Document:

JOINT
      VENTURE CONTRACT 

     

    OF

     

    ZHEJIANG
      TIANYUAN BIOTECH CO., LTD.

     

    

    This
      contract has executed by the following parties on April 4, 2006 at Hangzhou
      City, Zhejiang Province, China:

    

    Party
      A: CHINA
      BIOPHARMA LIMITED (hereafter as “CBL”)

    Address:
      Scotia Centre, 4th
      Floor,
      P.O. Box 2804, George Town,

    Grand
      Cayman, Cayman Islands

    Legal
      Representative: Peter Wang     Title:
      Chairman

    

    Party
      B: ZHEJIANG
      TIANYUAN BIOPHARMACEUTICAL CO., LTD. (hereafter as “Tianyuan
      Biopharmaceutical”)

    Address:
      56 Tianhe Lu, Yuhang Economic Development Zone, 

    Hangzhou,
      Zhejiang, 311100 China

    Representative:
      Ding Xiaohang       Title:
      Chairman

     

    1.
      GENERAL PROVISION

     

    1.1.
      After friendly discussion in accordance with the principles of equality and
      mutual benefit, China Biopharma Limited. and Zhejiang Tianyuan Biopharmaceutical
      Co., Ltd. (hereinafter referred to as The Parties) have agreed to establish
      an
      equity joint venture (the “Joint Venture” or the “JV”) in Hangzhou, Zhejiang
      Province in accordance with “Law of the People's Republic of China on Joint
      Venture Using Chinese and Foreign Investment” and other relevant laws and
      regulations of China.

     

    The
      Parties hereby have this contract: 

     

    2.
      PARTIES OF THE CONTRACT

     

    2.1.
      Parties of Joint Venture as Follows:

    1. CHINA
      BIOPHARMA LIMITED (hereafter as “CBL”)

    Address:
      Scotia Centre, 4th
      Floor,
      P.O. Box 2804, George Town,

    Grand
      Cayman, Cayman Islands

    Legal
      Representative: Peter Wang         Title:
      Chairman

    

    2. ZHEJIANG
      TIANYUAN BIOPHARMACEUTICAL CO., LTD.

    Address:
      56 Tianhe Lu, Yuhang Economic Development Zone, 

    Hangzhou,
      Zhejiang, 311100 China

    Legal
      Representative: Ding Xiaohang     
Title:
      Chairman

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    3.
      ESTABLISHMENT OF THE JOINT VENTURE COMPANY

     

    3.1.
      Registered
      Name of Joint Venture: Zhejiang Tianyuan Biotech Co., Ltd. (hereafter,
“JV”),

     

    The
      legal
      address of the Joint Venture Company is: 56 Tianhe Lu, Yuhang Economic
      Development Zone, Post Code: 311100.

     

    3.2.
      The
      form
      of organization of the Joint Venture Company shall be a limited liability Joint
      Venture Company. The parties shall share the profits, risks and losses of the
      Joint Venture Company in proportion to their respective contributions to their
      registered capital of the Joint Venture Company. The liabilities are limited
      to
      the registered capital contributed by each party.

     

    4.
      PURPOSES, SCOPE AND SCALE OF OPERATION

     

    4.1
      The
      purpose of the parties to the Joint Venture Company is in conformity with the
      economical cooperation, technology exchange, and advanced management method,
      to
      focus on import biopharmaceutical technology, research and development,
      distribution, and services, improve the efficiency to ensure satisfactory
      economic returns for each party. 

     

    4.2
      The
      business scope of the Joint Venture Company is to develop, produce, sell, and
      service of biopharmaceutical products.

     

    5.
      TOTAL INVESTMENTS AND REGISTERED CAPITAL

     

    5.1
      The
      total
      amount of investment of the Joint Venture Company is 12,000,000 U. S.
      Dollars.

     

    5.2
      The
      registered capital for the Joint Venture Company is 6,000, 000 U.S. Dollars.
      The
      capital structure as follows:

     

    

    
      	
              Shareholder
                Name

            	
              Investment

            	
              Ownership

            
	
              China
                Biopharma Limited

            	
              3,900,000

            	
              65%

            
	
              Tianyuan
                Biopharmaceutical

            	
              2,100,000

            	
              35%

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

    5.3
      Both
      parties shall contribute the capital as follows:

     

    Party
      A
      shall contribute the capital in cash of U. S. Dollars.

     

    Party
      B
      shall contribute the capital in RMB equivalent to 2,100,000 U. S. Dollars.
      [The
      exchange rate shall be the foreign exchange price publicized by The People’s
      Bank of China as of the date of payment].

     

    5.4
      The
      registered capital for Joint Venture Company shall be invested by Party A and
      Party B 90 days after the date of issuance of the Joint Venture Company business
      license.

     

    5.5
      A
      party
      may transfer all or part of their contribution to any third party only with
      the
      consent of the other party and the approval of the original approval authority.
      If one party transfers all or part of equity, the other party has the right
      of
      first refusal.

     

    6.
      RESPONSIBILITIES OF THE PARTIES

     

    6.1.
      The
      both parties shall have the following responsibilities:

     

    Responsibilities
      of Tianyuan Biopharmaceutical

     

    Applying
      to relevant authorities of China for approval, registration, permission,
      business license, bank account and other matters concerning the establishment
      of
      the Joint Venture Company; 

     

    Submit
      the applications to obtain the land usage right from relevant government
      agencies, or lease necessary operational facility of JV;

     

    Contribute
      to the registered capital of the Joint Venture Company according to article
      5
      hereof;

     

    Assist
      in
      purchasing machines, materials, resources, office supplies, transportation
      and
      communication facilities for the Joint Venture Company;

     

    Assist
      in
      the implementation of associated water, electricity, transportation,
      manufacturing plant construction, and other infrastructure project of the Joint
      Venture Company;

     

    Assist
      in
      recruiting local Chinese business managers, technicians, workers and other
      staff;

     

    Handle
      other matters delegated by the Joint Venture Company.

     

    Responsibilities
      of China Biopharma

     

    Make
      its
      contribution to the registered capital of the Joint Venture Company according
      to
      article 5 hereof;

     

    Handle
      other matters delegated by the Joint Venture Company.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
 

    7.
      SALSE OF PRODUCTS

     

    7.1
      The
      products of JV should be sold in domestic and international market.

     

    7.2
      JV
      has right to decide on its product what percentage of sales should be on
      domestic or international market, or it shall use distributor to sell its
      products.

     

    8.
      THE BOARD OF DIRECTORS

     

    8.1
      The
      board shall be formed on the Business License Issuance Date.

     

    8.2
      The
      board
      shall consist of five directors, three of directors shall be appointed by Party
      A and two of directors shall be appointed by Party B. The Chairman of the Board
      shall be appointed by Party A and the Vice Chairman shall be appointed by Party
      B. And both the Chairman and Vice Chairman shall be appointed for a term of
      three years and may serve consecutive terms if reappointed by the Party
      originally appointing them.

     

    8.3
      The
      board of directors shall be the highest authority of the Joint Venture Company,
      deciding all the major issues, the duties of which are as follows:

     

    8.3.1
      Amendment of Article of Association and JV contract;

     

    8.3.2
      Stop,
      terminate, and extend the term of Joint Venture Company;

     

    8.3.3
      Increase
      or transfer of its registered capital of Joint Venture Company;

     

    8.3.4
      The
      merger of Joint Venture Company with other organizations; 

     

    8.3.5
      Collateral of the asset of Joint Venture Company; 

     

    8.3.6
      Any
      other matters which agreed by both parties and require the decision of board
      of
      directors;

     

    Other
      matters shall approve by majority of board of directors and stated in the
      Article of Association of Joint Venture Company.

     

    8.4
      Chairman
      of the JV is the authorized legal representative of JV. Represent the JV to
      sign
      all the document of the Board. In the case of the Chairman of the Board would
      not be able to perform the duty, the Chairman can delegate other board member
      to
      act as Chairman of the Board.

     

    8.5
      The
      Board Meeting shall be held at least once a year and generally shall be held
      at
      the Joint Venture Company. The chairman shall chair the Meeting. An interim
      Board Meeting shall be scheduled upon the request of over 1/3 of the total
      number of directors. 

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

     

    8.6
      The
      meeting notice shall include meeting time, location, and agenda. It should
      be
      distributed to all directors 10 days in advance. The Meeting minutes should
      be
      kept in record.

     

    8.7
      The
      annual board meeting and interim board meeting shall have the entire directors
      presented. Every director shall have a vote.

     

    8.8
      Both
      parties shall make sure its director presented on the annual board meeting
      and
      interim board meeting. In the case a director could not able to attend the
      meetings, the director should send his or her representative with written
      delegation document to attend the meetings.

     

    9.
      THE SUPERVISORY BOARD

     

    9.1
      The
      JV
      does not establish a supervisory board. It has one supervisor, elected by the
      stockholders for a term of three years and may serve consecutive terms if
      reelected.

     

    9.2
      The
      supervisor shall exercise his/her rights and responsibilities as
      follows:

     

    9.2.1
      Inspect
      the JV’s financial information;

     

    9.2.2
      Supervise
      the action of directors and executive officers in performing their duties,
      and
      propose recalling any directors or executive officers from office in case they
      are in breach of laws, regulations, company articles or resolutions of
      stockholders’ meetings, etc.

     

    9.2.3
      Request
      directors or executive officers to correct their actions which have or will
      do
      harm to the benefit of the JV;

     

    9.2.4
      Request
      to or propose holding interim stockholders’ meeting, and shall call for and
      chair the stockholders’ meeting if and when the Board of Directors fails to do
      so to fulfill their duties hereunder;

     

    9.2.5
      Submit
      proposals to the Stockholders’ Meeting;

     

    9.2.6
      Bring
      lawsuit against the JV’s directors and executive officers pursuant to Clause 152
      under the “Corporation Law”;

     

    The
      Supervisor may attend Board Meetings as a non-voting delegate.

     

    10.
      BUSINESS MANAGEMENT STRUCTURE

     

    10.1
      The
      Joint Venture Company establishes a management structure that shall be
      responsible for the daily operations and management of the Joint Venture
      Company. The management structure shall have one General Manager and Deputy
      General Manager as needed. The General Manager is appointed by the Board of
      Directors. Term of general manager is three years and may be reappointed by
      the
      Board of Directors.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

     

    10.2
      The
      responsibility of the General Manger shall be to carry out resolutions of the
      Board of Directors and to organize and conduct the daily operations and
      management of the Joint Venture Company.

     

    The
      General Manager shall establish some departments. The department managers shall
      report to the General Manger and Vice General Manger and will perform the duties
      assigned to them. The appointing controller should have the consent of Party
      B.

     

    10.3
      The
      Chairman and directors can be appointed by the board to take the positions
      as
      General Manager or other high level managers.

     

    10.4
      When
      General Manager or Deputy General Manager submit their resignation, they should
      submit written resignation in advance. The General Manager may be dismissed
      by
      the Board of Directors at any time for abuse of power, seeking personal
      interests, or serious negligent of duty.

     

    10.5
      To
      support the sales and distribution in China or abroad, with approvals from
      relevant government agency, JV shall open its subsidiaries in China or abroad.
      

     

    11.
      PURCHASE OF ASSETS

     

    11.1
      Provided
      that all conditions being equal, the Joint Venture Company shall purchase its
      raw materials, accessories, transportation tools and office supplies in
      China.

     

    12.
      LABOR MANAGEMENT

     

    12.1
      Matters
      relating to the recruitment, employment, dismissal, resignation, wages,
      employee’s insurance, welfare, and rewards and punishments of the employees of
      the Joint Venture Company shall be stipulated by the labor contract which is
      executed by the Joint Venture Company and its labor union collectively or the
      employees individually in accordance with Joint Venture Labor Management
      Regulation and its practical regulations. The plan of such matters shall be
      discussed and formulated by the Board.

     

    Labor
      contracts shall be filed to local labor management authority after they are
      signed.

     

    12.2
      The
      Board of Directors shall determine the compensation, benefits package, and
      business trip allowances of senior officers.

     

    13.
      TAXES, ACCOUNTING, AND AUDIT

     

    13.1
      The
      Joint Venture Company shall pay taxes in accordance with relevant Chinese laws
      and regulations. The employees of the Joint Venture Company shall pay their
      individual income tax and individual income adjustment tax in accordance with
      Individual Income Tax Law.

     

    13.2
      The
      Joint Venture Company shall set aside for reserve funds, expansion funds of
      the
      Joint Venture Company, and the bonus and welfare fund for the workers and the
      staff, the proportion of which shall be determined by the Board according to
      the
      Joint Venture Company operation under Joint Venture Law of
      China.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
 

    13.3
      The
      Joint Venture Company’s accounting year shall begin on January 1st and end on
      December 31st
      each
      year, and all vouchers, accounting books, accounting statements and reports
      of
      Joint Venture Company shall be written in both Chinese and English.

     

    13.4
      The
      Joint Venture Company shall engage auditors registered in China to audit the
      annual financial report and the result shall be submitted to the Board of
      Directors and the General Manager.

     

    If
      a
      party requires engaging other auditors to audit the annual financial report,
      the
      Joint Venture Company shall support the request. The demand party shall pay
      all
      of the expenses incurred by the additional audit.

     

    13.5
      In the
      first three months of every fiscal year, the previous year’s balance sheet,
      profit and loss statement, and proposal regarding the distribution of profits
      which is prepared by the General Manager shall be submitted to the Board Meeting
      for review.

     

    The
      controller of JV should submit monthly financial statement to both
      parties.

     

    13.6
      All
      the foreign currency related matter should be conducted accordance with Foreign
      Currency Management Regulation of China.

     

    14.
      JOINT VENTURE TERM

     

    14.1
      The term
      of Joint Venture Company is thirty years. The establishment of Joint Venture
      Company shall start from the date on which the business license of Joint Venture
      Company is issued.

     

    An
      application for the extension of the term, proposed by a party and unanimously
      approved by the board of directors, shall be submitted to the original approval
      authority 180 days prior to the expiry date of the Joint Venture
      Company.

     

    15.
      DISPOSAL OF PROPERTY

     

    15.1
      After the expiration of the Term or termination prior to the expiration of
      the
      Term, the Joint Venture Company shall liquidate its assets in accordance with
      relevant laws. The assets after liquidation shall be distributed according
      to
      the proportion invested by each party.

     

    16.
      THE AMENDMENT, MODIFACATION AND DISSOLUTION OF THE
      CONTRACT

     

    16.1
      This
      contract and annexes shall be changed and thereafter be valid only by a written
      instrument executed by the Parties, and, upon approval by the original Approval
      Authority.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
 

    16.2
      On
      failure to fulfill the terms of this contract due to Force Majeure or failure
      of
      operation after consecutive operating losses, this contract shall be terminated
      and dissolved prior to the expiration of the Term according to the resolution
      of
      the Board Meeting and approval by the original Approval Authority.

     

    16.3
      If one
      Party fails to fulfill the obligations of this Contract or Articles of
      Association, or materially violates the Contract or Articles of Association
      in a
      way which renders the Joint Venture Company inoperable or unable to operate
      towards the Joint Venture Company objectives listed in the Contract or Articles
      of Association, it may deemed that the breaching Party has terminated the
      Contract unilaterally. The non-breaching Party shall have the right to claim
      the
      compensation from the breaching party for any incurred losses and to terminate
      the Contract or enter into agreements with other parties approved by the
      relevant Approval Authority according to the Contract. If both Parties agree
      to
      continue to operate, the breaching Party should compensate the Joint Venture
      Company for losses resulting from its breach of contract.

     

    17.
      LIABILITIES FOR BREACH OF CONTRACT

     

    17.1
      If
      any
      Party fails to make its registered capital contributions according to the
      provisions of Article 5 of this contract, the breaching Party shall make a
      monthly payment of a breach of contract penalty to the non-breaching Party
      which
      is equal to one percent (1%) of the contribution in arrears commencing from
      the
      first month of arrears,. If a contribution is in arrears for 3 months, the
      non-breaching Party shall have the right to terminate the contract in accordance
      with Article 43 of this contract, to claim compensation from the breaching
      party
      for the losses as allowed by relevant laws, and the breaching Party shall make
      a
      payment of a breach of contract penalty to the non-breaching Party equal to
      three percent (3%) of the contribution in arrears.

     

    17.2
      If
      a
      breach in contract by one party causes the contract or the Annexes hereto to
      be
      unable to be performed or performed incompletely, the breaching party shall
      bear
      liabilities for breaching the contract. If both Party breach the contract,
      each
      Party shall respectively bear its share of the liability for breaching the
      contract according to the realities of the situation.

     

    18.
      FORCE MAJEURE

     

    18.1
      Upon
      occurrence of any Force Majeure events such as earthquakes, typhoons, flood,
      fire, war and other events which are unforeseen, unavoidable and insurmountable
      and whose consequences affect the performance of the Contract or other terms
      that is agreed upon, the Party affected shall promptly notify the other party
      electronically within 15 days, provide details of the event, together with
      a
      valid certifying documents evidencing the reasons for which the Contract cannot
      be performed or cannot be performed in part or for which performance needs
      to be
      delayed. Such certifying document shall be provided by the local notary office
      where the Force Majeure event occurred. In accordance with the degree of impact
      of the event on the performance of the Contract, the Parties shall discuss
      and
      decide whether there is to be full or partial exemption from responsibility
      for
      performing the Contract, or whether the performance of the Contract is to be
      delayed.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
 

    19.
      APPLICABLE LAWS

     

    The
      execution, validity, interpretation and implementation of this Contract shall
      be
      governed by the laws of the People's Republic of China.

     

    20.
      SETTLEMENT OF DISPUTES

     

    20.1
      Should
      there be any dispute in connection with this Contract, both Parties shall intend
      to resolve the dispute through friendly consultations; In case no settlement
      can
      be reached, the dispute shall be submitted to the China International Economy
      and Trade Arbitration Commission for arbitration, and the commission shall
      arbitrate the dispute according to its procedure. The arbitration award is
      final
      and binding upon all Parties.

     

    20.2
      In the
      process of arbitration, the Parties shall continue to performance the Contract
      except in respect of those matters under dispute.

     

    21.
      LANGUAGE

     

    21.1
      This
      Contract is written in Chinese and English, both languages have equal
      effectiveness. When a language has different interpretation then Chinese should
      take lead.

     

    22.
      EFFECTIVENESS AND MISCELLANEOUS

     

    22.1
      This
      Contract shall become effective after being approved by the Ministry of Commerce
      of the People’s Republic of China or its authorized agency.

     

    22.2
      Any
      notices dealing with any Party’s rights or obligations provided for in this
      Contract by either Party to another, should be made by written
      letter.

     

    22.3
      This
      Contract should have five copies, each party has one copy, and other copies
      will
      submitted to different government agencies for application, file, and
      record. 

     

    Party
      A:
      China Biopharma Limited

    

    Legal
      Representative:  Peter
      Wang

    

    Signature:

    

    

    Party
      B:
      Zhejiang Tianyuan Biopharmaceutical Co., Ltd.

    

    Legal
      Representative:  Ding
      Xiaohang

    

    Signature:THE
      BOARD OF DIRECTORS

     

    OF

     

    ZHEJIANG
      TIANYUAN BIOTECH CO., LTD.

    

     

    Ref.
      No.:
      2006 BoD No.103

    

    In
      accordance with the resolution of the Board Meeting of Zhejiang Tianyuan Biotech
      Co., Ltd. (“the Company”), dated December 15, 2006, the Joint Venture Contract
      of the Company is hereby amended as follows:

    

    
      	
              Before
                Amendment:

            	
              After
                Amendment:

            
	
              Referring
                to Clauses under Chapter Five

            	
              Referring
                to Clauses under Chapter Five

            
	 	 
	
              5.1
                The
                total amount of investment of the Joint Venture Company is 12,000,000
                U.
                S. Dollars.

            	
              5.1
                The
                total amount of investment of the Joint Venture Company is 6,000,000
                U. S.
                Dollars.

            
	 	 
	
              5.2
                The registered capital for the Joint Venture Company is 6,000,000
                U.S.
                Dollars. The capital structure as follows:

            	
              5.2
                The registered capital for the Joint Venture Company is 3,000,000
                U.S.
                Dollars. The capital structure as
                follows:

            

    

    

    
      	
              Shareholder
                

              Name

            	
              Investment

            	
              Ownership

            	 	
              Shareholder

              Name

            	
              Investment

            	
              Ownership

            
	 	 	 	 	 	 	 
	
              China
                Biopharma 

              Limited

            	
              3,900,000

            	
              65%

            	 	
              China
                Biopharma 

              Limited

            	
              1,950,000

            	
              65%

            
	 	 	 	 	 	 	 
	
              Tianyuan
                

              Biopharmaceutical

            	
              2,100,000

            	
              35%

            	 	
              Tianyuan
                

              Biopharmaceutical

            	
              1,050,000

            	
              35%

            

    

    

    
      	
              5.3
                Both parties shall contribute the capital as follows:

            	
              5.3
                Both parties shall contribute the capital as follows:

            
	 	 
	
              Party
                A shall contribute the capital in cash of U. S. Dollars.

            	
              Party
                A shall contribute the capital in cash of U. S.
                Dollars.

            
	 	 
	
              Party
                B shall contribute the capital in RMB equivalent to 2,100,000 U.
                S.
                Dollars. [The exchange rate shall be the foreign exchange price publicized
                by The People’s Bank of China as of the date of payment].

            	
              Party
                B shall contribute the capital in RMB equivalent to 1,050,000 U.
                S.
                Dollars. [The exchange rate shall be the foreign exchange price publicized
                by The People’s Bank of China as of the date of
                payment].

            

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              5.4
                The registered capital for Joint Venture Company shall be invested
                by
                Party A and Party B 90 days after the date of issuance of the Joint
                Venture Company business license.

            	
              5.4
                The registered capital for Joint Venture Company has been paid in
                full.

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