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| 1. | Pursuant      to Property Law of the People’s Republic of China (the “PRC”), Contract      Law of the PRC, Land Administration Law of the PRC, Urban Real Property      Administration Law of the PRC, and the related administrative regulations      and land supply policies and regulations, with the principles of fairness,      freedom of contract, fair value, and good faith, the two parties have      entered into this agreement. |
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| 2. | The      ownership of the land belongs to the PRC, the Grantor shall grant land use      right pertaining to the Land (as defined in Section 4) pursuant to the      applicable law (the “Grant”), not including right or title to any      underground resource or buriedobject. |
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| 3. | During      the Grant Period (as defined below), the Grantee is entitled to possess,      use, make profit from and dispose of the land pursuant to applicable law,      the Grantee is entitled to construct buildings and ancillary facilities on      the Land. |
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| 4. | The      Land: the total area of the Land is 333,335 square      meters, among which area pertaining to the Grant is 333,335 square      meters. |
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| 5. | The      Land shall be used for industrial purposeonly. |
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| 6. | The      Grantor shall deliver the Land to the Grantee before January 8th,      2010 (the “Delivery Date”) and shall cause the Land’s ancillary facilities      to be in good condition and accessible from adjacent roads and to have      adequate utilities systems installed such as cable, electricity, water,      and pluming system. |
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| 7. | The      grant period of the land use right under this Agreement is 50 years (the      “Grant Period”), starting from the Delivery  Date. |
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| 8. | The      purchase price for the land use right under this Agreement is RMB      97,500,000.00 (RMB292.50 per square meter) (“the Purchase      Price”). |
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| 9. | The      deposit with respect to the Land shall be RMB 20,000,000.00, which shall      be counted towards the PurchasePrice. |
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| 10. | The      Grantee shall pay the Purchase Price to the Grantor,according to the      following schedules in 4installments: |
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|   | a) | Stage      one: RMB 10,000,000.00; the date of payment: by February 28,      2010. |
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|   | b) | Stage      two: RMB 10,000,000.00; the date of payment: by March 26,      2010. |
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|   | c) | Stage      three: RMB 67,750,000.00, the date of payment: by December 25,      2010 |
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|   | d) | Stage      four: Pay RMB 9,750,000.00, the date of payment: by March 31,      2011 |
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| 11. | Upon      full payment of the Purchase Price pursuant to this Agreement, the Grantee      could apply for the land use right certificate along with a copy of this      Agreement, the payment vouchers and the other related      materials. |
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| 12. | Reserved. |
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| 13. | Any      building or ancillary facility which the Grantee will construct on the      Land   shall conform to the zoning and land planning rules      promulgated by the local land administration authorities, which      include: |
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| 14. | The      Grantee covenants that the Land shall be used for industrial purpose and      the total area which is used for administrative office and service      facilities shall be  higher than 7% of the total area of the      Land. |
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| 15. | Reserved. |
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| 16. | The      Grantee covenants that construction projects pursuant to this Agreement      will start before December 31, 2011 (the “Commence Date”). If the Grantee      is not able to start constructions on or before the Commence Date, it      shall apply for an extension by submitting to the Grantor an application      30 days in advance. Upon the consent of the Grantor, the start time of the      construction may be delayed accordingly, but in no case shall it be more      than a year after the CommenceDate. |
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| 17. | In      the case that the Grantee conducts its construction project pursuant to      this Agreement, any construction work related to water, gas, sewage and      the other utilities in and through the Land should be conducted pursuant      to applicable regulations. The Grantee agrees to grant local government an      easement for any wire or pipeline to go into, through or across the Land      which installed for public needs, provided the Grantee shall be      compensated by the responsible public authorities for any loss or damages      incurred due to the easement. |
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| 18. | The      Grantee shall use the Land pursuant to this Agreement and comply with the      requirements related to the permissible use and floor area ratio set forth      herein, which shall not be changed without Grantor’s consent. During the      Grant Period, if there is a need to change the use of the Land as set      forth under this Agreement ,the parties shall follow the procedure      specified below: |
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|   | a) | The      Parties shall obtain applicable approval relate to the propose changes,      amend this Agreement or enter into an amended and restated land use right      purchase agreement, make any additional payment for the difference between      the Purchase Price and the valuation price for the Land based on the      proposed changes, and register with applicable authorities related to the      proposed change. |
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| 19. | During      the Grant Period, the local government reserves the right to alter the      planning of the Land under this agreement. If there is any revision to the      original planning, it shall not affect the existing buildings on the Land.      But any alternation, renovation, reconstruction to the existing building      or ancillary facility during the Grant Period or the application of the      renewal of the land use right at the expiration of this Agreement, shall      comply with the requirements set forth by the revised      planning. |
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| 20. | The      Grantor shall not retract the land use right of the Grantee before the      expiration of the Grant Period as set forth under this      agreement.  Notwithstanding the foregoing, in the event that the      Grantor retract the land use right for public needs, the Grantor shall      obtain any and all approvals pursuant to applicable law and pay      consideration to the Grantee based on the value of the existing building      and ancillary facilities on the Land, valuation of the land use right for      the remaining Grant Period, and the direct loss for such early termination      incurred by the Grantee and verified by  valuation. |
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| 21. | Upon      full payment of the Purchase Price pursuant to this Agreement and receipt      of the land use right certificate, the Grantee shall have the right to      transfer, lease and mortgage all or part of the land use right pursuant to      this Agreement, provided that the Grantee has commenced construction on      the Land for industrial use as required under this    Agreement. |
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| 22. | Any      transfer, lease or mortgage agreement regarding the land use right for      this Land shall not violate any applicable law or this Agreement. Upon      transfer of part or all of the land use right, any right and obligation of      the Grantee under this Agreement and any land registration documents shall      be assumed and borne by the transferee. The grant period applicable to the      transferee shall be the remaining Grant Period pursuant to this      Agreement. |
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| 23. | In      the event the Grantee lease part or all of the land use right, the Grantee      shall remain responsible under this Agreement and entitled to or borne by      any right and obligation pursuant to this Agreement and the land      registration documents. |
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| 24. | In      the event of any transfer or mortgage of the land use right, the parties      of such transfer or mortgage shall file registration for the change of the      land use right with  the Bureau of Land and Resources along with      this Agreement, the transfer or mortgage agreement, and the land use right      certificate . |
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| 25. | If      the Grantee, its successor or assignee intends to continue to use the Land      pursuant to this Agreement after the expiration of the Grand Period, the      Grantee or its successor or assignee shall submit to the Grantor the      application for renewal within one year before the expiration of the Grant      Period, the Grantor shall approve such application unless the Land is      required to be retracted for public needs. Upon the expiration of the land      use right related to any residential building, such grand period shall be      automatically renewed. |
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| 26. | In      the event the application for renewal of the land use right is denied for      the purpose of public needs, the Grantee, its successor or assignee shall      return the land use right certificate, and conduct the registration of the      expiration of the land use right, and the Grantor shall retract the land      use right free from any payment or expense. The Parties agree that if the      Grantor continues to use the then existing building and ancillary facility      on the Land after retracting the land use right, the Grantor shall pay      compensation to Grantee or its successor or assignee based on the residual      value of the building and ancillary facility on the Land as of the      termination date of the land useright. |
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| 27. | In      the event the Grantee, its successor or assignee shall not apply for      renewal at the time of expiration of the land use right, the Grantee, its      successor or assignee shall return the land use right certificate, and      conduct the registration of the expiration of the land use right, and the      Grantor shall retract the land use right free from any payment or expense.      The Grantee, its successor or assignee shall maintain the then existing      building and ancillary facilities in a good condition until the expiration      of the land use right, and the Grantor could continue to use the then      existing building and ancillary facilities on the Land free from any      payment or expense. If the condition of the then existing building and      ancillary facilities are not in a reasonably acceptable condition upon the      expiration of the land use right, the Grantor shall have the right to      require that the Grantee, its successor or assignee remove the then      existing building and ancillary facilities from the  Land. |
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| 28. | In      the event either party fail to fulfill part or all of its obligations      under this Agreement due to force majeure, such party shall be exempt from      any liabilities related thereto, provided that it shall take all necessary      remedial measures to mitigate the loss or damage caused by force majeure.      Notwithstanding anything on the contrary, a party shall not be exempt from      liabilities due to a force majeure event that occurred during the period      when such party is in default. |
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| 29. | The      party who fails to fulfill its obligation under this Agreement due to      force majeure shall notify the other party in writing (by mail, telegram      or facsimile)   regarding the force majeure within 7 days      after the force majeure event occurs. Within 15 days after the force      majeure event occurs, such party shall submit to the other party a report      or documental proof that it fails to or is in delay to fulfill part or all      of its obligations under this Agreement due to force    majeure. |
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| 30. | The      Grantee shall pay the Purchase Price on time pursuant to this Agreement.      If it fails to pay the installment when due, it shall pay to the Grantor,      on each day when during the default period, a penalty fee which shall      equal 1‰      of the defaulted amount. In the event the Grantee fails to pay the      required amount 60 days after the applicable due date, the Grantor is      entitled to terminate this Agreement, forfeit the Deposit, and request the      Grantee to compensate any loss or damage the Grantor suffers due to the      Grantee’s default. |
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| 31. | In      the event the Grantee unilaterally terminates the construction project on      the Land, submits to the Grantor an application to terminate this      Agreement and to return the Land to the Grantor (the “Termination      Request”), upon receiving the approval from the local authorities which      approved the original grant of land-use right,  the Grantor      shall return to the Grantee part or all of the Purchase Price (excluding      any interest or the Deposit) and retract the land use right for the Land      as set forth below. The Grantor shall not be obliged to make any payment      for, and shall have the right to request Grantee’s removals of, any      building, ancillary facility, or fixture on the Land, unless the Grantor      continues to use such building, ancillary facility, or      fixture. |
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|   | a) | In      the event the Grantee files a Termination Request at least 60 days before      1 year after the Commence Date, the Grantor shall return to the Grantee      the Purchase Price excluding theDeposit; |
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|   | b) | Subject      to section a) above, in the event the Grantee files a Termination Request      at least 60 days before 2 years (and after 1 year) after the Commence      Date, the Grantor shall return to the Grantee Purchase Price (excluding      Deposit and the “land idling fee” as stipulated by both      parties. |
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| 32. | If      the Grantee does not make use of the Land for more than one but less than      two years, the Grantee shall pay “land idling fee” as required by      applicable law; if the idling period exceeds two yeas and on construction      has been commenced on the Land, the Grantor is entitled to retract the      land use right free from any payment orexpense. |
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| 33. | If      the Grantee does not start the construction project on or before the      Commence Date (or any other date as prescribed pursuant to Section 16      based on an extension), the Grantee shall pay to the Grantor a penalty fee      equal to 0.3‰ of the Purchase Price on each day while the Grantee is in      default. In addition, the Grantor is entitled to require the Grantee to      continue to perform under thisAgreement. |
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| 34. | If      the Grantee fails to satisfy the requirements related to total investment      for fixed assets, investment intensity or total development investment as      set forth in this Agreement, the Grantee shall pay a penalty fee equal to      the product of the Purchase Price multiplied by the percentage of the      required investment aggregate amount or the investment intensity index the      Grantee has not achieved. In addition, the Grantor is entitled to require      the Grantee to continue to perform under this  Agreement. |
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| 35. | If      the floor area ratio or the building density under the contract is lower      than the minimum requirements set forth in this Agreement, the Grantor is      entitled to require the Grantee pay a penalty fee equal to the product of      the Purchase Price multiplied by the percentage of the minimum      requirements that the Grantee has not achieved. In addition, the Grantor      is entitled to require the Grantee to continue to perform under this      Agreement. If the floor area ratio or the building density under this      Agreement is higher than the maximum thresholds set forth in this      Agreement, the Grantor is entitled to retract a portion of the Land the      area of which shall be equal to the product of the total area of the Land      multiplied by the percentage of the maximum threshold that was exceeded.      In addition, the Grantor is entitled to require the Grantee pay a penalty      fee equal to the product of the Purchase Price multiplied by the      percentage of the maximum threshold that was  exceeded. |
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| 36. | Reserved. |
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| 37. | If      the Grantee has paid the Purchase Price pursuant to this Agreement, then      the Grantor must deliver the land on time according to this Agreement. If      the Grantor fails to deliver the Land 60 days after the Delivery Date with      Grantee’s notice, then the Grantor is entitled to terminate this      Agreement, the Grantor shall pay to the Grantee a penalty fee equal to      twice of the Deposit and return any other payments made by the Grantee,      the Grantee is entitled to require the Grantor to pay for any loss or      damage incurred due to Grantor’s failure to  deliver. |
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| 39. | The      making, validity, interpretation and performance and the dispute      resolution under this Agreement shall be governed by the laws of      PRC. |
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| 40. | The      Parties shall resolve any dispute arising from the performance of this      Agreement through negotiations between the two parties. If a dissolution      cannot be reached through negotiation, the Parties shall submit the      dispute to Yantai Municipal Government Arbitration Commission for      arbitration . |
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| 41. | The      Grant pursuant to this Agreement has been approved by Yantai Municipal      Government. This Agreement shall be effective as of the date signed by the      Parties. |
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| 42. | Each      Party shall ensure the information regarding its name, address, telephone,      fax, bank, or agent is true and accurate. If there are changes about the      information, the other party shall be notified within 15 days from the      date of change, otherwise the Party who changed the information shall be      responsible for any loss of liabilities incurred  therefrom. |
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| 43. | This      Agreement has 14 pages. The Chinese version shall  control. |
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| 44. | The      price, amount and area set forth in this Agreement shall be recorded in      upper case version and lower case version. Should there be any      inconsistency between these two version, the upper case version shall      prevail. |
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| 45.  | The      Parties may enter into amendment or supplement to this Agreement with      terms mutually agreed upon by both Parties.                                                         |
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|      |                                                                                                                                                                                              |
| 46.       | This      Agreement shall be executed in 4 duplicate originals . The Grantor shall      hold 3 originals, the Grantee shall hold 1 original, each of which shall      have the same legal effect. |

| The      Grantor:                        |   | The      Grantee:                       |
|------------------------------------------|--------|-----------------------------------------|
|                                     |   |                                    |
| Legal/authorized      representative     |   | Legal/authorized      representative    |
|                                     |   |                                    |
| Yantai      Bureau of Land and Resources |   | Yantai      Bohai Pharmaceuticals Group |
|                                     |   |                                    |
| Shandong      Province, PRC              |   | Co.,      Ltd                           |
|                                     |   |                                    |
| [BUREAU      STAMP]                      |   | [CORPORATE      STAMP]                  |
|                                     |   |                                    |
|                                     |   | February      22TH      2010            |

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