[ex10-7logo.jpg]
 
[Translated from the original Chinese version]

[***] — Certain information in this exhibit has been omitted and filed
separately with the Securities and Exchange Commission. Confidential treatment
has been requested with respect to the omitted portions.

 
General Agent Agreement

 
 
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Supplier ( Party A): Hainan Zhonghe Pharmaceutical Co. Ltd.
Address: No.168 Nanhai Street, Haikou, Free Trade Zone.

Purchaser(Party B): [***]
Adress: [****]

In accordance with “Contract Law of the People’s Republic of China”, the Parties
have through sufficient consultations, based on the principles of mutual
reciprocity, friendly cooperation and corporate development, entered into the
Agreement, Party A hereby authorizes Party B to distribute, on behalf of Party
A, Party A’s product Desmopressin Acetate Injection (4μg/shot) (hereinafter
referred as “Product”) for China (Except for Hubei, Henan, Guangdong province).

 
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I. Corporate Product
General name: Desmopressin Acetate Injection;
Specification: 4μg/shot
Package: 10 shot/box, 600 shot/piece ;

II Cooperation
 
1. Party appoints Party B as sole exclusive distributor for all area through
China (Except for Hubei, Henan and Guangdong province), Party A shall not,
during the period of this Agreement, in any way or by any reason, appoint any
other party to or by itself sell the Product, otherwise it will pay to Party B a
compensation equal to 2-fold of sale amount proceeded from such activity. Party
B shall not in any wat or by any reason deputize any other manufacturer’s
product of the same kind, otherwise it will pay to Party A a compensation equal
to 2-fold of its sale amount proceeded from such activity, meanwhile the
authorization be cancelled correspondingly.

2. Party A shall provide product meet national statutory standard according to
order plan set by Party B. Party A shall guarantee that the amount to be
supplied and term of delivery are in accordance with Party B’s requirements.

 
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3. Party B will take charge the design of promotional material for the Product
(should be in conformity with “Drug Control Law of the Peoples Republic of
China”), autonomously propagandize, spread and sell the Product and bear the
expense caused herewith, the plan for design shall be filed with Party A after
their acceptance by Party A.

4. During the period of cooperation, both parties have the responsibilities to
main the other party’s reputation and market image.

III Term of Market Development, Term of Cooperation, Sale Target and Assessment
and Incentives

1. Term of Cooperation: 5 Year

Both parties agree that the term of cooperation is 5 years (from February 19,
2008 to December 31, 2012). Upon termination of the cooperation, the contract
could be renewed between both parties to another year provided that Party B
fulfill sale target.

2. Sale Target

(1) First year: yearly sale amount: [**] shots (term: February 19, 2008 to
December 20, 2008)

 
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Detail target to each stage:
 
Feb 19
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
 
***
***
***
***

 
(2) Within the contractual period, during the first 3 years, the second year’s
sale amount shall have a proportionally increasing rate no less than 25%
compared with last year’s actual sale amount (calculated by quantity), the sale
target and schedule of another year will be signed solely as appendix thereof,
which shall have the same legal force with the Agreement.

3. Performance Assessment
In the first cooperating year, Party will quarterly assess Party B’s sale
performance which shall not be less than 100% of commission amount in to whole
year’s target, otherwise Party A has the right to cancel the sole exclusive
agent license of the Product and withhold the deposit. If Party B fulfill the
sale target at the terms agreed on upon the termination of this Agreement, Party
B will have the deposit refund. Party A shall net the deposit against payment
for goods.

 
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IV Settlement Price, Advance, Payment Term
1. Settlement Price for Product:
1) Price Party A supply Party B

Product Name
Specification
甲方供货价
Desmopressin Acetate Injection
4μg/shot
Supply Price

 
2) Both parties agree that under the circumstance the relevant competent
department (e.g. National Development and Reform Commission) adopt
price-lowering policy on the Product, the changed supply price be settled by
negotiation by both parties. The changed price herewith shall be accepted by
both parties and signed as appendix thereof, which shall have prior legal right
to this Agreement.

1) Deposit (hereinafter called “Deposit”) for Party B generally distributing the
Product is RMB[***] Yuan. Within 7 working days after signature of this
Agreement Party B shall remit the Deposit and down payment with amount of
RMB[***] Yuan, amounting to RMB[****] Yuan in total to the account appointed by
Party A, if Party delays in payment, Party A is entitled to cancel this
Agreement.

 
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2) Party A shall make VAT invoice to Party B according to supply price.

3) If it is agreed between both party to terminate this Agreement, Party may
return the Deposit in accordance with negotiation scheme.

4) By the end of 25th of every month, Party B must remit to the appointed
account the full payment pursuant to monthly sale target set in this Agreement.

V Order, Consignment, Delivery, Examine
1. Order:

Party B should give 2 months notice to Party A before it delivery plan of
loading. The first loading shall not be less than [***] shorts.

2. Consignment
 
1) Party A shall organize production and shipping in according to orders planned
by party B as well as 30% of prepayment, the shipment shall be air
transportation (non-cold storage), the related cost will be covered by Party A.

 
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2) If Party A fails to delivery goods in accordance with order plan (except for
force majeure), Party A shall give notice and explain to Party B and delivery
can be deferred only after Party B’s acceptance and agreement, otherwise Party A
shall pay Party B a compensation equal to 1% per day of payment of that batch.
If Party B requires loading ahead of the schedule, it shall make a written
application to Party A.

3) Party B should pick up the planned-goods in time, if overdue for more than
one month, Party A is entitled to charge 0.1% per day of goods value (settlement
price) as storage management fee.

3. Delivery
The delivery point is cities designed by Party B, namely the one-off site noted
by Party B in delivery application (within effect delivery scope of freighting
company).

4. Examine

 
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1) Party B shall check appearance details including product name, amount, batch
quantity, package, etc., if there is any defect (name error, wrong batch
quantity, shortage in amount, damaged package, etc.), Party B shall check with
freighting company or do not pick up temporarily and notice Party A for
returning by right of written document provided by freighting company, it shall
be Party A’s responsibility to pursue freighting responsibilities at its’ own
cost.

2) If during sale it is found by customer shortage of goods in packing box,
Party A shall confirm the shortage and fill the lack in accordance to proving
documents provided by customer.

VI Market Converting
From the date of this Agreement is signed, Party A and B shall perform market
converting for the Product, Party B has both rights and responsibilities to
guarantee smooth transition of present market.

1. Content of Convert:
1) The situation of project bidding in each area (including: A. bidding area; B.
entrusted biding persons or institutions; C. situation of successful bids; D.
situation of non-opening bids or failed bids.)

 
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2) The contact of involved Party A’s personnel.
 
2. After signature of this Agreement, Party A shall inform all other regional
distributors to cancel agreements or contracts signed before and hand over to
Party B, Party B will negotiate and sign new distributing agreements with
regional distributors.

3. After signature of this Agreement, Party A shall provide Party B power of
attorney of the Product and relevant evincive documents.

4. From the date this Agreement signed, selling routine work in authorized areas
will be in Party B’s charge, Party A shall make Party B known if there is any
regional distributor demands the Product; if Party A privately sell the Product
to any third party other than Party B who will be entitled the right to lay a
compensation equal to 2 fold of the selling amount proceed from such activity.

VII Quality Guarantee of Product, Package and Trademark
1. Quality Guarantee

 
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Party A promise produce eligible product in conformity with “Drug Control Law of
the Peoples’ Republic of China”) and bear whole responsibilities regarding the
Product quality. Any economic loss caused by quality thereby shall be charged to
Party A.

2. Package and Trademark:
 
For marketing purpose, Party B may propose on designing new package for the
Product and provide for registering trademark which may be used for the product
after negotiation with Party A and get consent, the packing material change is
at Party B’s cost.

VIII Responsibility and Obligation
1. Party B’s Responsibility and Obligation:
1) Party B owe sole exclusive agent rights through the country (except Hubei,
Henan and Guangdong province);
2) Party B shall spare no efforts to plan, spread and sell the Product, market
coverage rate shall reach 80% and above in order to achieve annual target.

3) Party B shall take chare of reporting price matters for all authorized areas
except Hainan province.

 
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4) Party B shall take all responsibilities regarding selling activities like
payment, invoice. If Party B drops invoice made by Party A whose related legal
consequences undertake by Party B, as well as tax lose due to reopen the
invoice. If Party B violates the related national laws rules and regulations, it
shall undertake all responsibilities caused thereby.

5) Party B shall not transfer any authorized credit, debt and all other
ownership and obligation as well to other parties, either can Party B use the
authorization to guarantee for any content.

6) Parry B shall strive to improve tendering quality to ensure success in
provinces, provincial cities and other large and medium cities, and the ratio of
winning bids shall not be less than 80%, strictly forbid malicious bidding, all
price quoted must receive Party A’s consent, try to maintenance a stable price
system.

2. Party A’s Responsibility and Obligation:

 
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1) Party A promises the Product meet national quality standard and undertake
related responsibilities caused by quality problems. In case goods which had
been already unloaded at appointed location has quality problem due to storage
or circulation links, Party B shall under take the loss by itself.

2) Within contractual term, Party A shall not, in any way or by any reason, sell
the Product to any units or individuals in authorized areas;
 
3) Party A shall draw Party B letter of Authorization for national sole
exclusively distributing the Product (except Hubei, Henan and Guangdong
Province), and timely provide Party B business license, manufacture license, CMP
certification, and product-related new drug certification, packing specimen,
tender book regarding bidding and selling as well as relevant formalities and
materials (additional fees for provincial checking and reporting under Party B’s
one-side request shall covered by itself).

4) Party A shall organize production and shipping in accordance with orders put
by Party B and make sure Party B be able to receive the Product in time.

5) Any dispute and other issues related to the Product produced before signature
of this Agreement shall be settled by Party A.

 
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6) Party A has the right to cancel this Agreement without advanced notice to or
negotiation with Party B under any two conditions among followings. Party B
hereafter shall faithfully perform its obligation under this Agreement and
transfer national agency and sale business to Party B without compensation to
terminate business between both parties, and cooperation ends hereby.

1> If Party B fails to pay the Deposit and price for sale in a timely manner;
2> If Party B fails to achieve 90% of monthly sale target as appointed;
3> If Party B disturbs the price system established by Party A or proceeds
unfair competition and moreover does not obey correcting instruction put
forwards by Party A;
4> If Party B dose not provide Party A sales reports according to rule, provides
fraudulent reports or refuses to go through inspection on sales category and
book-keeping as well as other inspections Party A think as necessary;
5> When Party B disobey the selling rule set by Party A or purchase the same
kind of products from other sources than Party A;
6> When Party B applies for bankruptcy due to compulsory execution by other
creditors or reduces its registered capital in its own right or cancels, changes
sales business or dissolves company;

 
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7> When Party B’s business license is cancelled by government or law
departments, shuts down, is punished to cancel business registration, or is
compelled to cancel or dispose the category for sale.

IX Liability for Breach, Dispute Resolution, Modification and Termination of
Contract
1. Liability for Breach
1) During the contractual period, where one party fails to fulfill the
Agreement, that is, break the contract, it must pay penalty to compensate the
loss of other party’s;
2) Where Party A does nothing against terms of this Agreement whereas Party B
unilaterally terminate the Agreement, Party A has the right not return the
Deposit;
3) Where Party B does nothing against terms of this Agreement whereas Party A
unilaterally terminate the Agreement, Party A must return the Deposit to Party B
immediately and compensate Party B for market development and spreading.

2. Dispute Resolution

 
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Disputes arisen from performing this Agreement shall be mediated and settled
through consultation between two parties. If all attempts fail, the two parties
can appeal a lawsuit to people's court of the place where the defendant has its
domicile a lawsuit

3. Modification and Termination of Contract
1) Where there is a need to modify terms of this Agreement because of change in
market environment, relevant national policy, the modification shall be
consulted and settled by both parties. The new term or agreement reached hereby
is appendix of this Agreement and has equal effect.

2) If and to the extent this Agreement is to be early terminated because of
change in national policy or by force majeure, both parties shall notify the
other party 30 days in advance, this Agreement may be terminated provided that
both parties confirm the termination and complete all converting procedure and
the payment is settled.

3) For other reasons (except for force majeure) Party B request to terminate the
Agreement, it shall make a notice to Party 30 days in advance, the Agreement can
be terminated if both parties reach a consensus through consultation.

 
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X Others
1. On the date the down payment and Deposit from Party B arrives at the account
appointed by Party A, this Agreement will come into effect with valid period of
5 years and can be renewed on expiration.
2. This Agreement is in two copies with equal legal effect for each paries.

Party A: Hainan Zhonghe Pharmaceutical Limited.
 
Party B:   [***] 
 
   

Party A (or Authorized agent)
 
Party B (or Authorized agent)
signature:
   
signature:
 

Date:
November 1, 2008
 
Date:
November 1, 2008

 
 
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