Document:

SHENGKUI/KIWA
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                                    CONTRACT

CONTRACT NUMBER: SELLER/SHENGKUI051/08/2006/UREA DATED JULY 31 , 2006

THIS  AGREEMENT  CONTRACT IS FOR THE SALE AND  PURCHASE  OF PRILLED  UREA 46 % N
AGRICULTURAL GRADE

BETWEEN

          SELLER:
          SHENGKUI TECHONLOGIES, INC.
          POLY PLAZA, 14. DONGZHIMEN NANDAJIE, DONGCHENG DISTRICT,
          BEIJING, P.R.CHINA  100027
          CONTACT PERSON:  HONGJIE WU
             TEL: +86-10-65003334-576
             FAX:+86-10-65004484

(Hereinafter known as Seller)

AND

BUYER:
          KIWA BIO-TECH PRODUCTS GROUP LTD
          ROOM 4410, 44/F.,
          CHINA RESOURCES BUILDING
          NO. 26 HARBOUR ROAD, HONG KONG

          CONTACT PERSON:       WEI LI
          TEL:                  (852)2389 2367
          FAX:                  (852)2341 2909
          EMAIL:                WADEWEILI@KIWABIOTECH.COM

 (Hereinafter known as Buyer)

WHEREAS:  The Seller and Buyer each with full  corporate  authority,  certifies,
represents and warrants that each can fulfill the requirements of this agreement
and respectively  provide the products and the funds referred herein in time and
under the terms agreed to hereafter.

WHEREAS:  The Seller Hereby agrees and makes an irrevocable and firm contract to
deliver ONE MILLION TWO HUNDRED  THOUSAND  METRIC TONS  (1,200,000 MT +/- 5%) of
PRILLED  UREA 46 % N  AGRICULTURAL  GRADE Cost,  Insurance  and Freight (CIF FO)
INCOTERMS 2000.

WHEREAS:  The Buyer Hereby agrees and makes an irrevocable  and firm contract to
purchase ONE MILLION TWO HUNDRED  THOUSAND METRIC TONS (1,200,000 MT +/- 5%)x of
PRILLED  UREA 46 % N  AGRICULTURAL  GRADE Cost,  Insurance  and Freight (CIF FO)
INCOTERMS 2000.

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ADDENDA INTEGRAL TO THE CONTRACT:

         Addendum A: Banking Information
         Addendum B: Conditions of Payment
         Addendum C: Procedure

1.    PRODUCT:
      UREA 46 % N SHALL CONFORM TO THE FOLLOWING SPECIFICATIONS.

      SPECIFICATION:                      46% Prilled
      Quality:                            Standard Export Quality
      Nitrogen:                           46% By Weight minimum
      Moisture                            0.5% Max Fisher / 0.3% Max Dryer
      Biuret:                             1% Max By Weight
      Anti-Caking Agent:                  Treated Against Anti-Caking
      Free Ammonia:                       160 pkt, ppm max
                                          1-4mm 90%
      Granulation:                        Lesser than 2mm 1% Greater than 3mm 4%
      Melting Point:                      132 Degrees Celsius
      Color:                              Standard White or Pure White Prilled
      Free From:                          Harmful Substances
      Radiation:                          Free from Radioactivity
                                          100% Free Flowing

2.    ORIGIN:
      Ukraine / Russian  Federation / CIS or As  Specified By Seller;  SELLER TO
      NOTIFY  BUYER  THE  PORT  OF  ORIGIN  FOR  DOCUMENTARY  LETTER  OF  CREDIT
      DESIGNATION.

3.    DESTINATION / PRODUCT DISCHARGE:
            i.    Within  FIVE  (5)  days  of  Buyer  and  Seller   signing  the
                  Agreement,  the Buyer will  advise  the Seller in writing  the
                  particulars of the discharge port.
            ii.   Destination  shall be CIF  SUBIC BAY  PORT,  PHILIPPINES  (See
                  Article 26 Terms and Definitions)  subject to seller's receipt
                  of all  appropriate  permits,  permissions  and licenses.  The
                  basis of  delivery  for the  shipments  shall be  Twenty  Five
                  Thousand (25,000 MT).
            iii.  Delivery of first  shipment  shall be done  within  Forty-Five
                  days (45) days after receipt and  confirmation of an operative
                  financial  instrument  acceptable  to the seller and  complete
                  within the stated time.
            iv.   Minimum  discharge rate of 1,200 (Twelve  Hundred) metric tons
                  per WWD subject to discharge port off load capabilities.

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4.    PRODUCT DELIVERY:
            i.    The dates of Bill Of Lading  shall be  considered  the date(s)
                  delivery.
            ii.   The first  delivery  shall begin  within  forty five (45) days
                  after the receipt and  confirmation of an operative  financial
                  instrument acceptable to the seller.
            iii.  The Seller  reserves the right to deliver  earlier than agreed
                  in this contract  giving notice to all designated  parties and
                  with the approval of the buyer.
            iv.   The  whole  quantity  of  1,200,000  MT  (One  Million  twenty
                  Thousand Metric Tons) will be shipped in 25,000 MT
            v.    Total shipments shall be according to shipping  schedule to be
                  mutually  agreed by the  Seller  and  Buyer.  Shipments  to be
                  completed within a maximum of EIGHTEEN (18) months.
            vi.   Minimum  is subject to slight  and  reasonable  variations  in
                  schedules due to customary and usual exigencies.
            vii.  Consecutive  shipments  shall be  shipped  by  delivering  and
                  receiving  schedule  of buyer,  sent to the  seller  after the
                  first  shipment  has left the  port as  indicated  by the W.K.
                  WEBSTER & CO. LTD certificate.
            viii. INCOTERMS 2000 / CIF (SEE ARTICLE 30 TERMS AND DEFINITIONS).
            ix.   The buyer and seller agree that partial  shipments are allowed
                  and the buyer and  seller  agree that  transshipments  are not
                  allowed.

5.    CONTRACTED QUANTITY:
      ONE MILLION TWO HUNDRED  THOUSAND  METRIC TONS  (1,200,000  MT) of PRILLED
      UREA N 46%, with value tolerance 5%, to be shipped as per schedule.

      The total  quantity  delivered in this contract shall be determined by the
      certifications of the weight issued by the inspection authority and by the
      Bills of Lading of the shipment that was in effect delivered to the buyer.

6.    PRODUCT WEIGHT AND QUALITY:
      The  Seller  guarantees  that  each  shipment  of  prilled  UREA  46  %  N
      AGRICULTURAL  GRADE shall be provided  with an inspection  certificate  of
      weight and quality at the time of loading and such a certificate  shall be
      provided by W.K.  WEBSTER & CO., LTD. or similar  recognized  authority at
      the Buyer's expense. The Inspection Certificate issued is required for DLC
      negotiation.

7.    PACKING:
The  product is to be packed in net 50 kg (fifty  kilograms)  new  Polypropylene
Bags with  polyethylene  lining.  The bags have a  combined  tare of 100 gm (one
hundred  grams)  and are  sufficient  to ensure  the safe  arrival of product to
destination.
BAG MARKING - NEUTRAL  ENGLISH  MARK IN SEVEN LINES IN BLACK  COLOUR ON ONE SIDE
WITH " UREA"TO BE PRINTED IN DOUBLE SIZE OF THE OTHER LINE.
                                      UREA
                               46 PCT NITROGEN MIN
                                1 PCT BIURET MAX
                              0.5 PCT MOSITURE MAX
                                   50 KGS NETT
                                  USE NO HOOKS
                               MADE IN AUSTRALIA.

      Bags will be labeled in English  language  marking net  weight,  validity,
      product and country of origin or per Buyer's  instructions.  5% extra bags
      are supplied free of charge.

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8.    PRICE PER METRIC TON:
      ONE HUNDRED AND  THIRTY-FIVE  UNITED STATES DOLLARS (US$ 135/-) per METRIC
      TON CIF FO SUBIC BAY PORT, PHILIPPINES.

9.    CONTRACT AMOUNT:
      UNDER THE CONTRACT,  THE TOTAL VALUE OF CONTRACTED  QUANTITY OF DELIVERIES
      IS  ONE  HUNDRED  AND  SIXTY-TWO   MILLION   UNITED  STATES   DOLLARS  (US
      $162,000,000)  (+/-  5%),  AND  IS  NOT  INCLUSIVE  OF  ANY  EXTENSION  OF
      QUANTITIES.

10.   PAYMENT TERMS:
      1)    PAYMENT  OF EACH  ORDER  (25,000MT)  MAKE BY  DOCUMENTARY  LETTER OF
            CREDIT (DLC) AT SIGHT, IRREVOCABLE, TRANSFERABLE, AND CONFIRMED.
      2)    DLC IS FOR THREE MILLION THREE  HUNDRED  SEVENTY-FIVE  THOUSAND U.S.
            DOLLARS (US$3,375,000.00) +/- 5%.

      Before the payment  instrument is transferred  to the Sellers  Account the
      text of the  payment  instrument  must be  reviewed  and  approved  by the
      Seller.

      Upon approval, Seller shall issue Performance Bond and Proof of Product by
      SWIFT, to Buyer's bank.

Please refer to ADDENDUM C: CONDITIONS OF PAYMENT & PROCEDURE

CONTRACT PROCEDURES:

      TRANSACTION PROCEDURES

      After the Contract approved and signed by the Seller and the Buyer:

      A/
      The Buyer must open a Non - Operative  LC within ten (10)  working days to
      the Seller;

      B/
      The Seller must issue 2 % Performance Bond valued to USD67,500 by L/C with
      the POP (Proof of  Products - of which the format  must be approved by the
      Buyer)  within ten (5) working  days after their Bank  receives  the Non -
      operative LC from the Buyer;

      C/
      The LC will be activated by the 2 %  Performance  Bond and POP as per Item
      10 b/

      D/
      The delivery will be started to proceed.  Seller to nominate vessel within
      twelve (12) days of acceptance  of Buyer's DLC, the  notarized  Acceptance
      certificate of the vessel by the buyer is required for DLC negotiation.

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11.   ANTI-DUMPING CAUTION:
      The BUYER  incurs  the  complete  responsibility  for  observance  of anti
      dumping norms,  rules and procedures in the national market and markets of
      the further realization of subject of the present Contract, undertakes not
      to conclude transactions on these markets under prices, which are dumping,
      in accordance with  legislation of appropriate  country and  international
      rules;  and to be the only defendant to all possible  anti-dumping  claims
      and in payment of the duties,  taxes and other  expenses which are imposed
      on Goods under the present  Contract,  in accordance with anti dumping law
      of the country of import.

12.   ACCEPTANCE OF GOODS:
      Under  accompanying  documents  mentioned in the Clause 13 (below) of this
      Contract.

13.   PRODUCT DOCUMENTATION PER LIFT:
      1.    Three Originals And Three Copies - Signed Commercial Invoice.
      2.    Three  Originals  And Three  Copies - Clean On Board  Ocean  Bill Of
            Lading Made Out To The Order Of Issuing Bank Marked Freight  Prepaid
            And Notify The Applicant.
      3.    Three  Originals  And Three Copies - Packing List Showing  Gross And
            Net Weight And  Number Of Ocean Bill Of Lading In One  Original  And
            Three Copies -  Certificate  Of Origin Issued By Chamber Of Commerce
            of Country Of Origin.
      4.    One Original And Two Copies - Certificate  Of Wt And Quality  Issued
            By S.G.S.
      5.    One original Copy - Insurance  Policy / Certificate In Duplicate For
            110  Pct  Of  The  Draft,   Blank  Endorsed  Covering  Ocean  Marine
            Transportation  All Risks War Risks.  (1:00)  Charter  Party Bill of
            Lading acceptable. Third Party documents acceptable.
      6.    Other procedures,  certificates and  documentation  required for DLC
            negotiation.

14.   PRODUCT INSURANCE:
      Insurance  will be  covered  by the  seller at his cost and  expense  from
      warehouse or other to discharge  port covering All Risks for not less than
      110 percent of the invoice value according to buyer's instructions.

15.   DEMURRAGE:
      The  vessel's  Master is to advise the Buyer's  agent at port of discharge
      the vessel's name, date of arrival,  vessel capacity,  number of hatches /
      number  of cargo  chambers,  quantity  loaded  per cargo  chamber  and the
      particulars of the vessel's  readiness to effect cargo operations  through
      all hatches.

      The  vessel's  Master  shall  give  twenty  (20)  days and  seven (7) days
      provisional  notice and 72, 63 and 21 hours final  notice of the  vessel's
      estimated  time of arrival at port of  destination to the Buyer's agent at
      the port of  discharge.  Such  notices  shall be  effected  during  normal
      business hours and whether in berth or not.

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      Lay time shall  commence  from 1.00 PM if vessel  notices of  readiness to
      discharge  is given prior to noon and from 8.00 AM of the next working day
      if notice is given after noon. If the port is congested,  then lay time is
      to commence twenty-four (24) hours after notice of readiness is given. The
      Buyer is responsible for the product discharge.

      The  average  discharge  rate  shall be  1,500/mt  for  bagged  product or
      6,000/mt  for bulk  product per weather  working day of  twenty-four  (24)
      hours.  If the  port of  discharge  has a  lower  average  discharge,  the
      discharge  rate will be adjusted  according  to the port's  capacity.  The
      times  from 5.00 PM hours on  Saturday  to 08.00  hours on Monday and from
      17.00 hours on the day  proceeding to 08.00 AM hours on the day succeeding
      any holiday are excluded even if used.

      Should the vessel be  discharged  at the rate less than the  average,  the
      Buyer  shall pay to Seller  demurrage  at a rate  between  US $2,500  (Two
      Thousand Five Hundred  United States  Dollars and US$ 5,000 (Five Thousand
      United States  Dollars) per running day and prorated share for any portion
      of any running day.

      Should the vessel discharge at a rate greater than the average; the Seller
      shall pay to the Buyer a  compensation  for speedy  discharge at a rate of
      US$ 2,500 (Two  Thousand Five Hundred  United States  Dollars) per running
      day.

      It is agreed that demurrage be settled by the vessel's  Master and Buyer's
      shipping  agent  within  five (5)  days  from the  receipt  of the  vessel
      Master's Invoice.

      All taxes or levies  imposed  by the  country of  destination,  having any
      effect  on  this   Agreement   are  for  Buyer's   account  and  his  sole
      responsibility.  All taxes or levies and port dues  imposed by the country
      of  origin,  having  any  effect on this  Agreement  are for the  Seller's
      account and his sole responsibility.

      Should the vessel be required to shift from one berth for another  port of
      discharge,  then the time used shifting shall be for Buyer's  account.  In
      the event lighter age is required at the port of discharge,  said expenses
      are for the Buyer's account.

16.   IMPORT FACILITIES, DOCUMENTS, TAXES AND FEES:
      All taxes or levies imposed by the country of import  (destination) having
      effect  on  this  contract  are on the  buyer's  account  and  their  sole
      responsibility.  The Buyer must have all import permissions and permits in
      writing and a copy sent to the seller.

      Buyer bears the sole  responsibility of securing all permits,  licenses or
      any other documents required by the governments of the importing nation.

      Seller will bear no  responsibility to provide such  documentation.  Buyer
      will bear all costs  associated with securing such documents and will also
      bear all costs and  penalties  arising if such  documents are not secured.
      Under no  circumstances  shall the seller be held  liable  for  missing or
      improper documentation the buyer is required to provide. Shipping is based
      on INCOTERMS 2000.

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17.   FORCE MAJEURE:
      No party shall be liable for any  inability to comply with the  obligation
      inherent  in  this  Agreement,  whether  wholly  or in  part,  where  such
      inability is due, whether  directly or indirectly,  to - (i) Causes beyond
      their reasonable control;  (ii) Acts of God; (iii) Acts (including failure
      to act) of any  Government  Authority  (dejure  or de  facto);  (iv)  Wars
      (whether declared or undeclared); (v) Riots, Revolution, (vi) Fire, Flood,
      Sabotage,  Nuclear  Accident,  Earthquake,  Storm or  Epidemic ; and (vii)
      Where  banks are  closed by reason of  Industrial  Dispute  or  Government
      Intervention;  and any other  interruption of the Private Placement by the
      FED and OR Trader Group.

      In all other respects,  any legal definition of a circumstance promoting a
      claim for Force Majeure shall  consider  provisions of the clause,  "Force
      Majeure  Hardship" as contained in the  INTERNATIONAL  CHAMBER OF COMMERCE
      PUBLICATION  NO. 421,  which  model  reference  clause is deemed  included
      herein by said reference.

18.   DISPUTES AND ARBITRATION:
      All disputes and  disagreements,  which may arise in connection  with this
      contract,  shall be settled  through  friendly  negotiations  between  the
      parties.  Disputes  and  disagreements  that  cannot  be  settled  through
      friendly   negotiations   between   the   parties   shall  be  decided  in
      INTERNATIONAL  ARBITRATION  ASSOCIATION CHAMBERS,  NEW YORK by one or more
      arbitrators appointed in accordance with the said rules.

      In the event of any  controversy or dispute arising out of this Agreement,
      or any resulting  transaction,  the parties shall first attempt to achieve
      an adequate  settlement  among  themselves.  If such an attempt fails, the
      dispute or controversy arising out of or relating to this Agreement or its
      interpretation  shall be settled exclusively and finally by arbitration in
      INTERNATIONAL  ARBITRATION  ASSOCIATION CHAMBERS,  NEW YORK by one or more
      arbitrators appointed in accordance with the said rules.

      Any award rendered in any such  arbitration  proceeding shall be final and
      binding  on  each  of the  parties,  their  respective  heirs,  executors,
      administrators,   legal  representatives,   successors  and  assigns,  and
      judgment may be entered thereon in a Court of competent jurisdiction.

      The  arbitrator  shall award one hundred  percent (100%) of all attorney's
      fees and costs  incurred by the prevailing  party in any such  arbitration
      proceeding.  All attorney's  fees and costs shall be included in any award
      rendered in such arbitration proceeding by the arbitrator.

      A dispute is any unresolved  disagreement  between the parties relating to
      this  Agreement.  It includes any claim or  controversy  of any kind which
      arises  out of,  or is in any way  related  to,  this  Agreement.  It also
      includes  statutory,  common  law and  equitable  claims.  A dispute  also
      includes any disagreement  about the meaning of this Agreement and whether
      a disagreement is a "dispute"  subject to binding  arbitration as provided
      for in this Agreement.

19.   AUTHORITY TO EXECUTE THIS CONTRACT:
      The parties to this contract  declare that they have the full authority to
      execute this document and  accordingly  to be fully bound by the terms and
      conditions.

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20.   EXECUTION OF THIS CONTRACT:
      Each of the  parties to this  contract  represents  that it has full legal
      authority to execute  this  contract and that each party is to be bound by
      the  terms  and  conditions  contained  in  the  contract.  This  contract
      represents the entire agreement between the parties and any change will be
      made in writing, executed by both parties.

21.   GOVERNING LAW:
      This contract  shall be governed and  interpreted  in accordance  with the
      UNITED NATIONS  CONVENTION for the sale of goods (U.N Convention).  In the
      event of  inconsistency  between this  contract and the  provisions of the
      U.N.  Convention,  this  contract  shall have  priority for the purpose of
      Article 39 pf the U.N. Convention.  A reasonable period shall deemed to be
      5 days.  This contract  shall further be construed in accordance  with the
      courts  of  the  European  union,  which  shall  apply  to ICC  rules  and
      regulations.

22.   LANGUAGE USED:
      The English Language will be used. Grammatical mistakes, typing errors (if
      any) shall not be regarded as contradictions.

23.   ASSIGNMENT:
      1.    Any of the  sides is  allowed  to assign  the  contract  or  payment
            instrument in order to secure the performance of its obligations.
      2.    Any  assignee or legal  successor  to either  party shall assume all
            obligations and benefits of the contract
      3.    Assignment  is permitted  under mandate  issued & agreed  jointly by
            both the Seller & Buyer.

24.   NON-CIRCUMVENTION AND NON-DISCLOSURE:
            i.    The  parties  agree to abide  by the  customary  international
                  rules of non-circumvention  and non-disclosure for a period of
                  ten (10) years from the date of this  Agreement.  Neither  the
                  parties  nor any  entity  with which  they are  affiliated  or
                  entitled to receive compensation, will, in any manner, without
                  the  express  written  permission  of the other party who made
                  available  the  source(s),  disclose the  source(s) to anyone.
                  Further,  the parties  agree not to  circumvent,  by-pass,  or
                  obviate the other party or parties in any dealing,  present or
                  future,  with any persons or entities introduced by a party to
                  this Agreement.  In the event any profit is generated from any
                  such  prescribed  contact,  the offending  party hereby agrees
                  that the  aggrieved  parties  are  entitled to the full profit
                  participation as set forth by the terms of this Agreement.
            ii.   The  parties  agree  to  maintain   complete   confidentiality
                  regarding each other's affiliates,  clients, business sources,
                  contacts and sources,  and will not disclose to third persons,
                  the identity or, contacts,  contracts or agreement,  except as
                  may be required by applicable  statute,  regulation or process
                  of law.
            iii.  The parties hereto covenant, one with the other, that the text
                  of this Agreement will be maintained as  confidential  between
                  the  parties  hereto  and  agree  that  the  text  will not be
                  exhibited or demonstrated to any third-party,  save and except
                  to their respective  Corporate Officers,  and to those who, of
                  necessity, must be aware of the terms and conditions hereof in
                  order to cause  orderly  preparation  and  performance  of the
                  functions  representative  of the parties  roles as defined in
                  these presents.

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            iv.   It is further  expressly agreed and understood by the parties,
                  and their respective representatives,  that they shall, to the
                  best of their ability,  ensure and be responsible  for, strict
                  confidentiality  on the  part of their  employees,  relatives,
                  assigns,   associates  and  attorneys  with  respect  to  this
                  Agreement.
            v.    The parties  agree that  failure to  maintain  confidentiality
                  will be construed as a material breach of this Agreement.  Any
                  violation   of  the   Non-Disclosure   and   Non-Circumvention
                  provisions of this Agreement  shall survive the termination of
                  this Agreement  and/or  Contracts  arising from this Agreement
                  for a period of ten (10) years from the said termination date,
                  and the same will be  deemed to be a breach of this  Agreement
                  by such defaulting  party and will make the Party in violation
                  liable to punitive  and  compensatory  damages  actions in any
                  court of competent jurisdiction.

25.   CONTRACT TERM
      18 Months and Fifteen (15) days.  Includes the first thirty to  forty-five
      days where the shipment is being prepared.  This contract is extendable by
      another 6 months subject to reviewing the price.

26.   BINDING UPON SUCCESSORS
      This Agreement shall inure to the benefit and be binding upon the parties,
      their respective heirs, executors,  administrators, legal representatives,
      successors  and assigns,  shall extend to their  controlled  corporations,
      partnerships,  trusts,  proprietorships,  affiliates, agents, trustees, or
      executives until termination of this Agreement.

27.   ENTIRE AGREEMENT
      Except as otherwise provided herein, this Agreement  constitute the entire
      Agreement   between   the   parties,    and   all   prior    negotiations,
      representations,  or  Agreements  between  the  parties,  whether  oral or
      written,  are  merged  into this  Agreement.  This  Agreement  may only be
      amended,  supplemented, or changed and any provision hereof can be waived,
      only by a written  instrument making specific  reference to this Agreement
      signed by all parties hereto.

28.   LEGAL OPINION
      The  parties  hereto  acknowledge  that  each  has had  adequate  time and
      opportunity to consult with a counsel of their own choosing,  prior to the
      execution  of these  presents,  and  having  had  such  advice  as  deemed
      necessary,  or lack thereof by voluntary election,  each has executed this
      Agreement freely, and under no compulsion or coercion.

29.   COUNTERPARTS
      This  Agreement may be executed in one or more  counterparts  by hard copy
      signatures  and/or  signature  on facsimile  copies or by E-Mail,  each of
      which shall be deemed an original,  and said  counterparts  shall together
      constitute  but one and the same  Agreement,  binding  upon  the  parties,
      notwithstanding  that the parties are not signatory to the original or the
      same counterparts.  Legible,  machine-receipted facsimile copies of signed
      documents / documents  exchanged  by E-Mail shall be valid and accepted as
      original in the absence of demonstrated  forgery. All documents concerning
      this  Contract,  transferred  electronically,  if only  their  receipt  is
      confirmed by the receiving Party,  shall be considered as having the equal
      legal force with the originals of these documents.

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30.   TERMS AND DEFINITIONS
      ALTERNATE   CORPORATE  BANK  ACCOUNTS  -  Due  to  the  different  banking
      regulations  and  practices  around the  world,  banking  instruments  are
      accepted  by some  banks in some  countries  and not  accepted  in others.
      Depending on the financial  instrument  finally issued by the buyer to the
      seller,  it may be necessary  for the seller to use a bank other than that
      initially  designated by the seller to facilitate the  transaction.

      CIF - COST,  INSURANCE  AND FREIGHT - The delivery of goods and  insurance
      coverage to the named port of discharge at the sellers  expense.  Buyer is
      responsible  for the import  customs  and  clearance  and other  costs and
      risks.

      CONFIRMED  LETTER OF CREDIT - Letter Of Credit  where a  confirming  bank,
      usually located in the exporters country, has guaranteed payment under the
      letter of credit  assuming that all terms and  conditions of the letter of
      credit have been met. With a confirmed  letter of credit,  payment risk is
      assumed  by the  confirmed  bank  as  well as the  issuing  bank,  thereby
      providing more protection for the exporter.

      CONFIRMING  BANK - The bank at which,  at the request of the issuing bank,
      adds its confirmation to the letter of credit. In d0ing so, the confirming
      bank  undertakes  to make payment to the  exporter  upon  presentation  of
      documents  under the letter of credit assuming all terms and conditions of
      the letter of credit have been met.

      ICC (INTERNATIONAL CHAMBER OF COMMERCE)

      INCOTERMS  2000 - INCOTERMS are standard trade  definitions  most commonly
      used in sales contracts.

      NON-USA  SANCTIONED  PORT - Ports  and  countries  that the  United  Sates
      Government has not placed trade  restrictions  against for US Citizens and
      companies.  A list of the  countries  the US  Government  has placed trade
      restrictions     on    is    found    at    the     following     website:
      http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html.
      -------------------------------------------------------------

      "WEATHER WORKING DAY (WWD) OR "WEATHER WORKING DAY OF 24HOURS" OR "WEATHER
      WORKING  DAY OF 24  CONSECUTIVE  HOURS" - Shall  mean a working  day of 24
      consecutive hours except for anytime when the weather prevents the loading
      or  discharging  of the vessel or would have prevented it had work been in
      progress.

31.   PENALTY CLAUSE
      The  buyer is  subject  to a  penalty  clause  of USD  20,000 if the Non -
      operative  LC is not  opened  within 14 working  days  after the  contract
      signed by both the Seller and the Buyer.

      The Seller is subject to a penalty clause of USD 20,000 if the Performance
      Bond and POP are not  issued  within 10 working  days  after the  contract
      signed by both the Seller and the Buyer.

<PAGE>

SHENGKUI/KIWA
--------------------------------------------------------------------------------

32.   CONCLUSION
      WHEREAS: The Seller and the Buyer both irrevocably agree and confirm under
      penalty  of  perjury  to  strictly   adhere  to  this   CONTRACT   NUMBER:
      SELLER/POLYXXXX/08/2006/UREA entered into on Aug, XX, 2006 under the terms
      and conditions outlined and it is thus enforceable now on forth.

33.   ADDENDA
      The buyer and seller agree that the following addenda are an integral part
      of this  contract.  It's  verbiage  and contents in its entirety are fully
      valid and therefore enforceable.  In it's final version the addenda agreed
      and included are as follows:

      Addendum A: Banking Information
      Addendum B: Conditions of Payment
      Addendum C: Procedure

FOR AND ON BEHALF OF THE SELLER                FOR AND ON BEHALF OF THE BUYER:

SHENGKUI TECHNOLOGIES INC                      KIWA BIO-TECH PRODUCTS GROUP LTDEXHIBIT 10.1   2006 NON-QUALIFIED STOCK COMPENSATION PLAN

                   2006 NON-QUALIFIED STOCK COMPENSATION PLAN

1. Purpose of Plan

      1.1 This 2006 NON-QUALIFIED STOCK COMPENSATION PLAN (the "Plan") of
GeneThera, Inc. , a Florida corporation (the "Company") for employees,
directors, officers consultants, advisors and other persons associated with the
Company, is intended to advance the best interests of the Company by providing
those persons who have a substantial responsibility for its management and
growth with additional incentive and by increasing their proprietary interest in
the success of the Company, thereby encouraging them to maintain their
relationships with the Company. Further, the availability and offering of stock
options and common stock under the Plan supports and increases the Company's
ability to attract and retain individuals of exceptional talent upon whom, in
large measure, the sustained progress, growth and profitability of the Company
depends.

2. Definitions

      2.1 For Plan purposes, except where the context might clearly indicate
otherwise, the following terms shall have the meanings set forth below:

      "Board" shall mean the Board of Directors of the Company.

      "Committee" shall mean the Compensation Committee, or such other committee
appointed by the Board, which shall be designated by the Board to administer the
Plan, or the Board if no committees have been established. The Committee shall
be composed of one or more persons as from time to time are appointed to serve
by the Board. Each member of the Committee, while serving as such, shall be a
disinterested person with the meaning of Rule 16b-3 promulgated under the
Securities Exchange Act of 1934.

      "Common Shares" shall mean the Company's Common Shares, $.001 par value
per share, or, in the event that the outstanding Common Shares are hereafter
changed into or exchanged for different shares of securities of the Company,
such other shares or securities.

      "Company" shall mean GeneThera, Inc., a Florida corporation and any
subsidiary corporation of GeneThera, Inc., as such terms are defined in Florida
Business Corporation Act.

         "Fair Market Value" shall mean, with respect to the date a given stock
option is granted or exercised, the average of the highest and lowest reported
sales prices of the Common Shares, as reported by such responsible reporting
service as the Committee may select, or if there were not transactions in the
Common Shares on such day, then the last preceding day on which transactions
took place. The above withstanding, the Committee may determine the Fair Market
Value in such other manner as it may deem more equitable for Plan purposes or as
is required by applicable laws or regulations.

                                       1
<PAGE>

      "Optionee" shall mean an employee of the company who has been granted one
or more Stock Options under the Plan.

      "Common Stock" shall mean shares of common stock which are issued by the
Company pursuant to Section 5, below.

      "Common Stockholder" means the employee of, consultant to, or director of
the Company or other person to whom shares of Common Stock are issued pursuant
to this Plan.

      "Common Stock Agreement" means an agreement executed by a Common
Stockholder and the Company as contemplated by Section 5, below, which imposes
on the shares of Common Stock held by the Common Stockholder such restrictions
as the Board or Committee deem appropriate.

      "Stock Option" or "Non-Qualified Stock Option" or "NQSO" shall mean a
stock option granted pursuant to the terms of the Plan.

      "Stock Option Agreement" shall mean the agreement between the Company and
the Optionee under which the Optionee may purchase Common Shares hereunder.

3. Administration of the Plan

      3.1 The Committee shall administer the Plan and accordingly, it shall have
full power to grant Stock Options and Common Stock, construe and interpret the
Plan, establish rules and regulations and perform all other acts, including the
delegation of administrative responsibilities, it believes reasonable and
proper.

      3.2 The determination of those eligible to receive Stock Options and
Common Stock, and the amount, type and timing of each grant and the terms and
conditions of the respective stock option agreements and Common Stock Agreements
shall rest in the sole discretion of the Committee, subject to the provisions of
the Plan.

      3.3 The Committee may cancel any Stock Options awarded under the Plan if
an Optionee conducts himself in a manner which the Committee determines to be
inimical to the best interest of the Company, as set forth more fully in
paragraph 8 of Article 11 of the Plan.

      3.4 The Board, or the Committee, may correct any defect, supply any
omission or reconcile any inconsistency in the Plan, or in any granted Stock
Option, in the manner and to the extent it shall deem necessary to carry it into
effect.

      3.5 Any decision made, or action taken, by the Committee or the Board
arising out of or in connection with the interpretation and administration of
the Plan shall be final and conclusive.

                                       2
<PAGE>

      3.6 The Committee shall, in its discretion, have the power to issue Common
Shares to holders of non-qualified incentive stock option agreements which are
outstanding as of the date hereof, pursuant to the terms of those option
agreements.

      3.7 Meetings of the Committee shall be held at such times and places as
shall be determined by the Committee. A majority of the members of the Committee
shall constitute a quorum for the transaction of business, and the vote of a
majority of those members present at any meeting shall decide any question
brought before that meeting. In addition, the Committee may take any action
otherwise proper under the Plan by the affirmative vote, taken without a
meeting, of a majority of its members.

      3.8 No member of the Committee shall be liable for any act or omission of
any other member of the Committee or for any act or omission on his own part,
including, but not limited to, the exercise of any power or discretion given to
him under the Plan, except those resulting from his own gross negligence or
willful misconduct.

      3.9 The Company, through its management, shall supply full and timely
information to the Committee on all matters relating to the eligibility of
Optionees, their duties and performance, and current information on any
Optionee's death, retirement, disability or other termination of association
with the Company, and such other pertinent information as the Committee may
require. The Company shall furnish the Committee with such clerical and other
assistance as is necessary in the performance of its duties hereunder.

4. Shares Subject to the Plan

      4.1 The total number of shares of the Company available for grants of
Stock Options and Common Stock under the Plan shall be 12,000,000 Common Shares,
subject to adjustment in accordance with Article 7 of the Plan, which shares may
be either authorized but unissued or reacquired Common Shares of the Company.

      4.2 If a Stock Option or portion thereof shall expire or terminate for any
reason without having been exercised in full, the un-purchased shares covered by
such NQSO shall be available for future grants of Stock Options.

5. Award of Common Stock

      5.1 The Board or Committee from time to time, in its absolute discretion,
may (a) award Common Stock to employees of, consultants to, and directors of the
Company, and such other persons as the Board or Committee may select, and (b)
permit Holders of Options to exercise such Options prior to full vesting therein
and hold the Common Shares issued upon exercise of the Option as Common Stock.
In either such event, the owner of such Common Stock shall hold such stock
subject to such vesting schedule as the Board or Committee may impose or such
vesting schedule to which the Option was subject, as determined in the
discretion of the Board or Committee.

                                       3
<PAGE>

      5.2 Common Stock shall be issued only pursuant to a Common Stock or
Consulting Agreement, which shall be executed by the Common Stockholder and the
Company and which shall contain such terms and conditions as the Board or
Committee shall determine consistent with this Plan, including such restrictions
on transfer as are imposed by the Common Stock or Consulting Agreement.

      5.3 Upon delivery of the shares of Common Stock to the Common Stockholder,
below, the Common Stockholder shall have, unless otherwise provided by the Board
or Committee, all the rights of a stockholder with respect to said shares,
subject to the restrictions in the Common Stock or Consulting Agreement,
including the right to receive all dividends and other distributions paid or
made with respect to the Common Stock.

      5.4. Notwithstanding anything in this Plan or any Common Stock or
Consulting Agreement to the contrary, no Common Stockholders may sell or
otherwise transfer, whether or not for value, any of the Common Stock prior to
the date on which the Common Stockholder is vested therein.

      5.5 All shares of Common Stock issued under this Plan (including any
shares of Common Stock and other securities issued with respect to the shares of
Common Stock as a result of stock dividends, stock splits or similar changes in
the capital structure of the Company) shall be subject to such restrictions as
the Board or Committee shall provide, which restrictions may include, without
limitation, restrictions concerning voting rights, transferability of the Common
Stock and restrictions based on duration of employment with the Company, Company
performance and individual performance; provided that the Board or Committee
may, on such terms and conditions as it may determine to be appropriate, remove
any or all of such restrictions. Common Stock may not be sold or encumbered
until all applicable restrictions have terminated or expire. The restrictions,
if any, imposed by the Board or Committee or the Board under this Section 5 need
not be identical for all Common Stock and the imposition of any restrictions
with respect to any Common Stock shall not require the imposition of the same or
any other restrictions with respect to any other Common Stock.

      5.6 Each Common Stock or Consulting Agreement shall provide that the
Company shall have the right to either cancel or repurchase from the Common
Stockholder the unvested Common Stock upon a termination of employment,
termination of directorship or termination of a consultancy arrangement, as
applicable, at a cash price per share equal to the purchase price paid by the
Common Stockholder for such Common Stock.

      5.7 In the discretion of the Board or Committee, the Common Stock or
Consulting Agreement may provide that the Company shall have the a right of
first refusal with respect to the Common Stock and a right to repurchase the
vested Common Stock upon a termination of the Common Stockholder's employment
with the Company, the termination of the Common Stockholder's consulting
arrangement with the Company, the termination of the Common Stockholder's
service on the Company's Board, or such other events as the Board or Committee
may deem appropriate.

                                       4
<PAGE>

      5.8 The Board or Committee shall cause a legend or legends to be placed on
certificates representing shares of Common Stock that are subject to
restrictions under Common Stock or Consulting Agreements, which legend or
legends shall make appropriate reference to the applicable restrictions.

6. Stock Option Terms and Conditions

      6.1 Consistent with the Plan's purpose, Stock Options may be granted to
non-employee directors of the Company or other persons who are performing or who
have been engaged to perform services of special importance to the management,
operation or development of the Company.

      6.2 All Stock Options granted under the Plan shall be evidenced by
agreements which shall be subject to applicable provisions of the Plan, and such
other provisions as the Committee may adopt, including the provisions set forth
in paragraphs 2 through 10 of this Section 6.

      6.3 All Stock Options granted hereunder must be granted within ten years
from the earlier of the date of this Plan is adopted or approved by the
Company's shareholders.

      6.4 No Stock Option granted to any employee or 10% Shareholder shall be
exercisable after the expiration of ten years from the date such NQSO is
granted. The Committee, in its discretion, may provide that an Option shall be
exercisable during such ten year period or during any lesser period of time.

            The Committee may establish installment exercise terms for a Stock
Option such that the NQSO becomes fully exercisable in a series of cumulating
portions. If an Optionee shall not, in any given installment period, purchase
all the Common Shares which such Optionee is entitled to purchase within such
installment period, such Optionee's right to purchase any Common Shares not
purchased in such installment period shall continue until the expiration or
sooner termination of such NQSO. The Committee may also accelerate the exercise
of any NQSO. However, no NQSO, or any portion thereof, may be exercisable until
thirty (30) days following date of grant ("30-Day Holding Period.").

      6.5 A Stock Option, or portion thereof, shall be exercised by delivery of
(i) a written notice of exercise of the Company specifying the number of common
shares to be purchased, and (ii) payment of the full price of such Common
Shares, as fully set forth in paragraph 6 of this Section 6.

            No NQSO or installment thereof shall be exercisable except with
respect to whole shares, and fractional share interests shall be disregarded.
Not less than 100 Common Shares may be purchased at one time unless the number
purchased is the total number at the time available for purchase under the NQSO.
Until the Common Shares represented by an exercised NQSO are issued to an
Optionee, he shall have none of the rights of a shareholder.

      6.6 The exercise price of a Stock Option, or portion thereof, may be paid:

                                       5
<PAGE>

            A. In United States dollars, in cash or by cashier's check,
certified check, bank draft or money order, payable to the order of the Company
in an amount equal to the option price; or

            B. At the discretion of the Committee, through the delivery of fully
paid and nonassessable Common Shares, with an aggregate Fair Market Value on the
date the NQSO is exercised equal to the option price, provided such tendered
Shares have been owned by the Optionee for at least one year prior to such
exercise; or

            C. By a combination of both A and B above.

            The Committee shall determine acceptable methods for tendering
Common Shares as payment upon exercise of a Stock Option and may impose such
limitations and prohibitions on the use of Common Shares to exercise an NQSO as
it deems appropriate.

      6.7 With the Optionee's consent, the Committee may cancel any Stock Option
issued under this Plan and issue a new NQSO to such Optionee.

      6.8 Except by will or the laws of descent and distribution, no right or
interest in any Stock Option granted under the Plan shall be assignable or
transferable, and no right or interest of any Optionee shall be liable for, or
subject to, any lien, obligation or liability of the Optionee. Stock Options
shall be exercisable during the Optionee's lifetime only by the Optionee or the
duly appointed legal representative of an incompetent Optionee.

      6.9 If the Optionee shall die while associated with the Company or within
three months after termination of such association, the personal representative
or administrator of the Optionee's estate or the person(s) to whom an NQSO
granted hereunder shall have been validly transferred by such personal
representative or administrator pursuant to the Optionee's will or the laws of
descent and distribution, shall have the right to exercise the NQSO for one year
after the date of the Optionee's death, to the extent (i) such NQSO was
exercisable on the date of such termination of employment by death, and (ii)
such NQSO was not exercised, and (iii) the exercise period may not be extended
beyond the expiration of the term of the Option.

            No transfer of a Stock Option by the will of an Optionee or by the
laws of descent and distribution shall be effective to bind the Company unless
the Company shall have been furnished with written notice thereof and an
authenticated copy of the will and/or such other evidence as the Committee may
deem necessary to establish the validity of the transfer and the acceptance by
the transferee or transferee of the terms and conditions by such Stock Option.

            In the event of death following termination of the Optionee's
association with the Company while any portion of an NQSO remains exercisable,
the Committee, in its discretion, may provide for an extension of the exercise
period of up to one year after the Optionee's death but not beyond the
expiration of the term of the Stock Option.

                                       6
<PAGE>

      6.10 Any Optionee who disposes of Common Shares acquired on the exercise
of a NQSO by sale or exchange either (i) within two years after the date of the
grant of the NQSO under which the stock was acquired, or (ii) within one year
after the acquisition of such Shares, shall notify the Company of such
disposition and of the amount realized upon such disposition. The transfer of
Common Shares may also be Common by applicable provisions of the Securities Act
of 1933, as amended.

7. Adjustments or Changes in Capitalization

      7.1 In the event that the outstanding Common Shares of the Company are
hereafter changed into or exchanged for a different number or kind of shares or
other securities of the Company by reason of merger, consolidation, other
reorganization, recapitalization, reclassification, combination of shares, stock
split-up or stock dividend:

            A. Prompt, proportionate, equitable, lawful and adequate adjustment
shall be made of the aggregate number and kind of shares subject to Stock
Options which may be granted under the Plan, such that the Optionee shall have
the right to purchase such Common Shares as may be issued in exchange for the
Common Shares purchasable on exercise of the NQSO had such merger,
consolidation, other reorganization, recapitalization, reclassification,
combination of shares, stock split-up or stock dividend not taken place;

            B. Rights under unexercised Stock Options or portions thereof
granted prior to any such change, both as to the number or kind of shares and
the exercise price per share, shall be adjusted appropriately, provided that
such adjustments shall be made without change in the total exercise price
applicable to the unexercised portion of such NQSO's but by an adjustment in the
price for each share covered by such NQSO's; or

            C. Upon any dissolution or liquidation of the Company or any merger
or combination in which the Company is not a surviving corporation, each
outstanding Stock Option granted hereunder shall terminate, but the Optionee
shall have the right, immediately prior to such dissolution, liquidation, merger
or combination, to exercise his NQSO in whole or in part, to the extent that it
shall not have been exercised, without regard to any installment exercise
provisions in such NQSO.

      7.2 The foregoing adjustments and the manner of application of the
foregoing provisions shall be determined solely by the Committee, whose
determination as to what adjustments shall be made and the extent thereof, shall
be final, binding and conclusive. No fractional Shares shall be issued under the
Plan on account of any such adjustments.

8. Merger, Consolidation or Tender Offer

      8.1 If the Company shall be a party to a binding agreement to any merger,
consolidation or reorganization or sale of substantially all the assets of the
Company, each outstanding Stock Option shall pertain and apply to the securities
and/or property which a shareholder of the number of Common Shares of the
Company subject to the NQSO would be entitled to receive pursuant to such
merger, consolidation or reorganization or sale of assets.

                                       7
<PAGE>

      8.2 In the event that:

            A. Any person (other than the Company or a director or officer of
the Company) shall acquire more than 20% of the Common Shares of the Company
through a tender offer, exchange offer or otherwise;

            B. A change in the "control" of the Company occurs as such term is
defined in Rule 405 under the Securities Act of 1933;

            C. There shall be a sale of all or substantially all of the assets
of the Company;

any then outstanding Stock Option held by an Optionee, who is deemed by the
Committee to be a statutory officer ("Insider") for purposes of Section 16 of
the Securities Exchange Act of 1934 shall be entitled to receive, subject to any
action by the Committee revoking such an entitlement as provided for below, in
lieu of exercise of such Stock Option, to the extent that it is then
exercisable, a cash payment in an amount equal to the difference between the
aggregate exercise price of such NQSO, or portion thereof, and, (i) in the event
of an offer or similar event, the final offer price per share paid for Common
Shares, or such lower price as the Committee may determine to conform an option
to preserve its Stock Option status, times the number of Common Shares covered
by the NQSO or portion thereof, or (ii) in the case of an event covered by B or
C above, the aggregate Fair Market Value of the Common Shares covered by the
Stock Option, as determined by the Committee at such time.

      8.3 Any payment which the Company is required to make pursuant to
paragraph 8.2 of this Section 8 shall be made within 15 business days, following
the event which results in the Optionee's right to such payment. In the event of
a tender offer in which fewer than all the shares which are validly tendered in
compliance with such offer are purchased or exchanged, then only that portion of
the shares covered by an NQSO as results from multiplying such shares by a
fraction, the numerator of which is the number of Common Shares acquired
pursuant to the offer and the denominator of which is the number of Common
Shares tendered in compliance with such offer shall be used to determine the
payment thereupon. To the extent that all or any portion of a Stock Option shall
be affected by this provision, all or such portion of the NQSO shall be
terminated.

      8.4 Notwithstanding paragraphs 8.1 and 8.3 of this Section 8, the
Committee may, by unanimous vote and resolution, unilaterally revoke the
benefits of the above provisions; provided, however, that such vote is taken no
later than ten business days following public announcement of the intent of an
offer or the change of control, whichever occurs earlier.

                                       8
<PAGE>

9. Amendment and Termination of Plan

      9.1 The Board may at any time, and from time to time, suspend or terminate
the Plan in whole or in part or amend it from time to time in such respects as
the Board may deem appropriate and in the best interest of the Company.

      9.2 No amendment, suspension or termination of this Plan shall, without
the Optionee's consent, alter or impair any of the rights or obligations under
any Stock Option theretofore granted to him under the Plan.

      9.3 The Board may amend the Plan, subject to the limitations cited above,
in such manner as it deems necessary to permit the granting of Stock Options
meeting the requirements of future amendments or issued regulations, if any, to
the Code.

      9.4 No NQSO may be granted during any suspension of the Plan or after
termination of the Plan.

10. Government and Other Regulations

      10.1 The obligation of the Company to issue, transfer and deliver Common
Shares for Stock Options exercised under the Plan shall be subject to all
applicable laws, regulations, rules, orders and approval which shall then be in
effect and required by the relevant stock exchanges on which the Common Shares
are traded and by government entities as set forth below or as the Committee in
its sole discretion shall deem necessary or advisable. Specifically, in
connection with the Securities Act of 1933, as amended, upon exercise of any
Stock Option, the Company shall not be required to issue Common Shares unless
the Committee has received evidence satisfactory to it to the effect that the
Optionee will not transfer such shares except pursuant to a registration
statement in effect under such Act or unless an opinion of counsel satisfactory
to the Company has been received by the Company to the effect that such
registration is not required. Any determination in this connection by the
Committee shall be final, binding and conclusive. The Company may, but shall in
no event be obligated to, take any other affirmative action in order to cause
the exercise of a Stock Option or the issuance of Common Shares pursuant thereto
to comply with any law or regulation of any government authority.

11. Miscellaneous Provisions

      11.1 No person shall have any claim or right to be granted a Stock Option
or Common Stock under the Plan, and the grant of an NQSO or Common Stock under
the Plan shall not be construed as giving an Optionee or Common Stockholder the
right to be retained by the Company. Furthermore, the Company expressly reserves
the right at any time to terminate its relationship with an Optionee with or
without cause, free from any liability, or any claim under the Plan, except as
provided herein, in an option agreement, or in any agreement between the Company
and the Optionee.

      11.2 Any expenses of administering this Plan shall be borne by the
Company.

                                       9
<PAGE>

      11.3 The payment received from Optionee from the exercise of Stock Options
under the Plan shall be used for the general corporate purposes of the Company.

      t 6 0 11.4 The place of administration of the Plan shall be in the State
of Colorado, or such other place as determined from time to time by the Board,
and the validity, construction, interpretation, administration and effect of the
Plan and of its rules and regulations, and rights relating to the Plan, shall be
determined solely in accordance with the laws of the State of Florida.

      11.5 Without amending the Plan, grants may be made to persons who are
foreign nationals or employed outside the United States, or both, on such terms
and conditions, consistent with the Plan's purpose, different from those
specified in the Plan as may, in the judgment of the Committee, be necessary or
desirable to create equitable opportunities given differences in tax laws in
other countries.

      11.6 In addition to such other rights of indemnification as they may have
as members of the Board or the Committee, the members of the Committee shall be
indemnified by the Company against all costs and expenses reasonably incurred by
them in connection with any action, suit or proceeding to which they or any of
them may be party by reason of any action taken or failure to act under or in
connection with the Plan or any Stock Option granted thereunder, and against all
amounts paid by them in settlement thereof (provided such settlement is approved
by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except a
judgment based upon a finding of bad faith; provided that upon the institution
of any such action, suit or proceeding a Committee member shall, in writing,
give the Company notice thereof and an opportunity, at its own expense, to
handle and defend the same, with counsel acceptable to the Optionee, before such
Committee member undertakes to handle and defend it on his own behalf.

      11.7 Stock Options may be granted under this Plan from time to time, in
substitution for stock options held by employees of other corporations who are
about to become employees of the Company as the result of a merger or
consolidation of the employing corporation with the Company or the acquisition
by the Company of the assets of the employing corporation or the acquisition by
the Company of stock of the employing corporation as a result of which it
becomes a subsidiary of the Company. The terms and conditions of such substitute
stock options so granted may vary from the terms and conditions set forth in
this Plan to such extent as the Board of Directors of the Company at the time of
grant may deem appropriate to conform, in whole or in part, to the provisions of
the stock options in substitution for which they are granted, but no such
variations shall be such as to affect the status of any such substitute stock
options as a stock option under Section 422A of the Code.

      11.8 Notwithstanding anything to the contrary in the Plan, if the
Committee finds by a majority vote, after full consideration of the facts
presented on behalf of both the Company and the Optionee, that the Optionee has
been engaged in fraud, embezzlement, theft, insider trading in the Company's
stock, commission of a felony or proven dishonesty in the course of his
association with the Company or any subsidiary corporation which damaged the
Company or any subsidiary corporation, or for disclosing trade secrets of the
Company or any subsidiary corporation, the Optionee shall forfeit all
unexercised Stock Options and all exercised NQSO's under which the Company has
not yet delivered the certificates and which have been earlier granted to the
Optionee by the Committee. The decision of the Committee as to the cause of an
Optionee's discharge and the damage done to the Company shall be final. No
decision of the Committee, however, shall affect the finality of the discharge
of such Optionee by the Company or any subsidiary corporation in any manner.

                                       10
<PAGE>

12. Written Agreement

      12.1 Each Stock Option granted hereunder shall be embodied in a written
Stock Option Agreement which shall be subject to the terms and conditions
prescribed above and shall be signed by the Optionee and by the President or any
Vice President of the Company, for and in the name and on behalf of the Company.
Such Stock Option Agreement shall contain such other provisions as the
Committee, in its discretion shall deem advisable.

                                       11
<PAGE>

                                  ATTACHMENT A

                         FORM OF STOCK OPTION AGREEMENT

Number of Shares:_______________                       Date of Grant:___________

                  FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT

      AGREEMENT made this_________day of__________________200_, between (the
"Optionee"), and GeneThera, Inc. (the "Company").

      1. Grant of Option

      The Company, pursuant to the provisions of the Non-Qualified Stock
Compensation Plan (the "Plan"), adopted by the Board of Directors on July 31,
2006, the Company hereby grants to the Optionee, subject to the terms and
conditions set forth or incorporated herein, an option to purchase from the
Company all or any part of an aggregate of shares of its $.001 par value common
stock, as such common stock is now constituted, at the purchase price of $.__
per share. The provisions of the Plan governing the terms and conditions of the
Option granted hereby are incorporated in full herein by reference.

      2. Exercise

      The Option evidenced hereby shall be exercisable in whole or in part on or
after and on or before , provided that the cumulative number of shares of common
stock as to which this Option may be exercised (except in the event of death,
retirement, or permanent and total disability, as provided in paragraph 6.9 of
the Plan) shall not exceed the following amounts:

         Cumulative Number                  Prior to Date
             of Shares                    (Note Inclusive of)
             ---------                    -------------------

The Option evidenced hereby shall be exercisable by the delivery to and receipt
by the Company of (i) written notice of election to exercise, in the form set
forth in Attachment B hereto, specifying the number of shares to be purchased;
(ii) accompanied by payment of the full purchase price thereof in cash or
certified check payable to the order of the Company, or by fully paid and
nonassessable common stock of the Company properly endorsed over to the Company,
or by a combination thereof, and (iii) by return of this Stock Option Agreement
for endorsement of exercise by the Company on Schedule I hereof. In the event
fully paid and nonassessable common stock is submitted as whole or partial
payment for shares to be purchased hereunder, such common stock will be valued
at their Fair Market Value (as defined in the Plan) on the date such shares
received by the Company are applied to payment of the exercise price.

                                       12
<PAGE>

      3. Transferability

      The Option evidenced hereby is not assignable or transferable by the
Optionee other than by the Optionee's will or by the laws of descent and
distribution, as provided in paragraph 6.9 of the Plan. The Option shall be
exercisable only by the Optionee during his lifetime.

                                 GeneThera, Inc.

                                 By:
                                 Name:
                                 Title:
ATTEST:

--------------------------------
Secretary

      Optionee hereby acknowledges receipt of a copy of the Plan, attached
hereto and accepts this Option subject to each and every term and provision of
such Plan. Optionee hereby agrees to accept as binding, conclusive and final,
all decisions or interpretations of the Board of Directors administering the
Plan on any questions arising under such Plan. Optionee recognizes that if
Optionee's employment with the Company or any subsidiary thereof shall be
terminated without cause, or by the Optionee, prior to completion or
satisfactory performance by Optionee (except as otherwise provided in paragraph
6 of the Plan) all of the Optionee's rights hereunder shall thereupon terminate;
and that, pursuant to paragraph 6 of the Plan, this Option may not be exercised
while there is outstanding to Optionee any unexercised Stock Option granted to
Optionee before the date of grant of this Option.

Dated:_________
                                    --------------------------------------------
                                    Optionee

                                    --------------------------------------------
                                    Print Name

                                    --------------------------------------------
                                    Address

                                    --------------------------------------------
                                    Social Security No.

                                       13
<PAGE>

                                  ATTACHMENT B

                               NOTICE OF EXERCISE

To:      GeneThera, Inc.

      (1)______Tht 12 e undersigned hereby elects to purchase ________ shares of
Common Shares (the "Common Shares"), of GeneThera, Inc. pursuant to the terms of
the attached Non-Qualified Stock Option Agreement, and tenders herewith payment
of the exercise price in full, together with all applicable transfer taxes, if
any.

            (2)______Please issue a certificate or certificates representing
said shares of Common Shares in the name of the undersigned or in such other
name as is specified below:

                 -------------------------------
                 (Name)

                 -------------------------------
                 (Address)
                 -------------------------------

Dated:

                                                  ------------------------------
                                                  Signature

Optionee:_______________________        Date of Grant:__________________________

                                       14
<PAGE>

                                   SCHEDULE I

<TABLE>
<CAPTION>
======================= =========================== ================== =========================== =================
DATE                    SHARES PURCHASED            PAYMENT RECEIVED   UNEXERCISED                 ISSUING
                                                                       SHARES                      OFFICER
                                                                       REMAINING                   INITIALS
----------------------- --------------------------- ------------------ --------------------------- -----------------
<S>                                                                                                <C>

----------------------- --------------------------- ------------------ --------------------------- -----------------

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======================= =========================== ================== =========================== =================
</TABLE>

                                       15

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