Loan agreement and pledge agreement
Exhibit
10.12
Loan
agreement and pledge agreement
This bank
loan agreement and pledge agreement were made among the following parties on 8
January 2009.
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(A)
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Borrower
: Guangxi Liuzhou Baicaotang
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(B)
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Lender/
Mortgagee : Agricultural Bank of
China
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(C)
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Mortgagor
: Wuxuan Baicaotang
Medicine Limited
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:
Baicaotang Property Development Limited
Whereas:
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The
parties are desirous to enter into this agreement and agree as
follows:-
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(1)
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The
advance of the loan is for short term working capital purpose
;
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(2)
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The
fund of loan is for the purchase of drugs
;
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(3)
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The
loan amount is equivalent of RMB4,500,000 and the term of loan is 12
months from January 8, 2009 to January 8,
2010;
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(4)
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Interest
was charged and fixed at 110% of the benchmark rates announced by People
of Bank of China equivalent to the 5.841% per annum and is monthly accrued
and to be settled monthly on 20 th of each
month.
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(5)
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Rights
and obligation
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Borrower:
i Proper
use of loan in accordance with the terms set as therein
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ii
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Promptly
report of any matters leading to the changes or affects of any obligation
and rights of debts between the borrower and lenders if any by written
notice
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iii
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Providing
the true and complete financial report and relevant information, and
assist the investigation of the borrower’s business and financial
activities in connection with the use of
fund.
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iv
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Repayment
in accordance with the terms as set out therein and may extend the terms
of loan by written notice before due date by 15 days upon the consent of
lender.
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Lender:
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i
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Have
the right to request Party A to repay the said loan at any time when the
occurrence of any incidence detrimental to the possibility of
repayment.
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ii
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Have
the rights to request Party B to obtain the information inclusive of the
financial figures, inventory and the use of fund in connection to the loan
.
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iii
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Advance
the loan to Party B at the time in accordance with the terms as set out in
above
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(6)
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When
the borrower fail to repay in accordance with the prescribed period
herewith the terms as set out above, penalty will be imposed at a rate of
150% of the aforesaid interest rate of this contract till the repayment of
principal and interest in arrears and will adjust at the date of the
change of the benchmark rates announced by People of Bank of China. When
the borrow fail to use the fund properly, penalty rate of 200% of the
aforesaid interest rate will be imposed on the part in breach of the use
of fund.
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(7)
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Security
of this loan agreement is in the form of the pledge and the mortgagees
agree to pledge by means of property as follows. The pledge covers the
principle of loan, interest, surcharge, compensation, litigation in
connection with the enforcement of
debts.
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(8)
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Value
of asset under pledge : RMB
12,402,600
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(9)
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Asset
under pledge : Xianmi Road, Wuxuan village, Wuxuan County 2,767.41 Square
meters
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