NOTE 10 - LOAN PAYABLES

As of December 31, 2013, the short-term loan payables consist of ten loans which mature on dates ranging from December 12, 2012 through December 11, 2014 with interest rates ranging from 5.60% to 7.80%. The loans No.1, 2 and 3 below are collateralized by Tianjuyan’s land use right and building ownership right. The loans No. 4 and 9 below are guaranteed by Jinong’s credit. The loans No. 6, 7 and 8 are guaranteed by a bonding company in Zhongguancun Beijing, and counter guaranteed by Jinong’s credit. The loan No. 5 is guaranteed by Jinong’s credit and Tianjuyuan’s credit.

			Interest
No.	Payee	Loan period per agreement	Rate		December 31, 2013
1	Agriculture Bank of China-Beijing Branch	January 14, 2013 - January 13, 2014	6.60	%	$	1,375,080
2	China Merchants Bank-Beijing Branch	August 20, 2013 - Feb 18, 2014	6.72	%		4,092,500
3	Agriculture Bank of China-Beijing Branch	March 22, 2013 - March 21, 2014	6.60	%		1,309,600
4	Agriculture Bank of China-Beijing Branch	April 25,2013-April 24, 2014	6.60	%		1,653,370
5	Bank of Beijing	August 16,2013-August 15, 2014	7.20	%		1,637,000
6	Industrial and Commercial Bank of China	September 25, 2013-September 24, 2014	7.80	%		1,637,000
7	Industrial and Commercial Bank of China	October 30, 2013-October 29, 2014	7.80	%		1,637,000
8	Industrial and Commercial Bank of China	December 12, 2012 - December 11,2014	7.80	%		1,637,000
9	Industrial and Commercial Bank of China	December 20, 2013-June 19, 2014	5.60	%		4,911,000

		Total			$	19,889,550

As of June 30, 2013, the short-term loan payables consist of nine loans which mature on dates ranging from August 29, 2013 through April 22, 2014 with interest rates ranging from 6.30% to 8.20%. The loans No.1, 2 and 3 below are collateralized by Tianjuyan’s land use right and building ownership right. The loans No. 4 and 5 below are collateralized by the inventory of Gufeng. The loans No. 6, 7 and 8 are guaranteed by Jinong’s credit. The loan No. 9 is collateralized by the land use rights of Jinong’s and the share ownership owned by Jinong.

No.	Payee	Loan period per agreement	Interest Rate		June 30, 2013
1	Agriculture Bank of China-Beijing Branch	January 24, 2013 - January 13, 2014	6.60	%	$	1,359,120
2	Agriculture Bank of China-Beijing Branch	March 23, 2013 - March 22, 2014	6.60	%		1,294,400
3	Agriculture Bank of China-Beijing Branch	April 25, 2013 - April 24, 2014	6.60	%		1,634,180
4	Bank of Tianjin	June 28, 2013 - August 2, 2013	6.72	%		1,132,600
5	Bank of Tianjin	June 20, 2013 - August 2, 2013	6.72	%		970,800
6	China Merchant Bank	August 30, 2012 - August 29, 2013	6.30	%		4,045,000
7	Industrial and Commercial Bank of China	October 25, 2012 - October 24,2013	8.00	%		1,618,000
8	Industrial and Commercial Bank of China	September 25, 2012-September 24, 2013	8.00	%		1,618,000
9	China Minsheng Bank	January 5, 2013 - January 4, 2014	7.20	%		2,427,000
		Total			$	16,099,100

The interest expense from short-term loans was $304,238 and $366,447 for the three months ended December 31, 2013 and 2012, respectively, and $537,424 and $752,239 for the six months ended December 31, 2013 and 2012, respectively.