Document:

ABCS(2007)2004

    Rights
Pledge Contract

    Contract
No.: 53904200900004472

    

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

     

    Pledgeor: China Shenghuo
Pharmaceutical Holdings, Inc.

    

    This
Pledge Contract is entered into by and among the two parties in accordance
with relevant Chinese laws and regulations for purpose of ensuring that Kunming
Shenghuo Pharmaceutical (group) Co., Ltd. (“Kunming Shenghuo”) will repay the
loan under the Loan Contract between Kunming Shenghuo and the Pledgee, dated
August 24, 2009(“Principal Contract”).

    

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

     

    The
creditor’s principal claim guaranteed is the loan borrowed for medium-term
current capital in the amount of RMB50 million.

     

    2.
The Scope of Guaranty of Pledge

     

    The scope
of this guaranty of pledge includes the amount of creditor’s principal claim and
the interest thereof, default fine, compensation for damage and all kinds of
relevant expenses incurred by the pledgee to recover its claim and the
pledged right.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.
The Pledged Right

     

    The
pledgor agrees on the pledge of stock right, as to the details of pledged right
please find the List of Pledge
of Rights(equity/fund/bond), No.: 53904200900004472 (Name
and No. of the list) 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 pledged right is RMB 101.86 million
while the terminal value will be determined by its actual disposing
price.

     

    4.
Covenants of the Pledgor

     

    4.1 The
pledgor has obtained authrization necessary to enter into this Contract pursant
to relavent regulations and procedures.

     

    4.2 The
full and undisputed ownership and disposition right of the pledged right is
entitled to the pledgor.

     

    4.3 The
pledged right is transferable according to law.

     

    4.4 The
pledged right has not been cancelled upon application, been declared null and
void upon application, facing objection, seal-up, freezing, supervision,
litigation, arbitration, reporting lost and stop of payment.

     

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.6 The
pledgor promises to pay all kinds of expenses related to the pledged right
according to laws and regulations, perform the legal obiligations, expand the
term of right as per the requirement of the pledgee and have the pledged right
remain in force and effect at duration period.

     

    4.7 At
the duration period of the pledged right, the pledgor shall inform the pledgee
in written for any of following cases:

     

      4.7.1
The pledged right has been cancelled upon application, been declared null and
void upon application, facing objection, seal-up, freezing, supervision,
litigation, arbitration, reporting lost and stop of payment or other cases that
would affect the realization of pledged right.

     

    4.7.2 The
business license of the pledgor has been cancelled or revoked, the pledgor was
ordered to close down or was terminated for other causes.

     

    4.7.3 The
pledgor 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 pledged
right.

     

    5.
Effect of the Pledged Right

     

    The
effect of pledged right is extended to the incidental right associated with the
pledged right, yield and property and rights according to laws and
regulations.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.
Delivery and Storage of the Document of Title

     

    6.1 If
necessary, the pledgor shall deliver relevant document of title to the pledgee
within specified days from the date of this Contract. The pledgee shall keep the
delivered document of title in good condition.

     

    6.2 Where
a bill of exchange, promissory note, cheque, warehouse receipt, bill of lading,
bond or other document of title that needs to be negotiated by endorsement is
pledged, the words of “value in pledge” are required to be written in the
endorsement.

     

    6.3 If
necessary, the pledgor shall register the pledge contract with the registration
authorities within specified days from the date of this Contract and the
original registration certificate shall be kept by the pledgee. The pledgor
shall assist the pledgee in case that the registration of transferred pledged
right or of other issues need to be changed.

     

    6.4 At
the duration period of the pledged right, the pledgor may not grant or transfer
the pledged right, permit other person to use the pledged right or dispose the
pledged right in other ways without the written approval of the pledgee. Where
the written approval is available, the proceeds from the pledged right
disposition shall firstly be used to liquidate the creditor’s principal claim
secured by the stock right and the escrow.

     

    6.5 At
the duration period of the pledged right, where the value of pledged right is
decreased, the pledgee is entitled to ask the pledgor offering a guranty which
is equivalent to the decreased value and needs to be recognized by the
pledgee.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
                 
      

              	
                7.
      Transfer of the Pledged Right

              
	 	 

      

    

    
      
        	
                 
      

              	
                Where
      part of the creditor’s claim is transferred by the pledgee, the pledgee is
      entitled not to transfer the corresponding pledged
  right.

              
	 	 

      

    

    
      
        	
                 
      

              	
                8.
      The Realization of Pledged Right

              
	 	 

      

    

    8.1 Under
any of the following circumstances, the pledgee has the right to exercise the
pledged right:

     

    8.1.1 The
pledgee is not paid at the maturity of the obiligation under the Principal
Contract.

     

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

     

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

     

    8.1.4 The
debtor or pledgor was dead or was declared lost or dead.

     

    8.1.5 The
pledged right has been cancelled upon application, been declared null and void
upon application, facing objection, litigation, arbitration, seal-up, freezing,
supervision or other enforcement actions have been taken.

     

    8.1.6 The
pledgor has not offered corresponding guranty as per the requirements of the
pledgee.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.1.7 The
pledgor has violated the obligations under this Contract.

     

    8.1.8 The
existence of other circumstances that have materially affected the realization
of pledged right.

     

    8.2 Where
a pledged bill of exchange, cheque, promissory note, bond, certificate of
deposit, warehouse receipt or bill of lading can be honoured or taken delivery
before the creditor’s claim under the Principal Contract expires, the pledgee is
entitled to do so first and the proceeds therefrom can be firstly used to
liquidate the creditor’s principal claim secured by the stock right and
escrow.

     

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

     

    8.4 Where
the pledgor is the third person other than the debtor, meanwhile the debtor has
offered material guranty for the creditor’s claim under the Principal Contract,
and the pledgor has waived this security right, the pledgor agrees to offer a
guaranty of pledge for the creditor’s claim under the Principal
Contract.

     

    9.
Return of the Document of Title

     

    9.1 Where
all the debts under the Principal Contract have been performed, or all the
creditor’s claims secured by the pledged right under the Principal Contract
have been liquidated, the pledgee shall timely return the document of title to
the pledgor.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.2 The
pledgor shall accept the returned document of title timely.

     

    10.
Liability for Breach of Contract

     

    10.1 The
pledgor shall indemnify the pledgee in case of commiting any of the following
acts:

     

    10.1.1
Haven’t obtained legal and valid authorization which is necessary for the
guaranty under this Contract.

     

    10.1.2
Haven’t performed his obligation of making a full and accurate disclosure to the
extent that there is a existence of co-ownership of the pledged right and a
dispute over the pledged right, or the pledged right has been cancelled upon
application, been declared null and void, facing objection, seal-up, freezing,
supervision, litigation, arbitration, reporting lost and stop of
payment.

     

    10.1.3
Haven’t delivered the document of title, or made a pledge endorsement or
registered the pledge contract according to this Contract.

     

    10.1.4
Have disposed the pledged right without the written approval of the
pledgee.

     

    10.1.5
Haven’t offered the corresponding guranty as per the requirement of the
pledgee.

     

    10.1.6
Other activites that have violated the agreement under this Contract or affected
the realization of pledged right.

     

    10.2
Where the pledgee is involved in any of the following acts, which results in a
loss for the pledgor, then the pledgee shall be liable to pay compensatory
damages:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    10.2.1
The document of title is damaged or destructed, or is lost resulting from the
pledgee’s negligence in storage.

     

    10.2.2
Where the pledgee delayed in exercising the pledged right at the written request
of the pledgor when the time limit for the performance of debts
expires.

     

    11.
Liability for Expenses

     

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

     

    12.
Resolution of Disputes

     

    Any
dispute arising from this Contract shall be resolved by both parties through
friendly discussion, or

     

    12.1
Shall be resolved by litigation which falls within the jurisdiction of People’s
Court in the Pledgee’s place of residence.

     

    12.2
During the course of the litigation, this Contract shall be performed except for
the part under dispute.

     

    13.
Other Matters

     

    13.1 The
pledgor hereby acknowledges the receipt of the Principal Contract and have read
and understood this contract secured by the pledgor.

     

    14. This
Contract shall take effect from the date of its execution.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    15. This
Contract is made out in 5 copies and each one for the Pledgee, the Pledgor, the
Administration for Industry and Commerce, Ministry of Commerce and the Public
Notary Office. Each copy has same legal force and effect.

     

    16. The
pledgee has notified the pledgor 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 pledgor. Both parties
reached an agreement on this Contract.

    

    Pledgee:

     

    Agricultual
Bank of China, Kunming Shuanglong Branch

     

    Signature: Zuo Wu
Zhou

     

    Pledgor:

     

    China
Shenghuo Pharmaceutical Holdings, Inc

     

    Signature: Gui Hua
Lan

    

    
      	 
      	
              Date:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ABCS(2007)2010-3

     

    List
of Pledge of Rights(equity/fund/bond)

     

    Pledgee
(full name):

     

    Agricultural
Bank of China, Kunming Shuanglong Branch

     

    Pledgeor:

     

    China
Shenghuo Pharmaceutical Holdings, Inc.

     

    No.:53904200900004472

    

    Pledged
with:  94.95% shares of Kunming Shenghuo Pharmaceutical Co.,
Ltd. held by China Shenghuo Pharmaceutical Holdings, Inc.

    

    Provisional price of those
shares: RMB101.86 million

    

    This List
constitutes a integral part of the Pledge Contract, No.: 53904200900004472. Both
parties have reached the following special agreement besides the above mentioned
Contract:

     

    1. At the
duration period of the pledged right, the effect of pledged right is extended to
the such yields as bond interest, fund dividend, return on equity including
stock dividend and transfer, bonus, coupon and etc., which may not be taken by
the pledgor.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2. Where
the fund shares are pledged, when the fund contract was changed or terminated,
the pledgor shall timely notify the pledgee. At the duration period of the
pledged right, the pledgor may not apply to redeem or transfer the pledged fund
shares.

     

    3. When
the market value of the pledged right accounts for less than  % of the
provisional price when it was pledged, the pledgee is entitiled to ask the
pledgor offering a guaranty deposit or other guaranty that is recognized by the
pledgee.

     

    4. The
pledgor has delivered the document of title to the pledgee, if
necessary.

    

    Pledgee:

     

    Agricultual
Bank of China, Kunming Shuanglong Branch

     

    Signature: Zuo Wu
Zhou

     

    Pledgor:

     

    China
Shenghuo Pharmaceutical Holdings, Inc.

     

    Signature: Gui Hua
Lan

    

    Date: August 19,
2009

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      Notary
Certificate

       

    

    
      No.:14789

    

    
       

      Applicant:

    

     

    Pledgee:

     

    Agricultual
Bank of China, Kunming Shuanglong Branch

     

    Place of
redidence: No.199 Shuang Tang Road, Kunming City

     

    Person-in-charge:
Zuo Wu Zhou

     

    Position:
Governor of the Bank

     

    
      Pledgor:

       

      China
Shenghuo Pharmaceutical Holdings, Inc.

      
         

        Place
of residence: No.2 Jing You Road, Kunming National Economy and Technology
Developing District

      

      
         

        Legal
representative: Gui Hua Lan

      

      
         

        Notarization:
The Right Pledge Contract

      

      
         

        Both
parties agree on the notarization application for the above mentioned
Contract.

      

      

      
        We
hereby prove that both parties have signed the above mentioned Right Pledge
Contract upon consensus. The pledgee is
a qualified Financial institution engaging in loan bussiness(RMB)
and its governor is entitled to sign this Contract on behalf of his bank;
while the pledgor is a qualified entity to sign this
Contract.

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    This
Pledge Contract is entered into by those two parties according to relevant
laws and regulations of China for purpose of ensuring that Kunming Shenghuo
Pharmaceutical (group) Co., Ltd. will repay the loan under Loan Agreement,
No.53101200900004676 as above mentioned. This Contract is secured by the pledge
of 94.95% shares of Kunming Shenghuo Pharmaceutical Co., Ltd. Held by the
pledgor. Upon examination, the pledgee agrees to accept the guarany of pledge
offered by the pledgor. Specific provisions such as Amount of Guaranty, Term of
Guaranty, Way of Payment, Rights and Obligations of Both Parties, Liability for
Breach of Contract have been clarified therein.

    

    Based
upon the above mentioned facts, we hereby certify that the above Right Pledge
Contract is dated August 19, 2009, and is entered into at Kunming City, Yunnan
Province by and among Zuo Wu Zhou, the governor of Agricultual Bank of China,
Kunming Shuanglong Branch and Gui Hua Lan, the legal representative of China
Shenghuo Pharmaceutical Holdings, Inc. This Contract entered into by both
parties is in compliance with Article 55 of The General Principles of the Civil
Law of the People’s Republic of China; the signatures and seals of both parties
are found to be authentic; the contents of this Contract are in compliance with
regulations of The Contract Law of the People’s Republic of China, The Property
Law of the People’s Republic of China and The Guaranty Law of the People’s
Republic of China, respectively.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Pursuant
to Article 226 of The Property Law of the People’s Republic of China, where the
stock right is pledged, the pledged right is established from the date of
registration with the Administraion of Commerce and Industry.

    

    
      
        
          
            
              
                	 
      	
                        Issued
      by:

                      
	 	 
	 
      	 
      	
                        Ju
      Ming Feng,

                      
	 
      	 
      	
                        of
      Zhenyuan Public Notary Office, of Kunming City, Yunnan Province,
      P.R.C.

                      
	 	 	 
	 	

                        Date:
      August 19,
2009ABCS(2007)2002

       

      Mortgage
Contract

       

      Contract
No.: ( Shuanglong Sub-branch)

      Nong Ying
Di Zi (2008) No. (003 )

      

      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 among 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
loan agreement as above mentioned.

      

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

       

      The
creditor’s principal claim guaranteed is the loan borrowed for medium-term
current capital in the amount of RMB10 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 stock right, as to the details of
collateral please find the List
of Mortgage of Real Estate No.: (
Shuanglong Sub-branch) Nong Ying Qing Zi (2008) No. (002) 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 RMB14, 429,808 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 and 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 inform 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 was
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. It also requires the mortgagor perform other obligations under the
insurance contract (including the insurance document or other insurance
certificate). During the term of mortgage, where the mortgagor didn’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 terminated the insurance contract without the
written approval of mortgagee; neither should he waive the right to insurance
claims or 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 to claim compensation. Where the mortgagee didn’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:

       

      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 violated 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 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 didn’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, or

       

      12.1
Shall be resolved by litigation which falls within the jurisdiction of People’s
Court in the mortgagee’s place of residence.

       

      12.2
During the course of the litigation, 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. This
Contract shall take effect from the date of its execution.

       

      16. This
Contract is made out in 5 copies and each one for the Mortgagee, the Mortgagor,
the Administration for Industry and Commerce, Ministry of Commerce and the
Public Notary Office. Each copy has same legal force and effect.

       

      17. 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 reached an agreement on this Contract.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Mortgagee:

       

      Agricultural
Bank of China, Kunming Shuanglong Branch

       

      Signature: Zuo Wu
Zhou

       

      Mortgagor:

       

      Kunming
Shenghuo Pharmaceutical (Group) Co., Ltd.

       

      Signature: Gui Hua
Lan

      

      Date: March
2008           

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      List
of Mortgage of Real Estate

       

      No.: (Shuanglong
Sub-branch)

       

      Nong Ying
Qing Zi (2008) No. (002)

       

      Mortgagee
(full name):

       

      Agricultural
Bank of China, Kunming Shuanglong Branch

      

      Mortgagor:

       

      Kunming
Shenghuo Pharmaceutical (Group) Co., Ltd.

      

      Collateral:  land and its
attachments

      

      Provisional price of the collateral: RMB14, 429,808

      

      This List
constitutes an integral part of the Mortgage Contract, No.: (Shuanglong
Sub-branch) Nong Ying Di Zi (2008) No. (003).

      

      Mortgagee:

       

      Agricultural
Bank of China, Kunming Shuanglong Branch

       

      Signature: Zuo Wu
Zhou

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Mortgagor:

       

      Kunming
Shenghuo Pharmaceutical (Group) Co., Ltd.

       

      Signature: Gui Hua
Lan

      

      Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]