EXHIBIT 10.5



 Exhibit 10.5 

EXCLUSIVE OPTION AGREEMENT 

AMONG 

YIBO INFORMATION CONSULTING (SHENZHEN) CO., LTD. 

AND 

HONG YU 

LUO GA 

YANG XIAOBEI 

AND 

YUNNAN SHANGRI-LA TIBETAN PHARMACEUTICAL GROUP LIMITED 

March 26, 2010 







 SHENZHEN, CHINA 

EXCLUSIVE OPTION AGREEMENT 

This Exclusive Option Agreement (the “Agreement”) is entered into as of March 26, 2010 between the following Parties in Shenzhen.

 Party A: Yibo Information Consulting (Shenzhen) Co., Ltd. 

Registered Address: B#6D11, Zhongshen Garden, South Caitian Rd., Futian, Shenzhen, China. 

Party B: 
 1. Hong Yu, a citizen of PRC
with ID number 530112600104161, owns 79.5% shares of Yunnan Shangri-La Tibetan Pharmaceutical Group Limited; 
 2. Luo Ga, a citizen of PRC with
ID number 53342119650505001X, owns 20% shares of Yunnan Shangri-La Tibetan Pharmaceutical Group Limited; 
 3. Yang Xiaobei, a citizen of PRC
with ID number 110102195506010035, owns 0.5% shares of Yunnan Shangri-La Tibetan Pharmaceutical Group Limited; 
 Party C: Yunnan Shangri-La
Tibetan Pharmaceutical Group Limited 
 Registered address: 53 Niwang Road, Shangri-La County, Yunnan Province, China. 

Legal Representative: Hong Yu 
 In this
Agreement, Party A, Party B and Party C are called collectively as the “Parties” and each of them is called as the “Party”. 

WHEREAS: 
 1. Party A is a company
incorporated under the laws of the People’s Republic of China (the “PRC”); 
  

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 2. Party C is a limited liability company incorporated in Shangri-La County and with business license issued
by the Shangri-La County Administration for Industry and Commerce; 
 3. As of the execution date of this Agreement, Party B shall be the
shareholder of Party C and collectively legally hold all of the equity interest of Party C. 
 NOW, THEREFORE, the Parties through mutual
negotiations hereby enter into this Agreement according to the following terms and conditions: 
  

	1.	THE GRANT AND EXERCISE OF PURCHASE OPTION 

  

	 	1.1	Grant: Party B hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the shares of Party C, currently owned by Party B; Party C
further hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the assets and business of Party C. The aforesaid irrevocable purchase options shall be conducted in accordance with Article 1.3 of this agreement (the
“Option”) and can be exercised only by Party A (or the qualified persons appointed by Party A). The term “person” used herein shall include any entity, corporation, partnership, joint venture and non-corporate organizations.


  

	 	1.2	Exercise Procedures: 

 1.2.1
Party A shall notify Parties B and C in writing prior to exercising its option (the “Option Notice” hereinafter). 
  

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 1.2.2 The next day upon receipt of the Option Notice, Parties B and C, together with party A
(or the qualified person appointed by Party A), shall promptly compile a whole set of documents (the “Transfer Documents”) to be submitted to the government bodies for approving the shares or assets and business transfer in connection with
the Option exercise so that the shares or assets and business transfer can be transferred, in whole or in part. 
 1.2.3 Upon the
completion of the compilation of all the Transfer Documents confirmed by Party A, Parties B and C shall promptly and unconditionally obtain, together with Party A (or the qualified person appointed by Party A), all approvals, permissions,
registrations, documents and other necessary approvals to effectuate the transfer of the shares or remaining assets and business of Party C in connection with the Option exercise. 

 

	 	1.3	Exercise Condition: Party A may immediately exercise the option of acquiring the equity interests, assets or business of Party C whenever Party A considers it necessary
or doable to acquire Party C in accordance with PRC laws and regulations. 

  

	2.	PRICE OF ACQUISITION 

  

	 	2.1	Party A and Party B shall enter into relevant agreements regarding the price of acquisition based on the circumstances of the exercise of option, and the consideration
shall be refunded to Party A or Party C at no consideration in an appropriate manner decided by Party A. 

  

	 	2.2	Party A has the discretion to decide the time and arrangement of the acquisition, provided that the acquisition will not violate any PRC laws or regulations then in
effect. 

  

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	3.	REPRESENTATIONS AND WARRANTIES 

  

	 	3.1	Each party hereto represents to the other Parties that: (1) it has all the necessary rights, powers and authorizations to enter into this Agreement and perform its
duties and obligations hereunder; (2) Party B and Party C warrant, represent and guarantee that this Agreement, the Restructuring Exercise or the Listing shall be in compliance with any and all applicable PRC laws and shall indemnify, defend
and hold harmless Party A and Party C for all fines, penalties, damages or claims sustained by Party A or Party C arising out of Party B’s or Party C’s violation of this section; and (3) the execution or performance of this Agreement
shall not violate any contract or agreement to which it is a party or by which its assets are bounded. 

  

	 	3.2	Party B and Party C hereto represent to Party A that: With respect to the equity interest held by Party B in Party C , (1) Party B are legally registered
shareholders of Party C and have paid Party C the full amount of their respective portions of Party C’s registered capital required under the PRC laws; (2) except Pledge of Equity Agreement, signed by and between Party B and Party A on
March 26, 2010 in Shenzhen, neither of Party B has mortgaged or pledged his shares of Party C , nor has either of them granted any security interest or borrowed against his shares of Party C in any form; and (3) neither of Party B has sold
or will sell to any third party its equity interests in Party C . 

 With respect to the assets of Party C which
may be transferred to Party A at Party A’s option hereunder, (1) Party C owns all such assets and has not mortgaged or pledged or otherwise encumber such assets; and (2) Party C has not sold or will sell to any third party such
assets. 
  

	 	3.3	Party C hereto represents to Party A that: (1) it is a limited liability company duly registered and validly existing under the PRC law; and (2) its business
operations are in compliance with applicable laws of the PRC in all material aspects. 

  

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	4.	COVENANTS 

 The Parties further agree as
follows: 
  

	 	4.1	Before Party A has acquired all the equity/assets and business of Party C by exercising the purchase option provided hereunder, Party C shall not:


 4.1.1 sell, assign, mortgage or otherwise dispose of, or create any encumbrance on, any of its assets,
operations or any legal or beneficiary interests with respect to its revenues (unless such sale, assignment, mortgage, disposal or encumbrance is relating to its daily operation or has been disclosed to and agreed upon by Party A in writing);

 4.1.2 enter into any transaction which may materially affect its assets, liability, operation, shareholders’ equity or
other legal rights (unless such transaction is related to its daily operation or has been disclosed upon Party A’s consent in writing); and 

4.1.3 distribute any dividend to its shareholders in any manner. 

 

	 	4.2	Before Party A has acquired all the equity/assets/business of Party C by exercising the purchase option provided hereunder, Party B shall not: 


4.2.1 sell, assign, mortgage or otherwise dispose of, or create any encumbrance on, any of the equity held by them in Party C unless the
pledge of such shares is made according to the Pledge of Equity Agreement, signed by and between Party B, C and Party A on March 26, 2010 in Shenzhen. 
  

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	 	4.3	Before Party A has acquired all the equity/assets/business of Party C by exercising the purchase option provided hereunder, Party B and/or Party C shall not
individually or collectively: 

 4.3.1 supplement, alter or amend the articles of association of Party C in any
manner to the extent that such supplement, alteration or amendment may have a material effect on Party C’s assets, liability, operation, shareholders’ equity or other legal rights; 

4.3.2 cause Party C to enter into any transaction to the extent such transaction may have a material effect on Party C’s assets,
liability, operation, shareholders’ equity or other legal rights (unless such transaction is related to Party C’s daily operation or has been disclosed upon Party A’s consent in writing); and 

 

	 	4.4	Party B and Party C shall entrust Party A to manage Party C in accordance with Entrusted Management Agreement, signed by and between Party B, C and Party A on
March 26, 2010 in Shenzhen. 

  

	 	4.5	Non Competition: 

 When Party A
exercises the Option, each of Party B and Party C irrevocably and unconditionally agree and undertake to Party A that it shall not without the prior written consent of Party B:- 

a. be directly or indirectly engaged or concerned (whether as an employee, agent, independent contractor, consultant, advisor or
otherwise) in the conduct of any business competing with Party A’s Business (the “Business”); 
  

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 b. act as for his/its own account either alone or in partnership or be concerned as a
director or shareholder in any company engaged in any business competing with the Business; 
 c. assist any person, firm or
company with technical advice or assistance in relation to any business competing with the Business; 
 d. solicit or entice away
or attempt to solicit or entice away the custom of any person, firm, company or organization who shall at any time have been a customer, client, distributor or agent of Party A or in the habit of dealing with Party A; 

e. solicit or entice away or attempt to solicit or entice away from Party A any person who is an officer, manager or employee of Party A
whether or not such person would commit a breach of his contract of employment by reason of leaving Party A; 
 f. in relation to
any trade, business or company, use any name in such a way as to be capable of or likely to be confused with the name of Party A and shall use all reasonable endeavors to procure that no such name shall be used by any other person, firm or company;

 g. otherwise be interested, directly or indirectly, in any business competing with the Business. 

 

	5.	ASSIGNMENT OF AGREEMENT 

  

	 	5.1	Party B and Party C shall not transfer their rights and obligations under this Agreement to any third party without the prior written consent of Party A.


  

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	 	5.2	Each of Party B and Party C hereby agrees that Party A shall have the right to transfer all of its rights and obligation under this Agreement to any third party
whenever it desires. Any such transfer shall only be subject to a written notice sent to Party B and Party C by Party A, and no any further consent from Party Band Party C will be required. 


 

	6.	CONFIDENTIALITY 

 The
Parties acknowledge and confirm that any oral or written materials exchanged by the Parties in connection with this Agreement are confidential. The Parties shall maintain the secrecy and confidentiality of all such materials. Without the written
approval by the other Parties, any Party shall not disclose to any third party any relevant materials, but the following circumstances shall be excluded: 
  

	 	6.1	The materials is known or will be known by the public (except for any materials disclosed to the public by the Party who receives such materials);


  

	 	6.2	The materials are required to be disclosed under the applicable laws or the rules or provisions of stock exchange; or 


 

	 	6.3	The materials disclosed by each Party to its legal or financial consultant relate to the transaction contemplated under this Agreement, and such legal or financial
consultant shall comply with the confidentiality set forth in this Section. The disclosure of the confidential materials by an employee of any Party shall be deemed disclosure of such materials by such Party, and such Party shall be liable for
breaching the contract. This Article 6 shall survive this Agreement even if this Agreement is invalid, amended, revoked, terminated or unenforceable by any reason. 


 

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	7.	BREACH OF CONTRACT 

 Any
violation of any provision hereof, any incomplete or mistaken performance of any obligation provided hereunder, any misrepresentation made hereunder, any material nondisclosure or omission of any material fact, or any failure to perform any
covenants provided hereunder by any Party shall constitute a breach of this Agreement. The breaching Party shall be liable for any such breach pursuant to the applicable laws. 

 

	8.	APPLICABLE LAW AND DISPUTE RESOLUTION 

  

	 	8.1	Applicable Law 

 The execution,
validity, interpretation and performance of this Agreement and the disputes resolution under this Agreement shall be governed by the laws of PRC. 
  

	 	8.2	Dispute Resolution 

 The Parties
shall strive to settle any dispute arising from the interpretation or performance of this Agreement through friendly consultation. In case no settlement can be reached through consultation within thirty (30) days after such dispute is raised,
each can submit such matter to China International Economic and Trade Arbitration Commission South China Sub-commission in accordance with its rules. The arbitration shall take place in Shenzhen. The arbitration award shall be final, conclusive and
binding upon both Parties. 
  

	9.	EFFECTIVENESS AND TERMINATION 

  

	 	9.1	This Agreement shall be effective upon the execution hereof by all Parties hereto and shall remain effective thereafter. 


 

	 	9.2	This Agreement may not be terminated without the unanimous consent of all the Parties except that Party A may, by giving a thirty (30) days prior notice to the
other Parties hereto, terminate this Agreement. 

  

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	10.	MISCELLANEOUS 

  

	 	10.1	Amendment, Modification and Supplement 


Any amendment and supplement to this Agreement shall be made by the Parties in writing. The amendment and supplement duly executed by each
Party shall be deemed an integral part of this Agreement and shall have the same legal effect as this Agreement. 
  

	 	10.2	Entire Agreement 

 The Parties
acknowledge that this Agreement constitutes the entire agreement of the Parties with respect to the subject matters therein and supersedes and replaces all prior or contemporaneous agreements and understandings in oral or written form. 

 

	 	10.3	Severability 

 If any provision
of this Agreement is adjudicated to be invalid or non-enforceable according to relevant PRC laws of the PRC, such a provision shall be deemed invalid only to the extent the PRC laws are applicable in China, and the validity, legality and
enforceability of the other provisions hereof shall not be affected or impaired in any way. The Parties shall, through consultation based on the principal of fairness, replace such invalid, illegal or non-enforceable provision with valid provision
so that any substituted provision may bring the similar economic effects as those intended by the invalid, illegal or non-enforceable provision. 
  

	 	10.4	Headings 

 The headings contained
in this Agreement are for the convenience of reference only and shall not in any other way affect the interpretation, explanation or the meaning of the provisions of this Agreement. 

 

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	 	10.5	Language and Copies 

 This
Agreement is written in Chinese and English and both the English version and Chinese version shall have the same effect. This Agreement is executed in five (5) copies for each version; each Party holds one and each original copy has the same
legal effect. 
  

	 	10.6	Successor 

 This Agreement shall
bind and benefit the successor or the transferee of each Party. 
 (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) 

 

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 IN WITNESS THEREFORE, the Parties hereof have caused this Agreement to be executed by their duly authorized
representatives as of the date first written above. 
 Dated: March 26, 2010 

PARTY A: 
 Yibo Information Consulting
(Shenzhen) Co., Ltd. (Official seal) 
 Legal Representative/Authorized Representative (Signature) 

PARTY B: 
 Hong Yu (Signature)

 Luo Ga (Signature) 

Yang Xiaobei (Signature) 

PARTY C: 
 Yunnan Shangri-La Tibetan
Pharmaceutical Group Limited (Official seal) 
 Legal Representative/Authorized Representative: Tiangui Li (Signature) 

 

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