 

12.1     This contract shall come into
force upon the signing of both Parties and shall expire when all the obligations
of Party B under the Contract have been performed.

12.2     Unless otherwise provided by the
Contract, after the Contract becomes effective, each party shall not modify or
dissolve the Contract without the consent of the other party; any modification
or variation shall be subject to the written mutual agreement of Party A and
Party B. 

12.3     Once national laws, regulations or
policies modify and cause that all or part of the provisions of the Contract no
longer meet the requirement of national laws, regulations or policies, Party A
and Party B shall go through negotiations in time and modify relevant provisions
as quickly as possible. 

12.4     The invalidation or
unenforceability of any provision of the Contract will neither effect the
validity and enforceability of other provisions, nor the effect of the whole
Contract.

12.5     The modification and dissolution
of the Contract will not impact the either party’s right to claim for
compensation. The dissolution of the Contract will not affect the effectiveness
of the provisions in connection with dispute resolution hereunder. 

ARTICLE 13     MISCELLANEOUS 

13.1     Under the Contract, unless the
context otherwise requires, (1) any reference to the Contract shall include this
Contract and its attachment thereof, and any modification, amendment or
supplemental document; (2) any reference to the articles, paragraphs and
attachments shall only mean articles, paragraphs and attachments hereunder; (3)
the titles of provisions under the Contract shall be only for convenience of
reference and will not constitute any explanation to the Contract or limit to
the contents and scope under these titles. 

13.2     The attachments, supplements,
modifications or amendments of the Contract are hereby made as an integral part
of the Contract and shall have the same legal force as this Contract. 

Exhibit 10.9 

13.3     The words under the Contract like
“Affiliates”, “ Relationship among Affiliates”, “Affiliate Transactions”, “Major
Individual Investor”, “Key Management Officer” and etc., shall have the same
meaning with the same words as specified in Accounting Standards for Enterprises
No. 36 - Disclosure of Affiliated Parties issued by Ministry of Finance and the
amendments thereto. 

13.4     The attachment of this Contract
shall include the Transfer List of the Accounts Receivables. 

13.5     Other matters not contained in
this Contract shall be settled through negotiation in a friendly way by both
Parties or be executed subject to the laws and regulations of the People’s
Republic of China. 

13.6     The Contract shall be prepared in
two (2) counterparts which shall be equally authentic, and each party shall hold
one. 

13.7     Party B promises not to provide
any external guarantee without the approval of Party A. 

Exhibit 10.9 

Party A: Jian Yang Branch of Industrial & Commercial
Bank of China Ltd. (Official Seal) 
Principal(Authorized Agent): (Seal)

 

Party B: Fujian Yaxin Food Development Co., Ltd.
(Official Seal) 
Legal Representative(Authorized Agent): (Signature/Seal)

Date of Signature: January 31, 2011

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