Document:

125

                                  EXHIBIT 10.9
                                  ------------

           This is an Exhibit to the Form 20-F of Sinovac Biotech Ltd.
           -----------------------------------------------------------

                     Attached find the following materials:

     Share Purchase Agreement entered into between the Company, China Bioway
     -----------------------------------------------------------------------
         Biotech Group Co., Ltd., Beijing Keding Co., Ltd. and Shenzhen
         --------------------------------------------------------------
                   Bio-Port Co., Ltd., dated November 30, 2004
                   -------------------------------------------

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                                       126

                            SHARE PURCHASE AGREEMENT
                            ------------------------

                                    Between:
                                    -------

                              SINOVAC BIOTECH LTD.
                              --------------------

                                  And Each of:
                                  -----------

                      CHINA BIOWAY BIOTECH GROUP CO., LTD.
                      ------------------------------------

                                      And:
                                      ---

                            BEIJING KEDING CO., LTD.
                            ------------------------

                                      And:
                                      ---

                           SHENZHEN BIO-PORT CO., LTD.
                           ---------------------------

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                                       127

                            SHARE PURCHASE AGREEMENT
                            ------------------------

     THIS SHARE PURCHASE AGREEMENT is dated and made for reference  effective as
     -----------------------------
fully executed on this 30th day of November, 2004.

BETWEEN:
-------

          SINOVAC  BIOTECH LTD., a corporation  organized  under the laws of the
          ---------------------
          Country of  Antigua  and  having an  address  for notice and  delivery
          located at No. 39 Shangdi Xi Rd.,  Haidian  District,  Beijing,  China
          100085

          (hereinafter referred to as the "Purchaser");

                                                               OF THE FIRST PART
                                                               -----------------

AND:
---

          CHINA BIOWAY  BIOTECH GROUP CO., LTD., a corporation  organized  under
          -------------------------------------
          the laws of the  People's  Republic of China and having an address for
          notice and delivery located at PKU Bio-city,  Shangdi Xilu 39, Haidian
          District, Beijing, China

          (hereinafter referred to as "Bioway");

                                                              OF THE SECOND PART
                                                              ------------------

AND:
---

          BEIJING  KEDING CO., LTD., a corporation  organized  under the laws of
          -------------------------
          the  People's  Republic  of China and having an address for notice and
          delivery located at PKU Bio-city,  Shangdi Xilu 39, Haidian  District,
          Beijing, China

          (hereinafter referred to as "Keding");

                                                               OF THE THIRD PART
                                                               -----------------

AND:
---

          SHENZHEN BIO-PORT CO., LTD., a corporation organized under the laws of
          ---------------------------
          the  People's  Republic  of China and having an address for notice and
          delivery  located at 16F,  Times Stock  Center,  Shennan  Street 4001,
          Fulian District, Shenzhen, China

          (hereinafter referred to as "Shenzhen")

                                                              OF THE FOURTH PART
                                                              ------------------

          (Bioway,  Keding and  Shenzhen are also  hereinafter  referred to as a
          "Vendor" and collectively  referred to as the "Vendors" as the contest
          so requires);

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                                       128

          (the  Purchaser,   Bioway,   Keding  and  Shenzhen  being  hereinafter
          singularly also referred to as a "Party" and collectively  referred to
          as the "Parties" as the context so requires).

          WHEREAS:
          -------

A.   Sinovac Biotech Co., Ltd.  (hereinafter  referred to as the "Company") is a
body  corporate  subsisting  under and  registered  pursuant  to the laws of the
People's Republic of China and is also majority owned (51%) by the Purchaser;

B.   The Purchaser is in the business of research and  development  specializing
in the development and manufacturing of various vaccines  including flu vaccines
and vaccines for hepatitis A, hepatitis B and hepatitis A&B  (collectively,  the
"Purchaser's Business")

C.   Bioway  is the  legal  and  beneficial  owner of  13,000,000  shares of the
Company,  representing  9.73%  of the  issued  and  outstanding  shares  (each a
"Purchased  Share") in the capital of the  Company as set forth in Schedule  "A"
which is attached hereto and which forms a material part hereof;

D.   Keding  is the  legal  and  beneficial  owner of  3,890,000  shares  of the
Company,  representing  2.91%  of the  issued  and  outstanding  shares  (each a
"Purchased  Share") in the capital of the  Company as set forth in Schedule  "A"
which is attached hereto and which forms a material part hereof;

E.   Shenzhen  is the legal and  beneficial  owner of  10,580,000  shares of the
Company,  representing  7.92%  of the  issued  and  outstanding  shares  (each a
"Purchased  Share") in the capital of the  Company as set forth in Schedule  "A"
which is attached hereto and which forms a material part hereof;

F.   The Parties hereto have agreed to enter into this Share Purchase  Agreement
(the "Agreement") which formalizes and clarifies the Parties'  respective duties
and  obligations  in  connection  with the purchase by the  Purchaser,  from the
Vendors,  of the Purchased  Shares together with the further  development of the
Company's Business as a consequence thereof;

     NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual
     ---------------------------------------
promises, covenants and agreements herein contained, THE PARTIES HERETO COVENANT
                                                     ---------------------------
AND AGREE WITH EACH OTHER as follows:
-------------------------

                                    Article 1
                                    ---------
                                   DEFINITIONS
                                   -----------

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                                       129

1.1    Definitions.   For the  purposes of this Agreement,  except as  otherwise
       -----------
expressly provided or unless the context otherwise requires, the following words
and phrases shall have the following meanings:

       (a)    "Agreement" means this "Share Purchase  Agreement" as entered into
              between  the  Purchaser   and  the  Vendors,   together  with  any
              amendments thereto and any Schedules as attached thereto;

       (b)    "Board of Directors" means, as applicable, the respective Board of
              Directors of each of the Parties hereto as duly  constituted  from
              time to time;

       (c)    "business day" means any day during which Canadian Chartered Banks
              are  open  for  business  in the City of  Vancouver,  Province  of
              British Columbia;

       (d)    "Closing"  has  the  meaning  ascribed  to  it  in  Article  "6.1"
              hereinbelow;

       (e)    "Closing  Date" has the meaning  ascribed  to it in Article  "6.1"
              hereinbelow;

       (f)    "Commercial  Arbitration  Act"  means the  Arbitration  Act of the
              Province of British Columbia,  R.S.B.C. 1996, as amended from time
              to time, as set forth in Article "11" hereinbelow;

       (g)    "Commissions"  means the United  States  Securities  and  Exchange
              Commission;

       (h)    "Company" means Sinovac Biotech Co. Ltd., a corporation  organized
              under the laws of the  People's  Republic  of China  and  majority
              owned by the Purchaser, or any successor company,  however formed,
              whether as a result of merger, amalgamation or other action;

       (i)    "Defaulting  Party" and  "Non-Defaulting  Party" have the meanings
              ascribed to them in Article "12" hereinbelow;

       (j)    "Encumbrances"   means   mortgages,   liens,   charges,   security
              interests, encumbrances and third party claims of any nature;

       (k)    "Execution  Date" means the actual date of the complete  execution
              of this Agreement and any amendment  thereto by all Parties hereto
              as set forth on the front page hereof;

       (l)    "Indemnified  Party" and  "Indemnified  Parties" have the meanings
              ascribed to them in Article "7.1" hereinbelow;

       (m)    "Parties" or "Party" means, respectively,  the Purchaser,  Bioway,
              Keding and/or Shenzhen  hereto,  as the case may be, together with
              their respective  successors and permitted  assigns as the context
              so requires;

       (n)    "person"   or   "persons"   means  an   individual,   corporation,
              partnership,   party,  trust,  fund,  association  and  any  other
              organized  group  of  persons  and the  personal  or  other  legal

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                                       130

              representative of a person to whom the context can apply according
              to law;

       (o)    "Purchased  Shares" has the meaning ascribed to it in recital "C",
              "D" and "E"  hereinabove;  the  particulars  of the registered and
              beneficial  ownership of such Purchased Securities being set forth
              in Schedule "A" which is attached hereto;

       (p)    "Purchase  Price" has the meaning  ascribed to it in Article "2.2"
              hereinbelow;

       (q)    "Purchaser"  means Sinovac  Biotech Ltd., a corporation  organized
              under  the  laws  of the  Country  of  Antigua,  or any  successor
              company,   however   formed,   whether  as  a  result  of  merger,
              amalgamation or other action;

       (r)    "Purchaser's Initial Due Diligence" has the meaning ascribed to it
              in Article "5.1(b)" hereinbelow;

       (s)    "Purchaser's  Ratification"  has  the  meaning  ascribed  to it in
              Article "5.1(a)" hereinbelow;

       (t)    "Time of Closing" means 2:00 o'clock, p.m. (Vancouver Time) on the
              Closing Date; and

       (u)    "Vendors" means Bioway,  Keding and Shenzhen  hereto,  as the case
              may be,  together with their  respective  successors and permitted
              assigns as the context so requires.

1.2    Schedules.   For the  purposes of this  Agreement,  except  as  otherwise
       ---------
expressly provided or unless the context otherwise requires, the following shall
represent  the Schedules  which are attached to this  Agreement and which form a
material part hereof:

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                                       131

           Schedule                               Description
           --------                               -----------
       Schedule "A":                    Description of Purchased Shares

1.3    Interpretation.  For the purposes of this Agreement,  except as otherwise
       --------------
expressly provided or unless the context otherwise requires,:

       (a)    the words  "herein",  "hereof" and  "hereunder" and other words of
              similar  import refer to this  Agreement as a whole and not to any
              particular   Article,   section  or  other   subdivision  of  this
              Agreement;

       (b)    any reference to an entity shall include and shall be deemed to be
              a reference  to any entity that is a permitted  successor  to such
              entity; and

       (c)    words  in  the  singular  include  the  plural  and  words  in the
              masculine  gender  include the feminine and neutral  genders,  and
              vice versa.

                                    Article 2
                                    ---------
              PURCHASE AND SALE OF THE ALL OF THE PURCHASED SHARES
              ----------------------------------------------------

2.1    Purchase and Sale.   Subject to the terms and conditions hereof and based
       -----------------
upon the  representations  and  warranties  contained  in  Articles  "3" and "4"
hereinbelow  and prior  satisfaction  of the conditions  precedent which are set
forth in Article "5" hereinbelow,  the Vendors hereby agree to assign,  sell and
transfer at the Closing Date (as hereinafter determined) all of their respective
rights,  entitlement and interest in and to the Purchased  Shares in the Company
to the  Purchaser  and  the  Purchaser  hereby  agrees  to  purchase  all of the
Purchased  Shares from the  Vendors on the terms and  subject to the  conditions
contained in this Agreement.

2.2    Purchase Price.  The total purchase price (the "Purchase  Price") for all
       --------------
of the  Purchased  Shares  will be  satisfied  by way of  payment in cash in the
amounts of  US$1,570,000  to Bioway,  US$470,000 to Keding and  US$1,270,000  to
Shenzhen at closing.

                                    Article 3
                                    ---------
                    REPRESENTATIONS, WARRANTIES AND COVENANTS
                    -----------------------------------------
                                 BY THE VENDORS
                                 --------------

3.1    General  Representations,  Warranties  and Covenants by the Vendors.   In
       -------------------------------------------------------------------
order to induce the Purchaser to enter into and consummate this  Agreement,  the
Vendors,  represent  to,  warrant to and covenant with the  Purchaser,  with the
intent that the Purchaser  will rely thereon in entering into this Agreement and
in concluding the  transactions  contemplated  herein,  that, to the best of the
knowledge,  information and belief of each of the Vendors, after having made due
inquiry:

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                                       132

       (a)    if a  corporation,  it is duly  organized  under  the  laws of its
              respective  jurisdiction of incorporation  and is validly existing
              and  in  good  standing  with  respect  to all  statutory  filings
              required by the applicable corporate laws;

       (b)    it is qualified to do business in those  jurisdictions where it is
              necessary to fulfill its  obligations  under this Agreement and it
              has the full power and authority to enter into this  Agreement and
              any agreement or instrument  referred to or  contemplated  by this
              Agreement;

       (c)    it has the requisite power,  authority and capacity to own and use
              all  of  its  respective  business  assets  and  to  carry  on its
              respective  business as  presently  conducted by it and to fulfill
              its respective obligations under this Agreement;

       (d)    the  execution and delivery of this  Agreement and the  agreements
              contemplated  hereby have been duly  authorized  by all  necessary
              action, corporate or otherwise, on its respective part;

       (e)    there are no other consents,  approvals or conditions precedent to
              the performance of this Agreement which have not been obtained;

       (f)    this Agreement  constitutes a legal,  valid and binding obligation
              of it enforceable  against it in accordance with its terms, except
              as  enforcement  may be  limited  by laws of  general  application
              affecting the rights of creditors;

       (g)    no  proceedings  are pending  for, and it is unaware of, any basis
              for the institution of any  proceedings  leading to its respective
              dissolution  or winding up, or the placing of it in  bankruptcy or
              subject  to any other laws  governing  the  affairs  of  insolvent
              companies or persons;

       (h)    the  making  of  this   Agreement   and  the   completion  of  the
              transactions  contemplated  hereby  and  the  performance  of  and
              compliance with the terms hereof does not and will not:

              (i)    if a corporation, conflict with or result in a breach of or
                     violate any of the terms,  conditions  or provisions of its
                     respective constating documents;

              (ii)   conflict  with or result in a breach of or  violate  any of
                     the terms,  conditions or provisions of any law,  judgment,
                     order,  injunction,  decree,  regulation  or  ruling of any
                     Court or governmental  authority,  domestic or foreign,  to
                     which it is subject,  or  constitute or result in a default
                     under any agreement,  contract or commitment to which it is
                     a party;

              (iii)  give to any party the right of termination, cancellation or
                     acceleration in or with respect to any agreement,  contract
                     or commitment to which it is a party;

              (iv)   give to any government or  governmental  authority,  or any
                     municipality  or any  subdivision  thereof,  including  any

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                                       133

                     governmental  department,   commission,  bureau,  board  or
                     administration    agency,   any   right   of   termination,
                     cancellation or suspension of, or constitute a breach of or
                     result in a default under, any permit, license,  control or
                     authority  issued to it which is  necessary or desirable in
                     connection   with  the  conduct  and   operations   of  its
                     respective  business  and the  ownership  or leasing of its
                     respective business assets; or

              (v)    constitute  a default by it, or any event  which,  with the
                     giving of notice or lapse of time or both, might constitute
                     an  event  of  default,  under  any  agreement,   contract,
                     indenture or other instrument  relating to any indebtedness
                     of it  which  would  give  any  party  to  that  agreement,
                     contract,  indenture  or  other  instrument  the  right  to
                     accelerate  the  maturity  for the  payment  of any  amount
                     payable under that agreement,  contract, indenture or other
                     instrument; and

       (i)    neither this  Agreement  nor any other  document,  certificate  or
              statement furnished to the Purchaser by or on behalf of any of the
              Vendors in connection with the  transactions  contemplated  hereby
              knowingly  or  negligently   contains  any  untrue  or  incomplete
              statement  of  material  fact or omits to  state a  material  fact
              necessary in order to make the  statements  therein not misleading
              which would likely  affect the decision of the  Purchaser to enter
              into this Agreement.

3.2    Representations,  Warranties and Covenants by the Vendors  respecting the
       -------------------------------------------------------------------------
Purchased  Shares. In order to induce the Purchaser to enter into and consummate
-----------------
this  Agreement,  the Vendors hereby  represent to, warrant to and covenant with
the  Purchaser,  with the intent that the  Purchaser  will also rely  thereon in
entering into this  Agreement and in concluding  the  transactions  contemplated
herein,  that,  to the best of the  knowledge,  information  and  belief  of the
Vendors, after having made due inquiry:

       (a)    the Vendors  have good and  marketable  title to and are the legal
              and  beneficial  owners of the Purchased  Shares of the Company in
              such amounts as are set out in this  Agreement,  and the Purchased
              Shares are fully paid and non-assessable and are free and clear of
              liens, charges, encumbrances, pledges, mortgages,  hypothecations,
              security  interests  and  adverse  claims  of any and  all  nature
              whatsoever and including, without limitation, options, pre-emptive
              rights and other  rights of  acquisition  in favour of any person,
              whether conditional or absolute;

       (b)    the Vendors  have the power and capacity to own and dispose of the
              Purchased Shares,  and the Purchased Shares are not subject to any
              voting or similar arrangement;

       (c)    there  are  no  actions,  suits,   proceedings  or  investigations
              (whether  or not  purportedly  against or on behalf of the Vendors
              individually or  collectively),  pending or threatened,  which may
              affect, without limitation,  the rights of the Vendors to transfer
              any of the Purchased  Shares to the Purchaser at law or in equity,
              or before or by any federal, state, provincial, municipal or other
              governmental  department,  commission,  board,  bureau,  agency or
              instrumentality,  domestic or foreign,  and,  without limiting the

<PAGE>

                                       134

              generality  of the  foregoing,  there are no  claims or  potential
              claims under any relevant  family  relations  legislation or other
              equivalent   legislation   affecting  the  Purchased   Shares.  In
              addition,  the Vendors are not now aware of any existing ground on
              which any such action,  suit or proceeding might be commenced with
              any reasonable likelihood of success;

       (d)    no other person, firm or corporation has any agreement,  option or
              right  capable of becoming an agreement for the purchase of any of
              the Purchased Shares; and

       (e)    the  Purchased  Shares  have been  issued in  accordance  with all
              applicable securities and corporate legislation and policies.

3.3    Survival of the Representations,  Warranties and Covenants by each of the
       -------------------------------------------------------------------------
Vendors.   To the extent  they have not been fully performed  at or prior to the
-------
Time of  Closing,  each and every  representation  and  warranty  of the Vendors
contained in this Agreement and any agreement, instrument,  certificate or other
document executed or delivered pursuant to this Agreement shall:

       (a)    be true and  correct on and as of the  Closing  Date with the same
              force and effect as though made or given on the Closing Date;

       (b)    remain in full force and effect notwithstanding any investigations
              conducted by or on behalf of the Purchaser;

       (c)    survive the completion of the  transactions  contemplated  by this
              Agreement  until the second  anniversary  of the Closing  Date and
              shall  continue  in full force and  effect for the  benefit of the
              Purchaser during that period, except that:

              (i)    the  representations  and  warranties  set  out in  section
                     3.2(a) to and  including  3.2(e)  above  shall  survive and
                     continue  in full force and effect  without  limitation  of
                     time; and

              (ii)   a claim for any  breach of any of the  representations  and
                     warranties contained in this Agreement or in any agreement,
                     instrument,  certificate  or  other  document  executed  or
                     delivered  pursuant  hereto  involving  fraud or fraudulent
                     misrepresentation  may be made at any  time  following  the
                     Closing Date, subject only to applicable limitation periods
                     imposed by law; and

       (d)    to the extent  they have not been fully  performed  at or prior to
              the  Time of  Closing,  each and  every  covenant  of the  Vendors
              contained  in  this  Agreement  and  any  agreement,   instrument,
              certificate  or other document  executed or delivered  pursuant to
              this Agreement  shall survive the  completion of the  transactions
              contemplated   by  this   Agreement  and,   notwithstanding   such
              completion,  shall  continue  in full  force  and  effect  for the
              benefit of the Purchaser.

<PAGE>

                                       135

                                    Article 4
                                    ---------
           WARRANTIES, REPRESENTATIONS AND COVENANTS BY THE PURCHASER
           ----------------------------------------------------------

4.1    Warranties, Representations and Covenants by the Purchaser.   In order to
       ----------------------------------------------------------
induce the Vendors to enter into and consummate  this  Agreement,  the Purchaser
hereby  warrants to,  represents  to and  covenants  with the Vendors,  with the
intent that the Vendors will rely thereon in entering into this Agreement and in
concluding  the  transactions  contemplated  herein,  that,  to the  best of the
knowledge,  information  and  belief of the  Purchaser,  after  having  made due
inquiry:

       Corporate Status of the Purchaser
       ---------------------------------

       (a)    the  Purchaser  is a  company  with  limited  liability  duly  and
              properly incorporated,  organized and validly subsisting under the
              laws of the Country of Antigua being the only  jurisdiction  where
              it is required to be registered  for the purpose of enabling it to
              carry on its business and own its property as presently carried on
              and owned;

       (b)    the Purchaser has good and sufficient  power,  authority and right
              to own or lease its property,  to enter into this Agreement and to
              perform its obligations hereunder;

       Authorization
       -------------

       (c)    this Agreement has been duly authorized, executed and delivered by
              the Purchaser and is a legal,  valid and binding obligation of the
              Purchaser,  enforceable against the Purchaser, as the case may be,
              by the Vendors in accordance with its terms, except as enforcement
              may be limited by bankruptcy,  insolvency and other laws affecting
              the  rights of  creditors  generally  and  except  that  equitable
              remedies  may be  granted  only in the  discretion  of a court  of
              competent jurisdiction; and

       Full Disclosure
       ---------------

       (d)    the  Purchaser  has no  information  or  knowledge of any fact not
              communicated  to the Vendors and  relating to the  Purchaser or to
              the Purchaser's business or to its ability to make payments which,
              if known to the Vendors, might reasonably be expected to deter the
              Vendors from entering into this  Agreement or from  completing the
              transactions contemplated by this Agreement.

4.2    Survival  of  the  Representations,   Warranties  and  Covenants  by  the
       -------------------------------------------------------------------------
Purchaser.   To the extent they have not been fully performed at or prior to the
---------
Time of Closing,  each representation and warranty of the Purchaser contained in
this Agreement or in any document, instrument,  certificate or undertaking given
pursuant hereto shall:

       (a)    be true and  correct on and as of the  Closing  Date with the same
              force and effect as though made or given on the Closing Date;

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                                       136

       (b)    remain in full force an effect  notwithstanding any investigations
              conducted by or on behalf of the Purchaser;

       (c)    survive the completion of the  transactions  contemplated  by this
              Agreement  until the second  anniversary  of the Closing  Date and
              shall  continue  in full force and  effect for the  benefit of the
              Vendors during that period,  except that a claim for any breach of
              any  of the  representations  and  warranties  contained  in  this
              Agreement or in any  agreement,  instrument,  certificate or other
              document executed or delivered  pursuant hereto involving fraud or
              fraudulent misrepresentation may be made at any time following the
              Closing  Date,  subject  only  to  applicable  limitation  periods
              imposed by law; and

       (d)    To the extent  they have not been fully  performed  at or prior to
              the Time of  Closing,  each and every  covenant  of the  Purchaser
              contained  in  this  Agreement  and  any  agreement,   instrument,
              certificate  or other document  executed or delivered  pursuant to
              this Agreement  shall survive the  completion of the  transactions
              contemplated   by  this   Agreement  and,   notwithstanding   such
              completion,  shall  continue  in full  force  and  effect  for the
              benefit of the Vendors.

                                    Article 5
                                    ---------
                         CONDITIONS PRECEDENT TO CLOSING
                         -------------------------------

5.1    Parties' Conditions Precedent  prior to the  Closing  Date.    All of the
       ----------------------------------------------------------
rights,  duties  and  obligations  of  each of the  Parties  hereto  under  this
Agreement  are subject to the condition  precedent for the exclusive  benefit of
each of the Parties to be fulfilled in all  material  aspects in the  reasonable
opinion of each of the Parties or to be waived by each or any of the Parties, as
the case may be, as soon as possible after the Execution Date;  however,  unless
specifically indicated as otherwise, not later than the Time of Closing:

       (a)    the  specific  ratification  of the terms and  conditions  of this
              Agreement by the Board of Directors of the  Purchaser  within five
              business days of the due and complete  execution of this Agreement
              by each of the Parties hereto (the "Purchaser's Ratification").

<PAGE>

                                       137

5.2    Parties'  Waiver of Conditions  Precedent.   The conditions precedent set
       -----------------------------------------
forth in section "5.1"  hereinabove are for the exclusive benefit of each of the
Parties  hereto and may be waived by each of the Parties in writing and in whole
or in part at or prior to the Time of Closing.

5.3    The Vendors' Conditions Precedent. The purchase and sale of the Purchased
       ---------------------------------
Securities is subject to the following  terms and  conditions  for the exclusive
benefit of the Vendors and the  Purchaser,  to be  fulfilled  or performed at or
prior to the Time of Closing:

       (a)    the  representations  and warranties of the Purchaser contained in
              this Agreement shall be true and correct in all material  respects
              at the Time of Closing,  with the same force and effect as if such
              representations  and warranties  were made at and as of such time;
              and

       (b)    all of the terms, covenants and conditions of this Agreement to be
              complied  with or performed by the Purchaser at or before the Time
              of  Closing  shall have been  complied  with or  performed  in all
              material respects.

       (c)    no legal or regulatory  action or  proceeding  shall be pending or
              threatened  by any  person to enjoin,  restrict  or  prohibit  the
              purchase and sale of the Purchased Shares contemplated hereby.

       If any of the  conditions  contained  in this  section  5.3  shall not be
performed or fulfilled at or prior to the Time of Closing to the satisfaction of
the Vendors,  acting  reasonably,  the Vendors may, by notice to the  Purchaser,
terminate  this  Agreement and the  obligations of the Vendors and the Purchaser
under  this  Agreement,  other  than the  obligations  contained  in  Article  8
hereinbelow,  shall be  terminated,  provided that the Vendors may also bring an
action  pursuant to Article 7 against the Purchaser for damages  suffered by the
Vendors where the  non-performance  or non-fulfillment of the relevant condition
is as a result  of a breach  of  covenant,  representation  or  warranty  by the
Purchaser.  Any such  condition may be waived in whole or in part by the Vendors
in writing  without  prejudice to any claims it may have for breach of covenant,
representation or warranty.

5.4    Purchaser's  Conditions Precedent prior to the Closing Date. The sale and
       -----------------------------------------------------------
purchase  of the  Purchased  Shares  is  subject  to  the  following  terms  and
conditions  for the  exclusive  benefit of the  Purchaser,  to be  fulfilled  or
performed at or prior to the Time of Closing:

       (a)    the  representations  and  warranties of the Vendors  contained in
              this  Agreement  shall be true and correct at the Time of Closing,
              with the same  force  and  effect as if such  representations  and
              warranties were made at and as of such time;

       (b)    all of the terms, covenants and conditions of this Agreement to be
              complied with or performed by the Vendors at or before the Time of
              Closing shall have been complied with or performed;

<PAGE>

                                       138

       (c)    there  shall have been  obtained,  from all  appropriate  federal,
              provincial,  municipal  or other  governmental  or  administrative
              bodies, such licenses, permits, consents, approvals, certificates,
              registrations  and  authorizations as are required to be obtained,
              if any,  by the Vendors to permit the change of  ownership  of the
              Purchased Shares contemplated hereby;

       (d)    no legal or regulatory  action or  proceeding  shall be pending or
              threatened  by any  person to enjoin,  restrict  or  prohibit  the
              purchase and sale of the Purchased Shares contemplated hereby;

       If any of the  conditions  contained  in this  section  5.4  shall not be
performed or fulfilled at or prior to the Time of Closing to the satisfaction of
the Purchaser,  acting reasonably,  the Purchaser may, by notice to the Vendors,
terminate  this  Agreement and the  obligations of the Vendors and the Purchaser
under this  Agreement,  other than the obligations set forth in Article 8, shall
be terminated,  provided that the Purchaser may also bring an action pursuant to
Article 7 against the Vendors for damages  suffered by the  Purchaser  where the
non-performance or non-fulfillment of the relevant condition is as a result of a
breach  of  covenant,  representation  or  warranty  by the  Vendors.  Any  such
condition may be waived in whole or in part by the Purchaser  without  prejudice
to any claims it may have for breach of covenant, representation or warranty.

                                    Article 6
                                    ---------
                          CLOSING AND EVENTS OF CLOSING
                          -----------------------------

6.1    Closing  and Closing  Date.   The closing (the  "Closing")  of the within
       --------------------------
purchase and delivery of the Purchased  Shares, as contemplated in the manner as
set forth in Article  "2"  hereinabove,  together  with all of the  transactions
contemplated  by this  Agreement  shall occur on December 30, 2004 (the "Closing
Date"),  or on such earlier or later Closing Date as may be agreed to in advance
and in writing by each of the Parties hereto,  and will be closed at the offices
of solicitors for the  Purchaser,  Devlin  Jensen,  Barristers  and  Solicitors,
located at Suite 2550 - 555 W. Hastings St.,  Vancouver,  B.C., V6B 4N5, at 2:00
p.m. (Vancouver time) on the Closing Date.

6.2    Latest Closing Date.  If the Closing Date has not occurred by January 30,
       -------------------
2005,  subject to an extension as may be mutually agreed to by the Parties for a
maximum of 14 days per extension,  then the Purchaser and the Vendors shall each
have the option to terminate this Agreement by delivery of written notice to the
other Party.  Upon delivery of such notice,  this Agreement shall cease to be of
any force and effect except for Article "8"  hereinbelow,  which shall remain in
full force and effect notwithstanding the termination of this Agreement.

6.3    Documents to be delivered by the Vendors prior to the Closing Date.   Not
       ------------------------------------------------------------------
later than five calendar days prior to the Closing Date,  and in addition to the
documentation which is required by the agreements and conditions precedent which
are set forth  hereinabove,  the Vendors shall also execute and deliver or cause
to be delivered to Purchaser's counsel all such other documents, resolutions and
instruments  as may be necessary,  in the opinion of counsel for the  Purchaser,
acting  reasonably,  to complete all of the  transactions  contemplated  by this

<PAGE>

                                       139

Agreement and including,  without limitation,  the necessary transfers of all of
the  Purchased  Shares to the  Purchaser  free and clear of all liens,  security
interests, charges and encumbrances,  and in particular including, but not being
limited to, the following materials:

       (a)    all  documentation  as may be necessary  and as may be required by
              the  solicitors for the Purchaser,  acting  reasonably,  to ensure
              that all of the Purchased Shares have been  transferred,  assigned
              and are  registerable  in the name of and for the  benefit  of the
              Purchaser under all applicable corporate and securities laws;

       (b)    certificates  representing the Purchased Shares  registered in the
              names of the Vendors,  duly endorsed for transfer to the Purchaser
              and/or irrevocable stock powers  transferring the Purchased Shares
              to the Purchaser;

       (c)    certificates  representing the Purchased Shares  registered in the
              name of the Purchaser;

       (d)    a  certified  copy  of the  resolutions  of the  directors  of the
              Vendors  authorizing  the transfer by the Vendors to the Purchaser
              of the Purchased Shares; and

       (e)    all  such  other  documents  and  instruments  as the  Purchaser's
              solicitors may reasonably require.

6.4    Documents to be delivered by the Purchaser prior to the Closing Date. Not
       --------------------------------------------------------------------
later than the  Closing  Date,  and in addition  to the  documentation  which is
required  by the  agreements  and  conditions  precedent  which  are  set  forth
hereinabove,  the  Purchaser  shall  also  execute  and  deliver  or cause to be
delivered to the Vendors'  counsel,  all such other  documents,  resolutions and
instruments  that may be  necessary,  in the opinion of the Vendors'  respective
solicitors,  acting reasonably, to complete all of the transactions contemplated
by this Agreement and including, without limitation, the necessary acceptance of
the transfer of all of the Purchased  Shares to the Purchaser  free and clear of
all liens, charges and encumbrances,  and in particular including, but not being
limited to, the following materials:

       (a)    a  copy  of the  resolutions  of the  directors  of the  Purchaser
              providing for the approval of all of the transactions contemplated
              hereby; and

       (b)    all  such  other   documents  and   instruments  as  the  Vendors'
              respective solicitors may reasonably require.

                                    Article 7
                                    ---------
                      INDEMNIFICATION AND LEGAL PROCEEDINGS
                      -------------------------------------

7.1    Indemnification.  The Parties hereto agree to indemnify and save harmless
       ---------------
the other Parties  hereto and  including,  where  applicable,  their  respective
affiliates,  directors, officers, employees and agents (each such party being an
"Indemnified  Party")  harmless  from and against and agree to be liable for any
and all losses, claims, actions,  suits,  proceedings,  damages,  liabilities or

<PAGE>

                                       140

expenses  of  whatever  nature or kind,  including  any  investigation  expenses
incurred by any  Indemnified  Party,  to which an  Indemnified  Party may become
subject by reason of the terms and conditions of this Agreement.

7.2    No  Indemnification.   This  indemnity will not  apply in  respect  of an
       -------------------
Indemnified  Party in the  event  and to the  extent  that a court of  competent
jurisdiction in a final judgment shall determine that the Indemnified  Party was
grossly negligent or guilty of willful misconduct.

7.3    Claim of  Indemnification.   The Parties hereto  agree to waive any right
       -------------------------
they might have of first requiring the  Indemnified  Party to proceed against or
enforce any other right, power, remedy, security or claim payment from any other
person before claiming this indemnity.

7.4    Notice of Claim.   In case any  action is brought  against an Indemnified
       ---------------
Party in respect of which  indemnity  may be sought  against  any of the Parties
hereto, the Indemnified Party will give the relevant Party hereto prompt written
notice of any such action of which the Indemnified  Party has knowledge and such
Party will  undertake  the  investigation  and defense  thereof on behalf of the
Indemnified Party,  including the prompt consulting of counsel acceptable to the
Indemnified  Party  affected  and the  payment of all  expenses.  Failure by the
Indemnified  Party to so notify  shall  not  relieve  any  Party  hereto of such
Party's obligation of  indemnification  hereunder unless (and only to the extent
that) such failure  results in a forfeiture  by any Party hereto of  substantive
rights or defenses.

7.5    Settlement.   No admission of liability  and no settlement  of any action
       ----------
shall be made without the consent of each of the Parties  hereto and the consent
of the Indemnified Party affected, such consent not to be unreasonably withheld.

7.6    Legal  Proceedings.   Notwithstanding that the relevant Party hereto will
       ------------------
undertake the investigation and defense of any action, an Indemnified Party will
have the right to employ separate  counsel in any such action and participate in
the defense  thereof,  but the fees and  expenses of such counsel will be at the
expense of the Indemnified Party unless:

       (a)    such counsel has been authorized by the relevant Party hereto;

       (b)    the  relevant  Party  hereto has not  assumed  the  defense of the
              action within a reasonable  period of time after receiving  notice
              of the action;

       (c)    the named parties to any such action include that any Party hereto
              and the Indemnified  Party shall have been advised by counsel that
              there may be a conflict of interest  between any Party  hereto and
              the Indemnified Party; or

       (d)    there are one or more legal defenses  available to the Indemnified
              Party which are different  from or in addition to those  available
              to any Party hereto.

<PAGE>

                                       141

7.7    Contribution.   If for any reason other than the gross negligence  or bad
       ------------
faith of the  Indemnified  Party  being  the  primary  cause of the loss  claim,
damage, liability, cost or expense, the foregoing indemnification is unavailable
to the Indemnified  Party or  insufficient  to hold them harmless,  the relevant
Party hereto shall  contribute to the amount paid or payable by the  Indemnified
Party as a result of any and all such losses,  claim,  damages or liabilities in
such  proportion  as is  appropriate  to reflect not only the relative  benefits
received by any Party  hereto on the one hand and the  Indemnified  Party on the
other,  but  also  the  relative  fault  of  the  Parties  and  other  equitable
considerations  which  may  be  relevant.  Notwithstanding  the  foregoing,  the
relevant  Party  hereto  shall in any event  contribute  to the  amount  paid or
payable  by the  Indemnified  Party,  as a result  of the loss,  claim,  damage,
liability, cost or expense (other than a loss, claim, damage, liability, cost or
expenses, the primary cause of which is the gross negligence or bad faith of the
Indemnified  Party),  any  excess  of such  amount  over the  amount of the fees
actually received by the Indemnified Party hereunder.

                                    Article 8
                                    ---------
                                 NON-DISCLOSURE
                                 --------------

8.1    Public  Announcements and Disclosure  to  Regulatory  Authorities.    All
       -----------------------------------------------------------------
information  relating to the Agreement and the transaction  contemplated therein
shall be treated as confidential  and no public  disclosure shall be made by any
Party   without  the  prior   approval   of  the  Company  and  the   Purchaser.
Notwithstanding the provisions of this Article, the Parties hereto agree to make
such public  announcements and disclosure to the Regulatory  Authorities of this
Agreement promptly upon its execution all in accordance with the requirements of
applicable securities legislation and regulations.

                                    Article 9
                                    ---------
                            ASSIGNMENT AND AMENDMENT
                            ------------------------

9.1    Assignment. Save and except as provided herein, no Party hereto may sell,
       ----------
assign,  pledge  or  mortgage  or  otherwise  encumber  all or any  part  of its
respective interest herein without the prior written consent of all of the other
Parties hereto.

9.2    Amendment.  This Agreement and any provision  thereof may only be amended
       ---------
in writing and only by duly  authorized  signatories  of each of the  respective
Parties hereto.

<PAGE>

                                       142

                                   Article 10
                                   ----------
                                  FORCE MAJEURE
                                  -------------

10.1   Events.   If any Party  hereto is at any time  prevented  or  delayed  in
       ------
complying with any provisions of this Agreement by reason of strikes, walk-outs,
labour  shortages,  power  shortages,  fires,  wars,  acts of God,  earthquakes,
storms,   floods,   explosions,   accidents,   protests  or   demonstrations  by
environmental  lobbyists  or native  rights  groups,  delays in  transportation,
breakdown  of  machinery,  inability to obtain  necessary  materials in the open
market, unavailability of equipment, governmental regulations restricting normal
operations, shipping delays or any other reason or reasons beyond the control of
that  Party,  then the time  limited  for the  performance  by that Party of its
respective obligations hereunder shall, by agreement of the affected Parties, be
extended  by a period  of time  equal  in  length  to the  period  of each  such
prevention or delay.  However,  any modification or termination of the Agreement
shall be valid only upon the signing of a modification or termination  agreement
by the affected Parties.

10.2   Notice.   A Party shall, within seven calendar  days,  give notice to the
       ------
affected Party of each event of force majeure under section  "10.1"  hereinabove
and upon cessation of such event shall furnish the affected Party with notice of
that  event  together  with  particulars  of the  number  of days by  which  the
obligations  of that Party  hereunder have been extended by virtue of such event
of force majeure and all preceding events of force majeure.

                                   Article 11
                                   ----------
                                   ARBITRATION
                                   -----------

11.1   Matters for Arbitration.  The Parties agree that all questions or matters
       -----------------------
in dispute with  respect to this  Agreement  shall be  submitted to  arbitration
pursuant to the terms hereof.

11.2   Notice.   It shall be a condition precedent  to the right of any Party to
       ------
submit any matter to  arbitration  pursuant  to the  provisions  hereof that any
Party  intending  to refer any matter to  arbitration  shall have given not less
than 10 calendar  days' prior  written  notice of its  intention to do so to the
other  Party  together  with  particulars  of  the  matter  in  dispute.  On the
expiration  of such 10 calendar  days the Party who gave such notice may proceed
to refer the dispute to arbitration as provided in section "11.3" hereinbelow.

11.3   Appointments.    The  Party  desiring   arbitration   shall  appoint  one
       ------------
arbitrator, and shall notify the other Party of such appointment,  and the other
Party shall,  within two calendar days after  receiving such notice,  appoint an
arbitrator,  and the two arbitrators so named,  before proceeding to act, shall,
within 10 calendar days of the  appointment  of the last  appointed  arbitrator,
unanimously agree on the appointment of a third arbitrator, to act with them and
be chairman of the  arbitration  herein  provided  for. If the other Party shall
fail to appoint an arbitrator  within 10 calendar days after receiving notice of
the appointment of the first arbitrator, and if the two arbitrators appointed by
the Parties shall be unable to agree on the  appointment  of the  chairman,  the
chairman shall be appointed  under the provisions of the Commercial  Arbitration

<PAGE>

                                       143

Act (British Columbia) (the "Arbitration Act"). Except as specifically otherwise
provided in this section, the arbitration herein provided for shall be conducted
in accordance with such Arbitration Act. The chairman, or in the case where only
one arbitrator is appointed,  the single arbitrator,  shall fix a time and place
in  Vancouver,  British  Columbia,  for the purpose of hearing the  evidence and
representations  of the Parties,  and he shall preside over the  arbitration and
determine all questions of procedure not provided for under such Arbitration Act
or this section. After hearing any evidence and representations that the Parties
may submit, the single arbitrator, or the arbitrators, as the case may be, shall
make an award and reduce the same to writing,  and  deliver one copy  thereof to
each of the Parties.  The expense of the arbitration  shall be paid as specified
in the award.

11.4   Award. The Parties agree that the award of a majority of the arbitrators,
       -----
or in the case of a single  arbitrator,  of such arbitrator,  shall be final and
binding upon each of them.

                                   Article 12
                                   ----------
                             DEFAULT AND TERMINATION
                             -----------------------

12.1   Default.  The Parties hereto agree that if any Party hereto is in default
       -------
with  respect to any of the  provisions  of this  Agreement  (herein  called the
"Defaulting Party"), the non-defaulting Party (herein called the "Non-Defaulting
Party") shall give notice to the Defaulting Party designating such default,  and
within 10 calendar days after its receipt of such notice,  the Defaulting  Party
shall either:

       (a)    cure such default,  or commence  proceedings  to cure such default
              and prosecute the same to completion without undue delay; or

       (b)    give the  Non-Defaulting  Party  notice  that it denies  that such
              default has  occurred  and that it is  submitting  the question to
              arbitration as herein provided.

12.2   Arbitration.   If  arbitration is sought,  a Party shall not be deemed in
       -----------
default  until the matter  shall  have been  determined  finally by  appropriate
arbitration under the provisions of Article "11" hereinabove.

12.3   Curing the Default.   If:
       ------------------

       (a)    the  default  is not so cured  or the  Defaulting  Party  does not
              commence or diligently proceed to cure the default; or

       (b)    arbitration is not so sought; or

       (c)    the Defaulting Party is found in arbitration  proceedings to be in
              default,  and fails to cure it within five calendar days after the
              rendering of the arbitration award,

<PAGE>

                                       144

the Non-Defaulting Party may, by written notice given to the Defaulting Party at
any time while the default  continues,  terminate the interest of the Defaulting
Party in and to this Agreement.

12.4   Termination.   In addition to the foregoing it is hereby acknowledged and
       -----------
agreed by the Parties hereto that this Agreement will be terminated in the event
that:

       (a)    the Purchaser's  Ratification is not received within five business
              days of the due and complete  execution of this  Agreement by each
              of the Parties hereto;

       (b)    the  Purchaser  fails to  complete a  successful  and  Purchaser's
              Initial  Due  Diligence  review  of  the  Company's  business  and
              operations within five (5) calendar days of the prior satisfaction
              by the Purchaser of the Purchaser's Ratification;

       (c)    the  conditions  specified in section "5.1"  hereinabove  have not
              been satisfied at or prior to the Time of Closing;

       (d)    either of the Parties  hereto has not either  satisfied  or waived
              each of their respective  conditions  precedent at or prior to the
              Time of Closing in accordance  with the  provisions of Article "5"
              hereinabove;

       (e)    either of the Parties hereto has failed to deliver or caused to be
              delivered  any  of  their  respective  documents  required  to  be
              delivered by Articles "5" and "6"  hereinabove  at or prior to the
              Time of Closing in accordance  with the provisions of Articles "5"
              and "6"; or

       (f)    by Closing has not occurred on or before January 30, 2005, or such
              later date, all in accordance with section "6.2" hereinabove; or

       (g)    by agreement in writing by each of the Parties hereto;

and in such event this  Agreement  will be terminated and be of no further force
and effect other than the obligations under Article "8" hereinabove.

                                   Article 13
                                   ----------
                                     NOTICE
                                     ------

13.1   Notice.  Each notice, demand or other communication required or permitted
       ------
to be given  under  this  Agreement  shall be in  writing  and  shall be sent by
prepaid  registered  mail  deposited  in a post  office  addressed  to the Party
entitled to receive the same,  or  delivered  to such Party,  at the address for
such Party specified above. The date of receipt of such notice,  demand or other
communication  shall be the date of delivery thereof if delivered,  or, if given
by registered  mail as aforesaid,  shall be deemed  conclusively to be the third
calendar  day after the same shall  have been so  mailed,  except in the case of
interruption  of postal  services for any reason  whatsoever,  in which case the

<PAGE>

                                       145

date of  receipt  shall  be the  date on  which  the  notice,  demand  or  other
communication is actually received by the addressee.

13.2   Change  of  Address.  Either  Party may at any time and from time to time
       -------------------
notify the other  Party in writing of a change of address and the new address to
which notice shall be given to it thereafter until further change.

                                   Article 14
                                   ----------
                               GENERAL PROVISIONS
                               ------------------

14.1   Entire Agreement.   This  Agreement  constitutes the entire  agreement to
       ----------------
date  between  the  Parties  hereto and  supersedes  every  previous  agreement,
communication,   expectation,  negotiation,   representation  or  understanding,
whether oral or written, express or implied, statutory or otherwise, between the
Parties  with respect to the subject  matter of this  Agreement  and  including,
without  limitation,  the  agreement  as between the  Purchaser  and each of the
Vendors.

14.2   Enurement.   This Agreement  will  enure  to the  benefit  of and will be
       ---------
binding  upon  the  Parties   hereto,   their   respective   heirs,   executors,
administrators and assigns.

14.3   Schedules.   The Schedules to this  Agreement are hereby  incorporated by
       ---------
reference into this Agreement in its entirety.

14.4   Time of the Essence.   Time will be of the essence of this Agreement.
       -------------------

14.5   Representation  and  Costs.   It is  hereby acknowledged  by  each of the
       --------------------------
Parties hereto that, as between the Parties  hereto,  Devlin Jensen,  Barristers
and  Solicitors,  acts solely for the Purchaser,  and that the Vendors have been
advised by the  Purchaser  to obtain  independent  legal  advice with respect to
their  respective  reviews and execution of this Agreement.  In addition,  it is
hereby further  acknowledged and agreed by the Parties hereto that each Party to
this  Agreement  will  bear  and pay its own  costs,  legal  and  otherwise,  in
connection  with  its  respective  preparation,  review  and  execution  of this
Agreement,  and, in particular,  that the costs  involved in the  preparation of
this Agreement,  and all documentation  necessarily  involved thereto, by Devlin
Jensen shall be at the cost of the Purchaser.

14.6   Applicable  Law.   The  situs of this  Agreement  is  Vancouver,  British
       ---------------
Columbia and for all purposes this Agreement will be governed exclusively by and
construed and enforced in accordance with the laws and Courts  prevailing in the
Province of British Columbia.

<PAGE>

                                       146

14.7   Further  Assurances.   The Parties hereto hereby,  jointly and severally,
       -------------------
covenant and agree to forthwith,  upon request, execute and deliver, or cause to
be executed and delivered,  such further and other deeds, documents,  assurances
and  instructions  as may be required by the Parties hereto or their  respective
counsel in order to carry out the true nature and intent of this Agreement.

14.8   Severability and Construction. Each Article, section, paragraph, term and
       -----------------------------
provision  of this  Agreement,  and any  portion  thereof,  shall be  considered
severable,  and if, for any reason,  any portion of this Agreement is determined
to be invalid,  contrary to or in conflict with any applicable present or future
law,  rule or  regulation  in a final  unappealable  ruling issued by any court,
agency or tribunal with valid jurisdiction in a proceeding to any of the Parties
hereto is a party,  that ruling shall not impair the  operation  of, or have any
other effect upon, such other portions of this Agreement as may remain otherwise
intelligible  (all of which shall remain  binding on the Parties and continue to
be given full force and  agreement as of the date upon which the ruling  becomes
final).

14.9   Captions.   The captions, section  numbers,  Article numbers and Schedule
       --------
numbers  appearing in this  Agreement are inserted for  convenience of reference
only and shall in no way define, limit, construe or describe the scope or intent
of this Agreement nor in any way affect this Agreement.

14.10  Currency.   Unless otherwise stipulated,  all references to money amounts
       --------
herein shall be in lawful money of the United States.

14.11  Counterparts.   This Agreement may be signed by the Parties  hereto in as
       ------------
many counterparts as may be necessary,  and via facsimile if necessary,  each of
which so signed being deemed to be an original  and such  counterparts  together
constituting  one and the  same  instrument  and,  notwithstanding  the  date of
execution, being deemed to bear the effective Execution Date as set forth on the
front page of this Agreement.

14.12  No  Partnership  or  Agency.   The Parties  hereto  have  not  created  a
       ---------------------------
partnership  and  nothing  contained  in  this  Agreement  shall  in any  manner
whatsoever  constitute any Party the partner,  agent or legal  representative of
any other  Party,  nor create any  fiduciary  relationship  between them for any
purpose  whatsoever.  No Party shall have any authority to act for, or to assume
any  obligations or  responsibility  on behalf of, any other party except as may
be,  from  time to time,  agreed  upon in  writing  between  the  Parties  or as
otherwise expressly provided.

14.13  Consents and Waivers. No consent or waiver expressed or implied by either
       --------------------
Party  hereto in respect  of any  breach or  default  by any other  Party in the
performance by such other of its obligations hereunder shall:

       (a)    be valid  unless it is in  writing  and  stated to be a consent or
              waiver pursuant to this section;

<PAGE>

                                       147

       (b)    be relied  upon as a consent  to or waiver of any other  breach or
              default of the same or any other obligation;

       (c)    constitute a general waiver under this Agreement; or

       (d)    eliminate  or modify  the need for a  specific  consent  or waiver
              pursuant to this section in any other or subsequent instance.

       IN WITNESS WHEREOF each of the Parties hereto has hereunto  executed this
       ------------------
Agreement  as of the  Execution  Date as set  forth  on the  front  page of this
Agreement.

SINOVAC BIOTECH LTD., the Purchaser
--------------------
herein,

Per:     /s/ Weidong Yin
-------------------------------------
Authorized Signatory

CHINA BIOWAY BIOTECH GROUP CO., LTD.
------------------------------------
a Vendor herein,

Per:     /s/
-------------------------------------
Authorized Signatory

BEIJING KEDING CO., LTD.,
------------------------
a Vendor herein,

Per:     /s/
-------------------------------------
Authorized Signatory

SHENZHEN BIO-PORT CO., LTD.,
---------------------------
a Vendor herein,

Per:     /s/
-------------------------------------
Authorized Signatory

<PAGE>

                                       148

                                   Schedule A
                                   ----------

       This is Schedule "A" to that certain  Share  Purchase  Agreement  between
Sinovac  Biotech Ltd. and each of China Bioway Group Co.,  Ltd.,  Beijing Keding
Co., Ltd. and Shenzhen Bio-port Co., Ltd.

                              Purchased Securities
                              --------------------

       Authorized Capital                          250,000,000 common shares
       ------------------
       of Sinovac Biotech Co., Ltd:

       Issued Capital
       --------------
       of Sinovac Biotech Co., Ltd.:               133,600,000 common shares
       ----------------------------

       Vendor:
       ------
       China Bioway Biotech Group Co., Ltd.:        13,000,000 common shares.
       PKU Bio-city, Shangdi Xilu 39,
       Haidian District, Beijing, China

       Beijing Keding Co., Ltd.                      3,890,000 common shares
       PKU Bio-city, Shangdi Xilu 39,
       Haidian District, Beijing, China

       Shenzhen Bio-port Co., Ltd.                  10,580,000 common shares
       16F Times Stock Center,
       Shennan Street 4001, Fulian District,
       Shenzhen, China

                               End of Exhibit 10.9

                                   ----------149

                                  EXHIBIT 10.10
                                  -------------

           This is an Exhibit to the Form 20-F of Sinovac Biotech Ltd.
           -----------------------------------------------------------

                     Attached find the following materials:

   Cooperation Agreement on the Research and Development of Avian Flu Vaccine
   --------------------------------------------------------------------------
               for Human Use entered into between the Company and
               --------------------------------------------------
         the Center for Disease Control & Prevention of China, effective
         ---------------------------------------------------------------
                                December 15, 2004
                                -----------------

<PAGE>

                                       150

                                  (Translation)

              Cooperation Agreement on the research and development
                   of avian flu vaccine for human use between
                         Sinovac Biotech Co. Ltd and the
                Center for Disease Control & Prevention of China

              Article I: Purpose of cooperation and name of Project

The research and  development of avian flu vaccine for human use is an important
component of China's flu prevention and cure system.  Incorporating the research
and  development  of the vaccine  into the total  framework  of China's  disease
control and prevention will help increase the efficiency of its performance.  In
order to complement  each other with their own  resources,  and to  successfully
produce an avian flu vaccine for human use in the shortest possible time to meet
the state's needs in the prevention and cure of the flu, Sinovac Biotech Co. Ltd
(Sinovac)  and the Center for Disease  Control and  Prevention  of China  (CDC),
through friendly consultations,  have agreed to cooperate with each other in the
research and development of the avian flu vaccine for human use.

                       Article II: The Cooperating Parties

Sinovac  Biotech  Co.  Ltd  is a  Company  that  specializes  in  the  research,
development,  production  and sale of vaccines  for human use. Its mission is to
provide  vaccines for human beings to eliminate  diseases.  Since its inception,
the Company has successfully developed the hepatitis A vaccine inactivated;  the
combined  vaccine for hepatitis A and B; the flu splitting  vaccine and the SARS
vaccine inactivated, etc. It has rich experience in the research and development
of vaccines as well as a team of professional technicians.

The Center for Disease  Control and  Prevention of China is a Government  public
service agency  responsible for the  implementation  of national disease control
and  prevention,  as  well as the  management  of  public  health  services  and
technology.  Its  mission is to create a healthy  environment,  maintain  social
stability,  safeguard the security of the state and to promote the health of the
people  through  the  prevention  and  control  of  diseases,   deformities  and
impairments.  Its aim is to rely on scientific  research based on the ability of
its personnel, concentrating on disease control.

<PAGE>

                                       151

                   Article III. Research & Division of Duties

1.     CDC will monitor and assess all future flu information and will embark on
       sustained  study of molecular  epidemiology on prevalent virus strains to
       promptly identify the strains that may lead to the flu epidemic.

2.     CDC will guide the planning of the research and  development of the avian
       flu  vaccine  for  human use and will  participate  in its  research  and
       development and the design of its production technology.

3.     Sinovac will use its  established  research and production  technology in
       vaccines  for human use to research and develop the avian flu vaccine for
       human use, and will be  responsible  for the reporting and  production of
       the vaccine.

4.     CDC will  undertake the genome  analysis of virus strains and the antigen
       analysis,  and will monitor the effects of immunity protection during the
       course of the  research  and  development  of the  vaccine.  It will also
       provide technical  guidance and requirements in the areas of vaccine use,
       vaccine storage and assessment of the effects of the vaccine.

                      Article IV: International Cooperation

Under the unified  organization and guidance of CDC, this Project will seek wide
international  cooperation  and will  engage  in  exchanges  with  international
bodies.  Sinovac will be responsible  for  international  cooperation  regarding
technological property rights and the signing of relevant documents.

                         Article V: Form of Cooperation

Sinovac and CDC will jointly form a key task team for the Project. If necessary,
a  corresponding  organization  will be set up to complete  the  research of the
avian flu vaccine for human use and other related projects.

Sinovac  and  CDC  will  each  have  one  person  specially   assigned  for  the
organization and  implementation  of the Project.  The two Parties will exchange
technicians according to the needs of the research.  Each side will also provide
proper research environment in their respective laboratories.

<PAGE>

                                       152

                      Article VI: Funding for the Research

1.     Sinovac will be responsible  for funding the research and  development of
       the avian flu vaccine for human use,  including the introduction of virus
       strains;  patent application and the payment of fees; the examination and
       determination of vaccines and the costs of allocating research, etc.

2.     CDC will be responsible  for funding the study of avian flu  epidemiology
       among humans; molecular epidemiology and other related researches.

3.     The two Parties may jointly use this Project to apply for research  funds
       with the appropriate  Government  Departments,  to be used on the Project
       and other related purposes.

             Article VII: Ownership and sharing of technical results

1.     The two  Parties  agree that the  application  for new drug  certificate;
       production documents; patent and specialized technology for the avian flu
       vaccine for human use will be made in Sinovac's  name and will remain the
       properties of Sinovac.

2.     When the  products  of avian flu  vaccine  for  human use yield  economic
       benefits, Sinovac will provide funds gratis to CDC to support its work in
       the  investigation  of flu  epidemic  in China  and the  formulation  and
       implementation of prevention and cure planning.

3.     The two Parties will jointly  apply and  complete  all  applications  for
       awards with the state based on the results of the scientific  research of
       avian flu vaccine for human use. Any such award or honour will be jointly
       owned by both Parties.

4.     During the entire course of the two Parties  working  together to develop
       the avian flu  vaccine for human use,  the  publication  of any  relevant
       research results in domestic or foreign academic journals must first have
       the approval of both sides.  The  signature  for the results  shall be in
       accordance with the work performed and the amount of contribution by each
       Party.

                          Article VIII: Confidentiality

The two Parties  undertake  to maintain  strict  confidentiality  regarding  the
specialized  technology and related information for the research and manufacture
of the  vaccine.  Any  information  disclosed  to the  public,  including  news,
treatises, etc must be approved by both Parties.

<PAGE>

                                       153

(no text proper on this page)

Sinovac Biotech Co. Ltd (seal) [content of seal unclear]
Representative: Yin Weidong [signature]
Date: 2004.11.29

Center for Disease Control & Prevention of China (seal)
[Seal of Center for Disease Control & Prevention of China]
Representative: [Signature. Characters illegible.]
Date: 2004.12.15

--------------------------------------------------------------------------------
Translator's Declaration:
I, Miguel Tu, Certified Translator and Member in good standing of the Society of
Translators and Interpreters of British Columbia, attest that, to the best of my
knowledge and belief, the document above is a true and accurate English
translation of a document in the Chinese language that appears to be a
[Cooperation Agreement between Sinovac and CDC].

Signed:   /s/ Miguel Tu                                  Date: December 28, 2004
          ------------------------
              Miguel Tu
Certified Translator. STIBC Membership No. 04-10-0685    Tel: 604-728-6181
Attorney General Accredited & STIBC Certified Court Interpreter
Member of Canadian Translators, Terminologists & Interpreters Council

                              End of Exhibit 10.10

                                   ----------

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