NOTE 8- LOAN PAYABLES

As of June 30, 2014, the short-term loan payables consist of eleven loans which mature on dates ranging from August 16, 2013 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.

No.	Payee	Loan period per agreement	Interest Rate		June 30, 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

As of June 30, 2013, the short-term loan payables consisted 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 sharesowned by Jinong.

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

The interest expense from short-term loans was $1,380,829, $1,351,157 and $1,590,620 for the years ended June 30, 2014, 2013 and 2012, respectively.