NOTE 8- LOAN PAYABLES

As of December 31, 2014, the short-term loan payables consist of eleven loans which mature on dates ranging from January 8, 2015 through December 15, 2015 with interest rates ranging from 6.00% to 7.80%. The loans No 2,5 and 6 below are collateralized by Tianjuyan’s land use right and building ownership right. The loan No. 3 is collateralized by deposit. The loans No. 1 collateralized by Jinong’s land use right and Jinong’s credit. The loan No. 4 and 8 are guaranteed by Jinong’s credit. The loans No. 9, 10 and 11 are guaranteed by a bonding company in Zhongguancun Beijing, and counter guaranteed by Jinong’s credit. The loan No. 7 is guarantted by Jinong and Tianjuyuan’s deposit.

No.	Payee	Loan period per agreement		Interest Rate			December 31, 2014
1	Tianjin Bank Beijing Branch		Jan 08, 2014-Jan 07, 2015		6.60	%		5,694,500
2	Agriculture Bank of China-Pinggu Branch		Jan 15, 2014-Jan 14, 2015		6.60	%		1,366,680
3	Tianjin Bank Beijing Branch		Jan 23, 2014 - Jan 22,2015		6.00	%		3,058,760
4	China Merchants Bank Chaoyang Branch		Feb 19, 2014-Feb 18, 2015		7.20	%		2,440,500
5	Agriculture Bank of China-Pinggu Branch		Mar 24, 2014- Mar 23, 2015		6.60	%		1,301,600
6	Agriculture Bank of China-Pinggu Branch		Apr 25, 2014- April 24, 2015		6.60	%		1,643,270
7	Bank of Beijing - Pinggu Branch		Aug 6, 2014 - Aug 5, 2015		7.20	%		1,627,000
8	China Merchants Bank Chaoyang Branch		Aug 27, 2014 - Aug 26, 2015		7.80	%		1,627,000
9	Beijing International Trust Co., Ltd		Sep 24, 2014 - Sep 23, 2015		7.80	%		1,627,000
10	Beijing International Trust Co., Ltd		Oct 18, 2014 - Oct 27, 2015		7.80	%		1,627,000
11	Beijing International Trust Co., Ltd		Dec 16, 2014 - Dec 15, 2015		7.28	%		1,627,000

			Total				$	23,640,310

As of June 30, 2014, the short-term loan payables consist of eleven loans which mature on dates ranging from August 14, 2014 through April 24, 2015 with interest rates ranging from 6.00% to 7.80%. The loans No. 7, 10 and 11 below are collateralized by Tianjuyan’s land use right and building ownership right. The loan No. 2 is collateralized by Gufeng and Tianjuyuan. The loan No.8 is collateralized by deposit. The loans No. 1, 3, 4, 5 and 9 are guaranteed by Jinong’s credit. The loan No. 6 is collateralized by the land use rights of Jinong. The loans No. 1 and 2 were subsequently paid off during August 2014.

				Interest			June 30,
No.	Payee	Loan period per agreement		Rate			2014
1	China Merchants Bank Chaoyang Branch		Feb 25, 2014 - Aug 14, 2014		6.90	%	$	2,030,000
2	Beijing Bank Pinggu Branch		Aug 16, 2013 - Aug 15, 2014		7.20	%		1,624,000
3	Beijing International Trust Co., Ltd		Sep 25, 2013 - Sep 24, 2014		7.80	%		1,624,000
4	Beijing International Trust Co., Ltd		Oct 30,2013-Oct 29, 2014		7.80	%		1,624,000
5	Beijing International Trust Co., Ltd		Dec 12,2013-Dec 11, 2014		7.80	%		1,624,000
6	Tianjin Bank Beijing Branch		Jan 08, 2014-Jan 07, 2015		6.60	%		5,684,000
7	Agriculture Bank of China-Pinggu Branch		Jan 15, 2014-Jan 14, 2015		6.60	%		1,364,160
8	Tianjin Bank Beijing Branch		Jan 23, 2014 - Jan 22,2015		6.00	%		3,053,120
9	China Merchants Bank Chaoyang Branch		Feb 19, 2014-Feb 18, 2015		7.20	%		2,436,000
10	Agriculture Bank of China-Pinggu Branch		Mar 24, 2014- Mar 23, 2015		6.60	%		1,299,200
11	Agriculture Bank of China-Pinggu Branch		Apr 25, 2014- Apr 24, 2015		6.60	%		1,640,240
	Total						$	24,002,720

The interest expense from short-term loans were $815,659 and $537,424 for the six months ended December 31, 2014 and 2013, respectively.