Document:

EXHIBIT
      10.1

    

    
      

        

        
          	
                   

                	 	
                  Rabobank
                    Nederland Shanghai Branch

                
	
                  Date:
                    

                	
                  6
                    May 2008

                	
                  Address: 
                    19F,
                    HSBC Tower

                
	
                  To:

                	
                  Henan
                    Zhongpin Food Share Co., Ltd.

                	
                                   
                    1000 Lujiazui Ring Road 

                
	 	
                  21
                    Changshe Road, Changge City, Henan

                	
                                   
                    Pudong New Area, Shanghai, 200120

                
	
                   

                	 	
                  Telephone:
                    (86) 21 5886 9886

                
	
                   

                	 	
                  Telefax:      
                    (86)
                    21 2893 4700

                
	
                   

                	 	 

        

        
 

      

    

    Term
      Loan Facility

    

    Dear
      Sirs,

    

    We
      are
      pleased to inform you that Rabobank Nederland Shanghai Branch (the “Lender”) is
      prepared to make available the following committed term loan to you for your
      capital expenditure requirement and refinancing of your existing secured debt
      of
      no less than RMB30,000,000.- (the “Purpose”) but not for any other purpose
      subject to the terms and conditions as stipulated in this letter (the “Facility
      Letter”) and in our standard General Commercial Agreement (as amended from time
      to time, the “GCA”).

     

    BORROWER

    

    Henan
      Zhongpin Food Share Co., Ltd. (the “Borrower” and “Mortgagor”)

    

    CORPORATE
      GUARANTORS

     

    Anyang
      Zhongpin Food Co., Ltd. (the “Corporate Guarantor A”)

    Zhumadian
      Zhongpin Food Ltd (the “Corporate Guarantor B”)

    

    (each
      a
“Corporate Guarantor”, collectively, the “Corporate Guarantors”)

    

    FACILITY

    

    Up
      to
      Renminbi (“RMB”) 80,000,000.- (RMB Eighty Million ) available for a 3-year
      committed term loan facility (the “Term Loan”). 

    

    Under
      this Facility Letter, the following terms shall be defined and interpreted
      as
      follows:

    

    “Business
      Day” means a day (other than a Saturday or Sunday) on which banks are open for
      banking business in Shanghai and the PRC; and

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “PRC”
      means the People’s Republic of China, which for purpose of this Facility Letter,
      does not include the Hong Kong Special Administrative Region, the Macau Special
      Administrative Region and Taiwan.

    

    "Break
      Costs" means the amount (if any) by which:

    

    the
      interest which the Lender should have received pursuant to the terms of this
      Facility Letter for the period from the date of receipt of the advance to the
      last day of the current interest period in respect of the advance, had the
      principal amount received been paid on the last day of that interest
      period.

    

    exceeds:

    

    the
      amount which the Lender would be able to obtain by placing an amount equal
      to
      the principal amount received by it on deposit with a leading bank in the
      relevant interbank market for a period starting on the Business Day following
      receipt or recovery and ending on the last day of the current interest
      period.

    

    “Group
      Company” shall mean the Borrower and the Corporate Guarantors, and each of its
      Holding Companies and Subsidiaries and each Subsidiary of each of its Holding
      Companies; 

    

    "Holding
      Company" means, in relation to any company or corporation, any other company
      or
      corporation in respect of which it is a Subsidiary of; and

    

    "Subsidiary"
      means, in relation to any company or corporation, a company or
      corporation:

    
      	
              (a)

            	
              which
                is controlled, directly or indirectly, by the first mentioned company
                or
                corporation;

            

    

    
      	
              (b)

            	
              more
                than half the issued share capital of which is beneficially owned,
                directly or indirectly, by the first mentioned company or corporation;
                or

            

    

    
      	
              (c)

            	
              which
                is a Subsidiary of another Subsidiary of the first mentioned company
                or
                corporation,

            

    

    and,
      for
      this purpose, a company or corporation shall be treated as being controlled
      by
      another if that other company or corporation is able to direct its affairs
      and/or to control the composition of its board of directors or equivalent
      body.

    

    SUPPORT/COLLATERAL

     

    A
      joint
      and several corporate guarantee duly executed by the Corporate Guarantors in
      favor of the Lender for an aggregate amount of no less than the Facility amount
      plus interest, charges and expenses, including but not limited to any shortfall
      incurred by the Lender in exchange rate fluctuation (the “Corporate
      Guarantee”).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    DRAWDOWN
      PERIOD

     

    Drawdown
      will be available in RMB. Subject to satisfactory completion of the conditions
      precedent, multiple drawings are allowed until the date falling three (3) months
      from the date of the acceptance of this Facility Letter (the “Drawdown Period”).
      Any amounts undrawn at the end of the Drawdown Period will be cancelled.

     

    FINAL
      MATURITY DATE

     

    The
      Facility shall terminate thirty-six (36) months from the first drawdown date
      (the “Final Maturity Date”); or if that day is not a Business Day, on the next
      succeeding Business Day thereafter unless it falls in the next calendar month
      in
      which case it shall terminate on the immediate preceding Business
      Day.

    

    REPAYMENT/PREPAYMENT

    

    1.
      The
      repayment of the outstandings under the Facility shall be made as
      follows:

    

    
      	
              Repayment
                Date 

            	
              Repayment
                Amount 

              Amount
                (if the Facility is fully drawn) / percentage of the outstanding
                amount
                (if the Facility is not fully drawn)

            
	 	 
	
              24
                months after the first drawdown date

            	
              RMB20,000,000.-.
                / 25%

            
	
              30
                months after the first drawdown date

            	
              RMB30,000,000.-
                / 37.5%

            
	
              36
                (Final Maturity Date)

            	
              RMB30,000,000.-
                /37.5%

            
	 	 

    

    

    2
      Prepayment is allowed subject to the following conditions:

    

    
      	a.  	
              Prepayment
                is in a minimum amount of RMB1,000,000.-, and an integral multiple
                of
                RMB1,000,000.- or an amount agreed by the
                Lender;

            

    

    

    
      	b.  	
              Any
                prepayment shall be made together with accrued interest on the amount
                prepaid and subject to thirty (30) days’ prior written notice to the
                Lender and Break Costs (if any) to be absorbed by the
                Borrower;

            

    

    

    
      	c.  	
              All
                prepayment is subject to the Lender’s prior
                consent;

            

    

    

    
      	d.  	
              Any
                amount repaid cannot be re-drawn or
                re-borrowed.

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    FEE
      AND BILL COMMISSION

     

    
      
        	Arrangement fee:	a non-refundable fee at 0.5% flat on the Facility
                amount
                which shall be paid upon the acceptance of this Facility
                Letter.

      

    

    

    INTEREST
      FOR TERM LOAN FACILITY

    

    100%
      of
      the interest rate issued by the People’s Bank of China (the “PBOC”) for loans
      with such a term as the corresponding tenor of the advances made under this
      Facility Letter (in absence of such rate, it shall be determined by the Lender
      in accordance with common practice).

     

    The
      interest shall be calculated on the basis of actual number of days elapsed
      in a
      year of 360 days. 

    

    If
      any
      sum is not paid when due, that sum shall bear overdue interest at a rate
      determined by the Lender in accordance with the relevant penalty interest issued
      by the PBOC for the Term Loan from the due date to the date when actual payment
      is received in full by the Lender.

    

    If
      the
      Borrower does not use the Facility in accordance with the Purpose, the Borrower
      shall forthwith on demand, pay to the Lender a penalty interest for the sum
      used
      for other purposes at a rate above the interest rate of such
      advances.

    

    The
      penalty interest for overdue payment and/or sum used for other purposes may
      be
      compounded at the Lender’s sole discretion in accordance with PRC law.

    

    If
      the
      Borrower is mandatorily prohibited by law from paying interest at the agreed
      rate or the rate as determined by the Lender, the Borrower shall pay interest
      at
      the maximum rate permitted by law (which maximum rate may vary from time to
      time).

    

    The
      repayment of principal and payment of interest shall be made in RMB.

    

    SPECIAL
      CONDITIONS:

    

    For
      Term
      Loan: 

    

    
      	1.  	
              The
                minimum drawing amount for each advance shall be RMB1,000,000.- and
                has to
                be in integral multiples of RMB1,000,000.- or an amount agreed by
                the
                Lender;

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    
      	2.  	
              All
                accrued interest is to be paid in full at the end of the interest
                period;

            

    

    

    
      	3.  	
              No
                advance shall have a maturity date beyond the expiry date (if any)
                of the
                Corporate Guarantee; 

            

    

    

    
      	4.  	
              No
                interest period shall extend beyond the expiry date (if any) of the
                Corporate Guarantee;

            

    

    

    
      	5.  	
              All
                amounts including principal, accrued interest, fees and charges shall
                be
                repaid fourteen (14) days before the expiry date (if any) of the
                Corporate
                Guarantee;

            

    

    

    
      	6.  	
              The
                interest period can either be three (3) or six (6) months as selected
                by
                the Borrower and agreed by the Lender. No interest period may overrun
                the
                Final Maturity Date;

            

    

     

    
      	7.  	
              The
                interest payment shall be due every three months or quarterly as
                regulated
                by PBOC, and shall be adjusted as necessary so that the interest
                payment
                shall be due on the 21st day of the last month of each quarter and/or
                the
                last day of the interest period, in either case if such day is not
                a day
                on which banks are open for business in the PRC (a “PRC Business Day”),
                then the interest payment shall be due on the next following PRC
                Business
                Day. If the interest period or interest payment date for RMB facilities
                are otherwise regulated by the PBOC, then the interest period or
                interest
                payment date shall be determined by the Lender in accordance with
                such
                regulation; 

            

    

    

    
      	8.  	
              Prepayment
                is allowed in a minimum amount of RMB1,000,000.-, and an integral
                multiple
                of RMB1,000,000.-, or an amount agreed by the Lender. Any prepayment
                shall
                be made together with accrued interest on the amount prepaid and
                subject
                to thirty (30) days’ prior written notice to the Lender and Break Costs
                (if any) to be absorbed by the
                Borrower;

            

    

    

    
      	9.  	
              Written
                notice of drawing must be given to the Lender three (3) Business
                Days
                prior to the date of drawing.

            

    

    

     

    CONDITIONS
      PRECEDENT 

     

    The
      Facility will be available subject to no event of force majeure in existence
      and
      the receipt of all security documents as required under SUPPORT/COLLATERAL
      and the
      following that are in form and substance satisfactory to the
      Lender:

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    
      	1.  	
              This
                Facility Letter and the GCA (where applicable) duly signed and executed
                by
                the authorized signatories of the Borrower and the Corporate
                Guarantors;

            

    

    

    
      	2.  	
              Resolutions
                of the Board of Directors and/or the resolutions of the shareholders’
                meeting (where applicable) of the Borrower approving the borrowing
                on the
                terms of the Facility Letter and authorising a named representative
                or
                representatives to execute this Facility Letter, the GCA and any
                related
                documents on its behalf;

            

    

    

    
      	3.  	
              Resolutions
                of the Board of Directors and/or the resolutions of the shareholders’
                meeting (where applicable) of the Mortgagor approving the borrowing
                on the
                terms of the Facility Letter and authorising a named representative
                or
                representatives to execute this Facility Letter and any related documents
                on its behalf;

            

    

    

    
      	4.  	
              Resolutions
                of the Board of Directors and/or the resolutions of the shareholders’
                meeting (where applicable) of each of the Corporate Guarantors approving
                to provide the Corporate Guarantee and authorising a named representative
                or representatives to execute this Facility Letter and the Corporate
                Guarantee and any related documents on its behalf;
                

            

    

    

    
      	5.  	
              A
                certified true and updated copy of the Borrower’s, the Mortgagor’s and
                each of the Corporate Guarantors’ current enterprise legal person business
                licence (Zhen Ben and Fu Ben), certificate of approval (where applicable),
                organization code certificate and tax registration certificate
                ;

            

    

    

    
      	6.  	
              A
                certified true and updated copy of the articles of association and
                any
                other constitutional documents of the Borrower, the Mortgagor and
                of each
                of the Corporate Guarantors at the Lender’s
                discretion;

            

    

    

    
      	7.  	
              Certified
                true and updated copy of i) directors and shareholders list of the
                Borrower and of each of the Corporate Guarantors; ii) identity
                cards/passports of the directors of the Borrower and of each of the
                Corporate Guarantors; iii) directors list of the Borrower’s
                shareholder(s), which own(s) above 10% shareholding of the Borrower,
                together with the directors’ certified true and updated copy of identity
                cards/passports; and iv) the business license, certificate of
                approval(where applicable), organization code certificate and tax
                registration certificate of the Borrower’s shareholder(s) which own(s)
                above 10% shareholding of the
                Borrower;

            

    

    

    
      	8.  	
              Certified
                true and updated copy of identity cards/passports of the authorized
                signatory(ies) of the Borrower and of each of the Corporate
                Guarantors;

            

    

    

    
      	9.  	
              Evidence
                of payment of all stamp duty payable in respect of this Facility
                Letter;

            

    

    

    
      	10.  	
              Certified
                true and updated copy of the Borrower’s and each of the Corporate
                Guarantors’ PBOC credit registration card with card number(s) and
                password(s) and other data or information which are required for
                the
                Lender to access and service the bank credit register and consulting
                system established by the PBOC;

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
 

    
      	11.  	
              Authenticated
                specimen signatures of the Borrower’s authorized signatory(ies) and copies
                of the Lender’s standard account opening documentation signed by the
                Borrower (if applicable);

            

    

     

    
      	12.  	
              Such
                other documents as may be required by the Lender from time to time.
                

            

    

    

    FURTHER
      DOCUMENTS AND EVIDENCE TO BE DELIVERED 

    

    
      	1.  	
              Evidence
                of completion of any approval, registration and/or other formalities
                in
                relation to this letter and the Corporate Guarantee with the relevant
                PRC
                governmental agencies as required by any applicable laws and
                regulations;

            

    

    

    
      	2.  	
              A
                    first legal charge over the land at 
                    (“Pledged Land”) together with the building erected
                    or to be erected thereon (the “Pledged Building”,
                    together with the Pledged Land, collectively the “Pledged
                    Property”) to be entered into by and between the Borrower
                    as mortgagor (the “Mortgagor”) and the Lender
                    for the Borrower’s obligations under the Facility in
                    the form and substance agreed between the Mortgagor, the Borrower
                    and the Lender for the Pledged Land (the “Land Mortgage”)
                    and the Pledged Building (the “Building Mortgage”,
                    together with the Land Mortgage, collectively the “Property
                    Mortgage”);

            

    

    

    
      	3.  	
              Submission
                of a valuation appraisal report (to be prepared by a valuer acceptable
                to
                the Lender) denoting the market value of the Pledged Property of
                no less
                than RMB80 Million in form and substance satisfactory to the
                Lender.

            

    

    

    
      	4.  	
              Resolutions
                of the Board of Directors and/or the resolutions of the shareholders’
                meeting (where applicable) of the Mortgagor approving to provide
                the
                Property Mortgage and authorising a named representative or
                representatives to execute Property Mortgage and any related documents
                on
                its behalf;

            

    

    

    
      	5.  	
              an
                assignment of insurances in agreed form entered into or to be entered
                into
                between the Mortgagor and Lender pursuant to which, among other things,
                the Mortgagor grants security to the Lender over all insurances of
                the
                Pledged Property (“Assignment of Insurances”) via the application of the
                Facility;

            

    

    

    
      	6.  	
              registration
                certificate of the Property Mortgage issued by the relevant local
                construction bureau and local land bureau (as
                applicable);

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    
      	7.  	
              a
                legal opinion prepared by a PRC lawyer acceptable to the Lender pertaining
                to the enforceability of the Property Mortgage and Assignment of
                Insurances; and 

            

    

    

    
      	8.  	
              Such
                other documents as may be required by the Lender from time to
                time.

            

    

    

    REPRESENTATIONS
      AND WARRANTIES

    

    Each
      of
      the Borrower, the Mortgagor and the Corporate Guarantors (where applicable)
      represents, which representations shall be deemed to be repeated on each day
      on
      which any sum remains owing by the Borrower to the Lender, that:

    

    
      	1.  	
              it
                is duly incorporated and validly existing under the laws of the PRC
                has
                complied with all laws and regulations to which it is
                subject;

            

    

    

    
      	2.  	
              it
                has full power and authority, and has obtained all necessary approvals,
                registrations and licences to enable it, to enter into this Facility
                Letter and the Corporate Guarantee;

            

    

    

    
      	3.  	
              all
                information provided to the Lender is true and correct in all respects;
                

            

    

    

    
      	4.  	
              the
                Lender has been supplied with an up-to-date copy of its constitutional
                documents and confirm the continuous validity
                thereof;

            

    

    

    
      	5.  	
              there
                has been no material adverse change in its financial and operations
                conditions since 31 December 2006 which would affect its ability
                to meet
                its obligations hereunder or under the Corporate Guarantee (as the
                case
                may be); and

            

    

    

    
      	6.  	
              no
                security interest exists over any of its assets or revenue except
                as
                notified in writing to the Lender.

            

    

    

    UNDERTAKINGS
      AND COVENANTS

    

    (A)
      Each
      of the Borrower and of the Corporate Guarantors (where applicable) hereby
      undertakes:

    

    
      	1.  	
              to
                ensure that the above Facility is only used for the Purpose as permitted
                by the Lender;

            

    

    

     

    
      	2.  	
              to
                ensure that its payment obligations (including those arising from
                ordinary
                course of trade business) due to its Group Company and any shareholder(s)
                will be subordinated to its obligations due to the Lender under this
                Facility Letter and the Borrower will assist the Lender in obtaining
                a
                subordination or similar agreement from its Group Companies in favor
                of
                the Lender within the time limit agreed by the Lender;
                

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    
      	3.  	
              that,
                subject to clause 2 above, it will ensure that its obligations hereunder
                will at all time rank pari passu with all other present and future
                unsecured and unsubordinated
                obligations;

            

    

    

    
      	4.  	
              that
                save for all encumbrances existing before the grant of the facility
                which
                shall have been notified in writing to the Lender and those encumbrances
                which will be created in favour of the Lender, the Borrower, the
                Mortgagor
                and the Corporate Guarantors shall not create any security (howsoever
                described but excluding security arising by operation of law in the
                ordinary course of business) in favour of any other entity or person
                without the prior written permission of the
                Lender;

            

    

     

    
      	5.  	
              that
                there is no substantial change to the general nature of its business
                from
                that carried on at the date of this
                letter;

            

    

    

    
      	6.  	
              (i)
                that it will not enter into a single transaction or a series of
                transactions (whether related or not) and whether voluntary or involuntary
                to sell, lease, transfer or otherwise dispose of any
                asset;

            

    

    

    (ii)
      Paragraph (i) above does not apply to any sale, lease, transfer or other
      disposal made in the ordinary course of business on an arms length basis of
      the
      disposing entity; or of assets in exchange for other assets comparable or
      superior as to type, value and quality and for a similar purpose;

    

    
      	7.  	
              that
                it will not enter into any amalgamation, demerger, merger, consolidation
                or corporate reconstruction which may have a material adverse effect
                in
                the sole opinion of the Lender;

            

    

    

    
      	8.  	
              to
                maintain an adequate insurance coverage over fixed
                assets;

            

    

    

    
      	9.  	
              to
                deliver to the Lender certified true copies of its (i) half-year
                un-audited (and consolidated if any) accounts/interim results within
                ninety (90) days from the half-year end of each financial year; (ii)
                its
                annual audited (and consolidated, if any) financial statements as
                soon as
                practicable and not later than one hundred and twenty (120) days
                after
                each fiscal year; and (iii) such other information as the Lender
                may
                request;

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    
      	10.  	
              to
                notify the Lender promptly of the occurrence of any event (including
                an
                Event of Default as defined in the GCA) which might affect the Borrower’s
                ability or the Mortgagor’s ability or the Corporate Guarantor’s ability to
                perform its obligations hereunder or the Mortgagor’s ability to perform
                its obligations under the Property Mortgage or the Corporate Guarantor’s
                ability to perform its obligations under the Corporate Guarantee
                or any
                change in the ultimate shareholding or control of the Borrower or
                of the
                Corporate Guarantors;

            

    

    

    
      	11.  	
              that
                the Borrower will continue to own a 100% shareholding (directly or
                indirectly) in each of the Corporate
                Guarantors;

            

    

    

    
      	12.  	
              that
                any change above 10% in the shareholding structure of the Borrower
                or of
                the Corporate Guarantor is subject to the Lender’s prior written
                consent;

            

    

    

    
      	13.  	
              the
                consolidated CAPEX (including acquisition) should be less than
                RMB400,000,000.- throughout the life of the Facility;
                

            

    

    

    
      	14.  	
              the
                consolidated contingent liabilities should be i) less than
                RMB400,000,000.- for the financial year of 2008; and ii) less than
                RMB300,000,000.- for the financial years
                thereafter;

            

    

    

    
      	15.  	
              that
                the Mortgagor shall deliver to the Lender each of the documents and
                evidence referred to under FURTHER
                DOCUMENTS AND EVIDENCE TO BE DELIVERED
                in
                this letter and enter into i) the Land Mortgage over the Pledged
                Land on
                or before three (3) months from the acceptance of the Facility Letter;
                ii)
                the Building Mortgage over the Pledged Building on or before 31 December
                2008; 

            

    

     

    (B)
      The
      Borrower hereby undertakes that:

    

    
      	1.  	
              its
                ratio of debt to net worth shall be less than 0.8x throughout the
                life of
                the Facility;

            

    

     

    
      	2.  	
              its
                ratio of debt to EBIDTA shall be less than (i) 3x for the financial
                year
                of 2008 ; (ii) 2.5x for the financial year of 2009; (iii) 2x for
                the
                financial year of 2010; and (vi) 1.8x for the financial year of 2011
                and
                thereafter; .

            

    

     

    
      	3.  	
              its
                Interest Coverage Ratio shall be greater than 6x throughout the life
                of
                the Facility; 

            

    

     

    
      	4.  	
              its
                Tangible Net Worth shall be no less than RMB900,000,000.- throughout
                the
                life of the Facility;

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	5.  	
              that
                its inter-company indebtedness shall always be less than
                RMB500,000,000.-throughout the life of the Facility except for the
                loans
                against inventory;

            

    

     

    

    
      	6.  	
              that
                70% of its consolidated EBITDA should be generated by the Borrower
                and/or
                the Corporate Guarantors; if fails, the Lender has the right to
                restructure the Facility by requesting additional borrower(s) and/or
                guarantor(s) accompanied by execution all such documents (within
                thirty
                (30) days thereafter) and do all such acts as are necessary to cause
                such
                entity to execute the Lender’s facility letter and/or guarantee form, and
                all other documents and do all such acts as are necessary or appropriate
                for such entity to become a borrower and/or a guarantor
                hereunder;

            

    

    

    
      	7.  	
              that
                its dividends payment shall be less than 50% of its retained earnings
                throughout the life of the Facility;

            

    

    

    Testing
      of the relevant items in section (A) and (B) shall be carried out semi-annually
      by reference to the relevant financial statements delivered to the Lender under
      clause 9 under Section (A) above). 

    

    For
      the
      purposes of this Facility Letter, the following definitions shall
      apply:

    

    EBITDA
      is
      defined as operating earnings before interest, taxes, depreciation and
      amortization;

    

    Interest
      Coverage Ratio is defined as EBITDA/interest paid; 

    

    Tangible
      Networth is defined as networth minus intangibles;

    

    CAPEX
      is
      defined as net investment in fixed assets plus net investment in financial
      assets.

    

    

    EVENTS
      OF DEFAULT

    

    The
      following sub-clauses shall be considered as Events of Default. If:

    

    
      	1.  	
              the
                Borrower and/or the Corporate Guarantor fails to pay any sum due
                under
                this letter; or

            

    

     

    
      	2.  	
              any
                representation made by the Borrower and/or the Corporate Guarantor
                and/or
                the Mortgagor in or in connection with this letter or any certificate,
                statement or document delivered or made by the Borrower and/or the
                Corporate Guarantor and/or the Mortgagor pursuant hereto proves to
                have
                been incorrect or inaccurate in any material respect when made;
                or

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
 

    
      	3.  	
              the
                Borrower and/or the Corporate Guarantor and/or the Mortgagor fails
                to
                perform or observe any provision or undertakings or covenants of
                this
                letter; or

            

    

    

    
      	4.  	
              the
                Borrower and/or the Mortgagor and/or the Corporate Guarantor (or
                any of
                its parent company or subsidiaries) takes corporate action or applies
                to
                any court for its winding-up or the appointment of a liquidator,
                administrator or receiver or similar officer of all or any part of
                its
                assets; or

            

    

    

    
      	5.  	
              any
                encumbrancer takes possession, or a liquidator, administrator, receiver
                or
                similar officer is appointed to all or any material part of the
                undertaking or assets of the Borrower and/or the Mortgagor and/or
                the
                Corporate Guarantor (or any of its parent company or subsidiaries)
                or any
                liquidation, bankruptcy, insolvency, re-organization or similar material
                proceedings are instituted by or against the Borrower and/or the
                Mortgagor
                and/or the Corporate Guarantor (or any of its parent company or
                subsidiaries) ; or

            

    

    

    
      	6.  	
              at
                any time it becomes unlawful for the Borrower and/or Mortgagor and/or
                the
                Corporate Guarantor to perform any of its obligations hereunder or
                under
                the Property Mortgage or under the Corporate Guarantee;
                or

            

    

    

    
      	7.  	
              if
                the Borrower and/or the Corporate Guarantor (or any of its parent
                company
                or subsidiaries) ceases or threatens to cease to carry on the whole
                or a
                substantial part of its business, or the Borrower and/or the Corporate
                Guarantor (or any of its parent company or subsidiaries) stops or
                threatens to stop payment of, or is unable to, or admits inability
                to pay
                its debts as they fall due, or is deemed unable to pay its debts
                pursuant
                to or for the purposes of any applicable law, or is adjudicated or
                found
                bankrupt or insolvent or a moratorium is threatened or declared in
                respect
                of any of its indebtedness; or

            

    

    

    
      	8.  	
              at
                any time the Property Mortgage is or becomes unlawful or is not,
                or ceases
                to be legal, valid, binding or enforceable or otherwise ceases to
                be
                effective; or

            

    

    

    
      	9.  	
              any
                event or series of events occurs which in the reasonable opinion
                of the
                Lender may materially and adversely affect the ability of the Borrower
                and/or the Mortgagor and/or the Corporate Guarantor to comply with
                its
                obligations as expressed in this Letter or in the Equipment Mortgage
                or in
                the Corporate Guarantee; or 

            

    

    

    
      	10.  	
              any
                other indebtedness (including under any guarantee or similar obligations)
                of the Borrower (or any of its parent company or subsidiaries) and/or
                the
                Mortgagor and/or the Corporate Guarantor (or any of its parent company
                or
                subsidiaries) (a) is not paid when due or within any applicable grace
                period granted in any agreement or instrument relating to that financial
                indebtedness or; (b) becomes due and payable or becomes capable of
                being
                declared due and payable before its normal maturity by reason of
                a default
                or event of default, howsoever described.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
 

    then
      in
      any such cases and at any time thereafter the Lender may, by written notice
      to
      the Borrower, declare the outstanding principal amount of the Facility, together
      with accrued interest thereon and any other sums payable hereunder, to be
      immediately due and payable whereupon the same shall become so
      payable.

    

    TAXES

    

    All
      payments to be made by the Borrower, the Corporate Guarantor and the Mortgagor
      (as the case may be) hereunder shall be made free and clear of and without
      deduction for or on account of any present or future taxes of any nature now
      or
      hereafter imposed unless the Borrower and the Mortgagor and the Corporate
      Guarantor (as the case may be) are compelled by law to make payment subject
      to
      such taxes, in which case the sum payable by the Borrower and the Mortgagor
      and
      the Corporate Guarantor (as the case may be) in respect of which deduction
      or
      withholding is required to be made shall be increased to the extent necessary
      that the Lender receives and retains a net sum equal to the sum which it would
      have received and so retained had no such deduction or withholding been made
      or
      required to be made.

    

    INCREASED
      COSTS

    

    If
      at any
      time the Lender shall be of the opinion that the effect of the enactment or
      introduction of, or any change in, any applicable law or regulation (whether
      or
      not having the force of law) or compliance with any law, regulation or directive
      from any governmental or regulatory authority or the interpretation or
      application thereof is to increase the amount of capital required or expected
      to
      be maintained by the Lender (or any corporation controlling the Lender) or
      to
      increase the cost to the Lender of maintaining the Facility by an amount which
      in either case the Lender deems material, or the effective return to the Lender
      of its capital is reduced, the Lender shall notify the Borrower to that effect
      and thereupon the Borrower shall pay the Lender such amount as the Lender
      specifies is necessary to compensate it for such increased cost or reduced
      return.

    

    ILLEGALITY

    

    If
      at any
      time after the date hereof by reason of any introduction of or change in any
      applicable law, regulation or regulatory requirement it becomes unlawful or
      otherwise prohibited for the Lender to allow to remain outstanding under the
      Facility made by it then the Lender shall, promptly after becoming aware of
      the
      same, deliver to the Borrower a certificate to that effect. The Lender shall
      not
      thereafter be obliged to maintain the Facility; and, if the Lender so requires,
      the Borrower shall on such date as the Lender shall have specified (being the
      latest date by which the relevant law requires that the same be repaid) repay
      the outstanding amount under the Facility made by the Lender to it with accrued
      interest thereon.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
      AND TRANSFER

    

    The
      Borrower, the Mortgagor and the Corporate Guarantors may not assign, transfer,
      novate or in any dispose of any of its right and/or obligations under this
      Facility Letter or the Corporate Guarantee. The Lender may assign or otherwise
      transfer or grant participations in all or any part of its rights under this
      Facility Letter to any other bank or financial institution.

    

    GENERAL

    

    Out
      of pocket expenses

    

    All
      expenses related to the Facility including, but not limited to legal fees and
      out-of-pocket expenses shall be borne by the Borrower; and such expenses shall
      be reimbursed by the Borrower regardless of whether or not the transaction
      contemplated herein is actually completed or this Facility Letter is signed.
      

     

    Language

    

    This
      Facility Letter is written in English only. 

     

    Standard
      Form Documents

    

    The
      Lender makes use of standard form documents to facilitate the provision of
      its
      services to customers, such as the Borrower, in relation to standard facilities
      and transactions, such as this Facility Letter.

     

    The
      Lender recommends that the Borrower, the Mortgagor and the Corporate Guarantors
      review any standard form documents and in particular, those provisions which
      are
      relevant to the specific service or transaction which is to be provided by,
      or
      entered into with, the Lender. This recommendation by the Lender extends to
      any
      standard form documents and includes, but is not limited to, any supplement,
      amendment, addition or side agreement made to or in connection with this
      Facility Letter. 

     

    If
      any
      queries arise in relation to the provisions of any standard form documents,
      please contact the Lender so that the relevant provisions can be explained
      in
      further detail.

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    

    

    GOVERNING
      LAW AND JURISDICTION

    

    This
      Facility Letter and the execution hereof are governed by and shall be construed
      in accordance with the laws of the PRC. 

     

    Any
      dispute, controversy or claim which may arise out of or in connection with
      this
      Facility Letter shall be settled through friendly consultations and if failure
      in settling the disputes through friendly consultations within thirty (30)
      days
      after one party has served written notice on the other party requesting the
      commencement of such consultations, either party may submit the dispute to
      the
      competent court in Shanghai for judgement in accordance with the terms of this
      Facility Letter and the GCA.

     

    Without
      prejudice to the rights of the Lender as described above, each of the Borrower,
      the Mortgagor and the Corporate Guarantors expressly acknowledges that any
      breach of the terms and conditions or representations and warranties as
      stipulated in the Facility shall constitute an Event of Default as defined
      in
      the GCA.

     

    GCA
      shall
      be deemed as an integral part of this Facility Letter and shall have the same
      legal force as this Facility Letter.

    

    Please
      indicate your acceptance of the above terms and conditions by signing and
      returning to us the duplicate of this Facility Letter on or before 30
      May 2008,
      after
      which date this offer shall lapse. This Facility shall become effective after
      it
      has duly signed by you and the Lender.

     

    

     

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    

     

    We
      are
      pleased to be of service to you and look forward to a mutually beneficial
      relationship.

     

    Yours
      faithfully,

    For
      and
      on behalf of

    RABOBANK
      NEDERLAND SHANGHAI BRANCH

    
      

      
        	
                _/s/
                  Yang Wang__________________

              	
                _/s/
                  Petrus Bressers_____________

              
	
                Yang
                  Wang

              	
                Petrus
                  (Patrick) Bressers

              
	
                General
                  Manager 

              	
                Chief
                  Risk & Operating Officer

              

      

    

    

    We,
      as
      Borrower and Mortgagor, hereby agree and accept the above-mentioned terms and
      conditions for the captioned Facility.

    

    For
      and
      on behalf of

    Henan
      Zhongpin Food Share Co., Ltd.

    

    /s/
      Zhu
      Xiaowei                                                

    Authorised
      Signatory(ies) with company chop

    Name(s):
      Zhu Xiaowei

    Date:

    

    We,
      as
      Corporate Guarantors, hereby jointly and severally agree and accept the
      above-mentioned the terms and conditions for the captioned
      Facility.

    

    For
      and
      on behalf of

    Anyang
      Zhongpin Food Co., Ltd. 

    

    /s/
      Jing
      Jiangtao                                                

    Authorised
      Signatory(ies) with company chop

    Name(s):
      Jing Jiangtao

    Date:

    

    For
      and
      on behalf of

    Zhumadian
      Zhongpin Food Ltd.

     

     

    
 

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    /s/
      Jing
      Jiangtao                                                

    Authorised
      Signatory(ies) with company chop

    Name(s):
      Jing Jiangtao

    Date:

     

     

    
      
        
        

      

      17Proposal
      for Clinical Trial Services to Support Transdel Pharmaceuticals Inc.’s
      Ketotransdel for the Treatment of Mild to Moderate Acute Soft Tissue
      Injury

    

    

    Prepared
      for: 

    

    4225
      Executive Square Suite 460

    La
      Jolla,
      CA 92037 

    

    

    Revised:
      10 June 2008

    

    

    Prepared
      by:

    Cato
      Research Ltd.

    

    
      	
               

              Research
                Triangle Park, North Carolina

              Westpark
                Corporate Center

              4364
                South Alston Avenue

              Durham,
                NC 27713

              Phone:
                919-361-2286

            	
               

              Montreal,
                Canada

              9900
                Cavendish Boulevard, Suite 400

              St.-Laurent,
                Québec

              Canada
                H4M 2V2

              Phone:
                514-856-2286

            	
               

              Boston,
                Massachusetts

              Bay
                Colony Corporate Center

              1100
                Winter Street

              Waltham,
                MA 02451 

              Phone:
                781-890-4477

            
	 	 	 
	
              Northern
                California

              601
                Gateway Boulevard, Suite 1010

              South
                San Francisco, CA 94080 

              Phone:
                650-588-8256

            	
              Southern
                California

              6480
                Weathers Place, Suite 104

              San
                Diego, CA 92121

              Phone:
                858-452-7271

            	
              Washington,
                D.C., metro

              9605
                Medical Center Drive, Suite 390

              Rockville,
                MD 20850 

              Phone:
                301-309-1260

            
	 	 	 
	
              Tel
                Aviv, Israel

              2,
                Habarzel Street, 4th floor

              Ramat
                Hahayal

              Tel
                Aviv, Israel 69710

              Phone:
                9723-644-9522

            	
              Riga,
                Latvia

              Studika
                Monitoring + Audit GmbH

              Poruka
                iela 8

              LV
                1014 Riga

              Phone:
                +37-19512220

            	
              Frankfurt
                am Main, Germany

              Staufenstrasse
                4

              60323
                Frankfurt am Main, Germany

              Phone:
                +49-69-972-64550

            
	 	 	 
	
              Johannesburg,
                South Africa

              1st
                Floor Building 27

              Waterford
                Office Park

              Waterford
                Drive, Fourways 2055

              Johannesburg,
                South Africa

              Phone:
                +27-11-658-8400

            	
              Cologne,
                Germany

              Studika
                Monitoring + Audit GmbH

              Hertzstrasse
                7

              D-50859
                Köln

              Cologne,
                Germany

              Phone:
                +49-2234-70672

            	
              Graz,
                Austria

              JSW-Research

              Forschungslabor
                GmbH

              Rankengasse
                28

              8020
                Graz, Austria

              Phone:
                +43-316/765114-11

               

            

    

    

    

    www.cato.com

     

    
      	Strategies.
              Solutions. Success. TM	
               

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	CONFIDENTIAL	
              Cato
                Research Ltd.

            
	 	 

    

     

     

    Overview
      of the Proposal

     

     

     

    
      	
              

              When
                it comes to developing human therapeutics, Cato Research relies on
                sound principles of science and medicine.

            	
              This
                proposal is organized into the following parts:

               

              Part
                A 

               

              ·  Introduction
                to Cato Research and Summary of Activities 

               

              Part
                B

               

              ·  Experience
                in Neurology Clinical Trials

               

              Part
                C

               

              ·  Terms
                of Work

               

              Appendix
                1

               

              ·  Project
                Timelines and Project Assumptions

              ·  Summarized
                and Details of Costs, Estimated Pass Through Expenses, Estimated
                Milestone
                Completion Dates, and Fees Associated with Milestones

               

               

               

               

               

               

            
	
              This
                proposal has been prepared based on information provided by Transdel
                Pharmaceuticals, Inc. and Cato Research’s experience with similar
                projects. It is available to Transdel Pharmaceuticals for 45 days
                from the
                date of issuance. The proposal constitutes Cato Research confidential
                information and should not be disclosed to any third party without
                Cato
                Research’s prior written consent.

            

    

     

    
      
        	Strategies.
                Solutions. Success. TM	
                Page
                  2

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	CONFIDENTIAL	
                Cato
                  Research Ltd.

              
	 	 

      

       

    

    
      	
               

              Part
                A

               

              Introduction
                to Cato Research 

              and
                Summary of Activities 

               

            

    

     

    
      
        	Strategies.
                Solutions. Success. TM	
                Page
                  3

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	CONFIDENTIAL	
                Cato
                  Research Ltd.

              
	 	 

      

    

     

    Overview
      of Cato Research

     

    
      	
               

               

               

              Cato
                Research specializes in complex development programs requiring innovative
                regulatory and clinical strategies for pharmaceutical, biotechnology,
                and
                medical device companies.

               

               

               

            	
              Organization

               

              Cato
                Research is a full-service CRO offering integrated drug development
                services, including clinical trial support and regulatory and product
                development strategy for drugs, biologics, diagnostics, and medical
                devices. Our staff has medical and scientific expertise necessary
                for the
                successful conduct of development programs across many different
                therapeutic areas and in multiple locations worldwide. We have offices
                in
                strategic locations around the world, as indicated on the cover page.
                Our
                staff members have relevant and diverse backgrounds, including previous
                experience in the pharmaceutical industry, biotechnology companies,
                academia, as well as basic and clinical research programs.

               

              Regulatory
                Services

               

              ·  Strategic
                consulting

              ·  Integrated
                development plan preparation

              ·  Pre-Investigational
                New Drug application (IND) and pre-investigational device exemption
                meeting package preparation and meeting conduct

              ·  IND
                preparation and submission (common technical document and electronic
                common technical document format)

              ·  Marketing
                application writing and submission

              ·  Regulatory
                agency interactions

              ·  Chemistry,
                manufacturing, and controls program management

              ·  Nonclinical
                program design and management

               

              Clinical
                Trial Services

               

              ·  Protocol
                and case report form (CRF) design

              ·  Regulatory
                application preparation and submission

              ·  Clinical
                monitoring and management

              ·  Medical
                monitoring and pharmacovigilance

              ·  Data
                management, including electronic data capture (EDC)

              ·  Statistical
                analysis and clinical study report writing

              ·  Project
                management

               

              Primary
                Therapeutic Areas 

               

              ·  Neurology

              ·  Oncology

              ·  Cardiology

            
	
               

              Founded
                in 1988, Cato Research has earned a reputation for speed and
                efficiency without sacrificing quality.

               

               

               

            
	
               

              Through
                strategic growth, Cato Research is positioned as a midsize CRO in
                key
                North American and international markets. Focusing on our core expertise
                in regulatory strategy, project management, and clinical trial management,
                we offer integrated development services and solutions from discovery
                to
                postmarketing.

            
	
              Our
                experienced, multidisciplinary project teams take pride in their
                work and
                use established project management processes to provide flexible,
                responsive, and personalized services in collaboration with our
                sponsors.

               

            

    

     

    
      
        	Strategies.
                Solutions. Success. TM	
                Page
                  4

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	CONFIDENTIAL	
                Cato
                  Research Ltd.

              
	 	 

      

       

    

    Cato
      Research’s Clinical Strategies and Solutions

     

    Cato
      Research appreciates the opportunity to provide a proposal for services to
      support Transdel’s protocol entitled, “A Randomized, Multicenter, Double-Blind,
      Placebo-Controlled, Parallel-Group, Phase 3 Study to Assess the Efficacy and
      Safety of KetotransdelTM (Ketoprofen Topical Cream 10%) in the Treatment of Mild
      to Moderate Acute Soft Tissue Injury” 

     

    Cato
      Research understands that Transdel is interested in the following
      services:

     

    Clinical
      Trial Preparation:
      including preparation of trial documents and monitoring plan, project-related
      meetings, and project-specific training

     

    Clinical
      Trial Conduct:
      including all site visits, medical monitoring, and medical coding

     

    Pharmacovigilance:
      including setup of an Argus Safety database and processing of all serious
      adverse events (SAEs) during the study

     

    Data
      Management (etrials®):
      including project initiation, development of an electronic CRF (eCRF), edit
      checks, and server implementation, investigator training, data project
      management, data archiving, and study closeout 

     

    Statistics:
      including production of final data displays, listings, summary tables, and
      figures

     

    Clinical
      Study Reports:
      including preparation of the clinical study report and appendices in electronic
      format

     

    Regulatory:
      including ongoing tracking and management of study-related regulatory
      documentation

     

    Project
      Management:
      including preparation of project work plans, timelines, budgets and study
      reports; internal team meetings to monitor project progression; creation of
      tracking reports; and document management of files

     

    Sponsor
      Interactions:
      including routine monthly conference calls to discuss project status and
      development issues

     

    A
      comprehensive, itemized list of all proposed activities and their costs is
      provided in Part C of this proposal. 

     

    
      
        	Strategies.
                Solutions. Success. TM	
                Page
                  5

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        
          	CONFIDENTIAL	
                  Cato
                    Research Ltd.

                
	 	 

        

      

       

    

    Cato
      Research is an experienced provider of high-quality clinical trial services:
      from protocol development and site selection to clinical monitoring,
      pharmacovigilance services and biostatistical analysis. Cato Research can
      support the timely and cost-effective development of Ketotransdel. As a midsize
      CRO, we are able to offer our sponsors personal attention as well as access
      to
      the expertise of our senior management. 

     

    We
      have
      highlighted a few areas here that embody our unique perspective on management
      of
      clinical studies.

     

    Project
      Management

     

    We
      are a
      matrix organization that draws members from various operational groups to staff
      a project team with specific emphasis on matching project needs with expertise.
      We believe it is important for our project managers to have a comprehensive
      understanding of the clinical trial environment. As such, many of our project
      managers are Ph.D.-level scientists, have obtained certified clinical research
      professionals (C.C.R.P.) certifications, are regulatory affairs certified
      (R.A.C.), or are certified project management professionals (P.M.P.). In
      addition to having project management responsibilities, our project managers
      can
      also author and review protocols, development plans, and regulatory
      documentation. It is our experience that this advanced training and
      comprehensive knowledge of the dynamic development environment give Cato
      Research project teams the ability to maximize creative strategies and solutions
      while at the same time, remaining time- and cost-efficient.

     

    Our
      project teams are led by experienced project managers, overseen by a program
      director, a senior staff member who provides expertise and guidance as
      necessary, and supported by a project coordinator, who handles the day-to-day
      tracking and logistical activities.

     

    Cato
      Research believes that effective project management begins at project
      initiation. We recommend development of a detailed project plan, including
      a
      communications plan, in conjunction with our sponsors to set expectations,
      establish communication flow, and outline project tracking methods. We also
      recommend holding a face-to-face kick-off meeting to define the project scope,
      priorities, and timelines.

     

    Clinical
      Management

     

    Cato
      Research offers experienced monitoring teams with strong health care
      backgrounds. Many of our clinical research associates (CRAs) and clinical study
      managers (CSMs) are nurses, have earned C.C.R.A. accreditation, or have earned
      EDC certification. We have strong internal continuing education programs for
      our
      clinical staff, including a yearly clinical conference, monthly trainings on
      selected key topics, and ongoing study groups.

     

    For
      our
      teams to function in the most efficient and cost-effective manner, we have
      divided some tasks traditionally seen as a CRA role into an in-house CSM role
      with the following responsibilities:

     

    
      
        	
              	·	
                Conceptualizing
                  and evaluating study strategies with input from appropriate Cato
                  Research
                  project team members

              

      

    

     

    
      
        	
              	·	
                Reviewing
                  the progress of the Cato Research project team and resolving technical
                  and
                  interpersonal issues

              

      

    

     

    
      
        	
              	·	
                Providing
                  technical and administrative
                  leadership

              

      

    

     

    
      
        	
              	·	
                Coordinating
                  and planning project
                  deliverables

              

      

    

     

    
      
        	Strategies.
                Solutions. Success. TM	
                Page
                  6

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	CONFIDENTIAL	
                Cato
                  Research Ltd.

              
	 	 

      

       

    

    
      
        	
              	·	
                Communicating
                  with program director and Cato Research senior management on study-related
                  issues that require additional
                  input

              

      

    

     

    
      
        	
              	·	
                Initiating
                  and maintaining effective and efficient communication with the
                  Cato
                  Research project team and with Transdel in order to ensure activities
                  meet
                  predefined timelines 

              

      

    

     

    
      
        	
              	·	
                Verifying
                  that effective and efficient communication and follow-up is occurring
                  between CRAs, investigative sites, Transdel, and any other contracted
                  organizations (e.g., core
                  lab)

              

      

    

     

    Having
      the CRA function as the primary site contact and the CSM function as the
      in-house contact allows more consistency with study activities, providing the
      sites with another contact and overall consistency for the study.

     

    Clinical
      Monitoring

     

    At
      each
      pre-study site selection visit, the Cato Research CRA will spend 4 hours on-site
      to confirm that facilities are appropriate and that the site staff is qualified
      to conduct this clinical study. 

     

    Each
      site
      initiation visit will include 8 hours on-site. We recommend conducting the
      site
      initiation visit after investigational product is received at the site to
      confirm that the site is ready to begin subject enrollment. Cato Research
      welcomes participation by a Transdel representative at this visit.

     

    During
      the 8-hour periodic site visits, the Cato Research CRA will conduct 100% source
      document verification of CRFs, perform drug-accountability activities, and
      review the regulatory site files to verify compliance (e.g., confirming that
      each subject has an informed consent form on file). Cato Research
      recommends that the first monitoring visit occur immediately after the first
      subject is treated at each site. This schedule enables identification of any
      data issues early in the study. The Cato Research CRA will collect completed
      CRFs from the site for data verification, the CRA or the site will enter the
      CRFs into the EDC database, and will work with data management and the site
      to
      resolve any data queries. For site visits performed remotely, the Cato Research
      monitors will review data by using the EDC system. Following patient visits,
      sites will forward the source documents to Cato Research for verification.
      

     

    At
      the
      conclusion of the study, Cato Research will conduct an 8-hour closeout visit
      at
      each study site. We recommend conducting this visit when almost all queries
      are
      resolved so that all site activities can be closed out at this time. The CRA
      will perform final study activities such as drug reconciliation/accountability
      and final regulatory document review at this visit.

     

    Each
      visit will be performed according to Cato Research SOPs. After each visit,
      the
      CRA will prepare a monitoring trip report that uses Cato Research’s standard
      format. The report will be reviewed by the CSM before being delivered to
      Transdel.

     

    
      
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          	CONFIDENTIAL	
                  Cato
                    Research Ltd.

                
	 	 

        

         

      

    

    Medical
      Management and Pharmacovigilance

     

    Our
      medical team is supported by a dedicated pharmacovigilance group established
      to
      handle the processing of SAE reports to regulatory authorities and
      investigators. In addition to premarketed safety reporting, this group provides
      postmarketing spontaneous adverse event reporting. Our personnel have the
      training, education, and experience to provide a comprehensive range of safety
      reporting services to meet the demands of SAE reporting requirements of global
      drug/biologic/device investigational clinical programs and postmarketing
      surveillance programs.

     

    Cato
      Research has the flexibility to design unique processes for safety management;
      alternatively, sponsors may choose to follow Cato Research's SOPs that include
      use of Argus Safety and the medical coding dictionaries MedDRA and WHO Drug.
      Once the sponsor and Cato Research have agreed upon processes and templates,
      the
      pharmacovigilance group will create and document sponsor-specific work practices
      and forms. 

     

    Typically,
      pharmacovigilance will process an SAE report and produce an initial
      MedWatch/CIOMS form within 24 hours of notification of the SAE; narratives
      are routinely generated for each SAE report. The MedWatch form is then reviewed
      by the medical monitor, the clinical project team, and a medical coder before
      submission to the appropriate regulatory agencies.

     

    Electronic
      Data Capture

     

    For
      this
      study, Cato Research is assuming the use of a full-scale, electronic data
      capture (EDC) system and has provided a budget by using etrials® EDC
      software. Using EDC will allow Transdel to have live, up-to-date information
      on
      enrollment and study progress, including data entry and data queries. We have
      found that using EDC in studies reduces queries (through real time edit checks),
      speeds up data collection, helps identify data issues or trends early, and
      importantly, shortens time to database closure. However, if a site runs into
      accessibility issues, we can quickly convert to a hybrid system, where we can
      provide paper copies of the entry screens to the site, thereby allowing the
      site
      to fax the information back to Cato Research. Our qualified data-entry personnel
      will then enter these data directly into the electronic system. This approach
      still takes advantage of the online validations and real time data benefit.
      

     

    etrials
      has successfully conducted data management for over 900 studies encompassing
      all
      therapeutic areas across the globe. Cato Research and etrials have collaborated
      on many studies. For example, Cato Research recently initiated and managed
      a
      concentrated monitoring effort during the concluding months of a Phase 3
      neurology study involving 600 patients and 50 sites; we were able to
      close the database within a 1 day of the last patients’ final visit. In the
      2 weeks before database closure, 20 patients completed the study, and
      500 queries were resolved.

     

    In
      addition, etrials’ EDC system contains an ad hoc reporting tool that uses easy
      drag-and-drop features allowing users to design custom reports. Reports can
      contain any field in the database, can be saved for future use, and can be
      sent
      to or accessed by other users. Users can quickly obtain study information
      related to date of entry, query status, data modifications, and new entries
      in
      an easily accessible study reporting tool. Monitors can review subject data
      entered in the eCRF before they physically visit sites and can generate notes
      offsite that can be resolved by site staff before their site visits. Full
      tracking of all queries, including returned comments and final resolution,
      is
      contained within the EDC system. 

    
       

      
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    Patient
      Diary

     

    A
      paper
      subject diary has been proposed to support the daily completion of visual analog
      pain scales by study subjects. Due to the cost-prohibitive nature of using
      electronic hand-held devices for subject diaries, we recommend using a paper
      diary for either paper-based data management or EDC. Cato Research understands
      that subjects will complete the patient diary three times each day for the
      seven
      days. Patients are to perform study drug self administration and record pain
      intensity in the subject diary. Once complete, these diaries will be returned
      to
      the study site and data will be entered by the site or Cato Research into the
      data management system. 

     

    Statistics
      and Medical Writing

     

    Cato
      Research has highly qualified and experienced statisticians and programmers
      who
      can create statistical analysis plans, conduct analyses, and assist in the
      preparation of reports for Phase 1 through Phase 4 studies. The statistical
      summary and data displays include data analyses, summaries, listings, and CRF
      tabulations that conform to the FDA or other regulatory agency guidelines for
      submissions. 

     

    Our
      statisticians, scientists, and physicians collaborate to provide high quality
      integrated clinical and statistical reports to provide a comprehensive overview
      of the trial and an integrated analysis of the clinical trial data. Our ICH
      E3-compliant report format was developed to facilitate review by regulatory
      agency personnel and includes in-text tables, figures, and convenient summaries
      that may be used by the FDA in the preparation of FDA reviewer documents.
      Numerous sponsors and FDA representatives have complimented Cato Research on
      the
      high quality and clarity of presentation of the Integrated Clinical and
      Statistical Reports produced by our project teams.

    
       

      
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              Part
                B

               

              Experience
                in Neurology Clinical Trials

               

            

    

     

    
      
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                    Research Ltd.

                
	 	 

        

         

      

    

    Experience
      in Neurology Clinical Trials

     

    Cato
      Research has significant experience in all areas of analgesics development;
      our
      specific experience is outlined below:

     

    Experience
      in conducting pain management trials (acute and chronic)

    

    Cato
      Research has conducted multiple successful clinical studies for neurology
      indications, including pain management, in North America, Europe, and South
      Africa. Recent examples of Cato Research’s clinical experience in pain
      management studies include the following:

     

    
      
        	
              	·	
                Clinical
                  monitoring and management of three Phase 3 studies of chronic pain
                  conducted at over 275 sites in North America and
                  Europe

              

      

    

    
      
        	
              	
                ·

              	
                Clinical
                  monitoring and management of a Phase 2b acute pain study in postoperative
                  subjects with approximate enrollment of 200 subjects across 40
                  sites in
                  the United States

              

      

    

    
      
        	
              	
                ·

              	
                Clinical
                  monitoring and management of a 30-site Phase 2b study in Canada
                  for the
                  treatment of migraine pain

              

      

    

    
      
        	
              	
                ·

              	
                Full
                  service activities including clinical and data management of a
                  Phase 2
                  neuropathic pain study involving 100 subjects and
                  10 sites

              

      

    

    

    Not
      only
      does Cato Research have highly relevant clinical experience and therapeutic
      expertise, but we are also focused on having a flexible, proactive, and creative
      approach to managing clinical trials. At the start of any project, we work
      with
      the sponsor to determine project roles and responsibilities and how our staff
      can complement a sponsor’s existing resources. This approach can be especially
      valuable to smaller companies, particularly those that function primarily as
      virtual entities. 

     

    Related
      clinical trial experience in the past 3 years

    

    Phase
      2 and Phase 3 clinical trials

    

    Cato
      Research has conducted multiple successful Phase 2 and Phase 3 clinical trials
      in a variety of indications, including: acute and chronic pain (described
      above), depression, stroke, oncology, and infectious disease. Related experience
      includes: 

    
      
        	
              	·	
                Clinical
                  conduct of an 800-subject study in the United States of a selective
                  serotonin inhibitor targeted to treat major depressive
                  disorder

              

      

    

    
      
        	
              	
                ·

              	
                Clinical
                  monitoring and management, data management, and statistical services
                  for a
                  Phase 2b study of ischemic stroke conducted at over 100 sites in
                  the
                  United States, Canada, South Africa, and
                  Europe

              

      

    

    
      
        	
              	
                ·

              	
                Clinical
                  monitoring and management of a 35-subject Phase 2 safety and tolerability
                  study in Canada involving subjects with chronic hepatitis C
                  

              

      

    

    
      
        	
              	
                ·

              	
                Clinical
                  monitoring, management, data management, and statistical services
                  for a
                  multicenter 60-subject Phase 2 study of HIV infection conducted
                  in the
                  United States 

              

      

    

    
      
        	
              	
                ·

              	
                Clinical
                  monitoring, management, data management, and statistical services
                  for a
                  Phase 3 study of hepatitis C infection 

              

      

    

    
      
        	
              	
                ·

              	
                Clinical
                  monitoring and management of a pivotal trial in 99 subjects with
                  familial
                  cold syndrome across 21 study centers in the United
                  States

              

      

    

    
      
        	
              	
                ·

              	
                Clinical
                  monitoring and management of Phase 2, 3, and 3b trials involving
                  a
                  therapeutic for Alzheimer’s disease across 76 study centers and involving
                  a total of 554 subjects

              

      

    

    
      
        	
              	
                ·

              	
                Clinical
                  monitoring and management of a Phase 2 trial for an antidepressant
                  compound involving 240 subjects and 22 study sites
                  

              

      

    

     

    
       

      
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        	CONFIDENTIAL	
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                  Research Ltd.

              
	 	 

      

    

     

    In
      addition to experience conducting Phase 2 and Phase 3 clinical trials, Cato
      Research has extensive experience with the preparation of documents associated
      with clinical trials, such as clinical protocols, clinical study reports,
      investigator’s brochures, study procedures manuals, monitoring plan, associated
      regulatory submissions, and CRFs (paper and electronic). We can also assist
      with
      organizing data and safety monitoring committees, as well as with investigator
      selection, investigator evaluation, and investigators’ meeting planning.

    

    Long-term
      safety studies

    

    Cato
      Research has conducted several long-term safety clinical trials for a number
      of
      indications, including chronic pain. Our experience with long-term safety
      studies includes the following:

    
      
        	
              	·	
                Management
                  of a 12-month, 1,200-subject, long-term safety study for chronic
                  pain
                  

              

      

    

    
      
        	
              	
                ·

              	
                Pharmacovigilance,
                  data management, and clinical trial management for a global Phase
                  3 study
                  with a very active safety focus for a novel therapeutic immunogen
                  (More
                  than 1,100 safety reports are currently stored in the Cato Research
                  database for this compound.) 

              

      

    

    
      
        	
              	
                ·

              	
                Management
                  of a Phase 3b schizophrenia study including monitoring, all regulatory
                  correspondence, clinical and nonclinical reports, and
                  pharmacovigilance

              

      

    

     

    
      
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              Part
                C

               

              Terms
                of Work

               

            

    

     

    
      
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                  Research Ltd.

              
	 	 

      

       

    

    TERMS
      OF WORK

    

    In
      accordance with the Master Services Agreement between Transdel Pharmaceuticals
      Inc. (“Client”) and Cato Research Ltd. (“Cato Research”) dated as of 10 April
      2007 (the “Agreement”), Cato Research shall provide CRO Services to Client as
      outlined in the foregoing proposal. 

    

    The
      service fees and expenses set forth in this proposal are based on anticipated
      cooperation from Client’s personnel and third parties and on the assumption that
      unexpected circumstances will not be encountered while providing CRO Services.
      If the details of the required CRO Services change significantly from those
      outlined in Appendix 1, we will notify you and obtain approval before incurring
      additional service fees.

    

    The
      billing schedule will follow the format outlined in this proposal and all bills
      shall be issued and paid in accordance with the Agreement, except for payment
      terms of 90 days for the milestone payments of this proposal (unless otherwise
      noted) as outlined in Appendix 1 (all milestones will be invoiced upon
      completion). If the number of units performed exceeds the number of units in
      the
      budget, such additional units will be invoiced at the unit cost specified in
      the
      budget. In addition to the service fee, out of pocket expenses, pass-through
      costs and applicable taxes, if any, will be invoiced according to the Agreement
      and a 1.5% handling fee will be charged for all expenses and pass-through costs.
      If CRO Services are provided hereunder pursuant to a fixed service fee
      arrangement then, one year after the latest signature date below, and every
      year
      thereafter, the fee for all CRO Services for which Client is invoiced during
      the
      subsequent one year period shall increase by the greater of five percent (5%)
      or
      the rate of inflation as set forth in the Consumer Price Index - All Urban
      Consumers, All Items (1982-84=100) as of the last day of the previous
      month.

    

    The
      terms
      and conditions outlined in this proposal are governed by the Agreement and,
      once
      signed by both parties, may not be changed except in accordance with the
      Agreement. 

    

    By
      signing below, each party agrees that it has reviewed the specifications and
      CRO
      Service fee set forth in the proposal and agrees that Cato Research shall
      provide, and Client shall pay Cato Research for, the CRO Services described
      in
      the proposal.

    

    
      	Cato Research Ltd.	Transdel Pharmaceuticals
              Inc.
	 	 
	By: ____/s/
              Jo Cato____	By: __/s/
              Juliet Singh___________
	 	 
	Name: ___Jo
              Cato__________	Name: ___Juliet
              Singh_______
	 	 
	Title: __Managing
              Director___	Title: ___Chief
              Executive Officer___
	 	 
	Date: ____June
              10, 2008_____	Date: ____June
              10, 2008___

    

     

    
       

      
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