**Loan      Contract**

**Contract      No. Year 2006 De Shang Yin Jie Zi No.045**

**Deyang      City Commercial Bank **

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**Borrower      (hereinafter referred to as “Party A”): **
***Denong      Zhengcheng Seed Limited Luojiang Branch***

**Domicile:**
**      No. 122 Lufeng Road, Luojiang County **

**Postal      Code: **
***618500***

**Legal      Representative(person in charge): **
***Changyong      Zeng***

**Telephone:      **
***3204966 ***
** **
** **

**Lender      (hereinafter referred to as “Party B”): **
***Deyang      City Commercial Bank***

**Domicile:      **
**No.      14 Mengshan Street **

**Postal      Code: **
***618000***

**Legal      Representative (person in charge): **
***Qi      lee***

**Telephone:      **
***6821187***
* *

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**Article      1 Category of Money Borrowed**

***short-term      loan***
**.**

**Article      2**
**      Purpose of Money Borrowed**

***purchasing      the seed product.***

**Article      3 Amount of Money Borrowed**

***Two      Million Yuan.***

**Article      4 Term of Money Borrowed**

***one      year***
*** ***
***March      9, 2006***
*** ***
***March      8, 2007***

**Article      5 Interest Rate, Interest Calculation and Settlement**

| ***1*** | The                interest rate of the loan hereunder shall be a ***monthly****** ***interest                rate at rate of***7.44‰.*** |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***2*** | The                interest of the loan shall be accrued from the date when the loan                is                deposited into Party A’s account. The interest shall be settled on a                ***monthly***                basis for the loan hereunder and the interest settlement date shall                be the                20th of every month. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***3*** | The                adjustment of interest rate and the method of accruing interest shall                be                adjusted pursuant to the provisions announced by the ***People’s                Bank of China***.                During valid term of this contract, in case that any amendment of                the                provisions applicable to this contract would be announced by the                People’s                Bank of China, the adjustment of interest rate and the method of                accruing                interest shall be adjusted pursuant to the amended provisions without                giving Party A a prior notice. Where Party A’s repayment is overdue, and                the interest rate might be adjusted below the interest rate hereunder                during the foregoing term, the interest rate shall be subject to                the                interest rate hereunder; in case that the interest rate might be                adjusted                above the interest rate hereunder, the interest rate shall be subject                to                the new interest rate announced by the People’s Bank of                China. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Article      6 Advance and Repayment of Money Borrowed **

| 1.   | Conditions                Precedent to the Advance of the Money                Borrowed |
|----------------|-----------------------------------------------------------------------------------------|

| (1)   | Party                A having completed the approval, registration, delivery and other                legal                procedures in respect of the loan hereunder according to relevant                laws and                regulations; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2)   | Party                A having opened a deposit                account                at Party B, and will transact the settlement and deposit of the loan                herein through the foregoing                account. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| (3)   | If                a security is created for this Contract, a security contract or other                form                of security that satisfies Party B’s requirement having become                effective; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| (4)   | Party                A having committed no event of default set forth in this                Contract; |
|-----------------|--------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| (5)   | Other                conditions precedent to the advance of the loan as agreed by the                two                parties:   |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Party                B shall begin to advance the loan within*** ******five***                bank business days after Party A has satisfied the foregoing                conditions. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.  ** | **Principles                of Repayment and Payment of                Interest** |
|--------------------|-----------------------------------------------------------------------------------|

| **4.  ** | **Method                of Repayment** |
|--------------------|----------------------------------------|

***the      repayment date or the interest settlement date***
***the      repayment date or the interest settlement date***
***Commercial      Bank of Deyang***

| **5.  ** | **Prepayment** |
|--------------------|----------------|

**Article      7 Security of Money Borrowed**

***Mortgage***

**Article      8 Party A’s Right and Obligations**

| **1.  ** | **Party                A shall have the right to:** |
|--------------------|-----------------------------------------------------|

| (1)   | require                Party B to advance the loan according to this                contract. |
|-----------------|-----------------------------------------------------------------------------------------------|

| (2)   | use                the loan for the purpose provided in this                contract. |
|-----------------|---------------------------------------------------------------------------------------|

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| (3)   | require                Party B to keep secret of relevant accounting information and production                and operation related trade secrets provided by Party A, unless otherwise                provided by laws, regulations and                rules. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.  ** | **Party                A shall be obligated:** |
|--------------------|------------------------------------------------|

| (1)   | to                provide Party B with relevant materials including opening banks,                account                No. and loan & deposit balance, and to actively co-operate with the                lender’s investigation, examination and                inspection. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (2)   | to                be responsible for the truthfulness, accuracy and completeness of                the                materials provided. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| (3)   | to                use the loan for the purpose as provided in this Contract without                misappropriating or embezzling the money                borrowed. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (4)   | to                actively cooperate with and voluntarily accept Party B’s inspection of and                supervision over its production and operation and financial activities                as                well as the use of the money borrowed                hereunder. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| (5)   | to                repay the principal and interest of the loan in a timely manner according                to this contract. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (6)   | Party                A and its investors shall not spirit its money away or transfer its                assets                to escape debts owing to Party B. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| (7)   | Party                A shall not prepay the other long-term loan without Party B’s                consent. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (8)   | not                to use the assets generating from the loan hereunder to provide security                for a third party without Party B’s consent before its full repayment of                the interest and principal owing to Party                B; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| (9)   | to                give Party B a prior written notice and obtain Party B’s consent if Party                A intends to provide security for the debts of others during the                valid                term of this Contract, which may affect its ability to repay the                loan                hereunder; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (10)   | to                give Party B a prior written notice, obtain Party B’s consent and arrange                for the responsibility of the repayment hereunder or paying off the                loan                ahead of schedule, otherwise Party A shall not commit any of the                following                prior to Party A paying off the loan hereunder: contracting, lease,                stock                system reform, association, merger, acquisition, division, joint                venture,                asset transfer, application for suspending business for internal                rectification, application for dissolution or bankruptcy, which will                definitely affect Party B’s realization of its rights as a creditor of the                loan and change the relationship between right and obligation as                provided                in this contract; |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| (11)   | to                promptly notify Party B of any change in its name, legal representative                (person in charge), domicile, business scope or registered capital                during                the valid term of this Contract. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (12)   | to                bear all expenses with respect to this Contract and the security                hereunder, such as legal fees, insurance, transportation, assessment,                registration, custody, appraisal and notarization expenses. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Article      9 Party B’s Right and Obligations**

| **1.  ** | **Party                B shall have the right to:** |
|--------------------|-----------------------------------------------------|

| (1)   | learn                the production, operation and financial activities of Party A and                require                Party A to provide relevant documents, such as plan statistics, financial                and accounting statements; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2)   | deduct                and transfer from the account opened by Party A at Commercial Bank                of                Deyang’s system. any amount in any currency owing to Party B, where Party                B shall withdraw, or in advance, principal, interest, penalty interest,                overdue interest, compound interest and other payable by Party A                under                this Contract. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | withdraw                the loan or terminate this contract, where the guarantor for the                loan                hereunder is winding-up, closed, deregistered, revoked its business                license, dissolved , in bankruptcy or loss, which will definitely                affect                the guarantor’s capability of security, and where the collateral                is decreased, damaged and lost. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | withdraw                the loan or terminate this contract, where Party A shall commit any                of the                following prior to Party A paying off the loan hereunder: contracting,                lease, stock system reform, merger & acquisition, division, asset                transfer, application for suspending business for internal rectification,                application for dissolution. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.  ** | **Party                B shall be obligated:** |
|--------------------|------------------------------------------------|

| (1)   | advance                the loan fully and in a timely manner as provided in this Contract,                except                for any delay due to the reasons attributable to Party                A; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (2)   | keep                secret of financial materials and production and operation related                trade                secrets provided by Party A, unless otherwise provided by laws,                regulations and rules. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Article      10**
**Liability      for Breach of Contract**

| 1.   | Where                Party B does not advance the loan fully and in a timely manner as                provided                in this Contract, which adversely causes Party A’s loss, Party B shall pay                a certain sum of liquidated damages to the other party in light of                amount                of breach and number of days overdue, the calculation of which shall                be                identical to the interest calculation of the loan overdue, under                the                precondition that Party A shall fully implement the obligations                hereunder. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| 2.   | Where                Party A breaches any article herein, Party B shall have right to                take                retrieval measures by ceasing to advance the loan hereunder, withdrawing                the principal and interest of the loan having been                advanced. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| ***3.  *** | Where                Party A fails to repay the loan hereunder during the term as provided                in                this contract, Party B shall have right to impose interest upon the                overdue loan, commencing from the date the loan is overdue, at the                interest rate herein plus ***50%***                ,                to the date the principal and interest are repaid in                full |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| ***4.  *** | Where                Party A fails to use the loan for the purpose provided herein, Party                B                shall have right to impose interest upon the loan misused by Party                A,                commencing from the date the loan is misused, at the interest rate                herein                plus ***100%***                ,                to the date the principal and interest are repaid in                full. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| 5.   | Where                the payable interest herein is not paid, Party B shall have right                to                impose the compound interest at executive interest                rate. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 6.   | Where                any guarantor hereunder fails to fulfill the obligations as provided                in                the security contract and to follow Party B’s indication to correct, Party                B shall have right to take retrieval measures by ceasing to advance                the                loan hereunder, withdrawing the principal and interest of the loan                having                been advanced. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Where                Party B takes legal proceedings to realize its creditor’s right because of                Party A’s breach of contract, Party A shall bear all expenses with respect                to the realization of the creditor’s right, such as legal fees, around                ***3%~5%***of                the amount disputed, and the accommodation and communication fees                paid by                Party B. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Article      11**
**Settlement      of Dispute**

| (1)   | to                bring a lawsuit at the People’s Court where Party B’s domicile is located;                or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (2)   | to                submit the dispute to [intentionally                left blank]                Arbitration Commission (the place of arbitration is [intentionally                left blank])                for arbitration according to its arbitration rules then effective                at the                time of submission. The arbitration award shall be final and binding                on                the two Parties. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Article      12**
**Other      Matters Agreed**

**Article      13**
**Effectiveness      of this Contract**

**Article      14**
***six***
** **
***one***
**.**

**Article      15**
**Representations**

| (1)   | Party                A is fully aware of Party B’s business scope and scope of                authority. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (2)   | Party                A has perused                each clause in this Contract. As requested by Party A, Party B has                explained correspondingly clauses in this Contract. Party A is fully                aware                of and understands the meaning and corresponding legal consequences                of                each clause in this Contract. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Party                A has the right to sign this Contract. |
|-----------------|-------------------------------------------------------------|

**Party      A (corporate seal): **
***Denong      Zhengcheng Seed Limited***

**Legal      representative (person in charge) or authorized representative (signature):      **

|                                    |   |   |   |
|-----------------------------------------|--------|--------|--------|
| ***/s/                Changyong Zeng*** |   |   |        |
|                                         |   |   |        |
| ***/s/                CORPORATE SEAL*** |   |   |        |
|                                         |   |   |   |

**Party      B (corporate seal): **
***Deyang      City Commercial Bank***

**Legal      representative (person in charge) or authorized representative (signature):      **

|                                                  |   |   |   |
|--------------------------------------------------|--------|--------|--------|
| ***/s/***                                        |   |   |        |
|                                                  |   |   |        |
| ***/s/                  CORPORATE SEAL***        |   |   |        |
| ***February                13, 2006***           |
| ***Deyang                City Commercial Bank*** |

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