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Asia Green Agriculture Corp.: Exhibit 10.6 - Filed by newsfilecorp.com

Exhibit 10.6

RMB Liquid Fund Loan Contract

Contract No.: (2011) Jian Ping Song Dai CZ Zi No.3

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

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

	
Legal Representative: Zhan Youdai
		 

	
	
Fax: 2332598
		
Tel: 2332688
	

	
Lender (Party B): Songxi Branch of China Construction
		 

	
	
Bank Corporation Ltd.
		 

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

	
Songxi Province
		 

	
	
Legal Representative: Liu Liquan
		 

	
	
Fax: 2322644
		
Tel: 2322670
	

Exhibit 10.6

For the purpose as set forth in Article 2 of this Contract, Party A hereby applies to Party B for a loan, and Party B agrees to release the loan to Party A (the “Loan”). This Contract is made in line with Contract Law of the
People's Republic of China and the General Provisions of Loans to specify the rights and obligations of parties involved.

ARTICLE 1     AMOUNT OF LOAN

Party A borrows RMB (In words) Five Million from Party B. 

ARTICLE 2      USAGE OF LOAN AND SOURCE OF REPAYMENT 

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

ARTICLE 3      TERM OF LOAN

The term of loan under this Contract is 11 months, commencing from March 2, 2011, and ending on February 2, 2012. 

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

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

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

1.
      Interest Rate of the Loan 

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

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

(2)      The interest rate shall be the
benchmark rate at the commencing date of the
interest (the “Commencement Rate”) at the corresponding level plus (plus/ minus) 0%, such interest rate will not change within the term of the Loan; 

(3)
     Floating rate shall be the benchmark rate at the Commencement
Date at the corresponding level ___ (plus/ minus) __%, and such floating rate shall be adjusted once ___ months in accordance with the benchmark rate of the rate adjusting date as well as the above plus/ minus level from the interest
commencing date to the liquidation date of fulfilling all the principal and interests under the Contract; or 

Exhibit 10.6

(4) __________.

2. 
     Penalty Interest Rate

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

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

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

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

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

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

5. 
     Settlement of Interest

(1)
     A loan with a fixed interest rate shall be settled in accordance with the agreed interest rate. For a loan with a floating interest rate, the interest rate shall be decided based upon the interest rate in each floating term.

(2)      This Contract shall settle the interest based upon section (i) as follows:    

(i)
     monthly settlement of the interest; the settlement date will be 20th day of
each month;

Exhibit 10.6

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

 (iii)      __________. 

ARTICLE 5      ISSUANCE AND PAYMENT OF THE LOAN 

1. 
     Precondition of Issuing Loan

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

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

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

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

(4)
     Party B does not breach the Contract; 

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

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

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

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

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

(10)    Other pre-conditions: _____________________.

2. 
     Loan-paying Plan

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

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

(1)
     Loan-paying Plan: 

	
(i) 2011
		
Amount: RMB5,000,000
	
	
(ii) Date
		
Amount
	
	
(iii) Date
		
Amount
	
	
(iv) Date
		
Amount
	
	
(v) Date
		
Amount
	
	
(vi) Date
		
Amount
	

Exhibit 10.6

(2)
     Loan-paying Plan: 

	
(i) From______to ______	
Amount
	
	
(ii) From______to ______	
Amount
	
	
(iii) From______to ______	
Amount
	
	
(iv) From______to ______	
Amount
	
	
(v) From______to ______	
Amount
	
	
(vi) From______to ______	
Amount
	

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

(4) 
     _______________. Party A shall use the Loan in accordance with the above
loan-paying plan. Unless Party B agrees in writing, Party A shall not accelerate, postpone, split or cancel the Loan. 

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

5. 
     Materials Provided by Party A. 

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

No.1

(1)
      Only satisfying the No.2 requirement: 

 (i) 
     Single use of the Loan exceeds RMB30,000,000 and any payment
under such Loan exceeds RMB30,000,000;    

 (ii) 
     __________________. 

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

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

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

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

(2) 
     Except for the above agreements or that Party B decides that Party A is authorized to decide the payment as agreed in section 7 hereinafter based upon Party
B’s reviewing the materials provided by Party A, Party A shall provide the following materials to Party B no later than five (5) working days prior to using such Loan: 

Exhibit 10.6

(i) 
     Plan of using the Loan in line with the proposed
Loan; 

(ii) 
     Loan archived documents signed and chopped by
Party A.

No.2

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

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

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

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

6. 
     Entrusted Payment of Party B 

(1)
      Application of Entrusted Payment of Party B 

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

 (i) 
     A single payment that exceeds RMB30,000,000, any payment within the scope of such capital to a third party exceeds RMB30,000,000, and Party B approves the payment to the payee based upon materials provided by Party A;

 (ii) 
     Regardless the
amount of each Loan, Party B is entrusted to fulfill the payment;

 (iii) 
     ____________________. 

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

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

Exhibit 10.6

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

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

 (i) 
     all the damages, including, but not limited to, failure of paying the Loan or failure of paying the Loan in a timely manner, shall be burdened by Party A. Party B shall not be liable for such damages and any loss suffered by Party B shall be
compensated by Party A;  

 (ii) 
     Party A shall not dispose such a Loan in any manner (including, but not limited to, transferring and withdrawing deposit); 

 (iii) 
     Party A shall provide new materials and correct information within _____working
days as required by Party B. 

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

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

7. 
     Payment by Party A

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

Exhibit 10.6

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

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

       (i)        
  Party A breaches any agreement under this Contract; 

       (ii)      
   Any event that could harm the credit of Party B as agreed under this
  Contract; 

       (iii)     
   Other situations where Party B deems that it is necessary to change
  the payment method of the loan capital. 

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

ARTICLE 6 
     USE AND SUPERVISION OF THE ACCOUNT 

1. 
     Loan Issuing Account 

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

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

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

2. 
     Capital Collecting Account 

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

 Exhibit 10.6

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

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

 (i)      
    Average capital stock in the account: ______________________________

 (ii)      
   Time of the collecting fund: _____________________________

 (iii)      
  Ratio of total sale amount of Party A collected into the account: Ratio
  of total sale amount of Party A collected into the account should be not less
  than 60%.

(iv) 
     Limitation on a single amount in the account payable to the outside: _______

 (v)      
   Limitation on amount in the account per day payable to the outside:
  _______

(vi)
      Limitation on signing with online banks: ____________________________

 (vii)      Any
  payment of the capital of the account to the outside shall be agreed by Party
  B: _____________________________________________________________

 (viii)     Such
  an account shall only be used for collecting or paying loans under the Contract
  and is not allowed to be used for any other purpose: ___________________

   

 (ix)       
  _____________________________________________________________

 (x)      
   Other requirements provided by Party B; 

(xi) 
     Shall execute any related arrangement in line with the account
management agreement entered into by Party A and Party B.

ARTICLE 7       REPAYMENTS

1. 
     Sequence of Repayment 

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

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

Exhibit 10.6

2.
      Repayment of Interest

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

3. 
     Plan of Repaying Principal

The plan of repaying principal shall be decided in accordance with the 1st method:

(1) 
      2012 , amount RMB5,000,000;

(2) 
     Date____________,
amount
_____________; 

(3)
      Date____________,
amount
_____________; 

(4) 
     Date____________,
amount
_____________; 

(5) 
     Date____________,
amount
_____________; 

(6) 
     Date____________,
amount
_____________;

4.
     Method of Repayment

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

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

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

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

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

Exhibit 10.6

(1) 
     Amount of compensation = amount of the repayment principal*number of repayment months*0.05%, less than a month will be deemed as a month. 

(2) 
     ____________.

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

ARTICLE 8       RIGHTS AND OBLIGATIONS OF
PARTY A 

1. 
     Rights of Party A 

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

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

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

 (4)       Party A is authorized
  to require Party B to keep trade secrets regarding materials of accounting information
  and operation provided by Party A confidential; 

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

2.
     Obligations of Party A

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

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

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

Exhibit 10.6

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

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

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

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

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

(9) 
     Party A shall report the use and repayment of the Loan to Party A. Party A shall report the use and repayment of the Loan
of last month to Party B within the initial fifteen (15) working days of each month and provide actual use of the Loan until such Loan has been fulfilled. 

ARTICLE 9       RIGHTS AND OBLIGATIONS OF
PARTY B 

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

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

Exhibit 10.6

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

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

(3) 
     The sale price of Party A’s assets and buyer shall be in line with the following
requirements: ________________________________; 

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

3. 
     Party B shall issue the Loan in line with the Contracts, except for any delay or failure which can be imputed to neither Party A or Party B; 

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

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

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

ARTICLE 10       BREACH OF CONTRACT 

1. 
     Breach of Contract by Party B and Liabilities 

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

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

2. 
     Breach of Contract by Party A

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

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

3. 
     Situations that May Harm Credit of Party B

Exhibit 10.6

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

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

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

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

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

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

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

 (iii) 
     Other events of losing or potentially losing of
 the ability to guarantee. 

Exhibit 10.6

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

 (i)
      Damages, loss and decrease of value of the property under mortgage or pledge due to the behavior of any third party, expropriation by the State, confiscation, condemnation, re-collection without compensation, removal, market changes or other
reasons;  

 (ii) 
     Properties under mortgage or pledge are attached, detained, frozen, deducted, under liens, auctioned, supervised by administrative authorities, or their ownerships are under disputes;  

 (iii) 
     Mortgagee or pledgor breaches any agreement
under the mortgage or pledge agreement or the warranties and representations have any false statement, mistake, or omission;  (iv) 
     Other events that may harm the realization of Party A’s credit in the mortgage or pledge. 

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

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

4.
      Measures of Remedies for Party B 

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

(1) 
     Terminating the Loan; 

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

(3) 
     Altering the payment method of the Loan; 

(4) 
     Declaring an immediate maturity of the Loan and requiring Party A to repay
any principal, interest and fee regardless whether such Loan has been due under the Contract;

(5) 
     When Party A fails to use the Loan in accordance with the Contract, Party B is authorized to require Party A to pay a penalty fee equivalent to
1% of the amount that is used not in line with the Contract and to refuse
any capital that has not been withdrawn by Party A under the Contract; 

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

Exhibit 10.6

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

Prior to the maturity of the Loan, any overdue interest of Party A shall be collected at a compound interest in according with the interest rate and the method of settlement under the Contract: 

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

 (i) 
     Party B is authorized to withdraw RMB or other equivalent currency
from the account of Party A opened in the banking system of the China Construction Bank without informing Party A in advance; 

(ii) 
     Exercising rights of the guarantee;  

 (iii)     
  Party A is required to provide new guarantees for all the debts under the
  Contract; 

 (iv)      Refusal
  of Party A’s disposing of relevant deposit in the bank account of opened
  in the banking system of the China Construction Bank; 

(v)       Dissolution
  of the Contract. 

ARTICLE 11       MISCELLANEOUS

1. 
     Burden of Fees 

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

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

2. 
     Use of Party A’s Information

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

Exhibit 10.6

3. 
     Announcement and Collection

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

4. 
     Evidentiary Effect of Party B’s Record 

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

5. 
     Reservation of Rights

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

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

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

8. 
     Collection of Accounts Payable

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

9. 
     Dispute Resolutions 

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

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

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

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

10. 
     Pre-condition of Effectiveness 

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

11.
      The Contract is in three duplicates. 

12. 
     Other agreed items. 

The credit under this Contract is within the scope of the Maximum Mortgage Agreement titled 2009 Jian Ping Song Gao Di Zi No.2 

ARTICLE 12       CLARIFICATION PROVISIONS 

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

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

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

Exhibit 10.6

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

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

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

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

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

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

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

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

Date: March 1, 2011

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

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

Date: March 1, 2011

Exhibit 10.6

Annex 1

Basic Situation of the Loan

1. 
     Detailed Use of the Loan under the Contract

Purchasing bamboo shoot.

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

2. 
     Source of the Repayment under the Contract 

Business Income

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

3. 
     Others:

None.

Exhibit 10.6

Annex 2

Financial Index Binding Provisions

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

The liquidity ratio is no less than 1, the quick ration is no less than 0.5 and the asset-liability ratio is no more than 60%. 

Party B is authorized to change the above restrictions upon informing Party A fifteen (15) days in advance.Asia Green Agriculture Corp.: Exhibit 10.7 - Filed by newsfilecorp.com

Exhibit 10.7

Natural Person Guarantee Contract

 

 

Fujian Branch of China Construction Bank

Exhibit 10.7

The contract is entered into by the following parties:

Guarantor (Party A): Please see Article 10 of the contract for details. 

Creditor (Party B): Please see Article 10 of the contract for details.

 

Article 1                
SCOPE OF GUARANTEE

Please see Article 11 of the contract for details.

Article 2                 
METHOD OF GUARANTEE

Party A shall provide joint responsibility guaranty under the contract.

Article 3                  GUARANTEE PERIOD

The guarantee period is from the effective date of this Contract and ends two years from the expiration of the debt performance term under the Main Contract. In case Party A agrees to extent the debt performance term, the guarantee period ends two
years from the expiration of the extended debt performance term under the Main Contract. If Party B announces advanced maturity of debts according to the Main Contract, the guarantee period ends two years from the advanced maturity date of debts
announced by Party B. In case the debts under the Main Contract are paid in installments, the guarantee period of each installment is two years from the expiration date of the debt performance term of the last installment.

Article 4                 
INDEPENDENCE OF THE GUARANTEE CONTRACT

The validity of the guarantee contract is independent from that of the Main Contract. The failure, invalidation, partial invalidation, or cancellation of the Main Contract does not affect the validity of the guarantee contract. If the Main Contract
fails, is invalidated, partially invalidated, canceled or void, Party A shall be jointly responsible for the debtor’s debts due to return of properties or compensation of losses.

Article 5                 
CHANGE OF MAIN CONTRACT

	 
	 
	
I. 		
Party A agrees to be jointly and severally responsible for the debts under the amended Main Contract, in the event that Party B and the debtor agree to amend the Main Contract provisions in writing (including but not limited to
the repayment currency, repayment method, loan account No., repayment account No., expense utilization plan, repayment plan, value date and settlement date, startup date or expiration date of debts performance term if the term is not extended).
However, if Party B and the debtor have extended the debt performance date or increased credit principal through agreement without Party A’s consent in advance, Party A shall be jointly and severally liable only for the debts according to the
provisions of the Main Contract before the amendment.

	
	 	 	 	 	 
	 
	 
	
II. 		
Party A’s liability as a guarantor is not reduced or exempted due to any of the following conditions:

	
	 	 	 	 	 
	 	 		
(I) 		
Party B or the debtor has undergone change of formality, 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 Main Contract.

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

	

Exhibit 10.7

Article 6                 
GUARANTORS’ LIABILITIES

	  	  	 I. 	 Party A shall be jointly and severally liable
        within the scope of guarantee, if the debts under the Main Contract are
        due or Party B announces advanced maturity of debts according to the Main
        Contract or laws, the debtor fails to fulfill in full amount and in a
        timely manner, or the debtor breaches other provisions of the Main Contract.

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

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

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

Before total repayment of Party B’s credits:

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

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

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

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

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

	

 Exhibit 10.7

Article 7                 
PARTY A’S OTHER OBLIGATIONS

	 
	 
	
I. 		
Party A shall supervise how the debtor uses the loans (including its purpose).

	
	 	 	 	 
	 
	 
	
II. 		
Party A shall provide Party B with its financial conditions and individual credit information, and guarantee that all materials provided are correct, true, complete and valid. Without written consent of Party B, Party A cannot
provide to any Third Party with a guaranty that is out of its capacity.

	
	 	 	 	 
	 
	 
	
III. 		
In case of any changes to Party A’ s nationality, address or marital status, or if Party A has a serious health issue, receives administrative or criminal punishment, or is involved in a major civil dispute, deterioration of
financial status, or loses or is likely to lose the capability to guarantee for any reason, Party A shall inform Party B immediately in writing, and perform undertaking, transferring or inheritance of guarantee liabilities herein as Party B
requires, or provide a new guarantee for fulfillment of the Main Contract.

	
	 	 	 	 
	 
	 
	
IV. 		
If the company, of which Party A is in the position of controlling shareholder or actual controller, merges, dissolves, changes in entities, fluctuates the amount of capital, or is jointly-funded or jointly-operated, Party A shall
inform Party B of such condition immediately.

	

 Article 8                 
  MISCELLANEOUS

	 	 	I. 	Allocation and charging of payable expense

       As for Party A’s amount payable under the contract,
        Party B has the right to charge RMB or other currency expense from Party
        A’s account established in the China Construction Bank—it is
        not necessary to notify Party A in advance. Once it needs to handle the
        sales and purchasing of foreign exchange or exchange settlement, Party
        A is obliged to assist Party B; Party A shall bear the exchange rate risks.

	 	 	 	 
	 	 	II.	 Use of Party A’s information

      

       Party A allows Party B to inquire Party A’s credit
        status from individual credit information database of People's bank of
        China or any other individual credit information database approved by
        credit rating authority or other relevant work unit, department and person.
        All credit report obtained are limited to be used on purposes stipulated
        in Provisional Rules on Management of Individual Credit Information Database
        issued by People’s bank of China. Party A allows Party B to provide
        its credit information for individual credit information database of People's
        bank of China or any other individual credit information database approved
        by credit rating authority. Party A also agrees that Party B may use and
        disclose its information reasonably for the necessary of business.
        

	 	 	 	 
	 	 	III. 	Collection by Public Notice

      

       As for Party A’s breach of contract, Party B has
        the right to report to the relevant government agency and make an announcement
        through news media to collect the debt.

 Exhibit 10.7

	 	 	IV.	 Effect as Evidence of Party B’s record

      

       Except for reliable and confirmed contrary evidence,
        Party B’s following documents constitute evidence to prove the credit
        relationship under the Main Contract: internal account record of Party
        B’s principal, interest, expense and repayment record; receipt and
        voucher during debtor’s handling withdrawal, repayment and interest
        payment made or reserved by Party B; loan collection record and voucher
        by Party B. Party A cannot object to Party B’s personal fabrication
        or reservation of the above records, receipts and vouchers. 

	 	 	 	 
	 	 	V.	 Reservation of Right

       Party B’s rights under the contract do not affect
        or eliminate any rights enjoyed according to relevant laws, stipulations
        and other contracts. Any grace, forgiving, preference or postponed exercising
        of any contract rights aimed at the breach or delay cannot be taken as
        the abandonment of rights and interests under the contract or permission
        or approval of any breach of contract; besides, they do not affect, block
        or hinder the continuous exercising of the rights or exercising of any
        other rights and do not ask Party B to bear any responsibilities and obligations
        for Party A.

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

	 	 	 	 
	 	 	VI. 	 Debtor’s dissolution or bankruptcy

      

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

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

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

	 	 	 	

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

 Exhibit 10.7

	 	 	IX. 	Conditions for the effectiveness of the Contract

      This Contract becomes effective upon signature or official
        seal by Party A’s legal representative (responsible person) or authorized
        agent and signature or official seal by Party B’s responsible person
        or authorized agent.

Article 9                 
PARTY A’S REPRESENTATIONS AND GUARANTEES

	 
	 
	
I. 		
Party A fully understands Party B’s business scope and authorized power.

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

	
	 	 	 	 
	 
	 
	
III. 		
Party A has the legal qualification of a guarantor.

	
	 	 	 	 
	 
	 
	
IV. 		
Party A has confirmed it adequately knows the debtor’s assets, debts, business, credits and reputation, whether it has the main qualification and power of signing the main contract as well as all the contents of main
contract.

	

Exhibit 10.7

Particular Signing Provisions

 No. of this personal guarantee contract is 2011 Jian Ping Song
  Dai CZ Zi Bao Zi No.3-3

Article 10                 
INFORMATION OF CONTRACTORS

Guarantor (Party A): Zhan Youdai, Zhou Liufeng

Certificate Name and No: ID number: 352128196909072016, 352128197111071529 

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

Post Code: 353500

Tel: 2325600 

Creditor: Songxi Branch of China Construction Bank Co., Ltd  

Address: No 121 Jiefang Street, Songyuan Town, Songxi County

Post Code: 353500

Principal: Liu Liquan

Fax: 0599-2322644

Tel: 0599-2322670 

To ensure the performance of the RMB Liquid Fund Loan Contract (hereinafter referred to as the Main Contract, No.: (2011) Jian Ping Song CZ Zi No.3) entered into by and between Fujian Yada Group Co., Ltd
(hereinafter referred to as Debtor) and Party B, Party A agrees to assume the jointly guarantee liability for the debt under this contract. The Parties hereby agree to enter into this contract based on the mutual consent of consultation and
comply with the terms hereof. 

Article 11                 
AGREEMENTS TO ARTICLE

The contract guaranty scope includes the following Type II:

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

	
	 	 	 	 
	 
	 
	
II. 		
The principal under the main contract (currency: RMB) (In Words: RMB five million yuan) and interest (including compound interest and penalty interest), breach penalty, compensation, other expense paid by debtor to Party B
(including but not limited to relevant handling fee, telecom expense, sundry expense and relevant bank expense rejected by foreign beneficiary), Party B’s expense in realizing credits and guaranty rights (including but not limited to lawsuit
expense, arbitration expense, property safeguard expense, travel expense, implementation expense, evaluation expense, auction expense, notarization expense, transportation expense, announcement expense and lawyer’s expense).

	

Exhibit 10.7

Article 12                 
DISPUTE SETTLEMENT

Any and all disputes arising in the performance of the Contract shall be settled through negotiation. In case that no settlement can be reached through negotiation, the disputes shall be settled by the first method as follows. 

	 
	 
	
(1) 		
Instituting legal proceedings in the People’s Court of competent jurisdiction at Party B’s domicile.

	
	 	 	 	 
	 
	 
	
(2) 		
Submitting to (left blank) Arbitration Commission (place of arbitration: (left blank) ) for arbitration in accordance with the arbitration rules of the Arbitration Commission in force at the time of application. The arbitration
award shall be final, and binding upon both parties.

	

 During the process of litigation or arbitration, the Parties shall continue
  to implement this contract, except for the matters in dispute. 

Article 13
                 THIS CONTRACT SHALL BE PREPARED IN DUPLICATE

Article 14
                 OTHER AGREED ITEMS

This filed is left blank.

Exhibit 10.7

Party A (Official seal):

Legal representative (Person-in-charge) or authorized agent (Signature): Zhan Youdai, Zhou Liufeng (Signature)

Date: March 1, 2011

 

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

Responsible person or authorized agent (Signature): (Signature) 

Date: March 1, 2011

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