Document:

smsapal8kex1026082310.htm

Exhibit 10.26

 

BANK ACCEPTANCE AGREEMENT

No.: 2010 Jian Ping Song Dui 03

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

Legal Representative: Zhan Youdai

Address: 6-1 Shuinan Industry Road, Songxi County, 353500

Tel: 2325688                                                                                                                     Fax: 2332598

Acceptor (Party B): China Construction Bank Corporation Limited Songxi Branch

Legal Representative (Principal): Ou Wenbin

Address: 121 Jiefang Street, Songyuan Town, Songxi County 353500

Tel: 2322670                                                                                                                     Fax: 2322644

Party A requests Party B to sign and accept its commercial bills of exchange which are as follows (an additional table may be attached as a schedule hereto if more bills of exchange are to be listed than those contained below):

 

	
No. of BOE

	
Amt of BOE (RMB) (in Words)

	
Date Drawn

	
Maturity Date

	
Name of Payee

	
AC No. of Payee

	
EA 0101430920

	
One million eight hundred thousand

	
2010.8.11

	
2011.2.11

	
Songxi County Xidong Liuliu Canned Food Factory

	
9051014010010991304502

	
EA 0101430921

	
One million eight hundred thousand

	
2010.8.11

	
2011.2.11

	
Fujian Songxi Count Xingyuan Zhuye Co., Ltd.

	
990101040004978

	
EA 0101430922

	
One million three hundred thousand

	
2010.8.11

	
2011.2.11

	
Haining Liufeng Packaging Co., Ltd.

	
350301040010223

	
EA 0101430923

	
Nine hundred thousand

	
2010.8.11

	
2011.2.11

	
Shanghai Peichao International Freight Co., Ltd.

	
044023857013349608091001

 

Total amount of bills of exchange (in words): RMB five million eight hundred thousand

Article 1        Conditions Precedent for Acceptance by Party B

Unless Party B waives in whole or in part, only if the following conditions precedent are satisfied will Party B agree to accept the bills of exchange listed in the above table:

	
(i)  

	
Party A has deposited a bail under this Agreement;

	
(ii)  

	
Party A has paid the service fee and commitment fee under this Agreement;

	
(iii)  

	
Other guarantees provided for in this Article 3 has become effective; and

	
(iv)  

	
All other conditions precedent agreed upon by the Parties are satisfied.

Article 2         Acceptance Fees

	
(i)  

	
The service fee will be calculated at zero point five per mille (0.5‰) of the face value of the bills of exchange;

 

 

  

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(ii)  

	
The commitment fee will be calculated by one point twenty-five percent (1.25%) of the difference between the amount to be accepted and the amount guaranteed and will be paid up in one lump at the time of acceptance.

Article 3         Guarantees for Acceptance

	
3.1  

	
Bails

With respect to the amount of the bills of exchange under this Agreement, Party A will deposit the bails with Party B on or before August 11, 2010. The specific requirements are as follows:

 

	
No. of BOE

	
Amt of BOE (RMB) (in Words)

	
Name of Payee

	
Amt of Bail (RMB)

	
Current / Fixed

	
Bail AC/Sub-AC No.; Volume No.; Installment No.

	
EA 0101430920

	
One million eight hundred thousand

	
Songxi County Xidong Liuliu Canned Food Factory

	
Five hundred and forty thousand

	
Fixed

	
0.2

	
EA 0101430921

	
One million eight hundred thousand

	
Fujian Songxi County Xingyuan Zhuye Co., Ltd.

	
Five hundred and forty thousand

	
Fixed

	
0.3

	
EA 0101430922

	
One million three hundred thousand

	
Haining Liufeng Packaging Co., Ltd.

	
Three hundred and ninety thousand

	
Fixed

	
0.5

	
EA 0101430923

	
Nine hundred thousand

	
Shanghai Peichao International Freight Co., Ltd.

	
Two hundred and seventy thousand

	
Fixed

	
0.4

 

Before the total amount of the bills of exchange is paid up, Party A may not withdraw any bail.

	
3.2  

	
Other Guarantees

The proprietary property of Fujian Yada Group Co., Ltd. serves as the mortgaged property and a Maximum Mortgage Contract is entered into as a collateral agreement hereto; Songxi Yasheng Food Co., Ltd. serves as a guarantor and a Guarantee Contract is entered into as a collateral agreement hereto; Fujian Shengda Import & Export Trade Co., Ltd. serves as a guarantor and a Maximum Mortgage Contract is entered into as a collateral agreement hereto; Fujian Yada Group Co., Ltd. pledges property as a security and enters into a Bail Pledge Contract separately as a collateral agreement hereto.

 

 

 

  

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Article 4

	
After Party B accepts a bill of exchange in question, for the purposes of defining the rights and obligations of each party, the Parties agree to be governed by the applicable laws, rules and regulations and through negotiation agree as follows:

	
4.1  

	
Party A shall, prior to the maturity date of the said bill, deposit in full the amount payable in the account it opened with Party B (Account No: 3500167760759558888). Regardless of whether the holder or payee presents the said bill for payment, Party B will transfer such amount in full into its own account at the maturity date of the said bill.

	
4.2  

	
On the maturity date of the said bill, Party B shall pay the said bill unconditionally.

	
4.3  

	
If Party A fails to deposit in full amount under Article 4.1 and cause Party B to make any advance, Party B has the right to collect interest at zero point five per mille (0.5‰) per day on the shortage of such deposit by Party A as of the maturity date of the said bill. Party A shall repay Party B the principal of such advance and the interest thereon as well as the fees, costs and expenses resulting from Party B’s recovery of the principal of such advance and the interest thereon (including but not limited to court costs, property preservation cost, enforcement cost, arbitration fee, attorney’s fee, travel expenses, evaluation cost and auction fee).

	
4.4  

	
In the event that any dispute arise from or in connection with any accepted bill of exchange, such dispute shall be resolved by the disputed parties themselves and shall not affect the performance of this Agreement.

	
4.5  

	
Other Terms Regarding Rights and Obligations

	
(i)  

	
BLANK                                                                                        

	
(ii)  

	
BLANK                                                                                        

Article 5         Defaults of Default Liabilities

	
5.1  

	
Defaults of Party A

	
(i)  

	
Party A fails to deposit the amount payable in the specified time limit;

	
(ii)  

	
Party A fails to repay the principal of any advance and/or interest thereon under Article 4 hereof;

	
(iii)  

	
Party A loses or is likely to lose the capacity to pay the debt under this Agreement if:

	
(a)  

	
Party A's operational or financial position seriously deteriorates;

	
(b)  

	
Party A suffers any major debt or asset losses;

	
(c)  

	
Party A is contracted, leased, restructured into a joint stock entity, jointly cooperated, merged, acquired, or restructured into a joint venture, or decreases its registered capital, changes or transfers its equities, transfers its assets, is reorganized or otherwise without the consent of Party B or without proper arrangements for debt repayment;

	
(d)  

	
Party A suspends it business, applies for winding up for rectification or is ordered to do so, applies for dissolution, closing down, deregistration, bankruptcy, cancellation or is ordered to do so, or its business license is suspended;

 

 

  

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(e)  

	
Party A makes any significant investment to any third party or provides for any third party any guarantee exceeding its financial capacity;

	
(f)  

	
Party A brings or is brought any significant suit, arbitration or administrative proceedings; or

	
(g)  

	
Party A suffers any other not provided above.

	
(iv)  

	
It shall be deemed that Party A defaults if Party A fails to provide any additional guarantees as required by Party B when the guarantor:

	
(a)  

	
Is contracted, leased, merged, acquired, restructured into a joint venture, split up, jointly operated, restructured into a joint stock entity, bankrupt, cancelled or otherwise to the extent that the guarantor's capacity to assume its liabilities under this Agreement is affected;

	
(b)  

	
Provides for any third party any additional guarantee exceeding its financial capacity;

	
(c)  

	
Loses or is likely to lose its capacity to guarantee; or

	
(d)  

	
Is under any other circumstance where its capacity to assume its liabilities under this Agreement is affected.

	
(v)  

	
It shall be deemed that Party A defaults if Party A fails to provide any additional guarantees as required by Party B when the mortgagor:

	
(a)  

	
Does not insure the mortgaged property as required by Party B, or after any insured event occurs, does not claim insurance compensation as provided in the mortgage contract.

	
(b)  

	
Waives the right for claims in whole or in part or fails to make the claims as provided in the mortgage contract if the mortgaged property is damaged, lost or devalued resulting from an act of any third party;

	
(c)  

	
Without the consent of Party B, donates, transfers, leases, re-mortgages, relocates or otherwise dispose of the mortgaged property;

	
(d)  

	
Disposes of the mortgaged property with the consent of Party B but fails to use the price received from such disposal as provided in the mortgage contract;

	
(e)  

	
Does not restore the value of the mortgaged property or provides any additional guarantees recognized by Party B if the mortgaged property is damaged, lost or devalued to the extent that the exercise of the rights of Party B to the mortgaged property is affected; or

 

 

  

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(f)  

	
Is under any other circumstance where the exercise of the rights of Party B to the mortgaged property is affected.

	
(vi)  

	
It shall be deemed that Party A defaults if Party A fails to provide any additional guarantees as required by Party B when the pledgor:

	
(a)  

	
Does not insure the pledged property as required by Party B, or after any insured event occurs, does not claim insurance compensation as provided in the pledge contract.

	
(b)  

	
Waives the right for claims in whole or in part or fails to make the claims as provided in the pledge contract if the pledged property is damaged, lost or devalued resulting from an act of any third party;

	
(c)  

	
Disposes of the pledged property with the consent of Party B but fails to use the price received from such disposal as provided in the pledge contract;

	
(d)  

	
Does not restore the value of the pledged property or provides any additional guarantees recognized by Party B if the pledged property is damaged, lost or devalued to the extent that the exercise of the rights of Party B to the pledged property is affected; or

	
(e)  

	
Is under any other circumstance where the exercise of the rights of Party B to the pledged property is affected.

	
(vii)  

	
It shall be deemed that Party A defaults if Party A fails to provide any additional guarantees as required by Party B when the guarantee contract or any other guarantee does not take effect, is invalid or is invalidated or when the guarantor refuses to perform its liabilities under this Agreement.

	
5.2  

	
Default Liabilities

	
(i)  

	
In the event of the default set forth in this Article 5.1(i), Party B has the right to transfer the corresponding amount from the bail account of Party A agreed upon in this Agreement and/or any account opened by Party A with Party B or in the system of China Construction Bank;

	
(ii)  

	
In the event of the default set forth in this Article 5.1(ii), Party B has the right to transfer from any account opened by Party A with Party B or in the system of China Construction Bank the principal of any advance and/or the interest thereon as well as the fees, costs and expenses resulting from Party B’s recovery of the principal of such advance and the interest thereon (including but not limited to court costs, property preservation cost, enforcement cost, arbitration fee, attorney’s fee, travel expenses, evaluation cost and auction fee).

	
(iii)  

	
In the event of the default set forth in this Article 5.1(iii), (iv), (v), (vi) or (vii), Party B has the right to:

 

 

  

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(a)  

	
Unilaterally rescind this Agreement. If any bill of exchange is  not accepted, Party B will not accept any more such bill; if any bill of exchange has been accepted but not honored, Party B will not honor such bill. If Party B unilaterally rescinds this Agreement, the service fee and commitment fee that have been paid by Party A will not be refunded;

	
(b)  

	
Require Party A to provide additional bail; and

	
(c)  

	
If any bill of exchange is not mature and Party A does not deposit the amount payable in full, require Party B to accelerate the deposit of the amount payable or transfer the amount equivalent to that payable from the bail account of Party A agreed upon in this Agreement and/or any account opened by Party A with Party B or in the system of China Construction Bank; if any bill of exchange is mature and Party B has make any advance for such bill, transfer from any account opened by Party A with Party B or in the system of China Construction Bank the principal of any advance and/or the interest thereon as well as the fees, costs and expenses resulting from Party B’s recovery of the principal of such advance and the interest thereon (including but not limited to court costs, property preservation cost, enforcement cost, arbitration fee, attorney’s fee, travel expenses, evaluation cost and auction fee).

	
(iv)  

	
If the account of Party A set forth in this Article is a foreign exchange account, the amount transferred by Party B shall be subject to the selling rate at the foreign exchange quotation of Party B on the date when Party B transfers such amount from the said account.

	
(v)  

	
Party B may transfer any amount from the account of Party A under this Article without prior consent of Party A or prior notice to Party A, provided, however that Party B shall notify Party A after transfer.

Article 6        Miscellaneous

	
6.1  

	
The interest on the bails under this Agreement shall be accrued as follows:

	
6.2  

	
Party B authorizes China Construction Bank Corporation Limited BLANK Branch (Office) to perform this Agreement in the name of Party B and exercise the rights and assume the obligations under this Agreement.

	
6.3  

	
BLANK 

Article 7         Effectiveness

The Parties have caused this Agreement to be executed and affixed their seal hereonto by their legal representatives (principals) or their authorized agents and to take effect as of the date when it is executed and affixed with seals.

Article 8        Termination

This Agreement shall automatically terminate when Party A pays up the amounts payable of the bills of exchange or repays up the principal of the advance made by Party B and the interest there on as well as the fees, costs and expenses resulting from Party B’s recovery of the principal of such advance and the interest thereon (including but not limited to court costs, property preservation cost, enforcement cost, arbitration fee, attorney’s fee, travel expenses, evaluation cost and auction fee).

 

 

 

  

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Article 9         Governing Law & Dispute Resolution

	
9.1  

	
This Agreement shall be governed by the law of the People's Republic of China.

	
9.2  

	
If, during the term of this Agreement, any dispute arises between the Parties from the performance of or in connection with this Agreement and is not resolved through amicable negotiation, such dispute shall:

	
(i)  

	
Be resolved by action filed with the court at the domicile of Party B and be subject to the exclusive jurisdiction of the said court; or

	
(ii)  

	
Be referred to BLANK Arbitration Commission (in) for arbitration under the rules of the Commission prevailing at the time when such dispute is referred thereto. The arbitration award is final and binding upon both Parties.

Article 10        Counterparts

This Agreement is made in quintuplicate. The drawer, acceptance service provider/acceptance bank/acceptor and guarantor each keep one counterpart. Each counterpart is equally authentic.

	
Drawer (Party A): (Seal)

 

 

Legal Representative or

Authorized Agent (Signature): Zhan Youdai

Date:

	
Acceptance Service Provider/Acceptance Bank/Acceptor (Party B): (Seal) Songxi Branch of China Construction Bank

Legal Representative or

Authorized Agent (Signature): Ou Wenbin

August 11, 2010

 

 

 

 

  

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Exhibit 10.27

Guaranty Contract

  

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Fujian Branch of China Construction Bank

 

 

 

 

 

 

  

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The contract is entered into by the following parties:

Guarantor (Party A): See Article 10 of the Contract.

Creditor (Party B): See Article 10 of the Contract.

	
Article 1

	
Guaranty Scope

See Article 11 of the Contract.

	
Article 2

	
Guaranty Method

Party A shall provide joint and several guaranty liabilities under the Contract.

	
Article 3

	
Guaranty Term

The guaranty term hereunder is two years from the contract validity date to expiration of debts fulfillment validity under the master contract. Once Party A agrees with the debt extension validity, the guaranty term is two years from the guaranty term and expiration date of debts fulfillment validity re-stipulated by the extension agreement; once Party B announces in-advanced maturity of debts according to the master contract, the guaranty term is two years from the guaranty term to in-advanced maturity date of debts announced by Party B; in case of debts fulfillment by installment under the master contract, the guaranty term for each stage debts is two years after the expiration date of the last phase of debts fulfillment validity.

	
Article 4

	
Independence of Guaranty Contract

The contract validity is independent from the master contract. The failure, invalidation, partial invalidation, cancellation or elimination of the master contract does not affect the contract validity. Once the master contract is confirmed to suffer from failure, invalidation, partial invalidation, cancellation or elimination, Party A shall bear joint and several liabilities for the debtor’s debts due to return of properties or compensation of losses.

	
Article 5

	
Change of Master Contract

 

 

  

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I.  

	
Once Party B and debtor have changed the master contract provisions through agreement (including but not limited to the repayment currency, repayment method, loan account No., repayment account No., expense utilization plan, repayment plan, interest startup and settlement date, startup date or stop date of debts fulfillment validity under the condition of not extending the debts fulfillment validity), Party A agrees to bear joint and several guaranty liabilities for the debts under changed master contract.

However, once Party B and debtor have extended the debts fulfillment validity or increased credit principal through agreement without Party A’s prior approval, Party A shall bear joint and several guaranty liabilities for the debts of changed master contract according to the contract provisions.

	
II.  

	
Party A’s guaranty liability is not reduced or exempted due to any of the following conditions:

	
(I)  

	
Party B or debtor has undergone system modification, merging, integration, separation, capital increase/reduction, joint venture, joint business operation and name change;

	
(II)  

	
Party B has entrusted a third party to fulfill its due obligations under the master contract.

	
III.  

	
In case of transfer invalidation, cancellation or elimination of debts or credits under the master contract, Party A shall continue to bear the joint guaranty liabilities for Party B according to the contract.

	
Article 6

	
Guaranty Liabilities

	
I.  

	
Once the debts under the master contract are expired or Party B announces in advance the expiration of debts according to the master contract or legal stipulations but the debtor fails to fulfill in full amount and in a timely manner or debtor breaches other provisions of the master contract, Party A shall immediately bear guaranty liabilities within the guaranty scope.

 

 

  

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II.  

	
No matter whether Party B has other guaranty of credits under the master contract (including but not limited to various guaranty methods such as guaranty, mortgage, pledge, guaranty letter and standby L/C), when above other guarantee is valid and established, whether Party B raises right statement to other guarantor, whether third party has agreed to bear total or partial debts under the master contract and whether other guaranty is provided by the debtor, Party A’s guaranty liabilities under the contract are not reduced or exempted. Party B can directly require Party A to bear guaranty liabilities within the guaranty scope according to the contract; Party A can not raise any objections.

	
III.  

	
Once Party A only provides guaranty for partial debts under the master contract, Party A agrees that even though debtor repays and Party B realizes partial elimination of other guaranty rights or debts under the master contract due to any other reason, Party A shall still bear guaranty liabilities for the rest debts within the guaranty scope according to this contract.

	
IV.  

	
Once Party A only provides guaranty for partial debts under the master contract and debts under the master contract after undertaking of guaranty liabilities are not completely repaid, Party A promises to declare (including pre-exercise) the subrogation right or claim right to the debtor or other guarantor and shall not lead to any damage against Party B’s interests. Besides, it agrees that repayment of debts under the master contract is prior to Party A’s subrogation right or claim right.

Specifically speaking, before total repayment of Party B’s credits:

	
(I)  

	
Party A agrees not to declare subrogation right or claim right to the debtor or other guarantor; once Party A has realized the above rights due to any reason, it shall utilize the expense to first repay Party B’s credits without repayment;

	
(II)  

	
Once the debts under the master contract have object guaranty, Party A agrees not to declare rights to the guaranteed articles or expense upon treatment by reason of exercising the subrogation right or due to any other reason. It shall utilize the above guaranteed articles and expense to first repay Party B’s credits without repayment;

	
(III)  

	
Once the debtor or other guarantor has provided counter-guaranty for Party A, Party A shall utilize the expense based on above counter-guaranty to first repay Party B’s credits without repayment.

 

 

  

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V.  

	
Party A has adequately known the interest rate risks. Once Party B adjusts the interest rate, interest calculation or settlement methods according to the master contract or national interest rate policy change so that debtor has increased the repayment interest, penalty interest and compound interest, Party A shall also bear joint guaranty liabilities for the increased part.

	
VI.  

	
Except for the debts under the master contract, once the debtor bears other expired debts for Party B, Party B has the right to receive the debtor’s RMB or other currency expense in the account opened with China Construction Bank, and repay any debt due first. Party A’s guaranty liabilities are not reduced or exempted due to this.

	
Article 7

	
Party A’s other obligations

	
I.  

	
Party A shall supervise the debtor’s loan utilization condition (including purpose) and accept Party B’s supervision of fund, property and business status. According to Party B’s relevant requirements, Party A shall provide relevant information, documents and materials such as financial statement and guarantee the accuracy, authenticity, completeness and validation; Party A can not provide guaranty beyond its financial capacity for the third party without Party B’s written approval;

	
II.  

	
In case of contracting, trusteeship (takeover), leasing, stock system modification, reduction of registered capital, investment, joint business, merging, integration, purchasing and re-organization, separation, joint-funded, application for business suspension and rectification, application for disbandment, cancellation, application for bankruptcy, change to controlling shareholder/actual controller or major assets transfer, close down and out of business, huge penalty by authoritative institution, registration cancellation, revoking of business license, serious legal dispute, serious difficulties or worse financial status of production and business operation, fulfillment failure of normal obligations by the legal representative or main responsible person or losing or possible losing of guaranty abilities due to any reason, Party A shall immediately notify Party B in written form and implement the undertaking, transfer or inheritance of guaranty liabilities under the contract according to Party B’s relevant requirements or provide new guaranty as approved by Party B for the fulfillment of master contract;

 

 

  

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III.  

	
In case of any changes in Party A’s name, legal representative (principal), address, business scope, registered capital or Articles of Association in the company (enterprise), it shall notify Party B within five working days upon change and attach changed materials.

	
Article 8

	
Miscellaneous

	
I.  

	
Allocation and charging of payable expense

As for Party A’s total payable expenses under the contract, Party B has the right to charge RMB or other currency expense from Party A’s account established in the system of 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.  

	
Utilization of Party A’s information

Party A allows Party B to inquire Party A’s credit status in the credit database approved by People’s Bank of China and credit loan competent department or relevant work unit and department and allows Party B to provide Party A’s information for the credit database approved by People’s Bank of China and competent credit loan department. Party A also allows Party B to reasonably utilize and disclose Party A’s information due to business demand.

 

 

  

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III.  

	
Announcement urging

As for Party A’s breach of contract, Party B has the right to report to relevant work unit or department and make an announcement through news media for urging.

	
IV.  

	
Evidence effect of Party B’s record

Except for reliable and confirmed contrary evidence, Party B’s following documents constitute the solid evidences to prove the credit relationship under the master 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 urging record and voucher by Party B. Party A can not raise any objection to Party B’s personal fabrication or reservation of above records, receipts and vouchers.

	
V.  

	
Rights reservation

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 can not 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.

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

	
VI.  

	
Debtor’s disbandment or bankruptcy

Once Party A knows the debtor has entered into disbandment or bankruptcy procedure, it shall immediately notify Party B to report the debts; at the same time, it shall participate in the disbandment or bankruptcy procedure in a timely manner and exercise the claim right in advance. Once Party A knows or should know the debtor has entered into disbandment or bankruptcy procedure but fails to exercise the claim right in advance, Party A shall bear the incurred losses.

 

 

  

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In spite of Article 5 (2), once Party B and debtor have reached a reconciliation agreement in the debtor’s bankruptcy procedure or have agreed with the plan resetting, Party B’s rights under the contract are not damaged due to reconciliation agreement or reset plan; Party A’s guaranty liabilities are not reduced or exempted. Party A can not resist against Party B’s rights declaration through the conditions stipulated in the reconciliation agreement and rest plan. As for the credits compromised by Party B in the reconciliation agreement and reset plan to the debtor without repayment, it still has the right to require Party A for continuous repayment.

	
VII.  

	
Party A’s disbandment or bankruptcy

In case of disbandment or bankruptcy in Party A, even though Party B’s credits under the master contract are not expired, Party B has the right to participate in Party A’s settlement or bankruptcy procedure and report the rights.

	
VIII.  

	
In case of any change 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.

	
IX.  

	
Conditions to the Effectiveness of the Contract

The contract enters into effect upon signatures or official seals by respective legal representatives (principals) or authorized agents of Party A and Party B.

 

 

  

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X.  

	
Once Party A or debtor fails to strictly adhere to 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 the contract in advance and adopt other remedial measures permitted by the contract or law.

	
Article 9

	
Party A’s Representations and Warranties

	
I.  

	
Party A has clearly known Party B’s business scope and authorized power.

	
II.  

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

	
III.  

	
Party A is legally qualified to be the guarantor. Party A’s guaranty conduct under the contract is in strict adherence to relevant laws, administrative stipulations, regulations, Party A’s Articles of Association or internal organization documents; besides, it has gained the approval of internal authoritative institution and/or national authoritative institution. Party A shall bear all the responsibilities arising from the fact that it has no right to sign the contract, such responsibilities include (but not limited to) total compensation for Party B’s incurred losses.

	
IV.  

	
Party A has confirmed that it has adequately known the following: the debtor’s assets, debts, business, credits and reputation, whether it has the legal capacity and power to sign the master contract as well as all the contents of master contract.

 

 

  

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Particular signing provisions

Guaranty Contract No. is 2010 Jian Ping Song Dui Bao Zi No. 2—2

	
Article 9

	
Information of contract parties

Guarantor (Party A): Songxi Yasheng Food Co., Ltd.

Address: Gongnong West Road, Songxi County

Postal code: 353500

Legal representative (Principal): FAN Zhenglin

Fax No.: 0599—2332598

Telephone No.: 2332688

Creditor (Party B): Songxi Branch of China Construction Bank Co., Ltd.

Address: No. 121, Jiefang Road, Songxi County

Postal code: 353500

Responsible person: OU Wenbin

Fax No.: 0599—2322644

Telephone No.: 0599—2322670

To ensure the performance of the Bank Acceptance Agreement (hereinafter referred to as the Master contract, No.: (2010) Jian Ping Song Dai Zi Bao Zi No.03) 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 10

	
Agreement to Article 1

The contract guaranty scope includes the following Type II:

	
I.  

	
All the debts under the master 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, enforcement expense, evaluation expense, auction expense, notarization expense, transportation expense, announcement expense and attorney’s fee).

 

 

  

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II.  

	
The principal under the master contract (currency: RMB) (In Words: RMB Three million one hundred and fifty 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, enforcement expense, evaluation expense, auction expense, notarization expense, transportation expense, announcement expense and attorney’s fee).

	
Article 11

	
Agreement of Article 7 (3)

In case of any changes in the industrial and commercial registration contents such as Party A’s name, legal representative (principal), address, business scope, registered capital or Articles of Association in the company (enterprise), it shall notify Party B in written form within five (5) working days upon change and attach relevant changed materials.

	
Article 12

	
Dispute Resolution

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.

 

 

  

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(2)  

	
Submitting to (blank) Arbitration Commission (place of arbitration:  (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 fulfill this contract, except for the matters in dispute.

Article 13                      This contract shall be made in triplicates.

Article 14                      Other agreed terms

   This filed is left blank.

Article 15                      Party A’s Representations and Warranties

	
I.  

	
Party A has clearly known Party B’s business scope and authorized power.

	
II.  

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

	
III.  

	
Party A is legally qualified to be the guarantor. Party A’s guaranty conduct under the contract is in strict adherence to relevant laws, administrative stipulations, regulations, Party A’s Articles of Association or internal organization documents; besides, it has gained the approval of internal authoritative institution and/or national authoritative institution. Party A shall bear all the responsibilities arising from the fact that it has no right to sign the contract, such responsibilities shall include (but not limited to) total compensation for Party B’s incurred losses.

	
IV.  

	
Party A confirmed it has adequately known the followings: debtor’s assets, debts, business, credits and reputation, whether it has the legal capacity and power of signing the master contract as well as all the contents of master contract.

 

 

  

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Party A (Official seal): Songxi Yasheng Food Co., Ltd. (Seal affixed)

Legal representative (responsible person) or authorized agent (Signature): Fan Zhenggen (Signature)

Date: August 11th, 2010

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

Rsponsible person or authorized agent (Signature): Ou Wenbin (Signature)

Date: August 11th, 2010

 

 

 

 

 

  

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