Document:

QILU BANK

Qilu Bank

 

Mortgage Contract of Maximum Amount for Goods Control and Financing

 

(First version in 2010)

Contract No. 2011 L.S.D.L.K.H.Z.G.Z.Z. No. 007

 

  

  

  

Pledgee (Party A): Jinan East Lishan Road Branch of Qilu Bank Co., Ltd.

Domicile: No. 112, Jiefang Road, Jinan City

Principal: Liu Wei

Tel: 82905066

Fax: 82905066

Post code: 250013

Pledger (Party B): Shandong Global Pharm Co., Ltd.

Domicile: No. 80, Jiangjun Road, Jinan City

Principal: Song Yanliang

Bank of deposit:

Account No.

Tel:

Fax:

Post code:

 

  

  

  

To guarantee the performance of the debts under Article 1 of this Contract, the pledger is willing to provide its property with legal disposal right as the mortgage for the creditor’s right of pledgee. Party A and Party B reached this Contract through friendly negotiation in accordance with Property Law of the People’s Republic of China and Guarantee Law of The People's Republic of China and relevant laws and regulations.

Article 1: Main contract and maximum debt amount guaranteed

	
(1)

	
The main contract refers to Credit Granting Contract of Legal Person (L.S.D.L.F.S.Z.No.007 in 2011) signed between Shandong Global Pharm Co., Ltd. (hereinafter referred to as “the debtor”) and the creditor on April 27, 2011. The pledger reviewed and known the clauses of the main contract, and is bound by the main contract as well as assume the relevant responsibilities. According to the main contract, the debtor and pledgee will sign the detailed loan contracts (hereinafter referred to as “the Detailed Contracts”). The Detailed Contracts are the indivisible part of the main contract.

	
(2)

	
The maximum debt amount guaranteed in this Contract is RMB 6 million, (or other currencies and amounts converted according to the foreign exchange rate declared by pledgee while the debtor transacts with the pledgee).

	
(3)

	
Within the validity of credit granting limit (from April 27, 2011 to Oct. 27, 2011) and credit granting limit agreed in the main contract, the debtor can apply for the recyclable granting limit. The beginning date, expiration date, interest rate and amount of each business shall be based on the detailed contracts, loan notes or debt certificate.

	
(4)

	
Within the validity of credit granting limit and credit granting limit agreed in the main contract, the pledgee shall not handle the guarantee procedures when dealing with the detailed granting business.

Article 2: Guarantee scope

 

The scope guaranteed in the mortgage covers all the pledgee’s rights under the main contact and the Detailed Contract, including but not limited in the creditor’s right, interest, default interest, compound interest, liquidated damages, indemnity, maintenance fees for guaranteed property, inquiry fees, registration fees, notarial fees, premium, drawing fees, expenses for performing the debt right and guarantee right (including but not limited in legal costs, property preservation cost, execution cost, arbitration cost, counsel fee, travelling cost, appraisal cost, auction cost and transfer cost, etc.)

 

Article 3: The mortgaged property

 

	
(1)

	
The mortgaged property in this Contract refers to the goods (“the mortgaged goods”), deposit, regular deposit certificates and bond certificate owned by Party B and stored in the warehouse entrusted by Party A (“the supervisor”).

 

	
(2)

	
During the duration period of mortgage right, the value of the mortgaged goods provided by Party B shall not be lower than RMB 6 million, and the mortgage rate (credit granting limit/mortgaged goods value) is not higher than 50%. The determination way of mortgaged goods value shall comply with the regulations of Article 7.

 

  

  

  

 

(Notes: The value multiplier shall be not higher than 70%, and the value multiplier of the products with major fluctuations and short lift cycle shall be reduced).

 

	
(3)

	
During the duration period of mortgage right, Party B can replace the goods with the deposit, regular deposit certificates and bond certificate. The replaced goods value shall be calculated as follows: Replaced goods value = (amount of deposit, regular deposit certificates and bond certificate)/mortgage rate.

 

Party B shall remit the deposit in the deposits’ account of Party A or deliver the regular deposit certificates and bond certificate to Party A; Party B shall apply for drawing the replaced mortgaged goods from Party A after the sealing of List of Mortgaged Goods (see the attachment 1).

 

	
(4)

	
When signing the Contract, Party B shall confirm the List of Mortgaged Goods (see the attachment 1) issued for the mortgaged goods by the supervisor, and Party B shall authorize the operator to sign or seal or affix the seal officially. The List of Mortgaged Goods is the initial mortgaged goods list under this Contract.

 

After signing the Contract and before Party B pays off Party A’s debt, Party B shall deliver the goods successively to the supervisor entrusted by Party A, and confirm the List of Mortgaged Goods according to the agreed method. The List of Mortgaged Goods after confirmation is regarded as the additional mortgage goods list under this Contract.

 

Party A and Party B shall confirm that when Party B delivers the goods to the supervisor and affirm the List of Mortgaged Goods, which will be deemed as receiving the additional mortgaged goods under the List of Mortgaged Goods, and it needs no separate signing of mortgage change contract.

 

	
(5)

	
The mortgaged goods shall be based on the List of Mortgaged Goods. If the mortgaged goods are not clearly agreed, or the agreed goods are not consistent with the actually delivered goods, it shall be based on the actually delivered goods.

 

Article 4: Party A and Party B confirm that whether the mortgaged goods delivered at the signing date of the Contract by Party B, or the additional mortgaged goods in the supervision period, the scope of which is stilled limited in the following goods:

 

	  	
(manufacturer)

	  	
(products)

	  	  	  	  
	  	
(manufacturer)

	  	
(products)

	  	  	  	  
	  	
(manufacturer)

	  	
(products)

	  	  	  	  
	  	
(manufacturer)

	  	
(products)

	  	  	  	  
	  	
(manufacturer)

	  	
(products)

 

  

  

  

 

Article 5: Party B authorizes its operator to sign on the List of Mortgaged Goods agreed in Article 3 of this Contract, and the detailed information of authorized operator is as follows:

 

	
Name

	
Dong Dong

	
Sex

	
Male

	
Age

	
26

	
Address

	
No. 80, Jiangjun Road, Jinan City

	
ID No.

	
370123198506023411

	
Signature

	
Dong Dong

 

The effective seal of List of Mortgaged Goods issued by Party B is as follows:

 

Shandong Global Pharm Co., Ltd.

 

It is effective that Party B affix the official seal on List of Mortgaged Goods.

 

If Party B changes the operator and seal, it shall notify Party A and supervisor and sign the additional supplementary agreement.

 

Article 6: Party B guarantees to have the ownership or disposal right of the mortgaged goods, and it shall also guarantee that the mortgaged goods have no other rights or debt disputes and no ownership disputes, and the mortgaged goods will not be sealed up and detained.

 

Article 7: Party A and Party B confirm that, Party A has right to regard the lower one between market price and purchase price of the same kind mortgaged goods as the value of mortgaged goods, and regard the lower one of different kind of mortgaged goods prices as the calculation standard to determine the total control volume of the mortgaged goods.

 

Party A and Party B agree that the market price of mortgaged goods shall be determined by the price issued by the state professional web__________________ (website:____________________) or industry association__________________. If the website or industry association has no price to issue, Party A has right to determine based on the price issued by the relevant institute.

 

Party A and Party B agree that the purchase price of the mortgaged goods shall be determined by the price noted on value-added invoice issued by the manufacturer when Party B purchases the mortgaged goods from the manufacturer.

 

Party A and Party B agree that the total control volume of the mortgaged goods shall be based on the volume determined in the newest Lowest-demand Notice of Stored Mortgaged Goods issued by Party A for the supervisor.

 

Article 8: Party A and Party B agree that Party A has right to adjust the total control volume of the mortgaged goods if one of the following situations occurs:

 

  

  

  

 

	
(1)

	
If the market price of the mortgaged goods is higher than the price determined by the price standard stipulated in Article 7 of the Contract, Party A has right to determine to adjust the total control volume of the mortgaged goods or not.

 

	
(2)

	
If the market price of the mortgaged goods is lower than the price determined by the price standard stipulated in Article 7 of the Contract, Party A has right to increase the total control volume of the mortgaged goods.

 

If the situation prescribed in (2) of this Article occurs, Party A sends the written notification to Party B, Party B shall increase the mortgaged goods within 3 days after receiving the notification.

 

Article 9: Party A and Party B agree that, Party A has right to adopt the way of issuing Lowest-demand Notice of Stored Mortgaged Goods for the supervisor to control or adjust the total volume, without need to get the permission of Party B. Within the total control volume of mortgaged goods limited by Party A, Party B has no right to draw the mortgaged goods, and the supervisor also has right to refuse the drawing request of Party B.

 

Article 10: If the total storage volume of the mortgaged goods exceeds the control volume of Party A, for the exceeding part, Party A shall authorize the supervisor to draw according to the application of Party B, excluding the additional indication or notification of Party A.

 

Article 11: Party B promises that, if the mortgaged goods have adverse conditions during the duration period of mortgage right (including but not limited in the loss, damage and deterioration), Party B shall waive a claim of Party A.

 

Article 12: After Party B pays off the debts of Party A under this agreement, Party A shall issue the Lowest-demand Notice of Stored Mortgaged Goods to the supervisor with the control amount of zero.

Article 13: If one of the following situations occur, Party A has right to request Party B to provide the new guarantee within three days after Party B receives the notification of Party A, or request Party B to return the loan of Party A, or request Party B to increase the total volume of the mortgaged goods.

	
(1)

	
When the market price of the mortgaged goods decreases by 10% of the price determined by the price standard stipulated in Article 7 of the Contract;

	
(2)

	
Party A increases the opening part for the credit granting business;

	
(3)

	
The mortgaged goods are damaged or lost;

	
(4)

	
The mortgaged goods have or may have quality problems;

	
(5)

	
Other situations that Party A considers to harm the realization of mortgage right.

When the abovementioned situations occur, if Party B refuses to provide the new guarantee, or refuses to remit the relevant deposit in the deposit account or repay the loan, or refuses to increase the total control volume of the mortgaged goods, Party A has right to refuse providing the credit granting for Party B, and has right to request Party B to pay off the debts of Party A; besides, Party A also has right to draw the mortgaged goods, and makes auction and sells the goods, the payment from which shall be compensated to Party A in priority; or the payment from the compensation of goods damage and losses shall be compensated to Party A in priority.

 

  

  

  

Article 14: Before Party A sends the Lowest-demand Notice of Stored Mortgaged Goods to the supervisor with the control amount of zero, Party B shall not mortgage the goods mortgaged to Party A to any units and individuals except for Party A.

Article 15: During the duration period of the mortgage right, if the mortgaged goods are damaged or involved in the insurance matters owing to the behavior of the third Party, Party B irrevocably authorizes Party A to receive the compensations paid by the third person or the insurance department, the compensations are used for paying the main debts in advance or drawing in the notary department; if the compensations cannot pay off the debt principal and relevant fees under the main contract, Party B shall provide other property guarantee approved by Party A for the balance part; as for the part that the mortgaged goods value is not reduced, it shall still be regarded as the debt guarantee.

Article 16: During the mortgage right duration period, without the written permission of Party A, Party B shall not grant, transfer, mortgage or dispose the mortgaged goods under this contract in any other ways, whether the mortgaged goods are disposed entirely or partly.

If Party A makes written permission to agree that Party B disposes the goods entirely or partly, any contracts, agreements and attachments concerning the disposal of the mortgaged goods signed with the third party shall get the written permission of Party A; otherwise, whether Party A knows before or after the matter, Party A has right to cancel its agreement on disposal. If Party B can dispose the mortgaged goods entirely or partly with the permission of Party A, the payments shall be paid for the main debts to Party A by the third person, or drawn to the notary department.

Article 17: During the mortgage right duration period, if Party B involves in the lawsuits, arbitration or other legal disputes owing to other reasons out of this Contract, Party B shall notify Party A in the written form at that day when receiving the first notification issued by the enforcing department; if Party A considers that it may affect the safety of the creditor’s right, Party A has right to announce that the debts under the main contract expires entirely or partly, and execute the mortgage right.

Article 18 When Party A recovers the creditor’s right in advance according to the main contracts, Party A has the right to perform the mortgage in advance and enjoy preferred payments with the mortgaged goods disposition amount according to the Contract.

Article 19 Agreed by Party A and Party B, if the creditor’s right under the main contracts has not been paid at the expiration or Party B fails to pay the debts in advance according to the main contract, Party A has the right to perform the mortgage according to the following methods:

	
(1)

	
Enjoy preferred payments through discounting the mortgaged goods agreed by the Contract;

	
(2)

	
Enjoy preferred payments with sales amount of the mortgaged goods agreed by the Contract;

	
(3)

	
Enjoy preferred payments with auction amount of the mortgaged goods agreed by the Contract;

	
(4)

	
Have the right to directly deduct from the mortgage fixed deposit receipt and national debt voucher;

	
(5)

	
Enjoy preferred payments in other methods permitted by laws and regulations.

 

  

  

  

Before having the above condition, Party B shall pay the debts to Party A with the disposition amount of the mortgaged goods according to the mortgaged goods disposition method selected by Party A.

Article 20 For modification and change on the main contracts clause agreed by Party A and Party B, Party B shall confirm to continue to assume the mortgage guaranty responsibility for the main contracts changed.

Article 21 After the Contract taking effect, Party A has the right to transfer the mortgage agreed by the Contract and the principal creditor’s right to the third person.

Article 22 If Party B fails to perform the obligation according to the main contract, whether Party A has other guaranties to the creditor’s right under the main contracts (including but not limit to the guaranty methods of guarantee, pledge and mortgage), Party A has the right to firstly and directly require Party B to assume the guaranty responsibility within its guaranty scope.

Article 23 If Party B fails to perform or fully perform the Contract, it is deemed as the breach of contract. If Party B breaks the Contract, Party A has the right to perform mortgage in advance. Meanwhile, Party B shall pay liquidated damage to Party A according to 10% of the debts principal and interest unpaid under the main contracts within ten business days since the occurrence date of the event of default. If Party B delays to pay the liquidated damage, the overdue fee shall be charged according to 5/10000 of the amount delayed for each overdue day.

Article 24 The expenses of notarization, appraisal, insurance, inspection, verification, drawing, keeping and transportation under the Contract shall be assumed and directly paid by Party B.

Article 25 The principal creditor's rights guaranteed shall be determined if one of the following conditions occur:

	
1.

	
The performance period of the last credit granting business happened within the valid term of the credit line agreed by Party A and Party B expires;

	
2.

	
It is impossible to occur new creditor’s right;

	
3.

	
The mortgaged goods are sealed up and detained;

	
4.

	
Party B is announced to go bankrupt or is cancelled;

	
5.

	
Other situations for creditor’s right determination regulated by the law.

The above guaranteed principal creditor’s right shall be determined to have the following effect: When the guaranteed principal creditor’s right is determined, the creditor’s right unpaid under the main contracts, whether the performance period of the creditor’s right expires or has additional conditions, shall belong to the scope of the mortgage guaranty; and when the guaranteed principal creditor’s right is determined, all amount excluding the principal creditor’s right agreed in Article 2 of the Contract, whether it occurs when determining, shall belong to the scope of the mortgage guaranty.

Article 26 Any modification, change and explanation of the Contract shall be in written and the Contract continues to be effective before entering new written agreement.

 

  

  

  

Article 27 Disputes aroused by the performance, explanation or the relevant matters of the Contract shall be solved by the parties concerned through negotiation; and if the negotiation fails, it shall be governed by the People’s Court of the location of Party A.

Article 28 The Contract has the enforceability after being notarized by the notarization department; if Party B fails to perform or fully perform the obligation agreed by the Contract, it shall be willing to directly accept the enforcement of the People’s Court with the jurisdiction.

Article 29 The Contract shall take effect after meeting the following conditions at the same time:

	
(1)

	
The principal of Party A signs, affixes the official seal or the contract seal;

	
(2)

	
The legal representative of Party B signs and affixes the official seal.

The mortgage shall be set since the date that Party B transfers the mortgaged goods and the relevant document of title to Party A or the occupation date of Party A’s entrusted supervisor. The List of Mortgaged Goods is an integral part of the Contract and has the equal legal effect with the Contract.

Article 30 The Contract has _____ copies, with Party A and Party B holding _______ respectively, and one shall be delivered to the notarization department, covering the equal legal force.

Article 31 Statement of Party B:

	
(1)

	
Party B knows about Party A’s business scope and authority clearly.

	
(2)

	
Party B has read all clauses of the Contract. Required by Party B, Party A has explained the corresponding clauses. Party B knows and fully understands meanings of clauses of the Contract and the corresponding legal effect.

	
(3)

	
Party B has the right to sign the Contract.

Party A (seal): Jinan East Lishan Road Branch of Qilu Bank Co., Ltd.

Principal or authorized agent (signature): Liu Wei

Party B: Shandong Global Pharm Co., Ltd.

Legal representative or authorized agent (signature): Song Yanliang

Date:

Signing place:

 

  

  

  

Attachment 1

List of Mortgaged Goods (Confirmation Receipt of Mortgage)

(Issued by the supervisor and confirmed by the pledger)

No.______________      

To Jinan East Lishan Road Branch of Qilu Bank Co., Ltd.,

The pledger stores goods listed in the following table to the warehouse/location with the use right belonged to the supervisor, and to be kept by the supervisor. The supervisor agrees to keep the above goods and perform the supervision and management responsibilities according to the relevant agreement.

The pledger mortgages goods listed in the following table to your bank and the pledger guarantees that it has legal ownership to the goods and the goods have no defect, dispute, mortgage and re-mortgage conditions. The pledger shall also be responsible for the accuracy and legality of all documents and materials related to the mortgage. The mortgaged goods have been delivered to the supervisor designated by your company for occupation, keeping, supervision and management as the mortgage guaranty of the debts under No. 007 Comprehensive Credit Granting Contract of Legal Person of Qilu Bank (L.S.D.L.F.S.Z.) in 2011. The List is the indivisible attachment of No. 007 Mortgage Contract of Maximum Amount for Goods Control and Financing Of Qilu Bank (L.S.D.L.K.H.Z.G.Z.Z.) in 2011.

During the period of supervision and management, the lowest value of the mortgaged goods shall not be less than RMB 6 million. When the actual value or actual quantity of the mortgaged goods is equal to the lowest value or quantity of the mortgaged goods, the pledger shall handle the procedure for goods picking up according to No.007 Warehouse & Storage Supervision and Management Agreement (Q.L.Y.L.S.D.L.C.J.Z.) in 2011.

The goods details:

	
Name

	  	
Specification

	  	
Weigh

	  	
Quantity

	  	
Manufacturer

	  	
Unit price

	  	
Certificate

No.

	  	
Goods

section No.

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  

Seal (signature specimen) of goods owner (pledger): Shandong Global Pharm Co., Ltd.

 

  

  

  

Our company has received the No.007-1 Inquiry and Pledge Notice jointly signed by your company and the pledger and confirmed that our company agrees to keep the goods (details see the above table) stored in our warehouse/location by the pledger, and knew that the pledger’s goods (details see the above table) kept by our company has been mortgaged to your bank. The above mortgaged goods are really under the occupation, keeping, supervision and management of our company. Our company will perform the occupation, keeping, supervision and management responsibilities strictly according to the No.007 Warehouse & Storage Supervision and Management Agreement (Q.L.Y.L.S.D.L.C.J.Z.) in 2011.

During the period of supervision and management of our company, the lowest value of the mortgaged goods shall not be less than RMB 6 million. When the actual value or actual quantity of the mortgaged goods is equal to the lowest value or quantity of the mortgaged goods, the procedure for goods picking up shall be handled for the pledger (and its designator) according to the Warehouse & Storage Supervision and Management Agreement.

The List of Mortgaged Goods constitutes the confirmation to the mortgaged goods.

Seal (signature specimen) of supervisor: Shandong Yayin Assets Management Co., Ltd.

 

  

  

  

Attachment 2

Entrusted Sales Agreement

Party A: _____________ of Qilu Bank Co., Ltd.

Party B: ___________________ (the pledger)

In accordance with No. ____ Comprehensive Credit Granting Contract of Legal Person of Qilu Bank (_________F.S.Z.) in______, Party A provides RMB_________ to Party B and Party A accumulatively provides RMB________ financing to Party B. As of _____________, totally RMB ___________ debt principal and interest have not been paid by Party B. In order to guarantee that Party B pays the debt, Party A and Party B have entered No._____ Mortgage Contract of Maximum Amount for Goods Control and Financing of Qilu Bank (_________K.H.Z.G.Z.Z.) in_____.

According to Party B’s operation situation, market situation of the mortgaged goods and agreements in the Comprehensive Credit Granting Contract of Legal Person of Qilu Bank and the Mortgage Contract of Maximum Amount for Goods Control and Financing of Qilu Bank, Party A and Party B have entered the following Agreement through equal negotiation:

	
1.

	
Party B agrees and authorizes Party A to sell the mortgaged goods under the Mortgage Contract of Maximum Amount for Goods Control and Financing of Qilu Bank and all Party A’s acts meeting the Agreement shall be regarded as Party B’s acts.

	
2.

	
When Party A sells the mortgaged goods of Party B, if Party B timely issues the VAT invoice, the sales unit price of the mortgaged goods shall not be less than_________; if Party B fails to timely issue the VAT invoice, Party A has the right to sell the mortgaged goods with the tax-excluded price and the sales unit price shall not be less than________; and the taxes and dues shall be paid by the purchaser after Party B issuing the VAT invoice.

	
3.

	
Party A shall accord with the mortgaged goods sales agreement signed based on the Agreement and Party B shall admit its legal force.

	
4.

	
Amount aroused by mortgaged goods sales shall be used for paying all debts of the principal debtor to Party A.

	
5.

	
Party B shall assume the expenses caused by mortgaged goods sales and Party A shall not propose any remuneration from Party B.

	
6.

	
The Agreement shall take effect after being sealed by both parties.

	
7.

	
Any dispute under the Agreement shall be performed according to regulations in the Comprehensive Credit Granting Contract of Legal Person of Qilu Bank and the Mortgage Contract of Maximum Amount for Goods Control and Financing of Qilu Bank.

Party A:

Principal or authorized agent:

Party B: Shandong Global Pharm Co., Ltd.

Legal representative: Song Yanliang

Date:

Signing place (location of bank):QILU BANK

Warehouse & Storage Supervision and Management Agreement of Qilu Bank

No.: Q.L.Y.L.S.D.L.C.J.Z.No.007

  

 

  

 

Party A (pledgee): Jinan East Lishan Road Branch of Qilu Bank Co., Ltd.

Address: No.112 Jiefang Road, Jinan

	
Principal: Liu Wei

	  	
Position: President of bank

	
Contact person: Li Xiang

	
Tel: 82905066

	
Fax: 82905066

Party B (pledger): Shandong Global Pharm Co., Ltd.

Address: No. 80 Jiangjun Road, Jinan City

	
Principal: Song Yanliang

	
Position: Legal representative & general manager

	
Contact person: Dong Dong

	
Tel: 88276926

	
Fax: 88276926

	 

Party C (supervisor): Shandong Yayin Assets Management Co., Ltd.

Address: A8-07, Qilu International Building, No.180 Quancheng Road, Jinan City

	
Principal: Liu Miao

	
Position: Legal representative

	
Contact person: Wang Jirui

	
Tel: 82350296

	
Fax: 82350296

To guarantee the performance of No. 007 Comprehensive Credit Granting Contract of Legal Person of Qilu Bank (L.S.D.L.F.S.Z.) and No. 007 Mortgage Contract of Maximum Amount for Goods Control and Financing Of Qilu Bank (L.S.D.L.K.H.Z.G.Z.Z.) signed by Party A and Party B in 2011 (the two contracts are called “Credit Granting & Pledge Guarantee Agreement”), the pledger agrees to make its own goods stored in the warehouse of Party C as the pledge guarantee of the credit granting provided by Party A. As the agent of Party A, Party C occupies the goods and assumes the supervision obligations according to the agreement of this agreement. The agreement is made by the three parties through equal negotiation in accordance with the Contract Law of The People’s Republic of China, Guarantee Law of The People's Republic of China and relevant laws and regulations.

Article 1: Regulations on pledged property

	
1.

	
Party B shall provide the pledged property approved by Party A, and the property is regarded as the guarantee of credit granting provided by Party A; Party C occupies the property according to the contract to execute the maintenance and supervision responsibilities.

	
2.

	
The pledged property provided by Party B is legally owned by Party A, Party B shall provide the materials that can prove the ownership, quantity and quality (including but not limited in the sales and purchase contract, value-added invoice, customs declaration list, waybill, quality qualification certificate and commodity inspection certificate), and it shall take charge of the authenticity and efficiency; if Party A or the third party has loss owing to the defects of ownership, Party B shall assume the compensation responsibility. The loss of Party A and its agent caused by the hidden defects shall be assumed the responsibility by Party B.

	
3.

	
Party B shall guarantee that the pledged property has no legal defect, including but not limited in the taxation, customs, industry & commerce, commodity inspection and environmental protection. If the property has the above defects, Party A has right to stop the using of Party B of the granted credit amount, and require Party B and the guarantee party (not Party C) to pay back the used credit amount promptly.

	
4.

	
The pledged property shall be based on the List of Pledged Property (attachment 2), if the Credit Granting & Pledge Guarantee Agreement or List of Pledged Property have no clear regulations on the property, or the agreed property is not consistent with the actual property, it shall regard the actual property as the standard.

  

 

  

	
5.

	
Before Party A pays back the debts of Party A, whatever Party B picks up or replace the goods, the stored property shall comply with the requirements of Lowest-demand Notice of Stored Pledged Property (see attachment 6); the property value (total control quantity) is equal to the value that the unit price of pledged property multiplies by property quantity (or weight), and the unit price of the property is based on the written notice of Party A.

	
6.

	
The occupation and supervision of the pledged property doesn’t affect, offset or prevent Party A enjoying the rights of Credit Granting & Pledge Guarantee Agreement. The obligation performance and assuming of responsibilities of Party B under this agreement shall exempt, reduce and offset the obligations under Credit Granting & Pledge Guarantee Agreement and other guarantee responsibilities provided by Party B as well as the obligations and responsibilities of the guarantee party of Party B.

	
7.

	
Party B promises that if there are unfavourable situation of the goods during pledge right keeping period (including but not limited in missing, damage, deterioration and loss), Party B quits lodging the claim of Party A.

Article 2: Occupation and supervision

	
1.

	
Party B agrees to pledge the goods kept by Party C to Party A, Party C agrees to keep the goods in the warehouse or place with its ownership and using right, and comply with the agreement to perform the keeping and supervision responsibilities.

	
2.

	
Party B adopts indirect occupation method to supervise the property, and entrust Party C to occupy the pledged property. When Party B signs to confirm the List of Pledged Property, the occupation is transferred to Party A, and the pledge supervision begins. Party B shall guarantee to coordinate the occupation and supervision of Party C.

	
3.

	
Party C shall confirm that it has complete and exclusive using right or ownership for the supervision place or warehouse, so there are no defects legally. If there are legal defects which cause the failing of pledge right or bad effect of Party A, Party C shall take the responsibility.

	
4.

	
Party C shall assume the following obligations and responsibilities during the supervision period as follows:

	
(1)

	
Handle the pledged property appropriately and cautiously according to the relevant regulations and the agreement of this contract; it shall promptly notify Party A if the pledged property goes against the safety of credit granting.

	
(2)

	
Receive the survey, inspection and inquiry for the property of Party A, promptly issue the new List of Pledged Property so as to make the property in the List keep consistent with the actual property; and guarantee that the List is affirmed by Party B.

	
(3)

	
Keep the supervised property according to the marking graph of goods location issued by Party A; put the pledged goods of Party B and the goods that are not pledged by Party B as well as the goods of other customers in different locations; it shall get the written permission of Party A when transferring the location of the pledged goods of Party B, and promptly update the new marking graph of goods location.

	
(4)

	
Make Party B pick up or replace the goods according to the written indication of Party A and agreement of this agreement, and pick up the pledged goods of Party A.

	
(5)

	
Examine the pledged property (including the incoming and outgoing goods) and guarantee that the value of the goods after picking up or replacing complies with the regulations of item 5 of Article 1of this agreement.

  

 

  

	
(6)

	
Deliver the incoming & outgoing and storage information of the pledged goods after 10:00 a.m. of last one working day till the present time before 10:00 a.m. of each working day to Party A, in the form of fax (the appointed fax No. is 0531-82905066) and electronic data (the appointed e-mail address is: success5166 @163.com); it shall prepare well the data backup; if there is the change of supervisor of Party C, it shall promptly notify Party A.

	
(7)

	
Party C shall establish complete registration record for incoming account; and register & check whether the goods value after picking up or replacing of Party B complies with the regulations of item 5 of Article 1of this agreement.

	
(8)

	
After handling the goods incoming of Party B, Party C shall set the pledge marks for the property like sticking the labels or making signs, the styles of labels or signs shall abide by the requirements of Party A (attachment 8).

	
(9)

	
Take other obligations and responsibilities in accordance with the provisions of this agreement, contract law or industrial rules.

	
5.

	
Party C shall take the responsibility if it violates the above agreements causing the failing of pledge right or less value of pledged property of Party A. If the lowest value of pledged goods occupied and supervised by Party C is no consistent with the regulations of item 5 of Article 1, Party C shall take the relevant compensation responsibility for the mistakes or less value of pledged property.

	
6.

	
The keeping period for Party C to occupy and supervise the pledged property is calculated since the day that Party B signs the List of Pledged Property issued by Party C, until that Party A issues Lowest-demand Notice of Stored Pledged Property with the control line of zero to Party C.

	
7.

	
It will not affect the validity of pledge whether Party C complies with the regulations of this article to set the pledge signs or not.

Article 3: Pledge notice and seal style

	
1.

	
When the pledged property enters warehouse or it picks up or replaces the goods each time, Party A and Party B shall issue the Inquiry & Pledge Notice to Party C, so as to notify the pledge matters; Party C shall issue the List of Pledged Property after receiving the notice and require Party B to confirm. Party B shall authorize the operator to sign or make reserve seal or seal on the List; after the confirmation, the List of Pledged Property automatically becomes attachment under the pledge & guarantee contract and this agreement, and it doesn’t need to sign the supplementary agreement separately. If the List has the inconsistency with the pledge & guarantee contract, it shall regard the List of Pledged Property as the standard, and the relevant content in the pledge & guarantee contract shall be revised. After signing the List of Pledged Property, if it cannot be delivered to Party A on the spot, it shall be kept by Party C and faxed to Party A at the signing day (with the fax No. of 0531-82905066); the original List of Pledged Property shall be delivered to Party A by Party C within three days.

	
2.

	
When the pledged property enters the warehouse or it picks up or replaces the goods each time, Party C shall issue the incoming and outgoing list for the pledged goods, and require Party B to confirm and sign.

	
3.

	
The effective seal style of Inquiry & Pledge Notice is as follows:

 

	
Party A:

	
Party B:

  

 

  

The effective seal style of List of Pledged Property of Party B and Party C is as follows:

	
Party B:

	
Party C:

	
4.

	
If Party B and Party C use the administrative seal to sign the List of Pledged Property and other attachments under this agreement, it will have the same legal effect.

	
5.

	
The List of Pledged Property represents the confirmation on the pledge of Party B and Party C.

	
6.

	
The pledged property with the pledge sign is the goods owned by Party B and pledged to Party A. If the pledged property without the pledge sign belongs to the goods regulated in the relevant pledge contract and its attachments (including but not limited in the List of Pledged Property), it still belongs to the goods pledged to Party A.

Article 4: Regulations of picking up

	
1.

	
If the actual value of the pledged goods exceeds the lowest value required by Party A, Party B doesn’t need to add or supplement the deposit as for the picking up or replacing of the exceeding part, it can directly apply for picking up or replacing to Party C; Party C shall seriously comply with the contract to handle; meanwhile, it shall guarantee that the goods value of the pledged property occupied and supervised by Party C after picking up and replacing shall not be lower than the lowest value required in Lowest-demand Notice of Stored Pledged Property.

	
2.

	
When the actual value of the pledged property is equal to the lowest value required by Party A, Party B can use the deposit, certificate of deposit and government bond certificate that approved by Party A to displace the pledged goods. Party B shall firstly issue the Application for Picking Up to Party A (see attachment 3), after handling the displacement procedures, Party A shall issue the Notice for Picking Up (see attachment 4) to Party C. Party C shall pick up the goods according to the content of Notice for Picking Up.

	
3.

	
The goods value for displacement is calculated as follows: Displaced goods value = (Amount of deposit, certificate of deposit and government bond certificate) ÷pledge rate (in accordance with the provisions of Mortgage Contract of Maximum Amount for Goods Control and Financing of Qilu Bank).

	
4.

	
If the actual value of pledged property is equal to the lowest value of pledged property required by Party A, the Notice for Picking Up issued by Party A is the only effective certificate for Party B (including the appointed person of Party B, the dame below) to pick up the goods and remove the goods out of warehouse. Party B cannot pick up the goods without the Notice for Picking Up issued by Party A, and Party C shall not pick up the goods for Party B; otherwise, if Party B violates the provisions of Credit Granting & Pledge Guarantee Agreement and this agreement , Party A has right to adopt, including but not limited in announcing the expiry of credit granting in advance, stop using the credit granting of Party B, requiring Party B paying back the credit granting, paying the liquidated damages, assets preserve, proposing arbitration or lawsuit.

	
5.

	
The lowest value of the pledged property in above articles is applicable to the agreement of item 5 of Article 1 of this contract.

  

 

  

	
6.

	
The effective sealing of Notice for Picking Up issued by Party A refers to the seal and appointed person’s handwriting (signature), with the sealing style as follows:

 

	  
	  
	 
	 
	  
	  

 

The appointed person of Notice for Picking Up issued by Party A is:

	
(1)

	
Hu Beinan with the handwriting like:          or

	
(2)

	
        with the handwriting like         .

The pledged property cannot be removed out of the warehouse without the handwriting of appointed person of Party A and above seal. If Party C violates the above regulations to make Party B to pick up the goods, Party C shall assume the relevant responsibility.

Party A shall send the original document of Notice for Picking Up or fax (fax No: 82905066) to Party C after signing the Notice. Party C shall check the relevant seal, signature and fax No. after receiving the fax of Notice for Picking Up, and shall check with the personnel appointed by Party A    (Tel:       ), and then it shall approve to handle the goods picking up of Party B. If using the fax to send the Notice, Party A shall deliver the original Notice for Picking Up to Party C within 5 working days. After receiving the Notice of Party A, Party C shall make the accounts of Party B in its stock, so as to reduce the supervised quantity of pledged goods and increase non-supervised quantity pledged goods. When Party B picks up the goods from Party C, Party C shall deliver the goods that are released from the supervision to Party B; Party C shall not deliver the rest pledged goods occupied and supervised by Party C to Party B.

	
7.

	
Party C shall issue the Receipt of Notice for Picking Up (see attachment 4) after making Party B to pick up the goods according to the Notice for Picking Up of Party A.

Article 5: Price

	
1.

	
The price of pledged goods shall be determined by Inquiry & Pledge Notice and Price Determining / Adjusting Notice (see attachment 5) delivered by Party A and Party B to Party C; Party A has right to adjust according to the market change and provisions of the agreement.

	
2.

	
When the current market price of pledged property declines over 5% compared with the price determined at the valid time of the pledge, whether Party A gives the notice or not, Party B shall add the deposit or the pledged property according to the declining rate within 3 days; if it doesn’t make up or complement, Party B will be deemed as breach of the contract under the entire credit granting items, Party A has right to announce the prior expiry of granting credit line and require the prior paying back of the used amount.

Article 6: Way of payment

	
1.

	
The three parties agree that Party B assumes the charges related to supervision of Party C under this agreement. Party B shall pay the relevant fees to Party C promptly according to this agreement; the charging standard and payment time are listed in the Engagement of Charges (see attachment 7).

	
2.

	
If Party B doesn’t pay off the charges of Party C, Party C shall issue the written notice to Party A and Party B.

  

 

  

	
3.

	
Party A shall enjoy the pledge right according to this agreement, and it shall promise to pay for the unpaid items of Party B for Party C in priority with the amount obtained from executing the pledge right.

	
4.

	
Non-performance and dispute of agreement of two parties shall not influence the performance of the three-party agreement.

Article 7: Other agreements

	
1.

	
During the pledge right keeping period, Party A has right to require Party B handling the insurances of the pledged property, and the insurance fees shall be assumed by Party B; the first beneficiary of insurance is Party A; the insurance policy and insurance transfer letter shall be kept by Party A, and the insurance type, amount and period shall comply with the requirements of Party A; it shall handle the insurance continuously before paying off the debt under the Credit Granting & Pledge Guarantee Agreement. If the insurance of pledged property has been handled before the pledge, it shall change the first beneficiary of insurance into Party A within the period regulated by Party A (if the original sum and type insured don’t comply with Party A’s regulation, it shall re-submit). If there is the insurance accident, Party B and Party C shall promptly notify Party A; the insurance compensations shall be directly used for paying back the principal & interest and fees of credit granting.

	
2.

	
Party A has right to tolerate and extend to execute with regards to the behaviors of breach of contract or delaying of Party B and Party C under this agreement or credit granting agreement, which shall not damage, effect and restrict Party A to enjoy the interests and rights in accordance with this agreement and Credit Granting & Pledge Guarantee Agreement, and it shall not be regarded as the approval of any damaging of this agreement of Party A, and it also cannot be deemed that Party A quits the rights to take actions for the current or future default behaviors.

	
3.

	
This agreement connects and supplements the content of Mortgage Contract of Maximum Amount for Goods Control and Financing of Qilu Bank; if there is inconsistency between two agreements, it shall regard this agreement as the standard.

	
4.

	
Any controversies and disputes under this agreement shall be governed by the people’s court at the location of Party A.

	
5.

	
Others:

Any revisions of this agreement shall be in the written form, and will take effect after sealed by all parties.

Article 8: Statement and guarantee

	
1.

	
The three parties shall be the civil legal entities with full capacity for civil right and capacity for civil conduct.

	
2.

	
The three parties sign this agreement on their own will. Party B and Party C have known the entire contents and terms of this agreement as well as the legal results; Party A has adopted reasonable method to submit the notice of the whole contents and terms of the agreement.

	
3.

	
Party B all guarantee that the pledged property is the legal asset of Party B, and the property will not be mortgaged, pledged and rented to other persons before concluding the agreement or after concluding the agreement, and there shall be no other situations that affect or hinder the pledge right of Party A.

	
4.

	
The three parties shall perform the agreement honestly and provide necessary and complete assistance and coordination for other parties to execute the agreement.

  

 

  

	
5.

	
The three parties shall not use the previous agreements or internal rights limitation to oppose the performance of obligations under this agreement or propose the disputes on the effect of the agreement.

Article 9: Responsibility for breach of contract

	
1.

	
If one party violates this agreement, it shall pay the liquidated damages or compensation to the observant party. If the payment is delayed, it shall pay the overdue fine with five-ten thousandths of the unpaid amount; it shall compensate for the actual loss of the observant party caused by the violation of other contract obligations.

	
2.

	
If Party B violates the credit granting agreement or this agreement, Party A has right to announce the prior expiry of granting credit line, stop Party A using the granting credit line or reduce the credit line, as well as adopt the relevant remedial measures and requires Party B and its guarantor (excluding Party C) paying back the used credit granting line in priority.

	
3.

	
Party C shall assume the compensations for the shortage of pledged property or failing of pledge right of Party A owing to its improper supervision.

Article 10: Other agreed matters

 

Article 11: Taking effect

	
1.

	
This agreement will take effect after signing and sealing by the representatives of three parties (or principals and entrusted agents) or with the special contract seal.

	
2.

	
The following agreements will be regarded as the indivisible parts of this agreement, so they have the same legal effect with this agreement.

Attachment 1: Inquiry and Pledge Notice

Attachment 2: List of Pledged Property

Attachment 3: Application for Picking Up

Attachment 4: Notice for Picking Up and Receipt of Notice for Picking Up

Attachment 5: Price Determining / Adjusting Notice

Attachment 6: Lowest-demand Notice of Stored Pledged Property

Attachment 7: Engagement of Charges

Attachment 8: Labels and Signs Style of Pledged Property

	
3.

	
The handwriting and printing words in this agreement have the same effect.

	
4.

	
The agreement has three copies, with each party holding one, and each copy has the same legal effect.

Party A: Jinan East Lishan Road Branch of Qilu Bank Co., Ltd. (Seal)

Principal or entrusted agent: Liu Wei (Seal)

April 27, 2011

Seal of Party B: Shandong Global Pharm Co., Ltd.

Legal representative or entrusted agent: Song Yanliang (Seal)

April 27, 2011

Seal of Party C: Shandong Yayin Assets Management Co., Ltd.

Legal representative or entrusted agent: Liu Miao

April 27, 2011

  

 

  

Attachment 1

Inquiry and Pledge Notice

 

(Issued jointly by the pledgee and pledger)

No.                                      

To Shandong Yayin Assets Management Co., Ltd. (the supervisor),

Your company agrees to keep the following goods stored in your warehouse or location by Shandong Global Pharm Co., Ltd. (hereinafter referred to as the pledger) and perform the supervision and management responsibilities according to No.007 Warehouse & Storage Supervision & Management Agreement (Q.L.Y.L.S.D.L.C.J.Z.) in 2011 (hereinafter referred to as the Warehouse & Storage Supervision and Management Agreement). The pledger hereby pledges the above goods to the pledgee, Jinan East Lishan Road Branch of Qilu Bank. Your company shall check whether goods in the following list are under the occupation and supervision of your company. If it is consistent, your company shall perform the supervision and management responsibilities strictly according to the agreement. During the period of supervision and management, the lowest value of the pledged property shall not be less than RMB 6 million. When the actual value or actual quantity of the pledged property is equal to the lowest value or quantity of the pledged property, the procedure for goods picking up shall be handled for the pledger according to the Warehouse & Storage Supervision and Management Agreement.

The goods details:

	
Name

	  	
Specification

	  	
Quantity

	  	
Unit

	  	
Manufacturer

	  	
Unit price

	  	
Certificate

No.

	  	
Goods section

No.

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  

If the goods details are too much, please see the attachment. The attachment shall be affixed with the pledger’s signature and seal on the perforation. The attachment shall include contents listed in the above table.

	
Bank (pledgee): Jinan East Lishan Road Branch of Qilu Bank Co., Ltd.

	 	
Goods owner (pledger): Shandong Global Pharm Co., Ltd.

 

April 27, 2011

  

 

  

Attachment 2

List of Pledged Property (Confirmation Receipt of Pledge)

 

(Issued by the supervisor and confirmed by the pledger)

No.                                     

To Jinan East Lishan Road Branch of Qilu Bank Co., Ltd.,

The pledger stores goods listed in the following table to the warehouse/location with the use right belonged to the supervisor, and to be kept by the supervisor. The supervisor agrees to keep the above goods and perform the supervision and management responsibilities according to the relevant agreement.

The pledger pledges goods listed in the following table to your bank and the pledger guarantees that it has legal ownership to the goods and the goods have no defect, dispute, pledge and re-pledge conditions. The pledger shall also be responsible for the accuracy and legality of all documents and materials related to the pledge. The pledged property has been delivered to the supervisor designated by your company for occupation, keeping, supervision and management as the pledge guaranty of the debts under No. 007 Comprehensive Credit Granting Contract of Legal Person of Qilu Bank (L.S.D.L.F.S.Z.) in 2011. The List is the indivisible attachment of No. 007 Mortgage Contract of Maximum Amount for Goods Control and Financing Of Qilu Bank (L.S.D.L.D.C.Z.G.Z.Z.) in 2011.

During the period of supervision and management, the lowest value of the pledged property shall not be less than RMB 6 million. When the actual value or actual quantity of the pledged property is equal to the lowest value or quantity of the pledged property, the pledger shall handle the procedure for goods picking up according to No.007 Warehouse & Storage Supervision and Management Agreement (Q.L.Y.L.S.D.L.C.J.Z.) in 2011.

The goods details:

	
Name

	  	
Specification

	  	

Weigh

	  	
Quantity

	  	
Manufacturer

	  	
Unit price

	  	
Certificate

No.

	  	
Goods

section No.

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  

Seal (signature specimen) of goods owner (pledger): Shandong Global Pharm Co., Ltd.

April 27, 2011            

  

 

  

Our company has received the No.007-1 Inquiry and Pledge Notice jointly signed by your company and the pledger and confirmed that our company agrees to keep the goods (details see the above table) stored in our warehouse/location by the pledger, and knew that the pledger’s goods (details see the above table) kept by our company has been pledged to your bank. The above pledged property is really under the occupation, keeping, supervision and management of our company. Our company will perform the occupation, keeping, supervision and management responsibilities strictly according to the No.007 Warehouse & Storage Supervision and Management Agreement (Q.L.Y.L.S.D.L.C.J.Z.) in 2011.

During the period of supervision and management of our company, the lowest value of the pledged property shall not be less than RMB 6 million. When the actual value or actual quantity of the pledged property is equal to the lowest value or quantity of the pledged property, the procedure for goods picking up shall be handled for the pledger (and its designator) according to the Warehouse & Storage Supervision and Management Agreement.

The List of Pledged Property constitutes the confirmation to the pledged property.

Seal (signature specimen) of supervisor: Shandong Yayin Assets Management Co., Ltd.

April 27, 2011            

  

 

  

Attachment 3

Application for Picking Up

 

(Issued by the pledger)

No.                                     

To                                      of Qilu Bank Co., Ltd,

In accordance with No.               Warehouse & Storage Supervision and Management Agreement (Q.L.Y.                 C.J.Z.) in              , our company (tick “√” in the option):

	
□

	
Our company has transferred totally RMB          deposit/money to the deposit account with the number of                                      opened by our company in your bank, the deposit shall be the pledge guaranty of debts under No.             Comprehensive Credit Granting Contract of Legal Person of Qilu Bank (              F.S.Z.) in             .

 

	
□

	
Our company has returned totally RMB             debts under No.             Comprehensive Credit Granting Contract of Legal Person of Qilu Bank (                   F.S.Z.) in            .

 

	
□

	
Our company takes our deposit receipt (national debt and bank acceptance bill) with the number of                              , the depositor (issuer) of                            and the amount of                         as the pledge guaranty of debts under No.                 Comprehensive Credit Granting Contract of Legal Person of Qilu Bank (                   F.S.Z.) in                 .

 

We hereby apply for handling the procedures for picking up the following pledged property according to the agreement.

The goods details:

	
Name

	  	
Specification

	  	
Quantity

	  	
Quantity

unit

	  	
Unit

price

	  	
Certificate

No.

	  	
Goods

section No.

	  	
Manufacturer

	  	
Remark

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  

The value of goods picked up is RMB                                               ; the operator of goods picking up is                                 with the ID number of                                                       .

Goods owner (pledger): Shandong Global Pharm Co., Ltd. (signature specimen)

Date:

  

 

  

Attachment 4

Notice for Picking Up

 

(Issued by the pledgee)

No.                                     

 

To                                         (the supervisor),

In accordance with No.              Warehouse & Storage Supervision and Management Agreement (Q.L.Y.                   C.J.Z.) in                 , our bank agrees that                                              handles the procedures for picking up and delivering the pledged property in the following table. The operator of goods picking up is                                 with ID number of                                              . Your company shall review and handle the procedures for picking up and delivering goods listed in the following table.

The goods details:

	
Name

	  	
Specification

	  	
Quantity

	  	
Quantity

unit

	  	
Unit

price

	  	
Certificate

No.

	  	
Manufacturer

	  	
Goods

section No.

	  	
Remark

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  

After picking up goods at this time, the lowest value of the pledged property is RMB               , or the lowest quantity is                              , which constitutes change of the pledged property for pledge guaranty under the credit granting agreement.

                                              of Qilu Bank (signature specimen)

Signature of the designator:                       (signature specimen)

Date:           

  

 

  

Notice for Picking Up (Receipt)

 

(Issued by the supervisor)

No.                                     

To                                        of Qilu Bank,

We have received the No.               Notice for Picking Up issued by your bank. In accordance with No.    Warehouse & Storage Supervision and Management Agreement (Q.L.Y.     C.J.Z.) in     , our company has handled the goods picking up and delivering procedures of the above Notice for Picking Up issued by your bank, the person of goods picking up is       . Details of goods picked are as follows:

	
Name

	  	
Specification

	  	
Quantity

	  	
Quantity

unit

	  	
Manufacturer

	  	
Unit price

	  	
Certificate

No.

	  	
Goods

section No.

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  

After picking up goods at this time, the lowest value of the pledged property is RMB       , or the lowest quantity is           ,

Supervisor: Shandong Yayin Assets Management Co., Ltd. (signature specimen)

Date:            

  

 

  

Attachment 5

Price Determining / Adjusting Notice

 

(Issued by the pledgee)

No.                                     

To           (the supervisor and the pledger),

In accordance with No.    Warehouse & Storage Supervision and Management Agreement (Q.L.Y.     C.J.Z.) in     , we hereby notify the pledged property price determined or adjusted to your company. Please perform according to the pledged property price determined in the following table.

	
Name 

	  	
Specification 

	  	
Manufacturer 

	  	
Unit price (RMB)

	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  

                              of Qilu Bank Co., Ltd.

Date:           

  

 

  

Attachment 6

Lowest-demand Notice of Stored Pledged Property

 

(Issued by the pledgee)

 

No.                                     

To Shandong Yayin Assets Management Co., Ltd. (the supervisor),

During the period of pledge, the stored pledged property of Shandong Global Pharm Co., Ltd. shall always meet the flowing requirements, and your company shall review and perform.

	
Requirement on

pledged property

category 

	  	
Requirement on

pledged property

structure ratio

	  	
Limitation on pledged

property delivering

time 

	  	
Lowest balance of

pledged property 

	  	  	  	  	  	  	  
	
Drugs

	  	  	  	  	  	
RMB 6 million

Jinan East Lishan Road Branch of Qilu Bank Co., Ltd. (Seal)

April 27, 2011

  

 

  

Attachment 7

Engagement of Charges

In accordance with No.    Warehouse & Storage Supervision and Management Agreement (Q.L.Y.     C.J.Z.) in     , three parties of Warehouse & Storage Supervision and Management Agreement agree that all charges caused by Party C (the supervisor) performing supervision and management to the pledged property shall be assumed by Party B (the pledger           ).

Charge standard of supervision and management fee:                           

Payment time:                                         

Others:                                                 

Party B shall fully pay fees to Party C timely according to the agreement; otherwise, Party C has the right to exercise rights under the Agreement.

	  	
Party B: Shandong Global Pharm Co., Ltd. (Seal)

	  	
Party C: Shandong Yayin Assets Management Co., Ltd. (Seal)

  

 

  

Attachment 8

Labels and Signs Style of Pledged Property

	
I.

	
Labels

	
Pledged Property of Qilu Bank

	
The pledger

	  
	
The pledgee

	  
	
The supervisor

	  

(Size: 8.5cm×12.5cm; it shall be used for goods external packing pasting and made with adhesive sticker)

	
II.

	
Signs

	
1.

	
No.1 sign

	
QILU BANK

	
Pledge Supervision and Management Warehouse

	
The pledger:

	
The pledgee:

	
The supervisor:

(Size: 60cm×40cm; it shall be hanged at the door of the pledge warehouse. It is made by metal material, which can be added support)

	
2.

	
No.2 sign

	
QILU BANK

	
Pledged Property

	
The pledger:

	
The pledgee:

	
The supervisor:

(Size: 60cm×40cm; it shall be set beside goods stack. It is made by metal material, which can be added support)

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