Document:

EXHIBIT
10.2

    

    Legal
Person’s Loan Contract of Qilu Bank

    

    Contract
No. 2009 J.B.W.E.F.J.Z. No.
010

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Borrower
(Party A): Shandong Yaoyuan Pharmaceutical Company

    Residence:
No. 80 Jiangjun Road, Jinan

    Legal
representative (principal): Song Yanliang

    Bank of
deposit and account No:

    Tel or
fax:

    Postal
code:

    

    Lender
(Party B): Jinan City Jingbawei Second Branch of Qilu Bank Co.,
Ltd.

    Residence:
No. 176 Dawei Second Road, Jinan City

    Legal
representative (principal): Liu Wei

    Tel or
fax: 82905066

    Postal
code: 250001

    

    Party A
applies for the loan from Party B, and Party B agrees to issue the loan. In
accordance with provisions of Contract Law of the Peoples Republic
of China, Real Right Law of the People's Republic of China and Guarantee Law of The People's
Republic of China, Party A and Party B have made the following agreement
through amicable negotiation, to make clear the respective rights and
obligations.

    

    Article
1: Amount of loan

    Party A
borrows the loan of 1.5 million Yuan (for the equivalent foreign currency
business, it shall be converted by the selling rate of that day) from Party
B.

    Article
2: Purpose of loan

    Party A
borrows for business operation.

    Article
3: Term of loan

    From Dec.
23, 2009 to Dec. 21, 2010

    Article
4: Loan interest rate and interest

    
      	
              (1)

            	
              The
      loan interest rate during the contract performance period floats upward
      40% based on benchmark interest rate, namely, 7 .434%. During the period
      from signing the contract to issuing the actual loan, if there is the
      legal adjustment of interest rate, it will float with the same rate based
      on the benchmark interest rate after adjustment, and Party B will not
      notify Party A separately.

            

    

    
      	
              (2)

            	
              The
      loan interest will be calculated since transferring the loan to Party A’s
      account, and the loan shall be adjusted according to the following method
      if there is the legal interest rate adjustment; and it shall float with
      the rate in (1) of this Article:

            

    

    
      	
              1.

            	
              If
      the loan term is within one year (including one year), it shall execute
      according to the agreed interest rate of this contract, without
      calculating interest on
multi-stage;

            

    

    
      	
              2.

            	
              If
      the loan term is above one year, it shall execute the new rate since the
      first day of next calendar year since the adjustment day, and it will not
      notify Party A separately.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              (3)

            	
              If
      the state cancels the benchmark interest rate, Party B has right to
      re-determine the contract interest rate according to the current national
      interest rate policy and principle of fairness and credibility as well as
      referring to the industrial rules and interest rate status. Party A shall
      promptly negotiate with Party B if it has question. If the negotiation is
      failed, Party B has right to receive loan in advance, and Party A shall
      promptly pay off the principal& interest of
  loan.

            

    

    
      	
              (4)

            	
              Party
      A agrees to comply with the item 1 below to pay off the principal&
      interest of loan:

            

    

    
      	
              1.

            	
              The
      middle and short term loan within five years (including five years) shall
      be calculated the interest by day, and settle the interest by month, in
      the form of matching the principal
repayment.

            

    

    
      	
              2.

            	
              The
      long term loan above five years shall be calculated the interest by day,
      and settle the interest by month, in the form of matching the principal
      repayment.

            

    

    
      	
              3.

            	
              The
      formula of the method for matching the repayment of principal and
      decreasing the repayment of interest is as
  follows:

            

    

    

    Monthly
repayment of principal plus interest= loan principal/months of loan term + (loan
principal- returned accumulated loan principal) ×monthly rate ×1/30 ×actual days each
month

    
      

    

    
      	
              4.

            	
              The
      formula of the method for matching the repayment of principal and interest
      is as follows:

            

    

    
      (1+monthly rate)
total
months of repayment            

      (1+monthly
rate) total
months of repayment — 1

    

    Monthly
repayment of principal plus interest= loan principal × monthly rate
×

    
      	
              5.

            	
              Other
      methods of repayment:

            

    

    Article
5: The actual loan issuing date and payment date under this contract are based
on the loan certificate, which is the part of the contract, covering the same
legal effect of this contract.

    Article
6: Payment method of principal and interest

    Party A
shall guarantee to remit the payable loan principal and interest in the
settlement account opened at Party B’s location before 20 of the payment month,
and Party B will directly withhold and receive the amount; the detail is as
follows:

    Account
name: Shandong Yaoyuan Pharmaceutical Company

    Account
No: 000000709003800002467

    Article
7: Other withholding method

    If Party
A cannot return the loan principal and interest, Party B has right to directly
withhold the loan principal, interest and relevant charges from any bank
accounts opened by Party A in the system of Qilu Bank.

    Article
8: Change or termination of the contract

    
      	
              (1)

            	
              After
      the effective date of the contract, any party shall not change or
      terminate the contract separately.

            

    

    
      	
              (2)

            	
              If
      the loan expires, and owing to the change of objective circumstances,
      Party A cannot pay off the loan through efforts, it can apply for
      extending from Party B; Party A shall propose the written application to
      Party B within 10 days before the loan expires, and submit the written
      guarantee for agreeing the extending period of the guarantor and/or
      pledgor; after Party B approves and handles the guarantee procedures for
      extending the loan, the two parties shall handle the extending procedures;
      the contract interest rate during the extending period shall comply with
      the relevant regulations.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              (3)

            	
              If
      Party A transfers the rights and obligations under this contract to the
      third party, it shall get the written permission of Party B and guarantor;
      and the transfer will take effect after the transferee unit signs the loan
      contract with Party B and handles the guarantee
  procedures.

            

    

    
      	
              (4)

            	
              When
      there are changes of merger, dividing, contracting and shareholding reform
      for one party, the main body after change will enjoy the rights and assume
      the obligations of this contract.

            

    

    Article
9: Loan guarantee

    To
guarantee paying off the loans under this contract, Party A/the third person
shall provide the guarantee according to item 1 below to Party B:

    
      
        	
                (1)

              	
                Guarantee
      (see detail in 2009 J.B.W.E.F.J.B.Z. No. 010 Legal
      Person’s Loan Contract of Qilu
Bank)

              

      

    

    
      
        	
                (2)

              	
                Mortgage
      (see detail in No. ________  _________________of
      Qilu Bank)

              

      

    

    
      
        	
                (3)

              	
                Pledge
      (see detail in No. _________  _____________of
      Qilu Bank)

              

      

    

    
      	
              (4)

            	
              Others:
      

            

    

    

    Before
handling the above agreed guarantee procedures, Party B has right to refuse
issuing the loan to Party A without conditions.

    Article
10: If Party A needs to change its system or operation modes like contract,
lease, merger & acquisition, joint venture, dividing, joint operation,
shareholding reform, it shall notify Party B in advance of 30 days in the
written form. After the written approval of disposal method of contract bond of
Party B, Party A can execute the above behaviors.

    Article
11: Guarantee of Party A

    
      	
              (1)

            	
              Before
      paying off the loan principal and interest of Party B, it doesn’t
      mortgage/pledge to the third party with the assets formed by Party B’s
      loan.

            

    

    
      	
              (2)

            	
              Before
      paying off the loan principal and interest of Party B, it shall not
      provide the overburdening guarantee to
others.

            

    

    Article
12: Major rights and obligations of Party A and Party B

    
      	
              (1)

            	
              Rights
      and obligations of Party A:

            

    

    
      	
              1.

            	
              Party
      A has right to require Party B to issue the loan according to the
      contract;

            

    

    
      	
              2.

            	
              Party
      A shall return the entire loan principal and interest within the greed
      period of contract;

            

    

    
      	
              3.

            	
              Party
      A shall use the loan according to the agreed purpose, and it shall not use
      for other purpose without the written permission of Party
    B;

            

    

    
      	
              4.

            	
              Party
      B shall provide the relevant plans, statistics and financial statement
      according to the requirements of Party
B;

            

    

    
      	
              5.

            	
              Party
      A seriously looked up and knew the responding clauses of the guarantee
      contract, and agreed to accept the restriction and assume the relevant
      responsibility.

            

    

    
      	
              (2)

            	
              Rights
      and obligations of Party B:

            

    

    
      	
              1.

            	
              Party
      B has right to receive and withhold the loan principal and interest
      according to the contract;

            

    

    
      	
              2.

            	
              Party
      B has right to examine the using situation of
  loan;

            

    

    
      	
              3.

            	
              Party
      B has right to supervise the assets of Party A and its operation
      status;

            

    

    
      	
              4.

            	
              If
      one of the following situations occurred to the mortgage, pledge, warrant
      or other guarantees provided by Party A/ the third person, Party B has
      right to require Party A eliminating the relevant bad effect, and/or
      require Party A increasing and changing the guarantee
      conditions:

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              (1)

            	
              The
      guarantor violates the warrant contract or loses the ability to assume and
      guarantee the responsibility;

            

    

    
      	
              (2)

            	
              The
      mortgagor violates the mortgage contract or the mortgaged property is
      derogated or damaged;

            

    

    
      	
              (3)

            	
              The
      pledgor violates the pledge contract or the mortgaged property is
      derogated or damaged;

            

    

    
      	
              (4)

            	
              There
      are other situations that affect its guarantee
  ability.

            

    

    
      	
              5.

            	
              Party
      B shall promptly issue the loans according to the period regulated in the
      contract.

            

    

    Article
13: Responsibility for breach of contract

    
      	
              (1)

            	
              Party
      B violates the contract agreement to use the misappropriation or diversion
      of loan, Party B has right to calculate the interest for the
      misappropriation or diversion of loan with floating upward 100% for the
      interest rate agreed in the contract during this
  period.

            

    

    
      	
              (2)

            	
              The
      loan that Party A doesn’t play off on schedule is regarded as the overdue
      loan, Party B has right to calculate the interest for the overdue part
      with floating upward 50% for the interest rate agreed in the contract
      during this period.

            

    

    
      	
              (3)

            	
              The
      interest that Party B cannot pay in time for Party A shall be calculated
      the compound interest quarterly (short-term loan shall be calculated
      monthly) by floating upward of 50% agreed in the contract; the interest
      that cannot be paid in time during the period of misappropriation or
      diversion of loan shall be calculated the compound interest quarterly
      (short-term loan shall be calculated monthly) by floating upward 100%
      agreed in the contract; if it is the same loan, covering both overdue and
      misappropriation or diversion features, it shall handle with one aspect of
      more serious effect.

            

    

    
      	
              (4)

            	
              It
      shall execute by the adjusted regulations if there is policy adjustment in
      people’s court for penalty interest
rate.

            

    

    
      	
              (5)

            	
              If
      one of the following situations occurred, Party B has right to stop
      issuing the unpaid loan, taking back the issued loan principal and
      interest in advance and realizing the guarantee right in advance; it has
      right to require Party A to assume 5% of loan as the liquidated damages;
      it also has right to directly withhold the loan principal, interest,
      liquidated damages, damages and other payable items from any bank accounts
      opened by Party A in the system of Qilu Bank; it has right to terminate
      the contract.

            

    

    
      	
              1.

            	
              Party
      A doesn’t comply with the contract to use the
  loan;

            

    

    
      	
              2.

            	
              Party
      A doesn’t comply with the contract to pay the
  interest;

            

    

    
      	
              3.

            	
              Party
      A provides false plans, statistics and financial statements to Party
      B;

            

    

    
      	
              4.

            	
              For
      the loan contract with the third party guarantee or (and) mortgage
      (pledge), the guarantor violates the guarantee contract or loses the
      ability to assume the responsibility; the mortgagor (pledgor) violates the
      mortgage (pledge) contract or the mortgaged (pledged) property is sealed
      up, detained or damaged; or there are losses to other guarantee rights and
      the guarantee right is restricted;

            

    

    
      	
              5.

            	
              Party
      A is involved or will be involved in important lawsuit or arbitration
      procedure and other legal disputes;

            

    

    
      	
              6.

            	
              Party
      A acts to affect the debt paying ability or lacks of sincerity for debt
      paying;

            

    

    
      	
              7.

            	
              The
      guarantor is dismissed;

            

    

    
      	
              8.

            	
              The
      guarantor violates any of the agreed obligations in the contract or it
      leads to other violation behaviors;

            

    

    
      	
              9.

            	
              After
      the mortgage registration takes effect, there are disputes on application
      or the easement is restricted or may be
  restricted.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              (6)

            	
              Party
      B complies with the law or the contract to realize the principal
      creditor's right and/or guarantee right, the obtained items shall be paid
      off according to the following
order:

            

    

    
      	
              1.

            	
              Charges
      for realizing the guarantee right;

            

    

    
      	
              2.

            	
              Charges
      for realizing the principal creditor's
right;

            

    

    
      	
              3.

            	
              Principal
      creditor's right, penalty interest and compound
  interest;

            

    

    
      	
              4.

            	
              Other
      payable items like liquidated damages and
  damages.

            

    

    Article
14: Assumed charges

    The
charges like lawyer’s charges, announcement charges, delivery charges,
registration charges, inquiry charges, insurance charges and drawing charges
used to perform the contract, handle the guarantee procedures, realize Party B’s
creditor's rights and/or guarantee right shall be assumed by Party
B.

    Article
15: Disputes solution

    The
disputes relevant to this contract shall be solved through negotiation; if it
fails to be solved in this way, it shall lodge the lawsuit for the people’s
court at Party B’s location; the two parties shall perform the other clauses
with no relation with the disputes during the lawsuit period.

    Article
16: Other agreed matters

    
      	
              (1)

            	
              This
      contract is signed for No. 2009 J.B.W.E.F.J.Z. No. 010 Legal Person’s Loan
      Contract of Qilu Bank, and it is the specified part of this
      contract.

            

    

    
      	
              (2)

            	 

    

    
      	
              (3)

            	 

    

    Article
17: The contract will take effect after meeting the following
conditions:

    
      	
              (1)

            	
              It
      is sealed or made the special seal for contract by Party
  A;

            

    

    
      	
              (2)

            	
              It
      is sealed or made the special seal for contract by the principal or
      authorized agent of Party B.

            

    

    Article
18: The contract has copies, with
Party A and Party B holding .

    

    
      
        
          	
                  Party
      A (seal): Shandong Yaoyuan Pharmaceutical Company

                	 
      	 
      
	 
      	 
      	

                  Party
      B (seal): Jinan City Jingbawei Second

                
	
                  Legal
      representative (principal) or authorized

                  agent
      (seal): Song Yanliang

                	 
      	
                  Branch
      of Qilu Bank Co., Ltd.

                
	 
      	 
      	
                  Legal
      representative (principal) or authorized

                  agent
      (seal):  Liu Wei

                
	 
      	 
      	
                  Operator
      (signature):

                
	 
      	 
      	 
      
	 
      	 
      	
                  Date:
      Dec. 23, 2009EXHIBIT
10.3

    

    Legal
Person’s Loan Contract of Qilu Bank

    (First
version of 2010)

    

    Contract
No. 2010 J.B.W.E.F.J.Z. No.
001

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Borrower
(Party A): Shandong Yaoyuan Pharmaceutical Company

    Residence:
No. 80 Jiangjun Road, Jinan

    Legal
representative (principal): Song Yanliang

    Bank of
deposit and account No:

    Tel or
fax:

    Postal
code:

    

    Lender
(Party B): Jinan City Jingbawei Second Branch of Qilu Bank Co.,
Ltd.

    Residence:
No. 176 Dawei Second Road, Jinan City

    Legal
representative (principal): Liu Wei

    Tel or
fax: 0531-82905066

    Postal
code: 250001

    

    Party A
applies for the loan from Party B, and Party B agrees to issue the loan. In
accordance with provisions of Contract Law of the Peoples Republic
of China, Real Right Law of the People's Republic of China and Guarantee Law of The People's
Republic of China, Party A and Party B have made the following agreement
through amicable negotiation, to make clear the respective rights and
obligations.

    

    Article
1: Amount of loan

    Party A
borrows the loan of 1.5 million Yuan (for the equivalent foreign currency
business, it shall be converted by the selling rate of that day) from Party
B.

    Article
2: Purpose of loan

    Party A
borrows for business operation.

    Article
3: Term of loan

    From Mar.
22, 2010 to Mar. 22, 2011

    Article
4: Loan interest rate and interest

    
      	
              (1)

            	
              The
      loan interest rate during the contract performance period floats upward
      20% based on benchmark interest rate, namely, 6.372%. During the period
      from signing the contract to issuing the actual loan, if there is the
      legal adjustment of interest rate, it will float with the same rate based
      on the benchmark interest rate after adjustment, and Party B will not
      notify Party A separately.

            

    

    
      	
              (2)

            	
              The
      loan interest will be calculated since transferring the loan to Party A’s
      account, and the loan shall be adjusted according to the following method
      if there is the legal interest rate adjustment; and it shall float with
      the rate in (1) of this Article:

            

    

    
      	
              1.

            	
              If
      the loan term is within one year (including one year), it shall execute
      according to the agreed interest rate of this contract, without
      calculating interest on
multi-stage;

            

    

    
      	
              2.

            	
              If
      the loan term is above one year, it shall execute the new rate since the
      first day of next calendar year since the adjustment day, and it will not
      notify Party A separately.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              (3)

            	
              If
      the state cancels the benchmark interest rate, Party B has right to
      re-determine the contract interest rate according to the current national
      interest rate policy and principle of fairness and credibility as well as
      referring to the industrial rules and interest rate status. Party A shall
      promptly negotiate with Party B if there are questions. If the negotiation
      is failed, Party B has right to receive loan in advance, and Party A shall
      promptly pay off the principal& interest of
  loan.

            

    

    Article
5: Withdrawing conditions

    Party A
shall comply with the following conditions before withdrawing:

    
      	
              (1)

            	
              It
      complied with the contract to apply for withdrawing from Party B and
      handle the withdrawing procedures;

            

    

    
      	
              (2)

            	
              It
      accepts and coordinates Party B to adopt the measures for supervising the
      loan, and the capital loan is not used for other
  purposes;

            

    

    
      	
              (3)

            	
              There
      is no breach of contract regulated in this
  contract;

            

    

    
      	
              (4)

            	
              It
      provides the effective certificate documents for loan
    purpose;

            

    

    
      	
              (5)

            	
              It
      handles other relevant materials or procedures of loan according to the
      requirements of Party B.

            

    

    Article
6: Loan payment

    
      	
              (1)

            	
              The
      two parties choose the second method below to pay the loan
      capital:

            

    

    
      	
              1.

            	
              Party
      B is entrusted to pay: Party B complies with the withdrawing application
      and payment entrusting of Party A to pay the loan capital to the dealing
      party of Party A that abides by the agreed purposes in the contract
      through Party A’s account.

            

    

    
      	
              2.

            	
              Party
      A pays independently: After Party B issue the loan capital to Party A’s
      account according to withdrawing application of Party A, Party A
      independently pays to the dealing party of Party A that abides by the
      agreed purposes in the contract.

            

    

    Although
the two parties agree to choose the second method, the loan payment with clear
paying object of above___Yuan loan and single payment amount exceeding___% of
the agreed loan amount in this contract still adopts the first
method.

    
      	
              (2)

            	
              If
      Party B makes sure that Party A has one of the following situations, it
      has right to change the independent payment of Party A into Party B being
      entrusted:

            

    

    
      	
              1.

            	
              Dropping
      of credit status;

            

    

    
      	
              2.

            	
              Bad
      change of benefiting ability;

            

    

    
      	
              3.

            	
              Abnormity
      in using the loan capital;

            

    

    
      	
              4.

            	
              Disobeying
      the contract to use the loan
capital;

            

    

    
      	
              5.

            	
              Avoiding
      paying and supervision through breaking up the whole into
      parts;

            

    

    
      	
              6.

            	
              Other
      situations necessary to change the way of
  payment.

            

    

    
      	
              (3)

            	
              If
      Party B makes sure that Party A has one of the following situation, it has
      right to suspend or stop paying the loan
  capital;

            

    

    
      	
              1.

            	
              Disobeying
      the contract to use the loan;

            

    

    
      	
              2.

            	
              Disobeying
      the contract to pay the principal and
interest;

            

    

    
      	
              3.

            	
              Disobeying
      the agreed method to pay the loan capital or there is abnormity in using
      the loan;

            

    

    
      	
              4.

            	
              Dropping
      of credit status or disobeying the commitment and guarantee
      issues;

            

    

    
      	
              5.

            	
              Exceeding
      to agreed financial target or the benefiting ability has unfavorable
      change;

            

    

    
      	
              6.

            	
              There
      is great cross-default matter, including but not limited in the great
      default matter occurred between Party A and Party B or other transaction
      objects;

            

    

    
      	
              7.

            	
              Party
      A is involved or will be involved in important lawsuit or arbitration
      procedure and other legal
disputes;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              8.

            	
              Party
      A acts to affect the debt paying ability or lacks of sincerity for debt
      paying;

            

    

    
      	
              9.

            	
              Party
      A provides false plans, statistics and financial statements to Party
      B;

            

    

    
      	
              10.

            	
              For
      the loan contract with the third party guarantee or (and) mortgage
      (pledge), the guarantor violates the guarantee contract or loses the
      ability to assume the responsibility; the mortgagor (pledgor) violates the
      mortgage (pledge) contract or the mortgaged (pledged) property is sealed
      up, detained or damaged; or there are losses to other guarantee rights and
      the guarantee right is restricted;

            

    

    
      	
              11.

            	
              The
      guarantor is dismissed;

            

    

    
      	
              12.

            	
              The
      guarantor violates any of the agreed obligations in the contract or it
      leads to other violation behaviors;

            

    

    
      	
              13.

            	
              After
      the mortgage registration takes effect, there are disputes on application
      or the easement is restricted or may be
  restricted.

            

    

    
      	
              14.

            	
              There
      are other default situations.

            

    

    
      	
              (4)

            	
              Party
      A shall comply with the requirements of Party B to provide the following
      using capital and materials of loan
capital:

            

    

    
      	
              1.

            	
              Business
      contract (it is applicable when Party B is entrusted to
    pay);

            

    

    
      	
              2.

            	
              Capital
      using purpose;

            

    

    
      	
              3.

            	
              Other
      certificate materials approved by Party
B.

            

    

    Article
7: The loan limit, actual loan issuing date and payment date under this contract
are based on the loan certificate, which is the part of the contract, covering
the same legal effect of this contract.

    Article
8: Payment method of principal and interest

    
      	
              (1)

            	
              Party
      A agrees to comply with the item 1 below to pay off the principal&
      interest of loan:

            

    

    
      	
              1.

            	
              The
      middle and short term loan within five years (including five years) shall
      be calculated the interest by day, and settle the interest by month, in
      the form of matching the principal
repayment.

            

    

    
      	
              2.

            	
              The
      long term loan above five years shall be calculated the interest by day,
      and settle the interest by month, in the form of matching the principal
      repayment.

            

    

    
      	
              3.

            	
              The
      formula of the method for matching the repayment of principal and
      decreasing the repayment of interest is as
  follows:

            

    

    

    Monthly
repayment of principal plus interest= loan principal/months of loan term + (loan
principal- returned accumulated loan principal) ×monthly rate ×1/30 ×actual days each
month

     

    
      	
              4.

            	
              The
      formula of the method for matching the repayment of principal and interest
      is as follows:

            

    

     

    
      (1+monthly rate)
total
months of repayment          

      (1+monthly
rate) total
months of repayment — 1

      Monthly
repayment of principal plus interest= loan principal × monthly rate
×

       

    

    
      	
              5.

            	
              Other
      methods:

            

    

    

    Party A
agrees to determine the following accounts as the capital collection account,
and promises to provide the expenditure status to Party B promptly. Party A
shall guarantee to remit the payable loan principal and interest in this account
before 20 of the payment month, and Party B will directly withhold and receive
the amount; the detail is as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Account
name: Shandong Yaoyuan Pharmaceutical Company

    Account
No: 000000709003800002467

    Article
9: Other withholding method

    If Party
A cannot return the loan principal and interest, Party B has right to directly
withhold the loan principal, interest and relevant charges from any bank
accounts opened by Party A in the system of Qilu Bank.

    Article
8: Change or termination of the contract

    
      	
              (1)

            	
              After
      the effective date of the contract, any party shall not change or
      terminate the contract separately.

            

    

    
      	
              (2)

            	
              If
      the loan expires, and owing to the change of objective circumstances,
      Party A cannot pay off the loan through efforts, it can apply for
      extending from Party B; Party A shall propose the written application to
      Party B within 10 days before the loan expires, and submit the written
      guarantee for agreeing the extending period of the guarantor and/or
      pledgor; after Party B approves and handles the guarantee procedures for
      extending the loan, the two parties shall handle the extending procedures;
      the contract interest rate during the extending period shall comply with
      the relevant regulations.

            

    

    
      	
              (3)

            	
              If
      Party A transfers the rights and obligations under this contract to the
      third party, it shall get the written permission of Party B and guarantor;
      and the transfer will be take effect after the transferee unit signs the
      loan contract with Party B and handles the guarantee
      procedures.

            

    

    
      	
              (4)

            	
              When
      there are changes of merger, dividing, contracting and shareholding reform
      for one party, the main body after change will enjoy the rights and assume
      the obligations of this contract.

            

    

    Article
10: Loan guarantee

    To
guarantee paying off the loans under this contract, Party A/the third person
shall provide the guarantee according to item 1and 3 below to Party
B:

    
      
        	
                (1)

              	
                Guarantee
      (see detail in 2010 J.B.W.E.F.J.B.Z. No. 001 Legal
      Person’s Loan Contract of Qilu
Bank)

              

      

    

    
      
        	
                (2)

              	
                Mortgage
      (see detail in No. _____  ________________ of
      Qilu Bank)

              

      

    

    
      
        	
                (3)

              	
                Pledge
      (see detail in 2010 J.B.W.E.K.H.Z.G.Z.Z. No.001 Maximum Amount Pledge Contract
      of Goods Control & Financing of Qilu
  Bank)

              

      

    

    
      
        	
                (4)

              	
                Others:
      

              

      

    

    

    Before
handling the above agreed guarantee procedures, Party B has right to refuse
issuing the loan to Party A without conditions.

    Article
12: If Party A needs to change its system or operation modes like contract,
lease, merger & acquisition, joint venture, dividing, joint operation,
shareholding reform, it shall notify Party B in advance of 30 days in the
written form. After the written approval of disposal method of contract bond of
Party B, Party A can execute the above behaviors.

    Article
13: Commitment of Party A

    
      	
              (1)

            	
              Before
      paying off the loan principal and interest of Party B, it doesn’t
      mortgage/pledge to the third party with the assets formed by Party B’s
      loan.

            

    

    
      	
              (2)

            	
              Before
      paying off the loan principal and interest of Party B, it shall not
      provide the overburdening guarantee to
others.

            

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                (3)

              	
                If
      the loan under this contract is the flow capital, Party A shall guarantee
      not using the loan for the investment of the fixed capital and equity, as
      well as the production and operation field and purposes prohibited by the
      state.

              

      

    

    
      	
              (4)

            	
              It
      shall coordinate Party B to take loan payment management, after-loan
      management and relevant inspection.

            

    

    
      	
              (5)

            	
              It
      shall get the permission of Party B before taking foreign investment,
      substantially-increasing the loan financing as well as merger, dividing
      and equity transfer.

            

    

    
      	
              (6)

            	
              It
      shall promptly notify Party B if there is the great unfavorable matter
      that affects the paying off
ability.

            

    

    
      	
              (7)

            	
              Party
      B has right to tack back the loan according to capital collection status
      of Party A.

            

    

    

    Article
14: Major rights and obligations of Party A and Party B

    
      	
              (1)

            	
              Rights
      and obligations of Party A:

            

    

    
      	
              1.

            	
              Party
      A has right to require Party B to issue the loan according to the
      contract;

            

    

    
      	
              2.

            	
              Party
      A shall return the entire loan principal and interest within the greed
      period of contract;

            

    

    
      	
              3.

            	
              Party
      A shall use the loan according to the agreed purpose, and it shall not use
      for other purpose without the written permission of Party
    B;

            

    

    
      	
              4.

            	
              Party
      B shall provide the relevant plans, statistics and financial statement
      according to the requirements of Party B, and ensure the authenticity,
      completeness and effectiveness;

            

    

    
      	
              5.

            	
              Party
      A seriously looked up and knew the responding clauses of the guarantee
      contract, and agreed to accept the restriction and assume the relevant
      responsibility.

            

    

    
      	
              (2)

            	
              Rights
      and obligations of Party B:

            

    

    
      	
              1.

            	
              Party
      B has right to receive and withhold the loan principal and interest
      according to the contract;

            

    

    
      	
              2.

            	
              Party
      B has right to examine the using situation of
  loan;

            

    

    
      	
              3.

            	
              Party
      B has right to supervise the assets of Party A and its operation
      status;

            

    

    
      	
              4.

            	
              Party
      B has right to take back the loan in advance according to the capital
      collection status;

            

    

    
      	
              5.

            	
              Party
      B has right to participate in the large-amount financing, assets sales and
      merger, dividing, shareholding reform and bankrupt
      liquidation;

            

    

    
      	
              6.

            	
              If
      one of the following situations occurred to the mortgage, pledge, warrant
      or other guarantees provided by Party A/ the third person, Party B has
      right to require Party A to eliminate the relevant bad effect, and/or
      require Party A to increase and change the guarantee
      conditions:

            

    

    
      	
              (1)

            	
              The
      guarantor violates the warrant contract or loses the ability to assume and
      guarantee the responsibility;

            

    

    
      	
              (2)

            	
              The
      mortgagor violates the mortgage contract or the mortgaged property is
      derogated or damaged;

            

    

    
      	
              (3)

            	
              The
      pledgor violates the pledge contract or the mortgaged property is
      derogated or damaged;

            

    

    
      	
              (4)

            	
              There
      are other situations that affect its guarantee
  ability.

            

    

    
      	
              7.

            	
              Party
      B shall promptly issue the loans according to the period regulated in the
      contract.

            

    

    Article
15: Responsibility for breach of contract

    
      	
              (1)

            	
              Party
      B violates the contract agreement to use the misappropriation or diversion
      of loan, Party B has right to calculate the interest for the
      misappropriation or diversion of loan with floating upward 100% for the
      interest rate agreed in the contract during this
  period.

            

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                (2)

              	
                The
      loan that Party A doesn’t play off on schedule is regarded as the overdue
      loan, Party B has right to calculate the interest for the overdue part
      with floating upward 50% for the interest rate agreed in the contract
      during this period.

              

      

    

    
      	
              (3)

            	
              The
      interest that Party B cannot pay in time for Party A shall be calculated
      the compound interest quarterly (short-term loan shall be calculated
      monthly) by floating upward of 50% agreed in the contract; the interest
      that cannot be paid in time during the period of misappropriation or
      diversion of loan shall be calculated the compound interest quarterly
      (short-term loan shall be calculated monthly) by floating upward 100%
      agreed in the contract; if it is the same loan, covering both overdue and
      misappropriation or diversion features, it shall handle with one aspect of
      more serious effect.

            

    

    
      	
              (4)

            	
              It
      shall execute by the adjusted regulations if there is policy adjustment in
      people’s court for penalty interest
rate.

            

    

    
      	
              (5)

            	
              If
      Party A is involved in the situation of item 3 of Article 6, or violates
      the regulations of Article 12 and 13, Party B has right to stop issuing
      the unpaid loan, requiring replacing the guarantee or supplement new
      guarantee, taking back the issued loan principal and interest in advance
      and realizing the guarantee right in advance; it has right to require
      Party A to assume 5% of loan as the liquidated damages; it also has right
      to directly withhold the loan principal, interest, liquidated damages,
      damages and other payable items from any bank accounts opened by Party A
      in the system of Qilu Bank; it has right to terminate the
      contract.

            

    

    
      	
              (6)

            	
              Party
      B complies with the law or the contract to realize the principal
      creditor's right and/or guarantee right, the obtained items shall be paid
      off according to the following
order:

            

    

    
      	
              1.

            	
              Charges
      for realizing the guarantee right;

            

    

    
      	
              2.

            	
              Charges
      for realizing the principal creditor's
right;

            

    

    
      	
              3.

            	
              Principal
      creditor's right, penalty interest and compound
  interest;

            

    

    
      	
              4.

            	
              Other
      payable items like liquidated damages and
  damages.

            

    

    Article
16: Assumed charges

    The
charges like lawyer’s charges, announcement charges, delivery charges,
registration charges, inquiry charges, insurance charges and drawing charges
used to perform the contract, handle the guarantee procedures, realize Party B’s
creditor's rights and/or guarantee right shall be assumed by Party
B.

    Article
17: Disputes solution

    The
disputes relevant to this contract shall be solved through negotiation; if it
fails to be solved in this way, it shall lodge the lawsuit for the people’s
court at Party B’s location; the two parties shall perform the other clauses
with no relation with the disputes during the lawsuit period.

    Article
18: Other agreed matters

    
      	
              (1)

            	
              This
      contract is signed for No. 2010.J. B.W.E.F.S.Z. No. 001 Legal Person’s
      Comprehensive Credit Line Contract of Qilu Bank, and it is the specified
      part of this contract.

            

    

    
      	
              (2)

            	 

    

    
      	
              (3)

            	 

    

    Article
19: The contract will take effect after meeting the following
conditions:

    
      	
              (1)

            	
              It
      is sealed or made the special seal for contract by Party
  A;

            

    

    
      	
              (2)

            	
              It
      is sealed or made the special seal for contract by the principal or
      authorized agent of Party B.

            

    

    Article
20: The contract has two copies, with Party A and Party B holding
one.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Party
      A (seal): Shandong Yaoyuan 

              	 
      	 
      
	Pharmaceutical
      Company	 
      	
                Party
      B (seal): Jinan City Jingbawei Second

              
	 
      	 
      	
                Branch
      of Qilu Bank Co., Ltd.

              
	
                Legal
      representative (principal) or authorized

              	 
      	 
      
	
                agent
      (seal): Song Yanliang

              	 
      	
                Legal
      representative (principal) or authorized agent (seal):  Liu
      Wei

              
	 
      	 
      	
                Operator
      (signature):

              
	 
      	 
      	 
      
	 
      	 
      	
                Date:
      Mar. 22, 2010

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]