Document:

Asia Green Agriculture Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1 

Contract No.: 14060408-2011(EFR) 00078 

 

 

 

DOMESTIC FACTORING CONTRACT 

[Recourse Factoring/Non-recourse Factoring] 

 

 

 

 

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

Exhibit 10.1 

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

  PERSON IN CHARGE: Qiu Ansheng 

PARTY B: Fujian Yaxin Food Co., Ltd

DOMICILE (ADDRESS): Ta Xia Industrial Garden District Jianyang
City 

  LEGAL REPRESENTATIVE: Ye Wenyue 

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

ARTICLE
1      DEFINITIONS 

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

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

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

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

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

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

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

Exhibit 10.1 

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

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

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

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

ARTICLE 2     
REPRESENTATIONS AND WARRANTIES OF PARTY B 

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

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

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

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

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

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

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

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

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

Exhibit 10.1 

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

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

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

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

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

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

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

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

ARTICLE
3      AMOUNT OF FACTORING
FINANCING AND TERM 

          3.1     
Party B shall transfer credits of the Account Receivables and relevant rights to
Party A. After Party A’s examination and rectification, Party A shall issue
RMB3,000,000 (amount in words: Three Million yuan, amount in words shall
govern in the event that amount in figures conflicts with amount in words)
factoring financing to Party B in a lump sum in accordance with the
corresponding Amount of Factoring Financing with respect to invoice of each of
the Account Receivables under the Contract (please refer to the appendix named
Transfer List of Account Receivables).

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

Exhibit 10.1 

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

ARTICLE
4      INTEREST RATE, INTEREST
AND FEES OF FACTORING FINANCING 

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

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

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

	 	 	 
	 	(2) 	
      Benchmark rate of financing issuance day plus floating
      range. The benchmark rate shall adjust 5 % (up/down/zero) based
      upon the RMB loan interest rate at the corresponding level announced by
      the People’s Bank of China within a certain period, in accordance with the
      term of the factoring financing as agreed in Article
3.2.

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

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

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

Exhibit 10.1 

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

	 	 	 
	 	(4) 	
      ________________________________________________________.

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

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

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

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

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

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

ARTICLE
5      REPURCHASE OF THE ACCOUNT
RECEIVABLES 

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

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

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

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

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

Exhibit 10.1 

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

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

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

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

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

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

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

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

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

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

ARTICLE 7     
RIGHTS AND OBLIGATIONS OF PARTY B 

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

Exhibit 10.1 

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

	 	 	
       

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

	 	 	
       

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

	 	 	
       

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

	 	 	
       

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

	 	 	
       

	 	(6) 	
      Party B shall provide Party A with a guarantee for
      performance of its obligations hereunder, which is satisfactory to Party
      A. If the guarantee provided by Party B is a maximum amount guarantee, the
      name of such guarantee contract is: Maximum Guarantee Contract
      (contract number: 0024 Jian Yang (Di) Zi 2011.

	 	 	
       

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

	 	 	
       

	 		 • Any event resulting in
        breach of contract

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

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

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

	 	 	
       

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

Exhibit 10.1 

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

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

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

ARTICLE
8      RIGHTS AND OBLIGATIONS OF
PARTY A 

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

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

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

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

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

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

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

	 	 	 	 
	 		(1) 	
      Before the principal and interest of the factoring
      finance is paid off, Party A has the right to directly deduct the
      principal from the factoring account and collect a factoring procedure
      fee, factoring finance interest, overdue penalty interest and other fees, if Party B fails to
  repay the factoring finance and pay the related fees;

Exhibit 10.1 

	 	(2) 	
      Party A is entitled to learn, inspect and supervise the
      implementation of Party B’s plans of production, operation and management,
      and its financial revenue and other information;

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

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

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

	 	 	 	 
	 		(2) 	
      ___________________________________________________________.

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

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

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

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

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

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

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

Exhibit 10.1 

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

	 	 	 	 
	 		•	
      Party B ceases or may cease its business operation or any
      significant portion thereof, or Party B disposes its business operation or
      any significant portion thereof, resulting in material adverse influence
      upon its abilities to bear its liabilities hereunder;

	 	 	 	 
	 		•	
      There has been any material adverse influence upon its
      business operation or financial status, or upon its abilities to bear its
      liabilities hereunder;

	 	 	 	 
	 		•	
      There has been accidences arising out of Party B’s
      violation of the laws, regulations or industrial standards with regard to
      food safety, safe production, environment protection, etc, leading to
      material adverse influence upon its abilities to undertake its liabilities
      hereunder;

	 	 	 	 
	 		•	
      Party B is or may be involved in economic disputes with
      large monetary amounts, or its assets are seized, retained or enforced
      mandatorily, leading to material adverse influence upon its abilities to
      undertake its liabilities hereunder;

	 	 	 	 
	 		•	
      There has been any negative change in the guarantees
      hereunder towards Party A, and Party B has not provided any other
      guarantee as required by Party A;

	 	 	 	 
	 		•	
      Any of the following which has or may have material
      influence on Party B’s its liability undertaking hereof or Party A’s
      interest herein: Party B or any of its affiliate has been investigated or
      levied penalties by judicial authorities or administrative departments
      concerning tax or industry and commerce; there is any change in the
      controlling relationship between Party B and its affiliates; any of Party
      B’s affiliates are or may be involved into significant economic disputes,
      litigations or arbitrations; any major individual investor or key
      management of Party B is investigated or in restriction of activities by
      judicial authorities due to involvement in illegality or crime, or any
      abnormal change thereof; any other matters upon Party B’s affiliates that
      may adversely influence Party B.

	 	 	 	 
	 		•	
      Party B has turned around its liabilities to Party A
      through affiliated transactions, or has obtained Party A’s money or credit
      by factoring with false (trade) contracts with affiliates;

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

	 	 	 	 
	 		•	
      There is any negative circumstance of the crediting of
      Party B or the purchaser including overdue payment, advance and failure
  of payment of interest;

Exhibit 10.1 

	 	•	
      The rate of bad accounts has been rising in no less than
      two (2) consecutive months of Party B’s account receivables against a
      purchaser;

	 	 	 
	 	•	
      The outstanding account receivables of Party B against a
      purchaser accounts for no less than five percent (5%) of the balance of
      account receivables thereof;

	 	 	 
	 	•	
      Party B has failed no less than two times to re-purchase
      the account receivables in full;

	 	 	 
	 	•	
      Any other circumstances influence or may have influenced
      upon Party B’s ability to undertake its responsibilities
  hereof.

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

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

	 	 	
       

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

	 	 	
       

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

	 	 	
       

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

	 	 	
       

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

	 	 	
       

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

	 	 	
       

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

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

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

Exhibit 10.1 

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

ARTICLE
10      MISCELLANEOUS 

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

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

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

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

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

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

Exhibit 10.1 

ARTICLE
11      DISPUTE RESOLUTIONS

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

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

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

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

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

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

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

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

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

ARTICLE
13      MISCELLANEOUS

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

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

Exhibit 10.1 

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

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

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

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

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

Exhibit 10.1 

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

 

 

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

 

 

Date of Signature: July 26, 2011 

Exhibit 10.1 

ASSIGNMENT LIST OF ACCOUNT RECEIVABLE 

According to application of factoring    with recourse   
[with/without recourse] by Party B, the parties confirmed that Party B will
assign the account receivable and relevant rights between Party B and the
Purchaser to Party A for the factoring provided by Party A with the amount of
RMB 3,000,000 yuan (IN WORD RMB Three Million). The Parties agrees in
matters about this Assignment List of Account Receivable (“List”) upon mutual
negotiation as followings: 

1. This List, together with the Domestic Factoring Contract and
Exhibits entered into by and between the Parties, consist a whole contract which
is binding to both Parties. 

2. Terms and terminologies refereed herein have the same
meaning with that in the Domestic Factoring Contract agreed by both Parties.

3. Any unsettled issues in this List shall subject to the
agreements in the Domestic Factoring Contract. 

4. Attached page can be added if there are too many invoices of
account receivable, such page with stamps of both Parties has the same legal
effect as this List.

5. This List become effective at the date of signature and
stamp by the legal representatives or authorized representatives, and will be
terminated when the principles, interests and relevant fees and expenses under
Domestic Factoring Contract is collected by Party A. 

Exhibit 10.1 

Detailed Statement of Account Receivable Assignment 

RMB          

	

Item 	

Full Name of
      
Purchaser 	
Invoice No. of 
Account
      
Receivable 	Amount of 
Invoice of
      
Account 
Receivable 	
Due Date of 
Account
      
Receivable 	
Amount of 
Factoring
      
Financing 	Issuing 
Date of
      
Factoring 
Financing 	Due Date 
of 
Factoring
      
Financing 	
Interest 
Rate of
      
Loan (%) 	Method 
of 
Calculate
      
Interest 	Collection 
Method of
      
Account 
Receivable 	

Handling 
Charges
  
	1 		00140019 	116466.78 	20120110 	104820.10 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	2 		00140020 	116466.78 	20120110 	104820.10 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	3 		00140021 	11666.78 	20120110 	10500.10 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	4 		00140022 	116466.78 	20120110 	104820.10 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	5 		00140023 	116466.78 	20120110 	104820.10 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	6 		00140024 	116991.03 	20120110 	105291.93 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	7 		00140025 	116989.35 	20120110 	105290.42 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	8 		00140026 	116989.35 	20120110 	105290.42 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	9 		00140027 	116989.35 	20120110 	105290.42 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	10 		00140028 	116989.35 	20120110 	105290.42 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	11 		00140029 	116989.35 	20120111 	105290.42 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	12 		00140030 	116989.35 	20120111 	105290.42 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	13 		01848880 	116989.35 	20120111 	105290.42 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	14 		01848881 	108800.86 	20120111 	97920.77 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	15 		01848882 	99545.44 	20120111 	89590.90 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	16 		01848883 	99545.44 	20120111 	89590.90 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	17 		01848884 	99545.44 	20120111 	89590.90 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	18 		01848885 	99545.44 	20120111 	89590.90 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	19 		01848886 	99545.44 	20120111 	89590.90 		20120119 	6.405% 	Monthly 	Collected by Party B 	
	20 	  	01848887 	99545.44 	20120111 	89590.90 	  	20120119 	6.405% 	Monthly 	Collected

      by Party B 	 

Exhibit 10.1 

	21 		01848888 	99545.44 	20120111 	89590.90 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	22 		01848889 	116954.53 	20120111 	105259.08 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	23 		01848890 	99990.9 	20120112 	89991.81 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	24 		01848891 	99990.9 	20120112 	89991.81 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	25 		01848892 	99990.9 	20120112 	89991.81 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	26 		01848893 	99990.9 	20120112 	89991.81 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	27 		01848894 	116995.45 	20120112 	105295.91 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	28 		01848895 	116181.82 	20120112 	104563.64 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	29 		01848896 	116181.82 	20120112 	104563.64 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	30 		01848897 	116018.18 	20120112 	104416.36 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	31 		01848898 	99990.9 	20120112 	89991.81 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	32 		01848899 	88863.63 	20120112 	79977.27 	 	20120119 	6.405% 	Monthly 	Collected by Party B 	 
	  	 	  	  	  	  	 	  	  	  	  	 
	Factoring Financing in Total 	3390219.25 		3000000.00 	Handling Charges in Total 	6000.00 			 

	
      Note: 
	
      1. The due date of account receivable means the
      collection date of the account receivables agreed by the buyer and
      purchaser under this statement in the purchase and sale or service
      contract, in the format of yyyy/mm/dd: 

Exhibit 10.1 

Party A (Stamp): 

Legal Representative (Signature): 
(Authorized
Representative) 

Date: July 26, 2011 

 

Party A (Stamp): 

Legal Representative (Signature): 
(Authorized
Representative) 

Date: July 26, 2011Asia Green Agriculture Corporation: Exhibit 10.2 - Filed by newsfilecorp.com

Exhibit 10.2

RMB Liquid Fund Loan Contract

Contract No.: (2011) Jian Ping Song Dai CZ Zi No.8

	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 10.2 

For the necessity of funds turnover of Fujian Yada Group Co.,
Ltd., 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) Three Million and Six Hundred
Thousand 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 6 months, commencing
from ______ , 2011, and ending on ______ , 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 _blank__%, 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 at the corresponding level    blank    (plus/ minus)
   blank   %, 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    (plus/ minus)  15 %, and such
floating rate shall be adjusted once __1_ 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 
(4) ____Blank______.

2. Penalty Interest Rate

     Exhibit 10.2 

(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;

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

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:

     Exhibit 10.2 

(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: ______Blank_______________.

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) August 4, 2011 	Amount: RMB 3,600,000 
	(ii) Date 	Amount 
	(iii) Date 	Amount 
	(iv) Date 	Amount 
	(v) Date 	Amount 
	(vi) Date 	Amount 
	(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)
________Blank_______.

3. 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.

Exhibit 10.2

5. Materials Provided by Party A.

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

No.1

(1) Only satisfying the    blank    requirement:

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

     (ii) _________Blank_________.

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

     (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 __blank___ 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;

     Exhibit 10.2 

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
___(ii)____, such payment should be entrusted to Party B, i.e. Party A
irrevocably entrusts Party B to pay the capital to a third party who has a
transaction with Party A. Party A is prohibited to extend such a payment to its
cooperator or any third party.

     (i) A single payment that exceeds
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) _________Blank___________.

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

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

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

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

     Exhibit 10.2 

     (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 ___3__ 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.

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

Exhibit 10.2

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 _blank___ 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 _blank__ working days after the Contract becomes
effective, Party A shall open a capital colleting account or use an existing
account (Account No.: 35001677607059558888) as the capital collecting
account under the services provided by Party B.
(2) Party A shall report the
fund flows of the capital colleting account to Party B quarterly
(“monthly” or “quarterly”) as a circle. Party A shall collect and report the
fund flows of the last circle to Party B no later than ___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
the loan proportion provided by Party B.
     (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:

     Exhibit 10.2 

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

2. Repayment of Interest

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

3. Plan of Repaying Principal

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

	(1) 	
      February 4, 2012, amount RMB
    3,600,000;

	(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    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 10.2 

(1) Amount of compensation = amount of the repayment
principal*number of repayment 

months ×    0.5‰__, less than a month will be deemed as a
month.

(2) _____Blank_______.

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    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 3 working days in written and provide materials after such
changes; 

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

     Exhibit 10.2 

(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    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:

(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:

___________Blank_____________________;
 (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;

Exhibit 10.2

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

(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;

     Exhibit 10.2 

(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.

(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;

     Exhibit 10.2 

(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; 
(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 10.2 

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.

Exhibit 10.2

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 ______ blank________ Arbitration
Commission (the location is _________ blank___________) 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 __four__ 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 and
the Maximum Mortgage Agreement titled 2009 Jian Ping Song Gao Di Zi
No.3.

ARTICLE 12 CLARIFICATION PROVISIONS

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

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

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

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

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

Exhibit 10.2

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 (person-in-charge) or Authorized Proxy
(Signature): Zhang Youdai

Date: August 4, 2011

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

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

Date: August 4, 2011

Exhibit 10.2

Annex 1

Basic Situation of the Loan

1. Detailed Use of the Loan under the Contract 

Purchasing 18L bamboo shoot and canned 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 10.2

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.

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