Document:

Unassociated Document

     

    
      LOAN
AGREEMENT

      

      

      This Loan
Agreement (the “Agreement”) is entered into, between the EFT Biotech Holdings,
Inc. (“Lender”), located in City of Industry, CA, and Yeuh-Chi Liu, a vendor
(“Borrower”) located in City of Industry, CA.

       

      AUTHORITY
AND LOAN

       

      
        
          	
                	
                  -

                	
                  Lender
      has approved Borrower’s loan dated July 11th,
      2008 in the amount of US$200,000 and July 14th
      in the amount of US$130,000, totaling US$330,000. By executing this
      Agreement the Borrower represents under penalty of perjury are true and
      accurate in all respects.

                
	 	 	 

        

      

      
        
          	
                	
                  -

                	
                  Lender
      agrees to loan (the “Loan”) to Borrower, an interest free loan, in the
      amount of US Three Hundred Thirty Thousand Dollars (US$330,000), evidenced
      by a Promissory Note (the “Promissory Note”) attached hereto as
      Exhibit A.

                

        

      

       

      PURPOSE

       

      The
Borrower agrees to expend all funds disbursed pursuant to this Agreement for the
purposes of vendor’s general business purpose.

       

      LOAN
REPAYMENT

       

      All Loan
funds disbursed hereunder shall be repaid to Lender in accordance with the terms
of the Promissory Note.

       

      EFFECTIVE
DATE OF AGREEMENT

       

      
        
          	
                	
                  -

                	
                  This
      Agreement shall become effective on the date it is approved and executed
      by Lender at City of industry, California (the “Effective
      Date”).

                
	 	 	 

        

      

      
        
          	
                	
                  -

                	
                  The
      Borrower agrees to complete performance of its obligations within the time
      periods required by Lender and any fully executed documents, if
      applicable.

                

        

      

       

      PREPAYMENT

       

      Borrower
shall have the right to prepay all or any part of the outstanding balance of
this Loan at any time without penalty. 

       

      PROMISSORY
NOTE

       

      In order
to evidence its debt to Lender hereunder, the Borrower agrees to,
contemporaneously with the execution of this Agreement, execute and deliver to
Lender the Promissory Note (attached as Exhibit A hereto).

       

      DEFAULT

       

      The
Borrower’s failure to comply with any of the terms of the Agreement shall
constitute a breach of this Agreement and an Event of Default. In the event of
any default, Lender may, in its discretion, declare this Agreement to have been
breached and be released from any further performance hereunder. Events of
default are detailed in the Promissory Note and are incorporated herein by
reference.

       

      
        	
                 
      

              	
                A.

              	
                In
      the event of any default or breach of this Agreement by the Borrower,
      Lender, without limiting any of its other legal rights or remedies, may
      accelerate the Loan and declare any remaining unpaid principal balance,
      immediately due and payable, as provided in the Promissory Note evidencing
      this Loan.

              
	 	 	 

      

      
        	
                 
      

              	
                B.

              	
                In
      the event of any default or breach of this Agreement by the Borrower,
      Lender shall have priority right above any secured or unsecured creditor
      to declare any remaining unpaid principal balance as provided in the
      Promissory Note evidencing this
Loan.

              

      

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      
      

      
        	
                 
      

              	
                C.

              	
                The
      Lender, at its sole discretion, has absolute right to declare all or any
      portion of the principal under this Agreement to be immediately due in any
      time and payable.

              

      

       

      GENERAL
TERMS

       

      
        	
                 
      

              	
                A.

              	
                Indemnification
      by Borrower

              

      

      
        	
                 
      

              	
                The
      Borrower agrees to indemnify, defend, and save harmless Lender and its
      officers, agents, and employees from any and all claims, losses, or costs
      (including reasonable attorney fees) arising out of, resulting from, or in
      any way connected with the Loan or this Agreement, or the financing or the
      operation of the business financed with the Loan.

              
	 	 

      

      
        	
                 
      

              	
                B.

              	
                Independent
      Capacity

              

      

      The
Borrower, and the agents and employees of Borrower, in the performance of this
Agreement, shall and do act in an independent capacity, and they acknowledge and
agree that they are not officers or employees or agents of the Lender and
accordingly they are not authorized to act, and may not act, in such
capacity.

       

      
        	
                 
      

              	
                D.

              	
                Assignment

              

      

      
        	
                 
      

              	
                Lender
      may assign its rights under this Agreement for security purposes, and in
      such event the assignee of this
      Agreement shall be
      entitled to enforce the provisions hereof and shall be a third party
      beneficiary of this Agreement.

              
	 	 

      

      
        	
                 
      

              	
                E.

              	
                Amendment

              

      

      
        	
                 
      

              	
                No
      amendment or variation of the terms of this Agreement shall be valid
      unless made in writing and signed by the parties hereto, and no oral
      understanding or agreement not incorporated herein shall be binding on any
      of the parties hereto.

              
	 	 

      

      
        	
                 
      

              	
                G.

              	
                Severability

              

      

      
        	
                 
      

              	
                In
      the event that any provision of this Agreement is unenforceable or held to
      be unenforceable, then the parties agree that all other provisions of this
      Agreement continue to have force and effect and shall not be affected
      thereby.

              
	 	 

      

      
        	
                 
      

              	
                H.

              	
                Governing
      Law and Venue

              

      

      
        	
                 
      

              	
                This
      Agreement is governed by and shall be interpreted in accordance with the
      laws of the State of California. Venue shall be in Los Angeles County. In
      any contest arising under the Loan Documents, Lender and the Borrower
      agree to waive a trial by jury.

              
	 	 

      

      
        	
                 
      

              	
                I.

              	
                Borrower
      Authorization

              

      

      
        	
                 
      

              	
                The
      Borrower certifies that it has full power and authority to enter into this
      Agreement and this Agreement has been duly authorized, executed and
      delivered by the Borrower. The Borrower acknowledges that the resolution
      of its governing body or other official
      action authorizing it to
      enter into this Agreement also authorizes such further acts as are
      necessary, including execution of the Promissory Note as well as Security
      Agreement, if any, to implement and further the intent of this
      Agreement.

              

      

       

      NOTICE

       

      Any
notice required to be given to Lender hereunder shall be sent to 929 Radecki
Ct., City of Industry, California 91748, attention Sharon Tang, CFO, or at such
other address as Lender may designate in writing to the Borrower. Any notice
required to be given to the Borrower hereunder shall be sent to the address
shown below the Borrower’s execution of this Agreement, or at such other address
as the Borrower shall designate in writing to Lender. Notice to either party may
be given using the following delivery methods: U.S. Mail, overnight mail, or
personal delivery, providing evidence of receipt, to the respective parties
identified in this Agreement. Delivery by fax or e-mail is not considered notice
for the purposes of this Agreement. Notice shall be effective when received,
unless otherwise stated in this Agreement.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      IN
WITNESS WHEREOF, this Loan Agreement has
been executed by the parties hereto.

      

       

      
        
          	
                  Lender

                	
                  Borrower

                
	 
      	 
      
	 
      	 
      
	
                  /s/ Jack
      Qin

                	
                  /s/ Yeuh-Chi
      Liu

                
	
                  Jack
      Qin

                	
                  Yeuh-Chi
      Liu

                
	
                  Executive
      Director

                	 
      

        

      

       

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      EXHIBIT A

      

      DEMAND
PROMISSORY NOTE

      

      
        	
                1.  

              	
                For
      value received, the undersigned, (hereinafter referred to as the
      “Borrower”), promises to pay to the order of the EFT BioTech Holdings,
      Inc. (hereinafter referred to as  “Lender”), at its principal
      place of business at 929 Radecki Court, City of Industry, California
      91748, or at such other place as Lender may designate, the principal sum
      of US Three Hundred Thirty Thousand Dollars (US$ 330,000) until the Loan
      is fully repaid by the Borrower.

              
	 	 

      

      
        	
                2.  

              	
                Borrower
      shall have the right to prepay all or any part of the outstanding balance
      of this Loan at any time without penalty.

              
	 	 

      

      
        	
                3.  

              	
                On
      the occurrence of any event of default, as defined in paragraph 4 of this
      Promissory Note, Lender, at its sole election, may take any or all of the
      following actions:

              
	 	 

      

      
        	
                A.  

              	
                Declare
      all or any portion of the principal balance under this Promissory Note to
      be immediately due and payable.

              
	 	 

      

      
        	
                4.  

              	
                Each
      of the following events and conditions shall constitute an event of
      default under this Promissory Note and the Agreements:

              
	
                 

              	 

      

      
        	
                A.  

              	
                Failure
      of the Borrower to repay any principal, when due under the terms of this
      Promissory Note.

              
	 	 

      

      
        	
                B.  

              	
                Failure
      of the Borrower to comply with, and satisfy, all the terms, conditions,
      and obligations, required by the Loan Agreement as a condition for this
      Loan.

              
	 	 

      

      
        	
                C.  

              	
                Termination
      of the Loan Agreement pursuant to the terms thereof or breach by the
      Borrower of any terms or conditions of said Loan
  Agreement.

              
	 	 

      

      
        	
                D.  

              	
                Occurrence
      of: (1) the Borrower becoming insolvent or bankrupt or being unable
      or admitting in writing its inability to pay its debts as they mature or
      making a general assignment for the benefit of or entering into any
      composition or arrangement with creditors; (2) proceedings for the
      appointment of a receiver, trustee, or liquidator of the assets of the
      Borrower or a substantial part thereof, being authorized or instituted by
      or against the Borrower; (3) proceedings under any bankruptcy,
      reorganization, readjustment of debt, insolvency, dissolution, liquidation
      or other similar law, or any jurisdiction being authorized or instituted
      against the Borrower;

              
	 	 

      

      
        	
                E.  

              	
                Discovery
      of any false or misleading statement, warranty, representation, or fact,
      whether or not contained in any other Loan Documents, that when made or
      furnished to the Lender by or on behalf of the Borrower was relied upon
      by  Lender and induced it to extend the Loan to
      Borrower.

              
	 	 

      

      
        	
                5.  

              	
                Any
      notice required to be given to the Borrower hereunder shall be sent to the
      address shown on the Loan Agreement, or at such other address as the
      Borrower shall designate in writing to Lender. Notice to either party may
      be given using the following delivery methods: U.S. Mail, overnight mail,
      or personal delivery, providing evidence of receipt, to the respective
      parties identified in this Agreement. Delivery by fax or e-mail is not
      considered notice for the purposes of this Promissory
  Note.

              
	 	 

      

      
        	
                6.  

              	
                This
      Promissory Note shall be binding upon the Borrower and its permitted
      successors and assigns and upon Lender and its permitted successors and
      assigns. Lender may assign its rights under this Promissory Note for
      security purposes, and in such event the assignee of this Promissory
      Note shall be entitled to
      enforce the provisions hereof and shall be a third party beneficiary of
      this Promissory Note.

              

      

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      
      

      
        	
                7.  

              	
                This
      Promissory Note shall be construed and enforced in accordance with the
      laws of the State of California.

              

      

      

       

      
        
          	 
      	
                  Yeuh-Chi
      Liu

                
	 
      	
                  Borrower

                
	 
      	 
      
	 
      	
                  /s/ Jack
      Qin

                
	 
      	
                  Authorized
      Signature

                
	 
      	 
      
	 
      	
                  July 14,
      2008

                
	 
      	
                  Date

                

        

      

    

     

     

    
      
         

      

      
        2Unassociated Document

     

    
      Addendum to the Loan
Agreement dated July 14, 2008

      

      Loan
Amount US$330,000

      

      This Addendum, dated July 15, 2008,
states additional term made between the Lender, EFT Biotech Holdings, Inc.,
located in City of Industry, CA and Yeuh-Chi Liu, borrower, located in City of
Industry, CA.  The loan is subject to the change of new
term.  The change of loan term explained in this Addendum is
incorporated into and made a part of the original loan agreement and promissory
note thereto.

      

      AUTHORITY AND LOAN

      

      In addition to the terms listed in this
section, the following term is being incorporated and referred to as part of
this section:

      

      -Both
Lender and Borrower agree that the Loan shall be repaid by December 15, 2009 in
full.

      

      

      IN WITNESS WHEREOF, this Addendum has
been executed by the parties hereto.

      

       

      
        
          	
                  Lender

                	
                  Borrower

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  /s/ Jack
      Qin

                	
                  /s/ Yeuh-Chi
      Liu

                
	
                  Jack
      Qin

                	
                  Yeuh-Chi
      Liu

                
	
                  Executive
      Director

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