Loan Agreement between Kunming Municipal Bureau of Finance and Kunming Shenghuo Pharmaceutics (Group) Co., Ltd.

Summary

This agreement is between Kunming Municipal Bureau of Finance (lender) and Kunming Shenghuo Pharmaceutics (Group) Co., Ltd. (borrower). The lender provides a loan of RMB 35 million to the borrower from March 30, 2010, to April 13, 2010, at an annual interest rate of 4.86%. The loan is secured by the borrower's pharmaceutical workshops and buildings. If the borrower fails to repay, the lender may claim the collateral. The lender can also supervise the use of funds and terminate the contract if terms are violated. The contract ends once the loan and interest are fully repaid.

EX-10.23 9 v180962_ex10-23.htm

Borrowing Contract

Lender (Full Name): Kunming Municipal Bureau of Finance, Branch Bureau of Kunming National Economy and Technology Developing District

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

Pursuant to the Contract Law of People’s Republic of China, the two parties, following consultations, mutually agree to enter into this Contract (“Contract”) as follows for purpose of providing support for the development of Kunming Shenghuo Pharmaceutical (group) Co., Ltd and to repay the loans on due.

1. The lender provides the borrower with a loan in amount of RMB35 million dated from March 30, 2010, which will be used by the borrower to repay the loans on due.

2. The term of the loan is from March 30, 2010 to April 13, 2010.

3. The loan interest rate executes the annual interest rate of 4.86%, the borrower shall pay the interests on a quarterly basis. If the borrower fails to repay the loan on time, the lender is entitled to levy a penalty interest, and the daily penalty for the overdue loan is equal to 0.04%.

4. This loan is secured by the pharmaceutical workshops and attached buildings in an area of 5,303㎡ held by the borrower, which is located in Kunming National Economy and Technology Developing District. In case that the borrower fails to repay the loan and its interests in full amount, the lender is entitled to dispose the mortgaged workshops and attached buildings.

5. In case that the borrower fails to use the loan under the Contract, or that it violates the laws or relevant regulations, the lender is entitled to withdraw the loan before its term expires and terminate the Contract.

6. The lender is entitled to review and supervise the use of loan, have a knowledge about how the loan is used and its financial conditions. The borrower shall make a introduction concerning the loan use faithfully and provide relevant information.

7. This Contract shall be executed in three original copies, two copies for the lender and one copy for the borrower.

8. This Contract shall come into force and legal effect as of the date of execution and sealing by both parties. Anything not covered in this Contract will be resolved according to The Contract Law of People’s Republic of China and relevant laws and regulations. This Contract will be terminated automatically after the loan and its interest is paid off.

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

Legal Representative (seal): Guihua Lan

Signature of Officer: Yuqing Lan

Lender: Kunming Municipal Bureau of Finance, Branch Bureau of Kunming National Economy and Technology Developing District

Lerder’s seal:

Signature of the Person-in-charge: Jiarong Yang

Signiature of Officer: Binghui Li

Date of Execution: March 29, 2010

Place of Execution: Kunming Municipal Bureau of Finance, Branch Bureau of Kunming National Economy and Technology Developing District