Document:

ABCS(2004)1001

     

    Loan
Contract

     

    (   )
Nong Ying Jie Zi (    ) No. ( )

    

    Borrower
(Full Name): Kunming
Sheng Huo Pharmaceutics (Group) Co., Ltd.

     

    Lender
(Full Name): Agricultural Bank of China Kunming Shuanglong
Sub-branch

     

    Pursuant
to the relevant PRC laws and regulations, the two parties, following
consultations, mutually agree to enter into this Contract (“Contract”) as
follows.

     

    Article
1 Loan

     

    1.  Type
of loan: Loan toward
short-term current capital;

     

    2.  Purpose
of loan: promotion of
new drugs and purchase of raw material, etc.

     

    3.  Currency
and amount of loan (in Capital): RMB SEVENTEEN POINT SIX
MILLION YUAN

     

    4.  Term
of loan

     

    (1)  As shown in the following
table:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Withdrawing date of the
loan

                                    	 	
                                      Maturity date of the loan

                                    	 
	
                                      Year

                                    	 	
                                      Month

                                    	 	
                                      Day

                                    	 	 	
                                      Amount

                                    	 	
                                      Year

                                    	 	
                                      Month

                                    	 	
                                      Day

                                    	 	 	
                                      Amount

                                    	 
	
                                      2010

                                    	 	
                                      May

                                    	 	
                                      20

                                    	 	 	¥	17,600,000.00	 	
                                      2010

                                    	 	
                                      December

                                    	 	
                                      30

                                    	 	 	¥	600,000.00	 
	 
      	 	 
      	 	 	 	 	 	 	 	
                                       2011

                                    	 	
                                       May

                                    	 	
                                      19

                                    	 	 	¥	17,000,000.00	 

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (In case
of insufficient space therein, additional page can be attached thereto as
supplement to form an integral part hereof.)

     

    
      	
            	
              (2)

            	
              If any inconsistency exists
      between the amount, the withdrawing date and maturity date of the loan
      recorded herein and those recorded in the loan certificate, the latter
      shall prevail. As an integral part hereof, the loan certificate has equal
      legal force and effect as this
Contract;

            

    

    

    
      	
            	
              (3)

            	
              If the loan hereunder is in
      foreign exchange, the Borrower shall repay the principal and interest of
      the loan in the original currency as per the
    schedule.

            

    

     

    5.  Loan
Interest Rate

     

    The
interest rate of loans in RMB is determined as per Method  (1)
below:

     

    (1)  Floating Interest
Rate

     

    The loan
interest rate floats  upward / downward by  
/  %  from benchmark interest rate, and it executes
the annum interest rate of 5.31%. The benchmark
interest rate for loans with a term of five years or less shall be the benchmark
RMB interest rate for the same term announced by the People’s Bank of China,
while that for loans with a term of more than five years shall be the above
benchmark interest rate plus _______/______ (in words) percentage
point(s).

     

    Adjustment
to the interest rate shall be made once in every TWELVE-month period.
In case of adjustment made to benchmark RMB interest rate by the People’s Bank
of China, the Borrower shall, starting from the corresponding day of loan in the
first month of the next 12-month period after the adjustment, pay interest
according to the adjusted benchmark interest rate for the relevant term and the
new interest rate determined as per the above calculation method, without
further notice. If the adjustment day of benchmark interest rate falls on the
same day as the loan issuance day or the corresponding day of loan in the first
month of the 12-month period, the new loan interest rate shall apply starting on
the adjustment day of benchmark interest rate. If there is no corresponding day
of loan, the last day of such month shall be deemed as the corresponding day of
loan.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    (2)  Fixed Interest Rate

     

    The loan
interest rate floats upward/downward by   /  %
to stand at _/__% per annum. The benchmark interest rate for loans with a term
of five years or less is the benchmark RMB interest rate for the same term
announced by the People’s Bank of China, while that for loans with a term of
more than five years is the above interest rate plus _/__ (in words) percentage
point(s).

     

    The
interest rate of loans in foreign currency shall be determined as per Method
__/___ below:

     

    
      	
              (1)

            	
              The
      interest rate of the loan, which consists of __/__-month _/__
      (LIBOR/HIBOR) + _/__ % interest
      margin shall equal to the floating interest rate for loan with a term of
      __/__ months.

            

    

    LIBOR/HIBOR
is the interbank offered rate of London/Hong Kong announced by Reuters for the
corresponding term two working days prior to the interest bearing
date.

    

    (2) An
annual interest rate of __/___ % shall apply till the loan expiration
date.

     

    (3) Other
methods:               /               .

     

    6.
Interest Settlement

     

    The
interest on the loan hereunder shall be settled on a quarterly basis, with
the date of settlement falling on the 20th
day of each quarter-end month. The Borrower shall pay up the interest on every
interest settlement day. If the last repayment day of the loan principal is not
an interest settlement day, the outstanding interest shall be paid up
immediately together with the principal (daily interest rate = monthly interest
rate/30).

     

    Article
2 Where the Borrower fails to meet the following conditions, the Lender shall
have the right to refuse granting the loan hereunder:

     

    
      	
              1.

            	
              The
      Borrower opens a Deposit account
      with the Lender.

            

    

    

    
      	
              2.

            	
              The
      Borrower provides the required /related documents and materials, and
      completes relevant procedures.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
              3.

            	
              The
      Borrower has completed the related approval, registration and other
      statutory procedures if the loan under this contract is in foreign
      currency.

            

    

    

    
      	
              4.

            	
              If
      the loan under this contract is pledged, the pledge of this contract and
      statutory procedures of some relevant registration and /or insurance have
      been completed according to Lender’s requirements,  and the
      pledge and the insurance both are effective.  If the loan under
      this contract is guaranteed, the guarantee contract has been signed and
      been effective.

            

    

    

    Article
3 Lender’s rights and obligations

    

    
      	
               
      

            	
              1.

            	
              The
      lender has the rights to know the conditions of the Borrower’s operation
      condition, financial activity, inventory and the usage of the loan, and
      require the Borrower to provide documents, materials and information such
      as financial statements on time.

            

    

    

    
      	
               
      

            	
              2.

            	
              When
      adverse matters set forth in the NO. 7, 8 and 10 under the Article 4
      occur, which may have sufficient impact on the security of the loan, the
      Lender can stop lending or recover the loan prior to the maturity date of
      the loan.

            

    

    

    
      	
               
      

            	
              3.

            	
              When
      the Lender recover the loan according to the contract or recover in
      advance the loan principal, interest, penalty, compound interest and other
      fees that the Borrower should pay, the Lender can directly pull out money
      from any of the Borrower’s
accounts.

            

    

    

    
      	
               
      

            	
              4.

            	
              If
      the funds that the Borrower repaid are not sufficient to cover all the
      amounts payable, the Lender can use the funds to recover the loan
      principal, interest, penalty, compound interest and
  fees.

            

    

    

    
      	
               
      

            	
              5.

            	
              If
      the Borrower doesn’t repay the loan, the Lender can publicly disclose the
      Borrower’s nonperformance.

            

    

    

    
      	
               
      

            	
              6.

            	
              The
      Lender shall issue sufficient loan to the Borrower in time according to
      this contract.

            

    

    

    Article
4 Borrower’s rights and obligations

    

    
      	
               
      

            	
              1.

            	
              The
      Borrower has the right to get and use the loan according to this
      contract.

            

    

    

    
      	
               
      

            	
              2.

            	
              The
      Borrower can settle the current account and make deposit which are
      relating to the loan through the account which is set forth in Article
      2.

            

    

    

    
      	
               
      

            	
              3.

            	
              If
      the loan under this contract is in foreign currency, the Borrower shall
      complete the related approval, registration and other statutory
      procedures.

            

    

    

    
      	
               
      

            	
              4.

            	
              The
      Borrower should repay the loan principal and interest in time. If the
      Borrower intends to extend the loan, the Borrower should submit an
      application in written to the Lender 15 days ahead of the expiration date
      of the loan. The loan extension agreement shall be signed upon the consent
      of the Lender.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              5.

            	
              The
      Borrower should use the loan according to the agreed purpose of the loan
      under this contract, and shouldn’t embezzle the
  loan.

            

    

    

    
      	
               
      

            	
              6.

            	
              The
      Borrower should provide true, complete and effective financial statements
      and other related materials and information to the Lender every month, and
      then assist the Lender to review its operation, financial activity and the
      use of the loan.

            

    

    

    
      	
               
      

            	
              7.

            	
              If
      the Borrower has  the activities about contracting, leasing,
      shareholding reform, jointing operation, merging, separating, jointing
      venture, assets  transferring, applying for stopping operation
      for rectification, applying for dissolving, applying for bankrupting and
      other activities which will sufficiently cause the changes in the
      relationship of the rights and obligations under this contract, or affect
      the reality of the Lender’s rights, the Borrower should inform the Lender
      in written and get the Lender’s approval. Simultaneously, the Borrower
      should commit the obligation or repay the loan in advance, otherwise, all
      activities above can’t be
implemented.

            

    

    

    
      	
               
      

            	
              8.

            	
              Besides
      the activities set forth above, if there are other conditions, which will
      have material adverse impact on Borrower’s ability to perform the
      obligation under this contract, such as stopping operation, closure of
      business, cancel of registration, revocation of business license, or the
      legal representative or the main leader violates the laws or involves in
      significant lawsuit or arbitration, or the operation suffers significant
      difficulties or the financial condition deteriorates, the Borrower should
      notify the Lender of this in written, and then take the steps which are
      accepted by Lender to ensure the security of the
  loan.

            

    

    

    
      	
               
      

            	
              9.

            	
              If
      the Borrower wants to provide guarantee for other obligation or pledge to
      the third party with its main assets, and these behaviors may affect the
      Borrower’s ability to repay the loan under this contract, the Borrower
      should notify the Lender in written in advance and get the Lender’s
      approval.

            

    

    

    
      	
               
      

            	
              10.

            	
              The
      Borrower shouldn’t withdraw capital, transfer assets or transfer shares
      without authorization to avoid its
obligation.

            

    

    

    
      	
               
      

            	
              11.

            	
              If
      there are changes in the Borrower’s name, legal representative, location
      and business scope, the Borrower should notify the Lender in time in
      written.

            

    

    

    
      	
               
      

            	
              12.

            	
              If
      the warrantor under this contract has the conditions like stopping
      operation, closure of business, cancel of registration, revocation of
      business license, bankruptcy and loss, and then lose part of or the whole
      warranting ability related to this loan, or the worth of the mortgage
      under this contract decreases or impairs, the Borrower should provide
      other warranting information accepted by the
  Lender.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              13.

            	
              The
      Borrower should burden the fees about legal service, insurance,
      transportation, assessment, registration, reservation, evaluation and
      notarization, and so on.

            

    

    

    Article
5 Repay the loan in advance

    

    If the
Borrower intends to repay the loan in advance, it must get the Lender’s
approval; if the Lender agrees, the interest of the part the Borrower wants to
repay in advance is determined as per Method    /  below.

    
      	
               
      

            	
              1.

            	
              The
      interest will be charged per as the agreed term of the loan and agreed
      executive interest rate.

            

    

    

    
      	
               
      

            	
              2.

            	
              The
      interest will be charged using the interest which floats upward by   /   percentage
      on the base of the agreed executive
rate.

            

    

    

    Article
6 liability for breach of contract

    

    
      	
               
      

            	
              1.

            	
              If
      the Lender doesn’t issue loan with full amount to the Borrower according
      to the contract, which cause the Borrower’s loss, the Lender should pay
      liquidated damages to the Borrower according to the liquidated amount and
      days, which will be calculated under the same method to calculate the
      interest of overdue loan.

            

    

    

    
      	
               
      

            	
              2.

            	
              If
      the Borrower doesn’t repay the loan principal, the Lender will charge
      interest which floats upward by  THIRTY
      percentage on the
      base of the executive interest rate agreed under the
      contract.  During the overdue period, if the loan is in RMB, the
      rate of interest penalty shall rise correspondingly since the date on
      which the benchmark interest rate rises in case of adjustment made to
      benchmark RMB interest rate by the People’s Bank of
  China.

            

    

    

    
      	
               
      

            	
              3.

            	
              If
      the Borrower doesn’t use the loan according to the agreed purpose of the
      loan, the Lender will charge penalty with the interest rate which floats
      upward by   FIFTY
      percentage on the base of the benchmark interest rate agreed under
      the contract towards the unfulfilled part from the date when noncompliance
      behavior happens to the date the loan principal and interest are repay up.
      During this period, if the loan is in RMB, the rate of interest penalty
      shall rise correspondingly since the date on which the benchmark interest
      rate rises in case of adjustment made to benchmark RMB interest rate by
      the People’s Bank of China.

            

    

    

    
      	
               
      

            	
              4.

            	
              As
      to past due interest, the Lender charges compound interest according to
      the People’s Bank of China’s
stipulations.

            

    

    

    
      	
               
      

            	
              5.

            	
              If
      the Borrower violates the obligations under this contract, the Lender has
      the right to require the Borrower to correct the noncompliance behaviors
      within a limited period, and to cease to lending and recover the issued
      loan, and also has the right to announce the loan under other loan
      contract entered into between the Borrower and the Lender matures
      immediately or take other steps to ensure the security of the
      assets.

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              6.

            	
              If
      any warrantor of the Borrower under this contract violates the agreed
      obligation in the guarantee contract, the Lender has the right to cease to
      issue the loan, recover the issued loan, take other steps to ensure the
      security of assets.

            

    

    

    
      	
               
      

            	
              7.

            	
              If
      the Lender has to take lawsuit or arbitration to realize its claims, the
      Borrower should burden the legal fees, travelling expense and other fees
      the Lender spends to realize its
claims.

            

    

    

    Article
7 Security for loan

    The loan
under this contract is secured by Mortgage and the
Mortgage Contract will be entered into separately. If it’s secured at the
highest amount, the No. of the Pledge Agreement is ___________.

    

    Article
8 Settlement of dispute

    

    If there
is any dispute in the process of implementing this contract, the two parties can
negotiate to settle it, and also can settle it as per the method  1  below:

    
      	
               
      

            	
              1.

            	
              Lawsuit.
      The local People’s Court in the Lender’s residence has the
      jurisdiction.

            

    

    
      	
               
      

            	
              2.

            	
              Arbitration.
      Submit the dispute to      /      (the name of
      the arbitration organization)and
      arbitrate it according to its arbitration
rules.

            

    

    During
the lawsuit or the arbitration, the terms under this contract which have not
been involved in the dispute still need to be executed.

    

    Article
9 other items

     

    Plan of
repayment of Kunming Shenghuo Pharmaceutical (group) Co., Ltd:

     

    None. _____________________________________________

    

    Article
10  Effect of Contract

     

    This
Contract shall come into force as of the date of signing or sealing by both
parties.

     

    Article
11 Counterparts

     

    This
Contract shall be executed in Five
copies,  one copy for each party, one
copy  for each guarantor, the Authority of Property Right
Management and the Notary office , which shall have equal force and
effect.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Article
12 Reminder

     

    The
Lender has reminded the Borrower of the need to have a complete and accurate
understanding of the provisions hereof and, at the request of the Borrower,
explained the provisions as necessary. The signing parties have a common
understanding of the meanings hereof.

     

    Borrower (Seal &
Signature):

    

    “Kunming
Shenghuo Pharmaceutical (Group) Co., Ltd.” (Seal)

    Legal
Representative or

    

    Authorized
Agent: Qionghua Gao (Signature)

    

    Lender (Seal &
Signature):

    

    Agricultural
Bank of China Kunming
Shuanglong Sub-branch (Seal)

    Principal
or

    Authorized
Agent: Zhou Zuowu (Signature)

    

    Date of
signing: May 11, 2010

    Place of
signing: Agricultural
Bank of China Kunming Shuanglong Sub-branch

    
      
         

      

      
        8Unassociated Document

    
      ABCS(2007)2002

      

      Mortgage
Contract

      

      Mortagee (full name):
Agricultural Bank of China, Kunming Shuanglong Branch

      

      Mortgagor: Kunming Shenghuo
Pharmaceutical (group) Co., Ltd

      

      This
Mortgage Contract is entered into by and between the two parties in accordance
with relevant Chinese laws and regulations for purpose of ensuring that Kunming
Shenghuo Pharmaceutical (group) Co., Ltd. will repay the loan under the Loan
Contract, dated May 11, 2010 between the above two parties.

      

      1.
Type and Amount of the Creditor’s Principal Claim

      

      The
creditor’s principal claim guaranteed is the loan borrowed for liquid capital in
the amount of RMB 17.6 Million.

      

      2.
The Scope of Guaranty of Mortgage

      

      The scope
of this guaranty of mortgage includes the amount of creditor’s principal claim
and the interest thereof, default fine, compensation for damage and all kinds of
relevant expenses on for the mortgagee to realize the creditor’s claim and the
mortgaged right.

      

      3.
Collateral

      

      
        The
mortgagor agrees on the mortgagor of Real estate and its land use right, as
to the details of collateral please find the List of
Mortgage of Real Estate as attached,
which constitutes the integral part of this Contract and has same legal force
and effect as in the Contract; and

         

        
          
            
               

            

            
               

              
                

              

            

            
               

            

          

        

        

      

      The
provisional price of the above mentioned collateral is RMB26.16 million while the
terminal value will be determined by its actual disposing price.

      

      4.
Covenants of the Mortgagor

      

      4.1 The
Mortgagor has obtained authorization necessary to enter into this Contract
pursuant to relevant regulations and procedures.

      

      4.2 The
full and undisputed ownership or disposition right of the collateral is entitled
to the mortgagor.

      

      4.3 The
collateral is negotiable or transferable according to law.

      

      4.4 Such
cases as the collateral has been sealed up, distrained or supervised would not
happen.

      

      4.5 The
mortgagor shall make a full and accurate disclosure to the extent that the money
and collateral such as tax in default, construction mortgages have been
mortgaged or rented.

      

      4.6 The
Mortgagor has obtained approval from co-owners of the right to be pledged under
this Contract.

      

      4.7
During the term of mortgage, the mortgagor shall notify the mortgagee in written
for any of following cases:

      

      4.7.1 The
collateral has been sealed up, distrained, supervised or has been taken other
enforcement actions.

      

      4.7.2 The
mortgagor changed the capital structure or operation system, include but not
limited to contract operation, leasing, shareholding system transformation,
joint operation, merger, separation, partnership, asset transferring, and
etc.

      

      4.7.3 The
business licenses of the mortgagor has been cancelled or revoked, or he is
ordered to close down or was terminated for other causes.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4.7.4 The
mortgagor applies for bankruptcy, reorganization, reconciliation or is the
subject of bankruptcy and reorganization applications.

      

      4.8 There
is no existence of other cases that would affect the realization of
collateral.

      

      5.
Effect of the Collateral

      

      The
effect of collateral is extended to the ancillary component, incidental right,
subrogation of mortgage or other property and rights associated with the
collateral according to laws and regulations.

      

      6.
Management and Utility of the Collateral

      

      6.1 The
collateral under this Contract shall be kept by the mortgagor; the mortgagor
shall be liable for the management of utility of the collateral. And the
mortgagee shall be entitled to supervise and review how the collateral is
managed and used.

      

      6.2
During the term of mortgage, the mortgagor may not grant or transfer, rent,
remortgage the collateral or dispose it in other ways without the written
approval of the mortgagee. Where the written approval is available, the proceeds
from the collateral disposition shall firstly be used to liquidate the secured
creditor’s principal claim and the escrow.

      

      6.3 Where
the collateral was damaged, lost, expropriated, or was owned by the third party
resulted from the affiliation, mixture or process of the collateral, the
mortgagor shall take active measures to prevent the loss from increasing,
meanwhile shall notify the mortgagee in written. The mortgagee is entitled to
obtain the indemnity at first priority. Where the performance term of the
secured creditor’s claim has not elapsed, the mortgagee is entitled to liquidate
the debt or to escrow in advance.

      

      6.4
During the term of mortgage, where the value of collateral is decreased, the
mortgagee is entitled to ask the mortgagor resuming original value of the
collateral or offering a guaranty which is equivalent to the decreased value and
needs to be recognized by the mortgagee.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        7.
Insurance of the Collateral

      

      

      
        	
                 
      

              	
                 7.1
      The mortgagor shall effect the insurance for the collateral at the request
      of the mortgagee and designate the mortgagee as the first beneficiary. The
      original insurance document shall be delivered to the mortgagee for
      storage.

              

      

      

      
        	
                 
      

              	
                 7.2
      The mortgagor shall be liable for the insurance premiums and pay it in
      full amount and on time, and also shall perform other obligations under
      the insurance contract (including the insurance document or other
      insurance certificate). During the term of mortgage, where the mortgagor
      doesn’t pay the insurance premiums or effect (or renew) the insurance
      contract on time, the mortgagee is entitled to make advance payment of the
      insurance premiums or effect the insurance contract on behalf of the
      mortgagor, while the mortgagor shall be liable for those expenses. The
      mortgagor agrees that the mortgagee could collect the above mentioned
      expenses from its account opened at the
  mortgagee.

              

      

      

      
        	
                 
      

              	
                 7.3
      During the term of mortgage, the mortgagor may not unilaterally or
      negotiate with the insurer to change or terminate the insurance contract
      without the written approval of mortgagee; neither should he waive the
      right to insurance claims nor the right to claim compensation against the
      third party.

              

      

      

      
        	
                 
      

              	
                 7.4
      During the term of mortgage, where an insurance incident incurred to the
      collateral, the mortgagor shall immediately inform the insurer and
      mortgagee, and shall be responsible for claiming compensation. Where the
      mortgagee doesn’t perform his obligation of notification or claiming
      compensation, causing the loss of the mortgagee, the mortgagor shall be
      liable for indemnity.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        8.
Registration of Mortgage

      

      

      
        	
                 
      

              	
                 8.1
      The mortgagor shall register this Mortgage Contract with relevant
      registration authorities within 5 days from the date of its execution; all
      of those certificates, mortgage registration document associated with the
      collateral shall be kept by the
mortgagee.

              

      

      

      
        	
                 
      

              	
                 8.2
      During the term of mortgage, where the registration needs to be changed,
      the mortgagor shall be liable to do
so.

              

      

      

      
        	
                 
      

              	
                 8.3
      During the term of mortgage, where the mortgaged right is transferred by
      the mortgagor according to this Contract; the mortgagor shall be in
      assistance with the mortgagee and transferee on the change of
      registration.

              

      

      

      
        9.
Transfer of Mortgaged Right

      

      

      
        Where
part of the creditor’s claim is transferred by the mortgagee, he is entitled not
to transfer the corresponding mortgaged right.

      

      

      
        10.
Realization of Mortgaged Right

      

      

      10.1
Under any of the following circumstances, the mortgagee has the right to
exercise the mortgaged right and is entitled to obtain the payment at first
priority by the agreed value of collateral with mortgagor  or by the
funds of auction, and sale of the collateral.  If the funds are not
sufficient to cover all mortgage right according to this contract, the Mortgagee
can use the funds to recover the loan principal, interest, penalty, compound
interests and fees, etc.

      

      10.1.1
The mortgagee is not paid at the maturity of the obligation under the principal
contract.

      

      10.1.2
The business licenses of the debtor or mortgagor has been cancelled or revoked,
or he is ordered to close down or was terminated for other causes.

      

      10.1.3
The People’s Court has accepted the bankruptcy application of the debtor or
mortgagor or has made the determination of a settlement.

      

      10.1.4
The debtor or mortgagor was dead or was declared lost or
dead.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      10.1.5
The collateral has been sealed up, distrained, supervised or has been taken
other enforcement actions.

      

      10.1.6
The collateral was damaged, lost or expropriated.

      

      10.1.7
The mortgagor didn’t resume the value of the collateral or offer the
corresponding guaranty at the request of mortgagee.

      

      10.1.8
The mortgagor violates those obligations under this Contract.

      

      10.1.9
Other circumstances that have material effect on the realization of mortgaged
right.

      

      10.2
Where more than two material guarantors for the creditor’s claim  (
including creditor’s material guarantor)  under this Contract exist in
the mean time, the mortgagee is entitled to exercise the security right to any
one of the collateral or both of them.

      

      10.3
Where the mortgagor is the third person other than the debtor, meanwhile the
debtor has offered material guaranty for the creditor’s claim under the
principal contract, and the mortgagor has waived this security right, the
mortgagor agrees to offer a guaranty of mortgage for the creditor’s claim under
the principal contract.

      

      11.
Liability for Breach of Contract

      

      11.1
After this Contract takes effect, where the mortgagee doesn’t perform his
obligations, resulting in the loss of mortgagor, the mortgagee shall be liable
for the indemnity.

      

      11.2 The
mortgagor shall indemnify the mortgagee in case of committing any of the
following acts:

      

      11.2.1
Didn’t obtain legal and effect authorization which is necessary for the guaranty
under this Contract.

      

      11.2.2
Didn’t perform his obligation of making a full and accurate disclosure to the
extent that there is a existence of tax in default, construction mortgage,
co-ownership of the collateral and a dispute over the collateral, or the
collateral was mortgaged or rented, or the collateral has been sealed up,
distrained or supervised.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      11.2.3
Didn’t register the Mortgage Contract according to the provisions
herein.

      

      11.2.4
Disposed the collateral without the written approval of the
mortgagee.

      

      11.2.5
Didn’t resume the value of the collateral or offer the corresponding guaranty at
the request of the mortgagee.

      

      11.2.6
Other activities that have violated the agreement under this Contract or
affected the realization of mortgaged right.

      

      12.
Liability for Expenses

      

      The
mortgagor shall be liable for incurred costs in the course of collateral
appraisement, evaluation, storage, registration, notarization and
escrow.

      

      13.
Resolution of Disputes

      

      Any
dispute arising from this Contract shall be resolved by both parties through
friendly discussion, and also can be solved as per the method  1 below

      

      13.1
Lawsuit. The litigation falls within the jurisdiction of People’s Court in the
mortgagee’s place of residence.

      

      13.2  Arbitration.  Submit
the dispute to  _____________ (the name of the arbitration
organization) and arbitrate it according to its arbitration rules.

      

      During
the course of the litigation or arbitration, this Contract shall be performed
except for the part under dispute.

      

      14.
Other Matters

      

      14.1 The
mortgagor hereby acknowledged the receipt of the principal contract and have
read and understood this contract secured by the mortgagor.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      15.  Effect
of the Contract

      

      This
Contract shall take effect from the date of signing or sealing by both
parties.

      

      16. This
Contract is made out in Five copies and each
one for the Mortgagee, the Mortgagor, the Debtor, the Authority of Land
Registration and the Public Notary Office. Each copy has same legal force and
effect.

      

      17.
Reminder

      

      The
mortgagee has notified the mortgagor to make a complete and accurate
understanding for each provision under this Contract and have made explanations
for corresponding provisions as per the requirement of the mortgagor. Both
parties have reached an agreement on this Contract.

      

      Mortgagee(Seal):

      

      Agricultural
Bank of China, Kunming Shuanglong Branch

      

      Legal
Representative and Signature: Zuowu Zhou

      

      Mortgagor
(Seal):

      

      Kunming
Shenghuo Pharmaceutical (group) Co., Ltd.

      

      Legal
Representative and Signature: Qionghua
Gao

      

      Date of
signing: May 11, 2010

      

      Place of
signing: Agricultural Bank of China, Kunming Shuanglong
Branch

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      List
of Mortgage of Real Estate

      

      Mortgagee
(full name):

      

      Agricultural
Bank of China, Kunming Shuanglong Branch

      

      Mortgagor:

      

      Kunming
Shenghuo Pharmaceutical (group) Co., Ltd.

      

      Collateral:  land use
right

      

      Owner of the Land: Kunming
Shenghuo Pharmaceutical (group) Co., Ltd.

      

      Certificate No.: Kun Guo Yong
(2006) 00206

      

      Location: Kunming Economic
Technology Development Zone land 11-2

      

      Type of land: for
transfer

      

      Housing Ownership Certificate:
Kunming Housing Ownership 200705823

      

      Valid terms: from 2006 until
August 2048

      

      Year it was built: March
2007

      

      Land use:
industryial

      

      Housing use:
non-residential

      

      Total square meters of the land:
13,338.23

      

      Total square meters of the
house: 5,303

      

      Total square meters of the land for
collateral: 13,338.23

      

      Total square meters of the house for
collateral: 5,303

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Provisional price of the collateral: RMB
26,160,000

      

      This List
constitutes an integral part of the Mortgage Contract.

      

      Mortgagee:

      

      Agricultural
Bank of China, Kunming Shuanglong Branch

      

      Signature: Zuowu
Zhou

      

      Mortgagor:

      

      Kunming
Shenghuo Pharmaceutical (group) Co., Ltd.

      

      Signature: Qionghua
Gao

      

      Date: May 11,
2010

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]