Document:

Exhibit 10.3
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                                                                       EXHIBIT B
                                                                       ---------

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THIS  SECURITY  AND THE  SECURITIES  ISSUABLE  UPON  EXERCISE  OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN  ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT
                          -----------------------------

                To Purchase            Shares of Common Stock of
                            ----------

                              Sinovac Biotech Ltd.
                              --------------------

       THIS COMMON STOCK PURCHASE  WARRANT (the  "Warrant")  certifies that, for
                                                  -------
value received,                (the "Holder"),  is entitled,  upon the terms and
                --------------       ------
subject to the limitations on exercise and the conditions hereinafter set forth,
at any time on or after the date hereof (the "Initial  Exercise Date") and on or
                                              ----------------------
prior  to the  close of  business  on the two year  anniversary  of the  Initial
Exercise Date (the "Termination Date") but not thereafter,  to subscribe for and
                    ----------------
purchase from Sinovac Biotech Ltd., a West Indies  corporation  (the "Company"),
                                                                      -------
up to        shares (the "Warrant Shares") of Common Stock, par value $0.001 per
      ------              --------------
share, of the Company (the "Common  Stock").  The purchase price of one share of
                            -------------
Common Stock under this Warrant shall be equal to the Exercise Price, as defined
in Section 2(b).

       Section 1.     Definitions.   Capitalized  terms  used  and not otherwise
       ---------      -----------
defined  herein shall have the  meanings  set forth in that  certain  Securities
Purchase  Agreement (the "Purchase  Agreement"),  dated December 31, 2004, among
                          -------------------
the Company and the purchasers signatory thereto.

       Section 2.     Exercise.
       ---------      --------

              a)     Exercise  of  Warrant.  Exercise  of  the  purchase  rights
                     ---------------------
       represented  by this Warrant may be made at any time or times on or after
       the  Initial  Exercise  Date and on or  before  the  Termination  Date by
       delivery to the Company of a duly executed  facsimile  copy of the Notice
       of Exercise  Form  annexed  hereto (or such other office or agency of the
       Company as it may designate by notice in writing to the registered Holder

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       at the address of such  Holder  appearing  on the books of the  Company);
       provided,  however,  within 5  Trading  Days of the date  said  Notice of
       --------   -------
       Exercise is delivered to the Company,  the Holder shall have  surrendered
       this Warrant to the Company and the Company shall have  received  payment
       of the aggregate  Exercise Price of the shares thereby  purchased by wire
       transfer or cashier's check drawn on a United States bank.

              b)     Exercise Price. Subject to Section 2(f), the exercise price
                     --------------
       of the  Common  Stock  under  this  Warrant  shall  (a) from the  Initial
       Exercise Date until the one year  anniversary plus one Trading Day of the
       Initial  Exercise  Date,  be equal to $3.35,  subject  to  adjustment  as
       provided  hereunder  and (b)  from  the one year  plus  one  Trading  Day
       anniversary of the Initial  Exercise Date until the Termination  Date, be
       equal  to  $4.00,  subject  to  adjustment  as  provided  hereunder  (the
       "Exercise Price").
        --------------

              c)     Cashless  Exercise.  If at any time after one year from the
                     ------------------
       date of  issuance  of this  Warrant  there is no  effective  Registration
       Statement registering, or no current prospectus available for, the resale
       of the  Warrant  Shares  by the  Holder,  then this  Warrant  may also be
       exercised  at such time by means of a  "cashless  exercise"  in which the
       Holder  shall be  entitled  to  receive a  certificate  for the number of
       Warrant Shares equal to the quotient  obtained by dividing [(A-B) (X)] by
       (A), where:

              (A)    =  the  Closing  Price  on  the  Trading  Day   immediately
                     preceding the date of such election;

              (B)    = the Exercise Price of this Warrant, as adjusted; and

              (X)    = the number of Warrant  Shares  issuable  upon exercise of
                     this Warrant in  accordance  with the terms of this Warrant
                     by  means  of  a  cash  exercise  rather  than  a  cashless
                     exercise.

              Notwithstanding   anything   herein  to  the   contrary,   on  the
       Termination  Date,  this Warrant  shall be  automatically  exercised  via
       cashless exercise pursuant to this Section 2(c).

              d)     Exercise  Limitations;  Holder's  Restrictions.  The Holder
                     ----------------------------------------------
       shall  not have the  right  to  exercise  any  portion  of this  Warrant,
       pursuant to Section  2(c) or  otherwise,  to the extent that after giving
       effect to such issuance  after  exercise,  the Holder  (together with the
       Holder's affiliates),  as set forth on the applicable Notice of Exercise,
       would  beneficially own in excess of 4.99% of the number of shares of the
       Common  Stock  outstanding   immediately  after  giving  effect  to  such
       issuance. For purposes of the foregoing sentence, the number of shares of
       Common Stock  beneficially  owned by the Holder and its affiliates  shall
       include the number of shares of Common Stock  issuable  upon  exercise of
       this Warrant with respect to which the  determination of such sentence is
       being made,  but shall exclude the number of shares of Common Stock which
       would  be  issuable  upon (A)  exercise  of the  remaining,  nonexercised
       portion of this  Warrant  beneficially  owned by the Holder or any of its
       affiliates  and  (B)  exercise  or  conversion  of  the   unexercised  or
       nonconverted  portion of any other securities of the Company  (including,
       without limitation, any other Shares or Warrants) subject to a limitation

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       on conversion or exercise  analogous to the limitation  contained  herein
       beneficially owned by the Holder or any of its affiliates.  Except as set
       forth in the  preceding  sentence,  for  purposes of this  Section  2(d),
       beneficial ownership shall be calculated in accordance with Section 13(d)
       of the Exchange Act, it being  acknowledged by Holder that the Company is
       not  representing  to Holder that such  calculation is in compliance with
       Section  13(d) of the Exchange Act and Holder is solely  responsible  for
       any schedules required to be filed in accordance therewith. To the extent
       that  the  limitation   contained  in  this  Section  2(d)  applies,  the
       determination  of whether  this  Warrant is  exercisable  (in relation to
       other  securities  owned by the  Holder)  and of which a portion  of this
       Warrant is  exercisable  shall be in the sole  discretion of such Holder,
       and the  submission  of a Notice of  Exercise  shall be deemed to be such
       Holder's  determination  of  whether  this  Warrant  is  exercisable  (in
       relation to other  securities  owned by such Holder) and of which portion
       of this Warrant is  exercisable,  in each case subject to such  aggregate
       percentage limitation, and the Company shall have no obligation to verify
       or confirm  the  accuracy  of such  determination.  For  purposes of this
       Section 2(d), in determining  the number of outstanding  shares of Common
       Stock, the Holder may rely on the number of outstanding  shares of Common
       Stock as  reflected  in (x) the  Company's  most recent Form 20-F or Form
       6-K, as the case may be, (y) a more  recent  public  announcement  by the
       Company or (z) any other notice by the Company or the Company's  Transfer
       Agent  setting  forth the number of shares of Common  Stock  outstanding.
       Upon the written or oral request of the Holder,  the Company shall within
       two Trading Days  confirm  orally and in writing to the Holder the number
       of shares of Common Stock then  outstanding.  In any case,  the number of
       outstanding  shares of Common  Stock  shall be  determined  after  giving
       effect to the  conversion  or  exercise  of  securities  of the  Company,
       including this Warrant, by the Holder or its affiliates since the date as
       of which such number of outstanding  shares of Common Stock was reported.
       The  provisions of this Section 2(d) may be waived by the Holder upon, at
       the  election of the Holder,  not less than 61 days' prior  notice to the
       Company,  and the provisions of this Section 2(d) shall continue to apply
       until such 61st day (or such later date, as determined by the Holder,  as
       may be specified in such notice of waiver).

              e)     Mechanics of Exercise.
                     ---------------------

                     i.     Authorization   of  Warrant   Shares.   The  Company
                            ------------------------------------
              covenants  that all  Warrant  Shares  which may be issued upon the
              exercise of the purchase rights  represented by this Warrant will,
              upon exercise of the purchase rights  represented by this Warrant,
              be duly authorized,  validly issued,  fully paid and nonassessable
              and free from all taxes, liens and charges in respect of the issue
              thereof  (other  than taxes in respect of any  transfer  occurring
              contemporaneously with such issue).

                     ii.    Delivery of Certificates Upon Exercise. Certificates
                            --------------------------------------
              for  shares  purchased  hereunder  shall  be  transmitted  by  the
              transfer  agent of the  Company  to the  Holder by  crediting  the
              account of the  Holder's  prime broker with the  Depository  Trust
              Company through its Deposit  Withdrawal Agent Commission  ("DWAC")
                                                                          ----
              system  if the  Company  is a  participant  in  such  system,  and
              otherwise  by physical  delivery to the address  specified  by the

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              Holder in the Notice of  Exercise  within 5 Trading  Days from the
              delivery to the Company of the Notice of Exercise Form,  surrender
              of this Warrant and payment of the aggregate Exercise Price as set
              forth above ("Warrant Share Delivery Date"). This Warrant shall be
                            ---------------------------
              deemed to have been  exercised on the date the  Exercise  Price is
              received by the  Company.  The Warrant  Shares  shall be deemed to
              have been issued,  and Holder or any other person so designated to
              be named therein shall be deemed to have become a holder of record
              of such  shares for all  purposes,  as of the date the Warrant has
              been exercised by payment to the Company of the Exercise Price and
              all taxes required to be paid by the Holder,  if any,  pursuant to
              Section 2(e)(vii) prior to the issuance of such shares,  have been
              paid.

                     iii.   Delivery  of New  Warrants  Upon  Exercise.  If this
                            ------------------------------------------
              Warrant shall have been exercised in part,  the Company shall,  at
              the  time  of  delivery  of  the   certificate   or   certificates
              representing  Warrant  Shares,  deliver  to  Holder a new  Warrant
              evidencing  the  rights  of  Holder to  purchase  the  unpurchased
              Warrant Shares called for by this Warrant, which new Warrant shall
              in all other respects be identical with this Warrant.

                     iv.    Rescission Rights. If the Company fails to cause its
                            -----------------
              transfer  agent  to  transmit  to  the  Holder  a  certificate  or
              certificates  representing  the  Warrant  Shares  pursuant to this
              Section  2(e)(iv) by the Warrant  Share  Delivery  Date,  then the
              Holder will have the right to rescind such exercise.

                     v.     Compensation for Buy-In on Failure to Timely Deliver
                            ----------------------------------------------------
              Certificates  Upon  Exercise.  In  addition  to any  other  rights
              ----------------------------
              available  to the  Holder,  if the  Company  fails  to  cause  its
              transfer  agent  to  transmit  to  the  Holder  a  certificate  or
              certificates  representing  the  Warrant  Shares  pursuant  to  an
              exercise  on or before the Warrant  Share  Delivery  Date,  and if
              after such date the Holder is  required  by its broker to purchase
              (in an open  market  transaction  or  otherwise)  shares of Common
              Stock to  deliver in  satisfaction  of a sale by the Holder of the
              Warrant  Shares which the Holder  anticipated  receiving upon such
              exercise (a  "Buy-In"),  then the Company shall (1) pay in cash to
                            ------
              the  Holder the amount by which (x) the  Holder's  total  purchase
              price (including brokerage commissions,  if any) for the shares of
              Common  Stock so  purchased  exceeds  (y) the amount  obtained  by
              multiplying  (A) the number of Warrant Shares that the Company was
              required to deliver to the Holder in connection  with the exercise
              at issue  times (B) the price at which the sell order  giving rise
              to such purchase obligation was executed, and (2) at the option of
              the  Holder,  either  reinstate  the  portion of the  Warrant  and
              equivalent  number of Warrant  Shares for which such  exercise was
              not  honored  or  deliver  to the  Holder  the number of shares of
              Common  Stock that would have been issued had the  Company  timely
              complied with its exercise and delivery obligations hereunder. For
              example,  if the  Holder  purchases  Common  Stock  having a total

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              purchase  price of  $11,000 to cover a Buy-In  with  respect to an
              attempted  exercise  of shares of Common  Stock with an  aggregate
              sale price  giving rise to such  purchase  obligation  of $10,000,
              under clause (1) of the immediately preceding sentence the Company
              shall be  required  to pay the Holder  $1,000.  The  Holder  shall
              provide the Company written notice  indicating the amounts payable
              to the Holder in respect of the Buy-In,  together with  applicable
              confirmations  and  other  evidence  reasonably  requested  by the
              Company. Nothing herein shall limit a Holder's right to pursue any
              other  remedies  available  to it  hereunder,  at law or in equity
              including,  without limitation,  a decree of specific  performance
              and/or  injunctive relief with respect to the Company's failure to
              timely deliver  certificates  representing  shares of Common Stock
              upon  exercise of the  Warrant as  required  pursuant to the terms
              hereof.

                     vi.    No Fractional  Shares or Scrip. No fractional shares
                            ------------------------------
              or scrip  representing  fractional shares shall be issued upon the
              exercise  of this  Warrant.  As to any  fraction  of a share which
              Holder would otherwise be entitled to purchase upon such exercise,
              the Company  shall pay a cash  adjustment in respect of such final
              fraction in an amount  equal to such  fraction  multiplied  by the
              Exercise Price.

                     vii.   Charges,    Taxes   and   Expenses.    Issuance   of
                            ----------------------------------
              certificates  for Warrant  Shares shall be made without  charge to
              the  Holder  for any  issue or  transfer  tax or other  incidental
              expense in respect of the  issuance  of such  certificate,  all of
              which taxes and expenses  shall be paid by the  Company,  and such
              certificates  shall be issued in the name of the Holder or in such
              name or names as may be directed by the Holder; provided, however,
                                                              --------  -------
              that in the event certificates for Warrant Shares are to be issued
              in a name other than the name of the  Holder,  this  Warrant  when
              surrendered  for exercise  shall be  accompanied by the Assignment
              Form attached hereto duly executed by the Holder;  and the Company
              may  require,  as a  condition  thereto,  the  payment  of  a  sum
              sufficient  to  reimburse  it  for  any  transfer  tax  incidental
              thereto.

                     viii.  Closing  of Books.  The  Company  will not close its
                            -----------------
              stockholder  books or  records in any manner  which  prevents  the
              timely exercise of this Warrant, pursuant to the terms hereof.

              f)     Call  Provision.  Subject to the provisions of this Section
                     ---------------
       2(f),  if after the  Effective  Date (i) the Closing Price for each of 10
       consecutive  Trading Days (the "Measurement  Period",  which period shall
                                       -------------------
       not have  commenced  until  after the  Effective  Date)  exceeds  $4.99 ,
       subject to  adjustment  for  reverse  and  forward  stock  splits,  stock
       dividends,  stock  combinations  and other  similar  transactions  of the
       Common  Stock that occur after the date of the  Purchase  Agreement  (the
       "Threshold  Price") and (ii) the daily trading volume of the Common Stock
        ----------------
       on the Trading Market for each Trading Day during the Measurement  Period
       exceeds  50,000  shares,  subject to  adjustment  for reverse and forward

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       stock  splits,  stock  dividends,  stock  combinations  and other similar
       transactions  of the  Common  Stock  that  occur  after  the  date of the
       Purchase  Agreement,  then the Company may, within one Trading Day of the
       end of such period,  call for  cancellation of all or any portion of this
       Warrant for which a Notice of Exercise has not yet been  delivered  (such
       right, a "Call"). To exercise this right, the Company must deliver to the
                 ----
       Holder  an  irrevocable  written  notice  (a "Call  Notice"),  indicating
                                                     ------------
       therein the portion of unexercised  portion of this Warrant to which such
       notice  applies.  If the  conditions  set  forth  below for such Call are
       satisfied  from the period from the date of the Call  Notice  through and
       including  the Call Date (as  defined  below),  then any  portion of this
       Warrant  subject to such Call Notice for which a Notice of Exercise shall
       not have been  received by the Call Date will be  cancelled  at 6:30 p.m.
       (New York City  time) on the  tenth  Trading  Day after the date the Call
       Notice is  received  by the Holder  (such  date,  the "Call  Date").  Any
                                                              ----------
       unexercised  portion of this  Warrant to which the Call  Notice  does not
       pertain will be unaffected by such Call Notice.  In furtherance  thereof,
       the  Company  covenants  and  agrees  that it will  honor all  Notices of
       Exercise with respect to Warrant Shares subject to a Call Notice that are
       tendered  through  6:30 p.m.  (New York City time) on the Call Date.  The
       parties  agree that any Notice of  Exercise  delivered  following  a Call
       Notice shall first reduce to zero the number of Warrant Shares subject to
       such Call Notice prior to reducing the remaining Warrant Shares available
       for purchase  under this Warrant.  For example,  if (x) this Warrant then
       permits  the Holder to acquire  100  Warrant  Shares,  (y) a Call  Notice
       pertains to 75 Warrant Shares,  and (z) prior to 6:30 p.m. (New York City
       time) on the Call Date the Holder tenders a Notice of Exercise in respect
       of 50  Warrant  Shares,  then (1) on the Call Date the right  under  this
       Warrant to acquire 25 Warrant Shares will be automatically cancelled, (2)
       the Company,  in the time and manner  required  under this Warrant,  will
       have issued and  delivered to the Holder 50 Warrant  Shares in respect of
       the exercises  following  receipt of the Call Notice,  and (3) the Holder
       may,  until the  Termination  Date,  exercise this Warrant for 25 Warrant
       Shares   (subject  to  adjustment  as  herein  provided  and  subject  to
       subsequent Call Notices). Subject again to the provisions of this Section
       2(f), the Company may deliver  subsequent Call Notices for any portion of
       this  Warrant for which the Holder  shall not have  delivered a Notice of
       Exercise.  Notwithstanding  anything  to the  contrary  set forth in this
       Warrant,  the  Company  may not  deliver  a Call  Notice or  require  the
       cancellation of this Warrant (and any Call Notice will be void),  unless,
       from the beginning of the 10th consecutive Trading Days used to determine
       whether the Common  Stock has achieved the  Threshold  Price  through the
       Call Date,  (i) the Company  shall have  honored in  accordance  with the
       terms of this Warrant all Notices of Exercise delivered by 6:30 p.m. (New
       York City time) on the Call Date, (ii) the  Registration  Statement shall
       be  effective  as to all  Warrant  Shares and the  prospectus  thereunder
       available for use by the Holder for the resale of all such Warrant Shares
       and (iii) the Common  Stock  shall be listed or quoted for trading on the
       Trading  Market.  The  Company's  right  to Call  the  Warrant  shall  be
       exercised  ratably  among  the  Holders  based on each  Holder's  initial
       purchase of Common Stock pursuant to the Purchase Agreement

       Section 3.     Certain Adjustments.
       ---------      -------------------

              a)     Stock  Dividends  and Splits.  If the Company,  at any time
                     ----------------------------
       while this Warrant is outstanding: (A) pays a stock dividend or otherwise

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<PAGE>

       make a distribution or distributions on shares of its Common Stock or any
       other equity or equity equivalent  securities payable in shares of Common
       Stock  (which,  for  avoidance of doubt,  shall not include any shares of
       Common  Stock  issued  by the  Company  pursuant  to this  Warrant),  (B)
       subdivides  outstanding  shares of Common  Stock into a larger  number of
       shares,   (C)  combines   (including  by  way  of  reverse  stock  split)
       outstanding  shares of Common Stock into a smaller  number of shares,  or
       (D) issues by  reclassification  of shares of the Common Stock any shares
       of capital  stock of the Company,  then in each case the  Exercise  Price
       shall be  multiplied  by a fraction of which the  numerator  shall be the
       number of shares of Common  Stock  (excluding  treasury  shares,  if any)
       outstanding  before such event and of which the denominator  shall be the
       number of shares of Common  Stock  outstanding  after  such event and the
       number  of  shares  issuable  upon  exercise  of this  Warrant  shall  be
       proportionately  adjusted.  Any adjustment  made pursuant to this Section
       3(a) shall  become  effective  immediately  after the record date for the
       determination  of  stockholders  entitled  to receive  such  dividend  or
       distribution and shall become effective  immediately  after the effective
       date in the case of a subdivision, combination or re-classification.

              b)     Subsequent  Equity Sales.  If the Company or any Subsidiary
                     ------------------------
       thereof,  as applicable,  at any time while this Warrant is  outstanding,
       shall offer,  sell, grant any option to purchase or offer,  sell or grant
       any right to reprice its securities, or otherwise dispose of or issue (or
       announce  any  offer,  sale,  grant or any  option to  purchase  or other
       disposition) any Common Stock or Common Stock  Equivalents  entitling any
       Person to acquire shares of Common Stock, at an effective price per share
       less than $3.00,  subject to  adjustment  for  reverse and forward  stock
       splits,   stock   dividends,   stock   combinations   and  other  similar
       transactions  of the  Common  Stock  that  occur  after  the date of this
       Agreement  (such lower price,  the "Base Share Price" and such  issuances
                                           ----------------
       collectively,  a "Dilutive  Issuance") (if the holder of the Common Stock
                         ------------------
       or Common  Stock  Equivalents  so issued  shall at any time,  whether  by
       operation  of purchase  price  adjustments,  reset  provisions,  floating
       conversion, exercise or exchange prices or otherwise, or due to warrants,
       options  or rights  per share  which is  issued in  connection  with such
       issuance,  be entitled to receive  shares of Common Stock at an effective
       price per share  which is less than the  Exercise  Price,  such  issuance
       shall be deemed to have occurred for less than the Exercise Price), then,
       the Exercise Price shall be reduced (never increased) to equal,  prior to
       the one year  anniversary  of the Initial  Exercise Date plus one Trading
       Day, 112% of the Base Share Price and after the one year  anniversary  of
       the Initial  Exercise  Date plus one Trading Day,  133% of the Base Share
       Price. The Company shall notify the Holder in writing,  no later than the
       Trading Day  following  the  issuance of any Common Stock or Common Stock
       Equivalents  subject to this section,  indicating  therein the applicable
       issuance price, or of applicable reset price, exchange price,  conversion
       price and  other  pricing  terms  (such  notice  the  "Dilutive  Issuance
                                                              ------------------
       Notice").  For  purposes  of  clarification,  whether or not the  Company
       ------
       provides a Dilutive  Issuance  Notice pursuant to this Section 3(b), upon
       the occurrence of any Dilutive Issuance,  after the date of such Dilutive
       Issuance  the Holder is  entitled  to receive a number of Warrant  Shares
       based  upon the  Base  Share  Price  regardless  of  whether  the  Holder
       accurately refers to the Base Share Price in the Notice of Exercise.

                                        7
<PAGE>

              c)     Pro Rata  Distributions.  If the Company, at any time prior
                     -----------------------
       to the Termination  Date, shall distribute to all holders of Common Stock
       (and not to Holders of the  Warrants)  evidences of its  indebtedness  or
       assets or rights or warrants to  subscribe  for or purchase  any security
       other than the Common  Stock  (which  shall be subject to Section  3(b)),
       then  in  each  such  case  the  Exercise  Price  shall  be  adjusted  by
       multiplying the Exercise Price in effect  immediately prior to the record
       date fixed for  determination  of  stockholders  entitled to receive such
       distribution by a fraction of which the denominator  shall be the Closing
       Price  determined as of the record date mentioned above, and of which the
       numerator  shall be such Closing  Price on such record date less the then
       per share fair  market  value at such  record date of the portion of such
       assets or evidence  of  indebtedness  so  distributed  applicable  to one
       outstanding  share of the  Common  Stock as  determined  by the  Board of
       Directors  in good  faith.  In  either  case  the  adjustments  shall  be
       described in a statement provided to the Holders of the portion of assets
       or evidences of indebtedness so distributed or such  subscription  rights
       applicable to one share of Common Stock.  Such  adjustment  shall be made
       whenever  any  such  distribution  is made  and  shall  become  effective
       immediately after the record date mentioned above.

              d)     Fundamental Transaction. If, at any time while this Warrant
                     -----------------------
       is outstanding,  (A) the Company effects any merger or  consolidation  of
       the Company with or into another Person, (B) the Company effects any sale
       of all or  substantially  all of its assets in one or a series of related
       transactions,  (C) any tender  offer or  exchange  offer  (whether by the
       Company or another  Person) is  completed  pursuant  to which  holders of
       Common Stock are  permitted to tender or exchange  their shares for other
       securities,   cash  or   property,   or  (D)  the  Company   effects  any
       reclassification  of the Common Stock or any  compulsory  share  exchange
       pursuant  to which the  Common  Stock is  effectively  converted  into or
       exchanged  for other  securities,  cash or property  (in any such case, a
       "Fundamental Transaction"),  then, upon any subsequent conversion of this
        -----------------------
       Warrant,  the Holder  shall have the right to receive,  for each  Warrant
       Share  that would  have been  issuable  upon such  exercise  absent  such
       Fundamental  Transaction,  at the option of the Holder, (a) upon exercise
       of this Warrant, the number of shares of Common Stock of the successor or
       acquiring  corporation  or  of  the  Company,  if  it  is  the  surviving
       corporation,  and Alternate Consideration  receivable upon or as a result
       of  such  reorganization,   reclassification,  merger,  consolidation  or
       disposition of assets by a Holder of the number of shares of Common Stock
       for which this Warrant is exercisable  immediately prior to such event or
       (b) if the Company is acquired in an all cash transaction,  cash equal to
       the  value  of  this  Warrant  as  determined  in  accordance   with  the
       Black-Scholes option pricing formula (the "Alternate Consideration"). For
                                                  -----------------------
       purposes of any such exercise,  the  determination  of the Exercise Price
       shall be appropriately adjusted to apply to such Alternate  Consideration
       based on the amount of Alternate Consideration issuable in respect of one
       share of Common Stock in such  Fundamental  Transaction,  and the Company
       shall apportion the Exercise Price among the Alternate Consideration in a
       reasonable   manner  reflecting  the  relative  value  of  any  different
       components of the Alternate Consideration. If holders of Common Stock are
       given any choice as to the securities, cash or property to be received in
       a Fundamental Transaction, then the Holder shall be given the same choice
       as to the Alternate  Consideration  it receives upon any exercise of this
       Warrant following such Fundamental  Transaction.  To the extent necessary
       to effectuate the foregoing  provisions,  any successor to the Company or

                                        8
<PAGE>

       surviving  entity  in such  Fundamental  Transaction  shall  issue to the
       Holder  a new  warrant  consistent  with  the  foregoing  provisions  and
       evidencing  the Holder's  right to exercise  such warrant into  Alternate
       Consideration. The terms of any agreement pursuant to which a Fundamental
       Transaction is effected shall include terms  requiring any such successor
       or surviving  entity to comply with the  provisions  of this Section 3(d)
       and insuring that this Warrant (or any such replacement security) will be
       similarly  adjusted  upon  any  subsequent  transaction  analogous  to  a
       Fundamental Transaction.

              e)     Exempt   Issuance.   Notwithstanding   the  foregoing,   no
                     -----------------
       adjustments,  Alternate  Consideration nor notices shall be made, paid or
       issued under this Section 3 in respect of an Exempt Issuance.

              f)     Calculations.  All calculations  under this Section 3 shall
                     ------------
       be made to the  nearest  cent or the nearest  1/100th of a share,  as the
       case may be.  The  number of shares of Common  Stock  outstanding  at any
       given time shall not includes  shares of Common Stock owned or held by or
       for the account of the Company, and the description of any such shares of
       Common Stock shall be considered  on issue or sale of Common  Stock.  For
       purposes of this  Section 3, the number of shares of Common  Stock deemed
       to be issued and  outstanding  as of a given date shall be the sum of the
       number of shares of Common  Stock  (excluding  treasury  shares,  if any)
       issued and outstanding.

              g)     Voluntary  Adjustment  By  Company.  The Company may at any
                     ----------------------------------
       time during the term of this  Warrant  reduce the then  current  Exercise
       Price to any amount and for any period of time deemed  appropriate by the
       Board of Directors of the Company.

              h)     Notice to Holders.
                     -----------------

                     i.     Adjustment to Exercise Price.  Whenever the Exercise
                            ----------------------------
              Price is adjusted  pursuant to this  Section 3, the Company  shall
              promptly  mail to each Holder a notice  setting forth the Exercise
              Price after such adjustment and setting forth a brief statement of
              the facts  requiring  such  adjustment.  If the  Company  issues a
              variable rate  security,  despite the  prohibition  thereon in the
              Purchase  Agreement,  the  Company  shall be deemed to have issued
              Common Stock or Common Stock  Equivalents  at the lowest  possible
              conversion  or  exercise  price at which  such  securities  may be
              converted or exercised in the case of a Variable Rate  Transaction
              (as defined in the Purchase Agreement).

                     ii.    Notice  to  Allow  Exercise  by  Holder.  If (A) the
                            ---------------------------------------
              Company  shall declare a dividend (or any other  distribution)  on
              the  Common  Stock;  (B)  the  Company  shall  declare  a  special
              nonrecurring cash dividend on or a redemption of the Common Stock;
              (C) the Company shall authorize the granting to all holders of the
              Common Stock  rights or warrants to subscribe  for or purchase any
              shares of  capital  stock of any class or of any  rights;  (D) the
              approval of any  stockholders  of the Company shall be required in
              connection  with any  reclassification  of the Common  Stock,  any
              consolidation  or merger to which the Company is a party, any sale

                                        9
<PAGE>

              or  transfer  of all or  substantially  all of the  assets  of the
              Company, of any compulsory share exchange whereby the Common Stock
              is converted  into other  securities,  cash or  property;  (E) the
              Company shall authorize the voluntary or involuntary  dissolution,
              liquidation or winding up of the affairs of the Company;  then, in
              each case,  the Company  shall cause to be mailed to the Holder at
              its last addresses as it shall appear upon the Warrant Register of
              the  Company,  at least 20 calendar  days prior to the  applicable
              record or effective date hereinafter  specified,  a notice stating
              (x) the date on which a record is to be taken for the  purpose  of
              such dividend, distribution, redemption, rights or warrants, or if
              a record is not to be taken,  the date as of which the  holders of
              the  Common  Stock of  record  to be  entitled  to such  dividend,
              distributions, redemption, rights or warrants are to be determined
              or (y) the date on  which  such  reclassification,  consolidation,
              merger,  sale,  transfer  or share  exchange is expected to become
              effective or close,  and the date as of which it is expected  that
              holders  of the  Common  Stock  of  record  shall be  entitled  to
              exchange their shares of the Common Stock for securities,  cash or
              other   property    deliverable   upon   such    reclassification,
              consolidation, merger, sale, transfer or share exchange; provided,
                                                                       --------
              that the failure to mail such  notice or any defect  therein or in
              the mailing thereof shall not affect the validity of the corporate
              action  required to be  specified  in such  notice.  The Holder is
              entitled  to  exercise  this  Warrant  during  the  20-day  period
              commencing  the date of such notice to the  effective  date of the
              event triggering such notice.

       Section 4.     Transfer of Warrant.
       ---------      -------------------

              a)     Transferability.  Subject to compliance with any applicable
                     ---------------
       securities  laws and the  conditions  set forth in Sections 5(a) and 4(d)
       hereof and to the  provisions  of Section 4.1 of the Purchase  Agreement,
       this Warrant and all rights  hereunder are  transferable,  in whole or in
       part (but if in part, in  denominations  of not less than 100,000 Warrant
       Shares, subject to adjustment for reverse and forward stock splits, stock
       dividends,  stock  combinations  and other  similar  transactions  of the
       Common Stock that occur after the date of the Purchase Agreement, or such
       lesser  amount as it then held by the Holder) on no more than 2 occasions
       in any 12 month period upon  surrender  of this Warrant at the  principal
       office of the Company, together with a written assignment of this Warrant
       substantially  in the form attached hereto duly executed by the Holder or
       its agent or attorney  and funds  sufficient  to pay any  transfer  taxes
       payable upon the making of such  transfer.  Upon such  surrender  and, if
       required,  such  payment,  the  Company  shall  execute and deliver a new
       Warrant or Warrants in the name of the assignee or  assignees  and in the
       denomination or denominations specified in such instrument of assignment,
       and shall issue to the assignor a new Warrant  evidencing  the portion of
       this  Warrant  not so  assigned,  and  this  Warrant  shall  promptly  be
       cancelled.  A Warrant,  if properly  assigned,  may be exercised by a new
       holder for the purchase of Warrant  Shares  without  having a new Warrant
       issued.

                                       10
<PAGE>

              b)     New Warrants.  This Warrant may be divided or combined with
                     ------------
       other Warrants upon  presentation  hereof at the aforesaid  office of the
       Company,  together  with  a  written  notice  specifying  the  names  and
       denominations  in which  new  Warrants  are to be  issued,  signed by the
       Holder or its agent or attorney. Subject to compliance with Section 4(a),
       as to any transfer which may be involved in such division or combination,
       the  Company  shall  execute  and  deliver a new  Warrant or  Warrants in
       exchange  for the  Warrant  or  Warrants  to be divided  or  combined  in
       accordance with such notice.

              c)     Warrant Register.  The Company shall register this Warrant,
                     ----------------
       upon  records to be  maintained  by the  Company  for that  purpose  (the
       "Warrant Register"), in the name of the record Holder hereof from time to
        ----------------
       time.  The  Company  may deem and  treat  the  registered  Holder of this
       Warrant as the  absolute  owner  hereof for the  purpose of any  exercise
       hereof or any  distribution  to the Holder,  and for all other  purposes,
       absent actual notice to the contrary.

              d)     Transfer Restrictions.  If, at the time of the surrender of
                     ---------------------
       this  Warrant  in  connection  with any  transfer  of this  Warrant,  the
       transfer of this Warrant shall not be registered pursuant to an effective
       registration  statement  under the  Securities  Act and under  applicable
       state  securities  or blue  sky  laws,  the  Company  may  require,  as a
       condition of allowing  such transfer (i) that the Holder or transferee of
       this  Warrant,  as the case may be,  furnish  to the  Company  a  written
       opinion of counsel (which  opinion shall be in form,  substance and scope
       customary  for  opinions of counsel in  comparable  transactions)  to the
       effect that such  transfer  may be made  without  registration  under the
       Securities Act and under  applicable  state  securities or blue sky laws,
       (ii) that the holder or transferee  execute and deliver to the Company an
       investment  letter in form and  substance  acceptable  to the Company and
       (iii) that the transferee be an "accredited  investor" as defined in Rule
       501(a)(1),  (a)(2),  (a)(3),  (a)(7),  or  (a)(8)  promulgated  under the
       Securities  Act or a  qualified  institutional  buyer as  defined in Rule
       144A(a) under the Securities Act.

       Section 5.     Miscellaneous.
       ---------      -------------

              a)     Title to Warrant. Prior to the Termination Date and subject
                     ----------------
       to compliance with  applicable  laws and Section 4 of this Warrant,  this
       Warrant and all rights hereunder are  transferable,  in whole or in part,
       at the office or agency of the Company by the Holder in person or by duly
       authorized  attorney,  upon  surrender of this Warrant  together with the
       Assignment Form annexed hereto properly  endorsed.  The transferee  shall
       sign an investment letter in form and substance  reasonably  satisfactory
       to the Company.

              b)     No Rights as Shareholder Until Exercise.  This Warrant does
                     ---------------------------------------
       not  entitle  the  Holder  to any  voting  rights  or other  rights  as a
       shareholder  of the  Company  prior  to the  exercise  hereof.  Upon  the
       surrender of this Warrant and the payment of the aggregate Exercise Price
       (or by means of a cashless  exercise),  the Warrant  Shares so  purchased
       shall be and be deemed to be issued to such Holder as the record owner of
       such  shares as of the close of business on the later of the date of such
       surrender or payment.

              c)     Loss,  Theft,  Destruction  or Mutilation  of Warrant.  The
                     -----------------------------------------------------
       Company covenants that upon receipt by the Company of evidence reasonably

                                       11
<PAGE>

       satisfactory to it of the loss, theft,  destruction or mutilation of this
       Warrant or any stock certificate  relating to the Warrant Shares,  and in
       case of loss, theft or destruction,  of indemnity or security  reasonably
       satisfactory to it (which, in the case of the Warrant,  shall not include
       the posting of any bond),  and upon  surrender and  cancellation  of such
       Warrant or stock  certificate,  if  mutilated,  the Company will make and
       deliver a new Warrant or stock  certificate of like tenor and dated as of
       such cancellation, in lieu of such Warrant or stock certificate.

              d)     Saturdays, Sundays, Holidays, etc. If the last or appointed
                     ---------------------------------
       day for the taking of any action or the  expiration of any right required
       or granted herein shall be a Saturday,  Sunday or a legal  holiday,  then
       such  action  may be taken or such  right  may be  exercised  on the next
       succeeding day not a Saturday, Sunday or legal holiday.

              e)     Authorized Shares.
                     -----------------

                     The Company covenants that during the period the Warrant is
              outstanding,  it will  reserve  from its  authorized  and unissued
              Common  Stock a  sufficient  number of shares to  provide  for the
              issuance of the Warrant  Shares upon the  exercise of any purchase
              rights under this Warrant.  The Company further covenants that its
              issuance of this Warrant shall  constitute  full  authority to its
              officers  who  are  charged  with  the  duty  of  executing  stock
              certificates to execute and issue the necessary  certificates  for
              the Warrant Shares upon the exercise of the purchase  rights under
              this Warrant.  The Company will take all such reasonable action as
              may be necessary to assure that such Warrant  Shares may be issued
              as provided  herein  without  violation of any  applicable  law or
              regulation,  or of any  requirements  of the  Trading  Market upon
              which the Common Stock may be listed.

                     Except and to the extent as waived or  consented  to by the
              Holder,  the Company shall not by any action,  including,  without
              limitation,  amending its certificate of  incorporation or through
              any  reorganization,  transfer of assets,  consolidation,  merger,
              dissolution,  issue or sale of securities  or any other  voluntary
              action,  avoid or seek to avoid the  observance or  performance of
              any of the  terms of this  Warrant,  but will at all times in good
              faith  assist  in the  carrying  out of all such  terms and in the
              taking of all such actions as may be necessary or  appropriate  to
              protect the rights of Holder as set forth in this Warrant  against
              impairment.  Without limiting the generality of the foregoing, the
              Company will (a) not increase the par value of any Warrant  Shares
              above the amount payable  therefor upon such exercise  immediately
              prior to such  increase in par value,  (b) take all such action as
              may be  necessary  or  appropriate  in order that the  Company may
              validly and legally  issue  fully paid and  nonassessable  Warrant
              Shares upon the exercise of this Warrant, and (c) use commercially
              reasonable efforts to obtain all such  authorizations,  exemptions
              or consents from any public  regulatory  body having  jurisdiction
              thereof as may be  necessary  to enable the Company to perform its
              obligations under this Warrant.

                                       12
<PAGE>

                     Before   taking  any  action   which  would  result  in  an
              adjustment in the number of Warrant  Shares for which this Warrant
              is exercisable or in the Exercise Price,  the Company shall obtain
              all  such   authorizations  or  exemptions  thereof,  or  consents
              thereto,  as may be necessary from any public  regulatory  body or
              bodies having jurisdiction thereof.

              f)     Jurisdiction.  All questions  concerning the  construction,
                     ------------
       validity,  enforcement  and  interpretation  of  this  Warrant  shall  be
       determined in accordance with the provisions of the Purchase Agreement.

              g)     Restrictions.  The  Holder  acknowledges  that the  Warrant
                     ------------
       Shares  acquired  upon the exercise of this Warrant,  if not  registered,
       will  have   restrictions  upon  resale  imposed  by  state  and  federal
       securities laws.

              h)     Nonwaiver and  Expenses.  No course of dealing or any delay
                     -----------------------
       or failure to exercise  any right  hereunder  on the part of Holder shall
       operate as a waiver of such right or otherwise prejudice Holder's rights,
       powers or remedies,  notwithstanding  the fact that all rights  hereunder
       terminate on the Termination Date. If the Company willfully and knowingly
       fails to comply with any provision of this Warrant,  which results in any
       material  damages to the  Holder,  the  Company  shall pay to Holder such
       amounts as shall be sufficient to cover any costs and expenses including,
       but not  limited  to,  reasonable  attorneys'  fees,  including  those of
       appellate  proceedings,  incurred by Holder in collecting any amounts due
       pursuant  hereto or in otherwise  enforcing any of its rights,  powers or
       remedies hereunder.

              i)     Notices. Any notice,  request or other document required or
                     -------
       permitted to be given or delivered to the Holder by the Company  shall be
       delivered  in  accordance  with the  notice  provisions  of the  Purchase
       Agreement.

              j)     Limitation  of  Liability.  No  provision  hereof,  in  the
                     -------------------------
       absence of any  affirmative  action by Holder to exercise this Warrant or
       purchase  Warrant  Shares,  and no  enumeration  herein of the  rights or
       privileges of Holder,  shall give rise to any liability of Holder for the
       purchase  price of any Common Stock or as a  stockholder  of the Company,
       whether such  liability is asserted by the Company or by creditors of the
       Company.

              k)     Remedies. Holder, in addition to being entitled to exercise
                     --------
       all  rights  granted  by law,  including  recovery  of  damages,  will be
       entitled to specific  performance  of its rights under this Warrant.  The
       Company agrees that monetary  damages would not be adequate  compensation
       for any loss  incurred by reason of a breach by it of the  provisions  of
       this  Warrant  and hereby  agrees to waive the  defense in any action for
       specific performance that a remedy at law would be adequate.

              l)     Successors  and Assigns.  Subject to applicable  securities
                     -----------------------
       laws, this Warrant and the rights and obligations  evidenced hereby shall
       inure to the benefit of and be binding upon the successors of the Company
       and the  successors  and permitted  assigns of Holder.  The provisions of
       this  Warrant are intended to be for the benefit of all Holders from time

                                       13
<PAGE>

       to time of this  Warrant and shall be  enforceable  by any such Holder or
       holder of Warrant Shares.

              m)     Amendment.  This  Warrant may be modified or amended or the
                     ---------
       provisions  hereof waived with the written consent of the Company and the
       Holder.

              n)     Severability.  Wherever  possible,  each  provision of this
                     ------------
       Warrant shall be  interpreted in such manner as to be effective and valid
       under  applicable  law, but if any  provision  of this  Warrant  shall be
       prohibited by or invalid under  applicable  law, such provision  shall be
       ineffective  to the extent of such  prohibition  or  invalidity,  without
       invalidating the remainder of such provisions or the remaining provisions
       of this Warrant.

              o)     Headings.  The  headings  used in this  Warrant are for the
                     --------
       convenience of reference only and shall not, for any purpose, be deemed a
       part of this Warrant.

                              ********************

                                       14
<PAGE>

       IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated: December   , 2004
                --

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

                                           By:
                                              ----------------------------------
                                               Name:
                                               Title:

                                       15
<PAGE>

                               NOTICE OF EXERCISE
                               ------------------

To:   SINOVAC BIOTECH LTD.

       (1) The undersigned  hereby elects to purchase          Warrant Shares of
                                                      --------
the Company  pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

       (2) Payment shall take the form of (check applicable box):

              [_]    in lawful money of the United States; or

              [_]    the  cancellation  of such  number of Warrant  Shares as is
              necessary,  in accordance with the formula set forth in subsection
              2(c), to exercise this Warrant with respect to the maximum  number
              of Warrant Shares  purchasable  pursuant to the cashless  exercise
              procedure set forth in subsection 2(c).

       (3) Please issue a certificate or certificates  representing said Warrant
Shares in the name of the  undersigned  or in such  other  name as is  specified
below:

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

The Warrant Shares shall be delivered to the following:

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

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

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

       (4) Accredited Investor.  The undersigned is an "accredited  investor" as
           -------------------
defined  in  Regulation  D  promulgated  under the  Securities  Act of 1933,  as
amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity:
                          ------------------------------------------------------
Signature of Authorized Signatory of Investing Entity:
                                                       -------------------------
Name of Authorized Signatory:
                              --------------------------------------------------
Title of Authorized Signatory:
                               -------------------------------------------------
Date:
      --------------------------------------------------------------------------

                                       16
<PAGE>

                                 ASSIGNMENT FORM
                                 ---------------

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

       FOR VALUE  RECEIVED,  the  foregoing  Warrant  and all  rights  evidenced
thereby are hereby assigned to

                                                whose address is
-----------------------------------------------

---------------------------------------------------------------.

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

                                                 Dated:                ,
                                                        ---------------  -------

              Holder's Signature:
                                  --------------------------------

              Holder's Address:
                                ----------------------------------

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

Signature Guaranteed:
                       -------------------------------------------

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

                                       17Exhibit 10.1
------------

KARDEX:5473-2004
Number: Five thousand three hundred fifty six
File: 17115 Turn
Registry:343

               AUTHORIZATION OF SERVITUDE BETWEEN RURAL COMMUNITY
               --------------------------------------------------
                       PISQUICOCHA AND THEIR ANNEX CALANI
                       ----------------------------------
                                       And
                                       ---
                        GRUPO MINERO INTERNACIONAL S.A.C
                        --------------------------------

INTRODUCTION.  - In Cusco on December  thirteenth  two thousand  four before me:
Antonieta Ocampo Delahaza a Notary of Cusco with Notaries Board  Registration of
the  Notarial  district  of Cusco and Madre de Dios  number  twenty-seven.  Come
before me:

Mr. Domingo Munoz Taype, Peruvian, identified with National Document of Identity
number  24561672,  married,  farmer,  with legal  residence in the  Community of
Pisquicocha   and  their  annex   Calani,   district  of  Livitaca,   county  of
Chumbivilcas,  department of Cusco, in transit in Cusco city who appears in name
and  representation  of the rural community  Pisquicocha and their annex Calani,
authorized by Agreement dated November 28th 2004.

Mr. Dean de Largie, Australian,  with identification card number N91789, single,
geologist, with legal residence at 671 Jose Gonzales Street, Miraflores,  county
and  department  of Lima,  in  transit  in Cusco  city who  appears  in name and
representation  of Grupo Minero  Internacional  S.A.C. with powers registered in
file  11627338,  entry  00003 of the  Registry  of  Corporations  of the  Public
Registries of Lima and Callao. The parties before mentioned are adults,  capable
and literate in Spanish  language,  with freedom,  capacity and enough knowledge
and who I have  identified  according to the rules of the law of notaries.  They
herein,  give me for its formalization to public writing the following  properly
signed and authorized minute

Mr. Notary
May you extend in your  registry of public  writings a  servitude  authorization
that takes place  according  to Article  10350 and  following  ones of the Civil
Code, between the Rural Community  Pisquicocha and their annex Calani,  district
of  Livitaca,  county  of  Chumbibilcas,  department  of Cusco,  Peru;  properly
registered  in the Record 921 of the  Registry  of  Corporations,  Book of Rural
Communities Law 25556 of the Registral  Office of Sicuani,  with legal residence
in the same  community,  properly  represented by the President of the Community
Mr. Domingo Munoz Taype identified with D.N.I. Number 24561672, according to the
powers granted by Agreement  dated  November 28th and December 12th 2004,  whose
pertinent  sections will be inserted in this  document,  from now on denominated
THE COMMUNITY and also by Grupo Minero Internacional S.A.C, with Ruc 20508274883
with legal residence at 671-675 Jose Gonzales Street Miraflores,  Lima; properly
represented  by its manager Mr.  Dean De Largie,  identified  with card Number N
91789,  according  to proxy  properly  registered  in Entry  AS.0003 of the File
Number  11627338  of the  Registry of  Corporations  of the  Registral  Area IX.
Registral Office of Lima, which from now on is denominated THE COMPANY according
to the following terms and conditions:

<PAGE>

First.  - THE  COMMUNITY  is the owner of the  superficial  land  located in the
-----
district of Livitaca, county of Chumbibilcas,  department of Cusco, with an area
of 14,563 hectares divided in two tracts of 8,963 and 5,600 hectares each, as it
can be seen in the title of property  number  11671-88 Dra. -XX (D.L 22748) sent
by the Ministry of Agriculture.

The Company is the owner of the mining concessions denominated Evaluz, Evaluz 1,
Judith, Judith 1 and it is the grantee of the mining concession Clavela 2.

Second. - By this document,  THE COMMUNITY  authorizes in favor of the Company a
------
servitude  of mining use,  so that it  finishes  the works and the works that it
requires to explore its mining rights.

Third. - The term of the present  contract is five (5) years,  counted  starting
-----
from the signature of the present minute,  this term can be extended for another
similar period.

Fourth. - In compensation for the authorization that the present document refers
------
to, THE COMPANY will pay the amount of S /. 2,000 (two thousand nuevos soles and
00/100) for the first year of validity  starting from the present minute,  which
will  be  increased  annually  in S /.  1,000 -  additional  for  every  year of
validity,  this way on the second year the payment will be S /. 3,000-the  third
year S /.  4,000 - the  fourth S /.  5,000-and  the  fifth  year will be of S /.
6,000.

To the signature of the present minute,  THE COMPANY,  pays to THE COMMUNITY the
amount of S /. 2,000  corresponding to the first year of validity of the present
contract.

Fifth.  - The  parties  agree that all the  expenses  that the  celebration  and
-----
formalization of this document originate will be assumed by THE COMPANY.

May you add Mr. Notary all the details  required by law, as well as the attached
documents.  Lima,  December12th 2004,  following the signatures of the grantors.
This minute is signed and  authorized  by Lawyer Ms. Jenny  Egusquiza  Oliveros,
with Lima Bar Registration Number 11928

INSERT. - RECORDS OF MEETING DATED NOVEMBER TWENTY-EIGHTH TWO THOUSAND AND FOUR.

Antonieta  Ocampo  Delahaza,  Notary  of  Cusco,  certifies  to  have  seen  the
denominated  Book of Records of the Board Meeting of the community  Pisquicocha,
legalized before the Judge of the Peace of the community of Pisquicocha,  of the
district of  Livitaca,  county of  Chumbivilcas,  presided  over by the Judge of
Peace Basilio Conde Huancane,  on April 28th 2003, and I have verified that from
page one  hundred  eighteen  to  hundred  twenty-two  (118-122)  you can see the
records of the meeting dated September twenty-eighth 2004, whose literal content
in the pertinent section is as follows:

In the  village of the rural  community  of  Pisquicocha,  Calani,  district  of
Livitaca, county of Chumbivilcas, department of Cusco, on November 28th 2004, at
ten in the  morning,  the meeting  started  with the  following  topics that are
important for THE COMMUNITY,  they  requested a geophysical  study that has been
carried  out and  they  also  approved  that  THE  COMPANY  continues  with  the
exploration study, only for exploration.

Without  any  further  topics  the  meeting  concluded  at  four  thirty  in the
afternoon;  following  three stamps of the members of the board,  and 60 members
signatures.

As can be seen in the Book of  Records  that I have seen and to which I refer if
needed.

<PAGE>

INSERT.- RECORDS OF THE EXTRAORDINARY ASSEMBLY DATED ON DECEMBER 12th 2004.

Antonieta Ocampo Delahaza,  Notary of Cusco, certifies that I have seen the Book
of Records of the board of the community  Pisquicocha,  legalized before a Judge
of the Peace of the community of  Pisquicocha,  district of Livitaca,  county of
Chumbivilcas,  presided over by the Judge of the Peace Basilio Conde Huancane on
April 28th 2003 and I have  verified  that on pages one  hundred  twenty-six  to
hundred  twenty-seven  (126-127)  you can see the records of the  meeting  dated
December 12th 2004, whose literal content tenor is the following one

EXTRAORDINARY ASSEMBLY

In the  headquarters  of the  community  of  Pisquicocha  - Calani,  district of
Livitaca county of Chumbivilcas, department of Cusco on December 12th 2004.

First.  -  The  president  of  THE  COMMUNITY   opened  the  assembly  with  the
representatives  of GRUPO MINERO  INTERNACIONAL and the Vice-president of Energy
and Mines of Cusco.

Second. - As agreed in the previous assembly they ratify the permission  granted
to the gentlemen of the mine who were  authorized for the stage of five years of
exploration  with a payment of two  thousand  soles iin the first  year,  in the
second year three thousand soles,  and in the third year four thousand soles, in
the fifth  year the  amount  of five  thousand  soles and in the sixth  year six
thousand soles, authorizing the president to sign and to go to Cusco.

Third.  - THE COMPANY Grupo Minero  Internacional  S.AC.  with RUC.  20508274883
properly represented by Mr. Dean De Largie with identification card number 91789
commits to make the  repairs of the wall,  the roof of the  headquarters  of the
village  and to finish  with the work of doors  and  windows  that the  building
lacks,  the repairs consist on providing  material and the community people will
work on the cealing of the barn.

Without  any further  topics to treat the  assembly  finishes  at three  thirty;
signed by the  representatives  of the community and other members in a total of
seven signatures. As can be seen in the Book of Records that I have seen which I
refer to if needed.

RECORD OF PAYMENT.  - There is notice it that in the  celebration of the present
contract there has not been any exhibition of any means of payment, according to
Law 28194, Article 7, Numeral 7.1 dated 26-03-2004.

CONCLUSION. - Formalized the document, instructed the grantors of its object and
contents,  and after being read,  I asked them about  their  agreement  and they
ratified  and signed;  leaving  expressed  notice  that the present  document is
inserted on page 031329  series or number  17115 and it concludes on page 031335
series or number  17118,  concluding  the process of signatures on December 13th
2004;  following  signatures  of the  grantors,  it  follows  a stamp,  sign and
signature of Antonieta Ocampo Delahaza, Notary of Cusco.

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