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**J**
**oint      Development Agreement on the New Variety of Corn, **

**Liyu      No.35**

**Article      One    The      Purpose**

| 1.   | The              Parties shall jointly develop the new variety of corn, Liyu No. 35,              which              is selected and grown by Party A. |
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| 2.   | The              Parties shall strengthen the generalization of the new variety, Liyu              No.              35, and shall attempt to realize the objective that the aggregate              generalization of the variety of Liyu No. 35 can reach 200, 000, 000              kg              within 5 to 7 years. |
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**Article      Two    The      Cooperative Mode**

| 1.   | Party              A shall provide parental seeds and other relevant technical materials              (including the hybridized seeds of Liyu No. 35 already obtained) of              Liyu              No. 35, and shall be responsible for the further              improvement; |
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| 2.   | Party              B shall obtain the exclusive use right of producing and operating the              new              variety of corn, Liyu No. 35, by paying Party A the fees for the use              right              of producing and operating the variety; |
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| 3.   | During              the term of this Agreement, should the output of Liyu No.35 of Party              A is              below 3,000,000 kg for 3 consecutive years (excluding when such result              is              caused by self-manifestation of such variety or force majeure), this              Agreement shall terminate automatically; |
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| 4.   | When              the aggregate generalization of the variety of Liyu No. 35 reaches              200,              000, 000 kg, Party A shall not terminate this Agreement unilaterally              and              shall provide Party B with premium; |
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| 5.   | Should              Party A considers that it is of no value for it to generalize Liyu              No. 35              and is not willing to generalize the variety of Liyu No.35 any more,              it              shall release its exclusive use right of producing and operating the              new              variety of corn, Liyu No. 35; |
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| 6.   | Party              A shall be responsible for training and supervising the seed production              personnel from Party B; |
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| 7.   | As              of the effective date of this Agreement, Party A shall be fully              responsible for such variety’s trial, demonstration, development, and              approval application etc. and the expenses of the said actions shall              be              borne by Party B. Party A shall be responsible for the further improvement              of the district trial (the number of national pre-trial and Hebei district              trial is Lishi 2406; the participation trial number of Shanxi, Henan,              Shandong is Lishi 2416; the participation trial number of Anhui is              Lishi              2236), participation of which is applied for by Party A before 2006,              and              Party B shall provide necessary assistance; the relevant expenses incurred              shall be borne by Party A. |
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**Article      Three    Ownership**

| 1.   | Application              right and the variety right of such variety and its inbred new plant              variety are owned by Party A, and Party A shall not transfer the said              rights to any entities or persons other than Party B; should it is              necessary for Party A to transfer the said rights, Party B shall, under              the same condition, have the preemptive right; |
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| 2.   | Should              Party A is terminated due to dissolution or other reasons, the application              right and variety right of such variety and its inbred new plant variety              shall be disposed of by the entity who dissolves Party A. |
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**Article      Four    Responsibilities of      Party A**

| 1.   | Party              A authorizes Party B to have the exclusive right to produce and manage              Liyu No.35. Without Party B’s written consent, Party A shall not authorize              any other third party to produce and manage such              variety; |
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| 2.   | Party              A warrants that the final approved name of such variety in all the              districts of participation trial is Liyu No.              35; |
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| 3.   | Party              A shall not, at its discretion, produce the hybridized seeds of Liyu              No.35, but it may sell without repackaging the hybridized seeds of              Liyu              No.35 produced by Party B, subject to its compliance with the sales              policy              of Party B; |
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| 4.   | Party              A shall apply for the variety right of Liyu No.35 and its inbred variety              in accordance with relevant regulations in a timely manner. Provided              that              the new |
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| 5.   | variety              right of plant is obtained, Party A shall be responsible for the payment              of annual fee in accordance with the country’s relevant regulations in              order to prevent the earlier termination of the protection term of              the new              variety right. Should the variety right becomes invalid due to Party              A,              Party A shall be responsible for Party B’s economic              losses. |
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**Article      Five    Responsibilities of      Party B**

| 1.   | Party              B shall be responsible for the trial, demonstration, development, extended              -district approval, market development, production and distribution              etc.              of Liyu No.35; without Party A’s written consent, Party B shall not, at              it’s discretion, change the name of such variety; |
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| 2.   | Party              B shall be responsible for market research, planning and shall decide              and              organize the implementation of the production, processing, and sales              etc.              of the parental propagation and hybridized seeds; |
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| 3.   | When              Party B makes its annual production plan, it shall consult with Party              A,              and only upon Party A’s written consent, such plan can be              implemented; |
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| 4.   | Party              B shall inform Party A of the specific amount of the production and              sale              of Liyu No.35, and Party A shall keep the said information confidential.              Should the amount provided by Party B is different from the actual              amount              of the production and sale, Party A has the right to investigate and              Party              B shall provide assistance. |
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**Article      Six    Common      Responsibilities**

| 1.   | Neither              Party shall, in respect of Liyu No.35, carry out any corporation with              any              entity or individual, transfer, or assist any third party in using              it; |
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| 2.   | The              Parties shall strictly prevent the parental seeds of Liyu No.35 and              its              technical materials from being disclosed, and shall together keep the              parental seeds and the business              confidential; |
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| 3.   | During              the term of this Agreement, either Party shall notify the other Party              of              any fake or inferior commodities of their products or other conducts              which              constitute an infringement of their rights which come to the attention              of              such Party, and shall actively take effective measures; |
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| 4.   | The              Parties hereby warrant that the undersigned who execute this Agreement              on              behalf of the Parties are the legal representatives or the duly authorized              representatives of the Parties, and they have the authorization to              execute              this Agreement on behalf of the Parties. |
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**Article      Seven    Fees**

| 1.   | The              investment of the early breeding of Liyu No.35 is calculated RMB1,000,000              only and Party A shall provide Party B with the parental seeds and              relevant materials (including the hybridized seeds already obtained)              of              No.35 before the end of March 2003 (the price of hybridized seeds,              RMB10/kg; the price of parental inbred seedsôRMB16/kg              ). Party B shall pay Party A the said amount in a lump sum upon              examination; |
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| 2.   | The              fees for the use right of production and operation paid by Party B              to              Party A shall be paid in accordance with the production royalty; the              royalty is RMB0.5/kg. Such amount shall be paid by Party B to Party              A in a              lump sum after the annual distribution season (before the end of July              of              the next producing year); |
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| 3.   | Party              B shall inform Party A, in writing, of the grown area and place of              such              variety in the current year before the end of May of every year, and              of              the output at the end of March of the next year; Party A shall confirm              the              said information in writing; |
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| 4.   | Should              Party A raises an objection to the output of Party B, it shall inform              Party B within 10 working days upon the receipt of the written notice              from              Party B and have the right to examine such output; Party B shall provide              active assistance. Party A shall keep the trade secret of Party B              confidential. Should Party A does not raise any written objection against              Party B within the said time period, Party A shall be deemed to have              acknowledged the output informed by Party              B. |
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**Article      Eight    Remedies**

| 1.   | Provided              that any other person produces or distributes any hybridized seeds              of such              variety for commercial purpose during and after the process (including              but              not limited to the period from the date of public notice of preliminary              review to the authorization date of the variety right) of application              of              the variety right, in respect of Liyu No.35 and its inbred seeds, Party              A              shall transfer the right of recourse to Party B in writing, and shall              permit Party B to claim the damages against others in the name of Party              B.              The proceeds shall be equally distributed between the Parties after              deducting necessary expenses incurred to Party              B; |
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| 2.   | When              the aggregate generalization of the variety of Liyu No. 35 by Party              B              reaches 2, 000, 000, 000 kg, Party A shall provide Party B with premium              and the proportion of the royalty shall be reduced from RMB0.5/kgto              RMB0.4/kg. |
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**Article      Nine    Liabilities for      Breach of Contract**

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| 1. | Party                  B shall pay Party A the fees for the variety’s use right at the stated                  time. Should Party B fails to pay the said amount, it shall pay                  Party A                  0.5% overdue fine per overdue day; |
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| 2. | Should                  Party B makes any concealment in respect of the output, it shall                  pay Party                  A five times of its due profits as compensation based on the profit                  which                  is concealed; |
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| 3. | Should                  Party B fails to comply with the third paragraph of Article 2 hereof,                  Party A has the right to revoke Party B’s exclusive use right of                  production and operation of Liyu No.                  35. |
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| 4. | Should                  any other person propagates such variety due to Party B’s disclosure,                  Party B shall assume the liabilities for breach of the Agreement.                  The                  method of computing the compensation is as follows: the amount                  of the                  compensation = average output of one acre of the grown area ×                  the grown acreage of such other person ×                  (the market price where Party B is located in the current year                  - Party B’s                  cost price); |
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| 5. | During                  the term of this Agreement, Party B is not allowed to authorize                  any other                  person to have the exclusive use right of the parental seeds of                  such                  variety; otherwise, Party A shall be responsible for any losses                  incurred                  and take the corresponding legal consequences. |
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|  |   | Should                  Party A discloses the confidential information, or, at his discretion,                  permits any other person or itself to produce or manage such variety,                  Party A shall assume the liabilities for breach of this Agreement.                  The                  method of computing the compensation is as follows: the amount                  of the                  compensation = average output of one acre of the grown area ×                  the grown acreage of Party A or such other person ×                  (the market price where Party B is located in the current year                  - Party B’s                  cost price). |
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**Article      Ten    Amendment**

**Article      Eleven    Governing Law and      Dispute Resolution**

| 1.   | This              Agreement shall be governed by laws of the People’s Republic of China. |
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| 2.   | In              the event of any dispute arising out of or in connection with the              validity, interpretation or performance hereof, the Parties shall attempt              in the first instance to resolve such dispute through friendly              consultations. Should such dispute can not be resolved through              consultations or either Party is not willing to resolve such dispute              through consultations, such dispute may be submitted to the court where              this Agreement is executed, unless otherwise determined by such court.              The              litigation fees shall be borne by the losing Party. |
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**Article      Twelve    Effectiveness and      Miscellaneous **

| 1.   | This              Agreement shall become effective as of the date of execution and stamping              by the Parties. |
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| 2.   | This              Agreement is executed in four copies, with each Party holding two,              and              each copy shall have the same legal              effect. |
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| 3.   | Either              Party shall obtain a written content from the other Party before              terminating this Agreement. |
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| 4.   | Any              other issue which is not provided by this Agreement shall be resolved              by              the Parties through friendly              consultations. |
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***/s/      CORPORATE SEAL***

***/s/      CORPORATE SEAL***

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