Document:

Exhibit
      10.8

     

    ESCROW
      AGREEMENT

    

    This
      Escrow Agreement, (this Agreement) is made and entered into effective as of
      March 22, 2006, by and among Chinamerica Fund, L.P., a Texas limited partnership
      (Chinamerica), Sinosmart Group, Inc., a British Virgin Islands company
      (Sinosmart), and Gateway National Bank, N.A., a national banking association
      with offices in Dallas, Dallas County, Texas (the Bank). China-Biotics, Inc.,
      a
      Delaware corporation formerly known as Otish Resources, Inc. (the Company),
      is
      an intended beneficiary of this Agreement, and shall be entitled to enforce
      the
      provisions of this Agreement from and after the date of the consummation of
      the
      China-Biotics Exchange (defined below).

    

    BACKGROUND:

    

    Chinamerica
      and a group of five other qualified and accredited investors (the Investors)
      intend to subscribe for ordinary shares to be issued by Sinosmart (the Sinosmart
      Issuance). Immediately after the Sinosmart Issuance, all outstanding Sinosmart
      ordinary shares, including the shares issued to the Investors in the Sinosmart
      Issuance, shall be exchanged for 15,980,000 shares of common stock of the
      Company (the China-Biotics Exchange). Immediately after the Sinosmart Issuance
      and the China-Biotics Exchange, the Company intends to acquire 20,000,000 shares
      of its common stock held by Stan Ford, pursuant to an agreement between the
      Company and Mr. Ford (the Ford Acquisition). The Investors intend to pay an
      aggregate consideration of US$5,067,700 (the Share Consideration) for the
      Sinosmart ordinary shares in the Sinosmart Issuance, and to receive an aggregate
      of 1,870,000 shares of China Biotics common stock in the China-Biotics
      Exchange.

    

    Sinosmart
      desires to establish an escrow account in which a portion of the Share
      Consideration will be deposited and retained in escrow until the satisfaction
      of
      certain conditions to disbursement set out in this Agreement. The parties have
      requested the bank named above to act in the capacity of escrow agent under
      this
      Agreement, and such bank, subject to the terms and conditions hereof, has agreed
      so to do.

    

    AGREEMENTS

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and mutual covenants and agreements contained
      herein, the parties hereby agree as follows:

    

    1. Appointment
      of Escrow Agent.
      Chinamerica and Sinosmart hereby appoint the Bank as escrow agent under this
      Agreement (the Bank in such capacity is referred to in this Agreement as the
      Escrow Agent), and Escrow Agent hereby accepts such appointment.

    

    2. Establishment
      of Escrow Account. The
      parties shall establish an escrow account with the Escrow Agent which escrow
      account shall be styled "China-Biotics, Inc. Escrow Account" (the Escrow
      Account). 

    

    3. Escrow
      Period. The
      escrow period (the Escrow Period) shall begin on the date hereof and shall
      terminate upon the earlier to occur of the following (the Termination
      Date):

    

    (a) the
      first
      anniversary of this Agreement; 

    

    (b) the
      date,
      if any, on which both of Chinamerica and Sinosmart inform the Escrow Agent
      in
      writing that the Escrow Period shall be terminated; or 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    (c)
       the
      complete disbursement of the Deposits pursuant to the provisions of Paragraph
      5.

     

    4. Deposits.
      At the
      closing of the Sinosmart Issuance, Chinamerica shall cause an aggregate amount
      of $5,064,842 to be deposited in the Escrow Account. All monies deposited in
      the
      Escrow Account (as said amount may increase or decrease as a result of the
      investment and reinvestment thereof and as same amount may be reduced by charges
      thereto and payments and offsets therefrom to compensate or reimburse Escrow
      Agent for amounts owing to it pursuant to this Agreement) are hereinafter
      referred to as the "Deposits." Each of Chinamerica and Sinosmart hereby
      expressly acknowledges and agrees that neither the Company nor Sinosmart shall
      be entitled to receive any of the Deposits except as provided for in Paragraph
      5
      below and further agree that while any Deposits are held in the Escrow Account,
      such Deposits shall not be subject to the debts of the Company or
      Sinosmart.

    

    5. Disbursement
      of the Deposits.
      Deposits
      shall not be disbursed until such time as such amounts have been received by
      the
      Escrow Agent in "collected funds." For purposes of this Agreement, the term
      "collected funds" shall mean all funds received by the Escrow Agent which have
      cleared normal banking channels and are in the form of cash. 

    

    The
      Escrow Agent is hereby authorized to make disbursements from the Deposits,
      as
      follows:

    

    (a) Ford
      Acquisition.
      Upon
      receipt of a certificate (the Ford Certificate) in substantially the form set
      out on Exhibit A (which may be executed in counterparts), from each of
      Chinamerica and Sinosmart, certifying that the China-Biotics Exchange has
      occurred, the Escrow Agent shall disburse US$5,000 of the Deposits to Stan
      Ford
      pursuant to the wiring instructions set forth in the Ford
      Certificate.

    

    (b) Filing
      of SB-2.
      Upon
      receipt of a certificate (the SB-2 Certificate) in substantially the form set
      out on Exhibit B (which may be executed in counterparts), from each of
      Chinamerica and Sinosmart, certifying that (i) the China-Biotics Exchange and
      Ford Acquisition have occurred, and (ii) a registration statement on form SB-2
      (the Registration Statement) has been filed with the Securities and Exchange
      Commission covering all of the issued and outstanding Registrable Securities
      (as
      such term is defined in that certain Registration Rights Agreement dated as
      of
      March 22, 2006 among the Company and the persons listed on the signature pages
      thereto), the Escrow Agent shall disburse the Deposits in the following
      order:

    

    (1) US$4,222,143
      of the Deposits shall be wired to Sinosmart or the Company, pursuant to wiring
      instructions provided in the SB-2 Certificate.

    

    (2) US$87,699
      shall be disbursed to Chinamerica, pursuant to instructions provided in the
      SB-2
      Certificate.

    

    (3) At
      any
      time and from time to time upon receipt by the Escrow Agent of an additional
      certificate (the Marketing Certificate) in substantially the form set out on
      Exhibit D (which may be executed in counterparts), from each of Chinamerica
      and
      Sinosmart, the amount set forth therein shall be disbursed as set forth
      therein.

    

    (c) Non-Filing
      of SB-2; Exercise of Put Right.
      If the
      Escrow Agent has not received an SB-2 Certificate, upon receipt of a certificate
      (the Put Certificate) at any time on or after April 15, 2006 in substantially
      the form set out on Exhibit C from Chinamerica certifying that (i) the
      Registration Statement has not been filed with the Securities and Exchange
      Commission and (ii) the put rights pursuant to that certain Put Agreement dated
      as of the date hereof among Sinosmart, Chinamerica and the other parties listed
      therein have been exercised, the Escrow Agent shall disburse the Deposits as
      set
      forth in the Put Certificate.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (d) Into
      the
      registry of the Court in accordance with Section 10 or 16 hereof.

    

    (e) As
      permitted by this Agreement, to Escrow Agent.

    

    (f) In
      the
      event of the termination of the Escrow Period before all the Deposits have
      been
      dispersed, the balance of the Deposits will be disbursed to
      Sinosmart.

    

    6. Delivery
      of Certificates.
      

    

    (a) Sinosmart
      and Chinamerica agree that disbursements pursuant to Section 5(a)(3) are
      intended to reimburse, and pay for costs and expenses of, China-Biotics and
      Sinosmart related to an integrated investor and public relations campaign and
      the retention of an independent professional executive search firm to conduct
      an
      executive search and for other executive search costs of the Company and
      Sinosmart. Chinamerica agrees that, promptly after receiving a request from
      Sinosmart to execute and deliver a Marketing Certificate and reasonably
      satisfactory evidence relating to such costs and expenses, it will execute
      and
      deliver such Marketing Certificate to the Escrow Agent.

    

    (b) Chinamerica
      agrees that, promptly after receiving a request from Sinosmart to execute and
      deliver (i) an SB-2 Certificate and reasonably satisfactory evidence that the
      Registration Statement has been filed with the Securities and Exchange
      Commission, it will execute and deliver (or cause to be delivered) such SB-2
      Certificate to the Escrow Agent, and (ii) a Ford Certificate and reasonably
      satisfactory evidence that the China-Biotics Exchange has occurred, it will
      execute and deliver (or cause to be delivered) such Ford Certificate to the
      Escrow Agent.

    

    7. Tax
      Matters. Chinamerica
      and China-Biotics shall each provide the Escrow Agent with its taxpayer
      identification number documented by an appropriate Form W-8 or Form W-9 after
      execution of this Agreement. Failure so to provide such forms shall not
      invalidate this Agreement, but may prevent or delay disbursements from the
      Deposits and may also result in the assessment of a penalty and Escrow Agent
      being required to withhold tax on the Deposits. Any payments of income shall
      be
      subject to applicable withholding regulations then in force in the United States
      or any other jurisdiction, as applicable. If any part of the Deposits represents
      income earned on such Deposits during the Escrow Period that is taxable under
      United States tax laws, such income shall be allocated to the Company (or
      Sinosmart, upon notice by Sinosmart to Escrow Agent) for United States federal
      income tax purposes, and shall be accordingly reported by the Escrow
      Agent.

    

    8. Scope
      of Undertaking.
      Escrow
      Agent’s duties and responsibilities in connection with this Agreement shall be
      purely ministerial and shall be limited to those expressly set forth in this
      Agreement. Escrow Agent is not a principal, participant or beneficiary in any
      transaction underlying this Agreement and shall have no duty to inquire beyond
      the terms and provisions hereof. Escrow Agent shall have no responsibility
      or
      obligation of any kind in connection with this Agreement or the Deposits and
      shall not be required to disburse the Deposits or any part thereof or take
      any
      action with respect to any matters that might arise in connection therewith,
      other than to receive, hold, invest, reinvest and disburse the Deposits as
      herein provided. Without limiting the generality of the foregoing, it is hereby
      expressly agreed and stipulated by the parties hereto that Escrow Agent shall
      not be required to exercise any discretion hereunder and shall have no
      investment or management responsibility and, accordingly, shall have no duty
      to,
      or liability for its failure to, provide investment recommendations or
      investment advice. Escrow Agent shall not be liable for any error in judgment,
      any act or omission, any mistake of law or fact, or for anything it may do
      or
      refrain from doing in connection herewith, except for, subject to Section 11
      herein below, its own willful misconduct or gross negligence. It is the
      intention of the parties hereto that Escrow Agent shall never be required to
      use, advance or risk its own funds or otherwise incur financial liability in
      the
      performance of any of its duties or the exercise of any of its rights and powers
      hereunder.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    At
      the
      direction of the Company or Sinosmart, Escrow Agent may invest the Deposits
      in
      one or more of the following: (i) certificates of deposit issued by United
      States commercial banks having capital and surplus in excess of $500,000,000
      and
      having (or its parent having) one of the five highest debt ratings by any of
      Standard & Poor’s Corporation or Moody’s Investors Service; (ii)
      certificates of deposit not in excess of $100,000 issued by the Escrow Agent
      and
      its affiliated banks to the extent that the same are guaranteed by the Federal
      Deposit Insurance Corporation; (iii) obligations of the United States government
      or any agency thereof; and (iv) obligations guaranteed by the United States
      government. Escrow Agent shall not be liable to Sinosmart, the Company or
      Chinamerica for any claims related to the investments or management of the
      Escrow Funds, provided that the Escrow Agent complies with the provisions of
      this Agreement including the receipt of, action upon, and refusal to act upon,
      notices and certificates delivered to Escrow Agent by the other parties to
      this
      Agreement. 

    

    9. Reliance
      and Liability. Escrow
      Agent may rely on, and shall not be liable for acting or refraining from acting
      in accordance with, any written notice, consent, certificate, receipt,
      direction, authorization, instruction or request or other paper furnished to
      it
      hereunder by the other parties to this Agreement, or pursuant here to and
      believed by it to have been signed or presented by the proper party or parties.
      Escrow Agent shall be responsible for holding, investing, reinvesting and
      disbursing the Deposits pursuant to and subject to the terms and provision
      of
      this Agreement provided, however that in no event shall Escrow Agent be liable
      for any lost profits, lost savings or other special, exemplary, consequential
      or
      incidental damages whatsoever and provided, further, that Escrow Agent shall
      have no liability for any loss, damage, costs or expense arising from any case
      beyond its control, including, but not limited to, the following: (a) acts
      of
      God, or force majeure, including, without limitation, war (whether or not
      declared or existing), revolution, insurrection, riot, civil commotion,
      accident, fire, explosion, stoppage of labor, strikes and other differences
      with
      employees; (b) the act, failure or neglect of any other party or any agent
      or
      correspondent or any other person selected by Escrow Agent; (c) any delay,
      error, omission or default of any mail, courier, telegraph, cable or wireless
      agency or operator; or (d) the acts or edicts of any government or governmental
      agency or other group or entity exercising governmental powers. Escrow Agent
      is
      not responsible or liable in any manner whatsoever for the sufficiency,
      correctness, genuineness or validity of the subject matter or this Agreement
      or
      any part hereof or for the transaction or transactions requiring or underlying
      the execution of this Agreement, the form or execution hereof or for the
      identity or authority of any person executing this Agreement (other than Escrow
      Agent) or any part hereof or depositing the Deposits, or the genuineness of
      any
      signature of any party (other than Escrow Agent) to this Agreement, or any
      document or instrument executed or delivered pursuant to this Agreement,
      including, but not limited to, any of the certificates contemplated herein
      to be
      delivered.

    

    10. Right
      of Interpleader.
      Should
      any controversy arise involving the parties hereto or any of them or any other
      person, firm or entity with respect to this Agreement or the Deposits or should
      a substitute escrow agent fail to be designated as provided in Section 16
      hereof, or if Escrow Agent should be in doubt, or have any concern whatsoever,
      as to what action to take, Escrow Agent shall have the right, but not the
      obligation, either to (a) withhold delivery of the Deposits or the taking of
      any
      other action hereunder until the controversy is resolved, the conflicting
      demands are withdrawn or its doubt is resolved, in any event to the satisfaction
      of Escrow Agent, and Escrow Agent shall not in any event be or become liable
      for
      its refusal or failure to act; and/or (b) institute a petition for interpleader
      in any court of competent jurisdiction to determine the rights of the parties
      hereto. In the event Escrow Agent is party to any dispute, Escrow Agent shall
      have the additional right to refer such controversy to binding arbitration.
      Should a petition for interpleader be instituted, or should Escrow Agent be
      threatened with litigation or become involved in litigation or binding
      arbitration in any manner whatsoever in connection with this Agreement or the
      Deposits, each other party to this agreement agrees to reimburse Escrow Agent
      for its attorney’s fees and any and all other expenses, losses, costs and
      damages incurred by Escrow Agent in connection with or resulting from such
      threatened or actual litigation or arbitration prior to any disbursement of
      the
      Deposits hereunder or thereunder.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    11. Indemnification.
      Sinosmart and Chinamerica, each jointly and severally, hereby indemnify Escrow
      Agent, its officers, directors, employees, representatives and agents (each
      herein called an Indemnified Party) against, and agrees to hold each Indemnified
      Party harmless from any and all expenses, including, without limitation,
      attorney’s fees and court costs, losses, costs, damages and claims, including,
      but not limited to, costs of investigation, litigation and arbitration, tax
      liability and loss on investments suffered or incurred by any Indemnified Party
      in connection with or arising from or out of this Agreement, except such acts
      or
      omissions as may result from the willful misconduct or gross negligence of
      such
      Indemnified Party. IT IS THE EXPRESS INTENT OF SINOSMART AND CHINAMERICA TO
      INDEMNIFY EACH OF THE INDEMNIFIED PARTIES FOR, AND HOLD THEM HARMLESS AGAINST,
      THEIR OWN NEGLIGENT ACTS OR OMISSIONS WHICH DO NOT CONSTITUTE WILLFUL MISCONDUCT
      OR GROSS NEGLIGENCE.

    

    12. Compensation
      and Reimbursement of Expenses.
      Chinamerica hereby agrees to pay Escrow Agent for its service hereunder in
      connection with the preparation, establishment, operation, and administration
      of
      the Escrow Account, in accordance with the fee schedule of the Escrow Agent
      as
      in effect from time to time. Sinosmart and Chinamerica each hereby agrees to
      pay
      one-half of all other expenses incurred by Escrow Agent in connection with
      the
      performance of its duties and enforcement of its rights hereunder or other
      proceedings pursuant to this Agreement, but in any event shall be jointly and
      severally liable to Escrow Agent for such expenses, including, without
      limitation, attorneys fees, and costs of any litigation, arbitration,
      interpleader or similar proceeding. 

    

    13. Notices.
      Any
      notice or other communication required or permitted to be given under this
      Agreement shall be considered as properly given if in writing and (a) delivered
      against receipt therefor, (b) mailed by registered or certified mail, return
      receipt requested and postage prepaid or (c) sent by telefax machine, in
each
      case to
      the address or telefax number, as the case may be, set forth below:

    

    If
      to
      Escrow Agent:

    

    Gateway
      National Bank, N.A.

    12655
      North Central Expressway, Suite 100

    Dallas,
      Texas 75243

    Attn:
      Billie McGuire

    Telephone:
      (972) 931-3122

    Facsimile:
      (972) 931-3100

    

    If
      to
      Sinosmart:

    

    Sinosmart
      Group Inc.

    No.
      999
      Ningqiao Road

    Jinqiao
      Export Processing Zone

    Pudong,
      Shanghai 201206

    People’s
      Republic of China

    Attn:
      President

    Facsimile:
      86 21 5834 7713

    

    with
      copies (which shall not constitute notice) to:

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Preston
      Gates & Ellis LLP

    925
      Fourth Avenue, Suite 2900

    Seattle,
      Washington 98104

    Attn:
      Eric Simonson

    Telephone:
      (206) 623-7580

    Facsimile:
      (206) 623-7022

    

    Preston
      Gates & Ellis

    35/F,
      Two
      International Finance Centre

    8
      Finance
      Street

    Central,
      Hong Kong

    Attn:
      Mr.
      Clifford Ng / Ms. Felicia Law

    Telephone:
      (852) 2230 3540

    Fascimile:
      (852) 2511 9515

    

    If
      to
      Chinamerica:

    

    Chinamerica
      Fund, LP

    2909
      St.
      Andrews Drive

    Richardson,
      Texas 75082

    Attn:
      Mr.
      Beau Johnson

    Telephone:
      (972) 690-1177

    Facsimile:
      (972) 690-1306

    

    Except
      to
      the extent otherwise provided herein, delivery of any communication given in
      accordance herewith shall be effective only upon actual receipt thereof by
      the
      party or parties to whom such communication is directed. Any party to this
      Agreement may change the address to which communications hereunder are to be
      directed by giving written notice to the other party or parties hereto in the
      manner provided in this section.

    

    14. Consultation
      with Legal Counsel.
      Escrow
      Agent may consult with its counsel or other counsel satisfactory to it
      concerning any question relating to its duties or responsibilities hereunder
      or
      otherwise in connection herewith and shall not be liable for any action taken,
      suffered or omitted by it in good faith upon the advice of such
      counsel.

    

    15. Choice
      of Laws; Cumulative Rights. This
      Agreement shall be construed under and governed by, the laws of the State of
      Texas, excluding, however, (a) its choice of law rules and (b) the portions
      of
      the Texas Trust Code Sec. 111.001, et seq. of the Texas Property Code concerning
      fiduciary duties and liabilities of trustees. All of Escrow Agent’s rights
      hereunder are cumulative of any other rights it may have at law, in equity
      or
      otherwise. The parties hereto agree that the forum for resolution of any dispute
      arising under this Agreement shall be Dallas County, Texas, and each of the
      parties hereby consents, and submits itself, to the jurisdiction of any state
      or
      federal court sitting in Dallas County, Texas.

    

    16. Resignation.
      Escrow
      Agent may resign hereunder upon ten (10) days prior notice to Chinamerica and
      Sinosmart. Upon the effective date of such resignation, Escrow Agent shall
      deliver the Deposits to any substitute escrow agent designated jointly by
      Chinamerica and Sinosmart in writing. If Chinamerica and Sinosmart fail to
      jointly designate a substitute escrow agent within ten (10) days after the
      giving of such notice, Escrow Agent may institute a petition for interpleader.
      Escrow Agent’s sole responsibility after such 10-day period expires shall be to
      hold the Deposits (without any obligation to reinvest the same) and to deliver
      the same to a designated substitute escrow agent, if any, or in accordance
      with
      the directions of a final order or judgment of a court of competent
      jurisdiction, at which time of delivery Escrow Agent’s obligations hereunder
      shall cease and terminate.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    17. Assignment.
      This
      Agreement shall not be assigned by Chinamerica or Sinosmart without the prior
      written consent of Escrow Agent and such other party, and may be assigned by
      Escrow Agent only to a successor national banking association with the prior
      written consent of Chinamerica and Sinosmart (such assigns hereinafter referred
      to collectively as "Permitted Assigns").

    

    18. Severability.
      If one
      or more of the provisions hereof shall for any reason be held to be invalid,
      illegal or unenforceable in any respect under applicable law, such invalidity,
      illegality or unenforceability shall not affect any other provision hereof,
      and
      this Agreement shall be construed as if such invalid, illegal or unenforceable
      provision had never been contained herein, and the remaining provisions hereof
      shall be given full force and effect.

    

    19. Termination.
      This
      Agreement shall terminate upon the complete disbursement of the Deposits in
      accordance with Section 5 hereof; provided, however, that in the event all
      fees,
      expenses, costs or other amounts required to be paid to Escrow Agent hereunder
      are not fully and finally paid prior to termination, the provisions of Section
      12 hereof shall survive the termination hereof and, provided, further, that
      the
      provisions of Sections 9, 10 and 11 hereof shall, in any event, survive the
      termination hereof.

    

    20. General.
      The
      section headings contained in this Agreement are for reference purposes only
      and
      shall not affect in any way the meaning or interpretation of this Agreement.
      This Agreement and any affidavit, certificate, instrument, agreement or other
      document required to be provided hereunder may be executed in one or more
      counterparts, each of which shall be deemed an original, but all of which taken
      together shall constitute but one and the same instrument. Unless the context
      shall otherwise require, the singular shall include the plural and vice-versa,
      and each pronoun in any gender shall include all other genders. The terms and
      provisions of this Agreement constitute the entire agreement among the parties
      hereto in respect to the Escrow Account and the deposit of the Share
      Consideration. This Agreement or any provision hereof may be amended, modified,
      waived or terminated only by written instrument duly signed by the parties
      hereto. This Agreement shall inure to the benefit of and be binding upon, the
      parties hereto and their respective heirs, devises, executors, administrators,
      personal representatives, successors, trustees, receivers and Permitted Assigns.
      This Agreement is for the sole and exclusive benefit of the Company, Sinosmart,
      Chinamerica and the Escrow Agent, and nothing in this Agreement, express or
      implied, is intended to confer or shall be construed as conferring upon any
      other person any rights, remedies or any other type or types of
      benefits.

     

    [signature
      page follows]

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement to be effective as of the date first above
      written.

    
      	 	 	 
	 	
              Escrow
                Agent:

            
	 
 	 
 Gateway
              National Bank, N.A. 
 
	 	 	 
	 	By:  	/s/
              Billie McGuire
	 	
              
Name:
Billie
              Mc Guire
	 	Title: Escrow
              Agent

      
        	 	 	 
	 	
                Chinamerica:

              
	 
 	 
 Chinamerica
                Fund, L.P. 
	 	By:  	Chinamerica
                Partners, LP,
	 	
                Its
                  general partner,

                By:
                  Chinamerica Holdings, L.L.C.

                Its
                  general partner

              

      

    

     

    
      
        	 	 	 
	 	By:  	/s/
                Beau
                Johnson
	 	
                
Name: Mr.
                Beau Johnson
	 	Title: Manager

      

    

     

    
      
        
          	 	 Sinosmart Group
                  Inc.
	 	 	 
	 	 	 
	 	By:  	/s/s
                  Song Jin An
	 	
                  
Name: Song
                  Jin An
	 	Title: Director

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

     

    CERTIFICATE
      FOR DISBURSEMENT

    

    SB-2
      Certificate

    

    To:
      Gateway
      National Bank, N.A.

    12655
      North Central Expressway, Suite 100

    Dallas,
      Texas 75243

    Attn:
      Billie McGuire

    Telephone:
      (972) 931-3122

    Facsimile:
      (972) 931-3100

    

    We,
      the
      undersigned, hereby certify, pursuant to the terms of that certain Escrow
      Agreement dated March 22, 2006 among Chinamerica Fund, L.P., Sinosmart Group,
      Inc. and Gateway National Bank, N.A. (all capitalized but undefined terms in
      this certificate are as defined in such Escrow Agreement), as
      follows:

    

    1. We
      are
      authorized to make this certification on behalf of Sinosmart and Chinamerica,
      as
      applicable.

    

    2. We
      certify that (i) the China-Biotics Exchange and Ford Acquisition have occurred,
      and (ii) a registration statement on form SB-2 (the Registration Statement)
      has
      been filed with the Securities and Exchange Commission covering all of the
      issued and outstanding Registrable Securities (as such term is defined in that
      certain Registration Rights Agreement dated as of March 22, 2006 among the
      Company and the persons listed on the signature pages thereto), and we agree
      that the Escrow Agent shall disburse the Deposits as follows:

    

    (a) US$4,222,143
      of the Deposits shall be wired to the Sinosmart or the Company, pursuant to
      the
      following instructions:

    

    [Insert
      Sinosmart/Company bank account details for wiring instructions]

    

    (b) US$87,699
      shall be disbursed to Chinamerica, pursuant to the following
      instructions:

    

    [Insert
      Chinamerica bank account details for wiring instructions]

    

    
      	 SINOSMART
              GROUP INC.	 	 	 Chinamerica
              Fund, L.P.
	
               

               

              By:
                  

            	
               

               

               

              
                

              

              Name:
                SONG JINAN 

              Title:
                Director

            	 	 	 

              By:
                Chinamerica Partners, LP

                        
                Its General Partner 

                    
                By:
                Chinamerica Holdings, LLC 

                             
                Its General Partner

            

    

     

    
      
        	 	 	 
	 	By:  	 
	 	
                

                Name: 
                  Beau Johnson  

                Title: 
                  Manager   

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    CERTIFICATE
      FOR DISBURSEMENT

    

    Ford
      Certificate

    

    To:
      Gateway
      National Bank, N.A.

    12655
      North Central Expressway, Suite 100

    Dallas,
      Texas 75243

    Attn:
      Billie McGuire

    Telephone:
      (972) 931-3122

    Facsimile:
      (972) 931-3100

    

    We,
      the
      undersigned, hereby certify, pursuant to the terms of that certain Escrow
      Agreement dated March 22, 2006 among Chinamerica Fund, L.P., Sinosmart Group,
      Inc. and Gateway National Bank, N.A. (all capitalized but undefined terms in
      this certificate are as defined in such Escrow Agreement), as
      follows:

    

    1. We
      are
      authorized to make this certification on behalf of Sinosmart and Chinamerica,
      as
      applicable.

    

    2. We
      certify that the China-Biotics Exchange has occurred, and we agree that the
      Escrow Agent shall disburse US$5,000.00 from the Deposits as
      follows:

    

    [Insert
      Stan Ford bank account details for wiring instructions]

    
      

      
        	 SINOSMART
                GROUP INC.	 	 	 Chinamerica
                Fund, L.P.
	
                 

                 

                By:

              	
                 

                 

                 

                
                  

                

                Name:
                  SONG JINAN 

                Title:
                  Director

              	 	 	 

                By:
                  Chinamerica Partners, LP

                          
                  Its General Partner 

                      
                  By:
                  Chinamerica Holdings, LLC 

                               
                  Its General Partner

              

      

      

        	 	 	 
	 	By:  	 
	 	
                

                Name: 
                  Beau Johnson  

                Title: 
                  Manager   

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      C

    

    CERTIFICATE
      FOR DISBURSEMENT

    

    Put
      Certificate

    

    To:
      Gateway
      National Bank, N.A.

    12655
      North Central Expressway, Suite 100

    Dallas,
      Texas 75243

    Attn:
      Billie McGuire

    Telephone:
      (972) 931-3122

    Facsimile:
      (972) 931-3100

    

    We,
      the
      undersigned, hereby certify, pursuant to the terms of that certain Escrow
      Agreement dated March 22, 2006 among Chinamerica Fund, L.P., Sinosmart Group,
      Inc. and Gateway National Bank, N.A. (all capitalized but undefined terms in
      this certificate are as defined in such Escrow Agreement), as
      follows:

    

    1. I
      am
      authorized to make this certification on behalf of Chinamerica.

    

    2. I
      certify
      that (i) a registration statement on form SB-2 (the Registration Statement)
      covering all of the issued and outstanding Registrable Securities (as such
      term
      is defined in that certain Registration Rights Agreement dated as of March
      22,
      2006 among the Company and the persons listed on the signature pages thereto)
      has not been filed with the Securities and Exchange Commission and (ii) the
      put
      rights pursuant to that certain Put Agreement dated as of the date hereof among
      Sinosmart, Chinamerica and the other parties listed therein have been exercised,
      and direct the Escrow Agent to disburse amounts from the Deposits as
      follows:

    

    [insert
      amount to be disbursed and wiring instructions]

    

    3. I
      certify
      that (a) Chinamerica has authorized and directed that any certificates in the
      possession of Preston Gates & Ellis LLP relating to the shares of common
      stock subject to the put right be released to the Company and (b) any other
      certificates relating to the such shares not so held by Preston Gates &
Ellis LLP have been delivered to the Company.

    

    
      

      
        	 	 	 	 Chinamerica
                Fund, L.P.
	
                 

                 

                 

              	
                 

                 

                 

                 

                 

              	 	 	 

                By:
                  Chinamerica Partners, LP

                          
                  Its General Partner 

                      
                  By:
                  Chinamerica Holdings, LLC 

                               
                  Its General Partner

              

      

      

        	 	 	 
	 	By:  	 
	 	
                

                Name: 
                  Beau Johnson  

                Title: 
                  Manager   

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      D

    CERTIFICATE
      FOR DISBURSEMENT

    

    Marketing
      Certificate

    

    To:
      Gateway
      National Bank, N.A.

    12655
      North Central Expressway, Suite 100

    Dallas,
      Texas 75243

    Attn:
      Billie McGuire

    Telephone:
      (972) 931-3122

    Facsimile:
      (972) 931-3100

    

    We,
      the
      undersigned, hereby certify, pursuant to the terms of that certain Escrow
      Agreement dated March 22, 2006 among Chinamerica Fund, L.P., Sinosmart Group,
      Inc. and Gateway National Bank, N.A. (all capitalized but undefined terms in
      this certificate are as defined in such Escrow Agreement), as
      follows:

    

    1. We
      are
      authorized to make this certification on behalf of Sinosmart and Chinamerica,
      as
      applicable.

    

    2. We
      certify that pursuant to Section 5(a)(3) of the Escrow Agreement, Sinosmart
      is
      entitled to the disbursements below from the escrow account in connection with
      an integrated investor and public relations campaign and/or the retention of
      an
      independent professional executive search firm to conduct an executive search
      and for other executive search costs of the Company and Sinosmart, and we agree
      that the Escrow Agent shall disburse amounts from the Deposits as
      follows:

    

    [insert
      amount of disbursement(s) and wiring instructions]

     

    
      

      
        	 SINOSMART
                GROUP INC.	 	 	 Chinamerica
                Fund, L.P.
	
                 

                 

                By:

              	
                 

                 

                 

                
                  

                

                Name:
                  SONG JINAN 

                Title:
                  Director

              	 	 	 

                By:
                  Chinamerica Partners, LP

                          
                  Its General Partner 

                      
                  By:
                  Chinamerica Holdings, LLC 

                               
                  Its General Partner

              

      

      

      
        	 	 	 
	 	By:  	 
	 	
                

                Name: 
                  Beau Johnson  

                Title: 
                  ManagerExhibit
      10.10

    
 

    For
      reference only. In case there is any discrepancy in the contents between the
      English and the Chinese versions, the Chinese version shall
      prevail.

    

    Loan
      Agreement

    

    This
      loan
      agreement (hereinafter referred to as “this Agreement”) entered into by the
      parties on 22 September 2005

    

    
      	
              (1)

            	
              Lender:
                

            	
              SONG
                Jinan (“Lender One”)

            
	 	
              Nationality:

            	
              People’s
                Republic of China (“China”)

            
	 	
              Identity
                Card No.:

            	
              230102196207080414

            
	 	
              Address:

            	
              Room
                1101, No. 1, Lane 1189 Jingqiao Road, Pudong, Shanghai

            
	 	 	 
	 	
              Lender:

            	
              YAN
                Li (“Lender Two”)

            
	 	
              Nationality:

            	
              Chinese

            
	 	
              Identity
                Card No.:

            	
              230103195908211343

            
	 	
              Address:

            	
              Room
                1101, No. 1, Lane 1189 Jingqiao Road, Pudong, Shanghai

            
	 	 	 
	 	
              Lender:

            	
              HUANG
                Weida (“Lender Three”)

            
	 	
              Nationality:

            	
              Chinese

            
	 	
              Identity
                Card No.:

            	
              310110620916681

            
	 	
              Address:

            	
              Fudan
                University Staff No. 8, No. 220 Handan Road, Shanghai

            
	 	 	 
	 	
              Lender:

            	
              YAN
                Yihong (“Lender Four”)

            
	 	
              Nationality:

            	
              Chinese

            
	 	
              Identity
                Card No.:

            	
              410102630529302

            
	 	
              Address:

            	
              No.
                2, Building No. 18, No. 223 Fu Niu Road, Zhong Yuan District, Zheng
                Zhou

            
	 	 	 
	 	
              (Lender
                One, Lender Two, Lender Three and Lender Four shall be collectively
                referred to as the “Lenders”)

            
	 	 	 
	
              (2)

            	
              Shanghai
                Shining Biotechnology Company Limited (“Borrower”), a company established
                under the laws of China with its address at: No. 999 Ningqiao Road,
                Jinqiao Export Processing Zone, Pudong,
                Shanghai

            

    

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
          For
            reference only. In case there is any discrepancy in the contents between
            the
            English and the Chinese versions, the Chinese version shall
            prevail.

        

      

    

     

    The
      Lenders and the Borrower shall be referred to as a “Party” and collectively, the
“Parties”.

    

    WHEREAS:

     

    
      	A.  	
              The
                Lenders are the former shareholders of the Borrower. The Lenders
                entered
                into an equity interest transfer agreement with Sinosmart Group Inc.
                (“Sinosmart”) on 11 August 2005 (“Share Transfer Agreement”). Pursuant to
                the Share Transfer Agreement, the Lenders and Shanghai Sheng Yuan
                Real
                Estate Company Limited agreed to sell their entire equity interests
                in the
                Borrower to Sinosmart, the consideration for the transfer of equity
                interests is RMB18,351,200 (“Share
                Consideration”).

            

    

    

    
      	B.  	
              Sinosmart
                and Charming Leader Group Limited (“Subscriber”) entered into a
                subscription agreement relating to the issue of convertible bonds
                by
                Sinosmart on 22 September 2005 (“CB Subscription Agreement”), the
                subscription price for the convertible bonds to be utilized to pay
                for the
                Share Consideration. As a condition to completion of the CB Subscription
                Agreement, the Lenders and the Borrower shall enter into this Agreement
                and agree that the Lender shall lend an amount equivalent to the
                Share
                Consideration to the Borrower.

            

    

    

    NOW
      THEREFORE
      the
      Parties hereto agree as follows:

    

    
      	1.  	
              Loan
                

            

    

    

    
      	1.1  	
              The
                Lenders hereby agree to lend and the Borrower agree to borrow an
                amount of
                RMB18,351,200 (the “Loan”) pursuant to the terms and conditions of this
                Agreement. Each Lender shall be responsible to advance the Loan based
                on
                the table as set out in Schedule One
                hereto.

            

    

    

    
      	1.2  	
              The
                Lenders agree that upon the satisfaction of the conditions set out
                in
                Clause 2 hereto, and upon receipt of an one-off drawdown notice in
                writing
                from the Borrower at any point in time, remit the full balance of
                the Loan
                to an account designated by the Borrower. The Borrower shall issue
                a
                receipt to the Lenders on the same day as the date of receipt of
                the
                Loan.

            

    

    

    
      	1.3  	
              The
                Borrower agrees to accept the Loan granted by the Lenders, and hereby
                agree and warrants that the Loan shall be utilised to finance the
                normal
                daily operations of the Borrower. Unless otherwise agreed by the
                Lenders
                in writing, the Borrower shall not utilise the Loan for any other
                purposes.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
          For
            reference only. In case there is any discrepancy in the contents between
            the
            English and the Chinese versions, the Chinese version shall
            prevail.

        

      

       

    

    
      	1.4  	
              The
                Lender and the Borrower agree and confirm that the Loan shall be
                repaid as
                follows:

            

    

    

    Repayment
      Date: one year from the actual drawdown date of the Loan, repayable in cash
      on
      the due date.

    

    
      	1.5  	
              Interest
                on the Loan: the Lenders agree that the Loan shall be
                interest-free.

            

    

    

    
      	2.  	
              Conditions
                precedent to the grant of
                Loan

            

    

    

    The
      Lenders’ obligation pursuant to Clause 1.1 of this Agreement to grant the Loan
      is conditional upon the satisfaction of the following conditions or when such
      conditions were waived by the Lenders in writing.

    

    
      	2.1  	
              Sinosmart
                shall pay the Share Consideration to the
                Lenders.

            

    

    

    
      	2.2  	
              The
                Lenders’ receipt of the drawdown notice duly executed by the Borrower and
                in accordance with Clause 1.2
                above.

            

    

    

    
      	2.3  	
              The
                representations and warranties of the Borrower as stated in Clause
                3.2 are
                true, complete, accurate and not misleading and such representations
                and
                warranties shall remain to be true, complete, accurate and not misleading
                as at the date of the drawdown notice and the drawdown
                date.

            

    

    

    
      	2.4  	
              The
                Borrower shall not breach any undertakings as stated in Clause 4
                and that
                nothing has occurred or will occur in the foreseeable future which
                would
                affect the Borrower’s ability to comply with the terms and conditions of
                this Agreement.

            

    

    

    
      	3.  	
              Representations
                and warranties

            

    

    

    
      	3.1  	
              During
                the period from the date of this Agreement and the termination of
                this
                Agreement, the Borrower represents and warrants
                that:

            

    

    

    
      	(a)  	
              the
                Borrower is an enterprise duly established and validly existed under
                the
                laws of China;

            

    

     

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
            For
              reference only. In case there is any discrepancy in the contents between
              the
              English and the Chinese versions, the Chinese version shall
              prevail.

          

        

         

      

    

    
      	(b)  	
              the
                Borrower has the power to execute this Agreement and to comply with
                the
                terms of this Agreement. The Borrower has not acted outside of its
                business scope or violate its articles of association or the terms
                of
                other constitutional documents by signing this Agreement and fulfilling
                its obligations under this Agreement. The borrower have obtained
                all the
                necessary approvals and authorizations to sign this Agreement and
                to
                fulfill its obligations under this
                Agreement;

            

    

    

    
      	(c)  	
              the
                Borrower’s signing of this Agreement and fulfilling its obligations under
                this Agreement has not violate any applicable laws and regulations
                or any
                government approvals, authorizations, notices or other documents
                issued by
                the government, and have not breached any agreement entered into
                with
                third parties and have not breached any of its undertakings made
                in favour
                of any third parties; and

            

    

    

    
      	(d)  	
              this
                Agreement, when executed by the Borrower, shall be legally binding
                and
                enforceable.

            

    

    

    
      	3.2  	
              During
                the period from the date of this Agreement and the termination of
                this
                Agreement, the Lenders represent and warrant
                that:

            

    

    

    
      	(a)  	
              each
                Lender is a Chinese citizen and have the necessary civil capacity
                and
                powers or is an enterprise duly established and validly existed under
                the
                laws of China;

            

    

    

    
      	(b)  	
              the
                Lenders’ signing of this Agreement and fulfilling their respective
                obligations under this Agreement have not violate any applicable
                laws and
                regulations or any government approvals, authorizations, notices
                or other
                documents issued by the government, and have not breached any agreement
                entered into with third parties and have not breached any of their
                respective undertakings made in favour of any third
                parties;

            

    

    

    
      	(c)  	
              this
                Agreement, when executed by the Lenders, shall be legally binding
                and
                enforceable; and

            

    

    

    
      	(d)  	
              the
                Lenders are not subject to any disputes, claims, arbitrations,
                administrative procedures or any other legal proceedings and are
                not
                involved in any potential disputes, claims, arbitrations, administrative
                procedures or any other legal proceedings that relates to the
                Borrower.

            

    

    
      

      
        
          
          

        

        
          4

          
            

          

        

        
          
            For
              reference only. In case there is any discrepancy in the contents between
              the
              English and the Chinese versions, the Chinese version shall
              prevail.

          

        

         

      

    

    
      	4.  	
              The
                Borrower’s undertakings

            

    

    

    The
      Borrower undertakes that during the term of this Agreement:

     

    
      	(a)  	
              it
                will not supplement, amend or alter its articles of association,
                increase
                or reduce its registered capital, or alter its shareholding structure
                in
                any way, without the prior written consent of the
                Lenders;

            

    

    

    
      	(b)  	
              it
                will adopt good financial and business standards commonly accepted
                by the
                industry and maintains the existence of the enterprise and operates
                its
                business in a conservative and effective
                manner;

            

    

    

    
      	(c)  	
              commencing
                from the date of this Agreement, it will not sell, transfer, pledge
                or
                otherwise deal with or create any charge over the legal or beneficial
                interests of its assets, business or income without the prior written
                consent of the Lenders;

            

    

    

    
      	(d)  	
              it
                will not incur, inherit, guarantee or allow the create any liabilities,
                excluding (i) any liabilities that are incurred in its normal and
                ordinary
                course of business that are not created through a loan transaction
                or (ii)
                any liabilities which have already been disclosed and acknowledged
                by the
                Borrower;

            

    

    

    
      	(e)  	
              it
                will continue to operate its business and maintain its asset
                value;

            

    

    

    
      	(f)  	
              it
                will not grant any loan or credit to any other person without the
                prior
                written consent of the Lenders;

            

    

    

    
      	(g)  	
              it
                will, upon the request of the Lenders, provide all business and financial
                information of the Borrower;

            

    

    

    
      	(h)  	
              it
                will not merge or amalgamate with any parties or acquire any parties
                or
                invest in any parties without the prior written consent of the Lenders;
                

            

    

    

    
      	(i)  	
              it
                will notify the Lenders immediately of any existing or potential
                claims,
                arbitrations or any administrative procedures against its assets,
                business
                or income.

            

    

    
      

      
        
          
          

        

        
          5

          
            

          

        

        
          
            For
              reference only. In case there is any discrepancy in the contents between
              the
              English and the Chinese versions, the Chinese version shall
              prevail.

          

        

         

      

    
      	5.  	
              Confidentiality

            

    

    

    Each
      of
      the Parties hereto acknowledges and confirms that any oral or written
      information regarding this Agreement are confidential information. Each Parties
      shall keep all such information confidential and shall not disclose or divulge
      such information to any third parties without the other Party’s written consent,
      except where (a) such information have already been or is about to be made
      public (but not as a result of the disclosure by the Party who receives such
      information to the public); (b) such information are required to be disclosed
      pursuant to any rules or regulations of the stock exchange or any application
      laws; or (c) such disclosure of information was made by a Party to its legal
      or
      financial advisors for the transactions contemplated herein provided that such
      legal or financial advisors have agreed to comply with this clause. Any breach
      of this confidentiality clause by an employee or contractor engaged by a Party
      shall be deemed to be a breach by such Party and such Party shall be responsible
      for such breach. This Clause shall survive termination of this Agreement for
      any
      reason whatsoever.

    

    
      	6.  	
              Applicable
                laws and dispute
                resolution

            

    

    

    
      	6.1  	
              The
                entering into, the enforceability, the interpretation, the implementation,
                the alteration, the termination and the method of dispute resolution
                of
                this Agreement shall be in accordance with the laws of
                China.

            

    

    

    
      	6.2  	
              Any
                disputes arose from the interpretation or implementation of this
                Agreement
                shall be settled upon friendly negotiations between the Parties.
                If any
                disputes remain to be unsettled after 30 days from the date of which
                a
                Party issued a notice to the other Party requesting to commence
                negotiations to resolve such disputes, either party may submit a
                request
                to the Chinese International Economic Trade and Arbitration Commission
                and
                such dispute shall be settled in accordance with rules that are currently
                in force at the material time of that institute. The venue of arbitration
                proceedings shall be in Shanghai. The decisions of the arbitration
                commission shall be final and shall be binding on the
                Parties.

            

    

    

    
      	6.3  	
              If
                the interpretation or implementation of any terms of this Agreement
                is the
                subject matter of the arbitration proceedings, the Parties shall
                continue
                to comply and to exercise their respective rights pursuant to the
                remaining terms of this Agreement.

            

    

    
      

      
        
          
          

        

        
          6

          
            

          

        

        
          
            For
              reference only. In case there is any discrepancy in the contents between
              the
              English and the Chinese versions, the Chinese version shall
              prevail.

          

        

         

      

    

    7.
      Others

    

    
      	7.1  	
              This
                Agreement shall be effective upon signing by the Parties and shall
                be
                terminated when the Parties have fulfilled its obligations under
                this
                Agreement.

            

    

    

    
      	7.2  	
              This
                Agreement is written in Chinese and shall be executed in
                duplicate.

            

    

    

    
      	7.3  	
              This
                Agreement may be amended or supplemented by the Parties in writing.
                This
                Agreement and any subsequent amendments or supplements shall form
                part of
                this Agreement and shall have the same force and effect as if
                expressly set out in the body of this Agreement.

            

    

    

    
      	7.4  	
              Any
                terms of this Agreement that are held to be illegal shall not affect
                the
                legality of the remaining terms of this
                Agreement.

            

    

    

    
      	7.5  	
              The
                Schedules attached hereto forms part of this Agreement and shall
                have the
                same force and effect
                as
                if expressly set out in the body of this Agreement.

            

    

    
      

      
        
          
          

        

        
          7

          
            

          

        

        
          
            For
              reference only. In case there is any discrepancy in the contents between
              the
              English and the Chinese versions, the Chinese version shall
              prevail.

          

        

         

      

    

    Schedule
      One

    

    
      	
              Name
                of the Lender

            	
              Loan
                amount (RMB)

            
	
              SONG
                Jinan (“Lender One”)

            	
              9,282,800

            
	
              YAN
                Li (“Lender Two”)

            	
              5,404,400

            
	
              HUANG
                Weida (“Lender Three”)

            	
              2,748,000

            
	
              YAN
                Yihong (“Lender Four”)

            	
              916,000

            
	
              Total

            	
              18,351,200

            

    

     

    
      

      
        
          
          

        

        
          8

          
            

          

        

        
          
            For
              reference only. In case there is any discrepancy in the contents between
              the
              English and the Chinese versions, the Chinese version shall
              prevail.

          

        

        
 

      

    

    Execution
      Page

    

    Lender
      One

    

    s/s
      by
      SONG Jinan 

    Name:
      SONG Jinan

    

    Lender
      Two

    

    s/s
      by
      YAN Li 

    Name:
      YAN
      Li

    

    Lender
      Three

    

    s/s
      by
      HUANG Weida 

    Name:
      HUANG Weida

    

    Lender
      Four

    

    s/s
      by
      YAN Yihong 

    Name:
      YAN
      Yihong

    

    Borrower

    __________________

    Shanghai
      Shining Biotechnology Company Limited

     

    
 

    
      
        
        

      

      
        9

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