Exhibit 10.20
Contract number: 2009 (XXZ) 0008
Domestic Factoring Contract
(with the right to recourse )
Borrower (Party A) : Xi’ an Qinba Pharmaceuticals Co,. Ltd.
Address : B0601 Chuangye Square, No. 48 Keji Road, High-tech Zone Xi’ an City
Legal Representative: Guozhu Wang
Authorized agent : Yang Xu
Telephone: 0916-6222152 Fax: Post Code: 723500
Factoring Bank (Party B): Industrial and Commercial Bank of China Co., Ltd. Hanzhong Branch
Address: Renmin Road, Hanhe Qu, Hanzhong City, Shaanxi Province
Principal: Qi Jin
Telephone: 0916-6221649 Fax: Post Code: 723500
Whereas: Because of the accounts receivables between Party A the seller and its buyer, party A applied party B
with domestic factoring business with recourse(with recourse/ without recourse). In order to make the two
parties’ obligation clear and keep their promises, the two parties entered this contract through their equally
negotiation, according to the contract law of PRC and others regulations and rules.
Article 1 Definitions
1.1 The terms used in this contract are defined as follows unless there are other regulations about those terms:
1.1.1Factoring business with recourse: party A transfers its accounts receivable resulted from selling products
and offer service or others to its buyer, and then party B provides accounts receivable financing and other
related financial service. If the buyer can not pay the accounts receivable fully in the assumed period, party
B has the right to recourse the unpaid financial fund to party A .
1.1.2Factoring business without recourse : party A transfers its accounts receivable resulted from selling products
and offer service or others to its buyer, and then party B provides accounts receivable financing and other
related financial service. If the buyer can not pay the accounts receivable fully in the assumed period
because of financial status and credit standing, party B has no the right to recourse the unpaid financial fund