Document:

Maximum
      Value Mortgage Contract

    

    China
      Construction Bank Shanghai Branch

    

    

    Contract
      #: 51043002071

    

    Mortgagor
      (Party A): Shanghai wanxing bio-pharmaceutical Com., Ltd.

    Address:
      58-4705 Yang Gao North Road

    Legal
      Representative: Yang Banjun

    Tel:
      5834
      9772

    

    Mortgagee
      (Party B): China Construction Bank Shanghai Yangpu Branch

    Address:
      1288 Changyang Road

    Postal
      code: 200090

    Manager:
      Cui Zhuxi

    Fax:
      6519
      0548

    Tel:
      5508
      2580

    

    Mortgagor
      (Party A): Shanghai wanxing bio-pharmaceutical Com., Ltd.

    Mortgagee
      (Party B): China Construction Bank Shanghai Yangpu Branch

    

    To
      secure
      Party B’s credit right, Party B is willing to provide maximum mortgage guarantee
      for the debt between creditor Party A and the debtor Party B. In accordance
      with
      the applicable law and regulation, after
      reaching an agreement through negotiations,
      Party A
      and B agree to enter into this Contract, and be obligated by its
      clauses.

    

    Article
      1. mortgaged goods

    Party
      A
      is taking the assets described in Clause 16 “ mortgaged goods list” as mortgage.

    Party
      A
      guarantees that he has the legal possession and disposal rights to the mortgaged
      goods.

    Party
      A’s
      mortgaged goods are free from possession rights argument, being closed down
      or
      be detained. 

    

    Article
      2. guaranteed credit

    	1.  	
            The
              credits under guarantee were created when Party B issued a series of
              loans
              to Party A during Oct. 17, 2002 to Oct. 16, 2004. The maximum value
              is RMB
              30 million. 

          

    	2.  	
            At
              any time of the period described above, as long as the remained credit
              of
              Party B is less than the maximum value amount, Party B can continuously
              and circularly issuing loans to the debtor. Party A shall provide mortgage
              guarantee, within the limit of the maximum value, for the loans issued
              by
              Party B, no matter how many times of loan issued, amount of each time,
              and
              due date of each loan is within the period or not. 

             

            The
              remained credit including the loan
              principles, interests (compounded interest and penalty interest), default
              penalty, compensation, and other cost Party B expensed to realize the
              credit (include but not limit to litigation cost, arbitration cost,
              asset
              protection, business trip expense, enforcing cost, appraisal cost and
              auction cost).

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    	3.  	
            should
              the debtor fail in performing the contractual obligation, no matter
              whether Party B has other guarantee (includes but not limit to guarantee,
              mortgage, pledge, bond, credit letter or other guarantee modes) for
              his
              credit under the Main Contract, Party B has the rights to require directly
              Party A to take on his guarantee obligation within the
              scope.

          

    	4.  	
            Within
              the above mentioned period, the Main Contract shall be the contract,
              agreements or other legal document signed between Party B and the Debtor.
              

          

    

    Article
      3. Mortgage term

    Mortgage
      term shall be expired in two years starting from the expiration date of the
      litigation right of the credit. 

    

    Article
      4. Main contract’s signing and amendments 

    The
      loan
      amount, term, interest rate and intended purpose is defined in the Main Contract
      signed between Party B and the Debtor.

    

    Party
      A
      acknowledge that signing or amending the Main Contact between Party B and the
      Debtor shall be considered as agreed by Party A. there is no necessary to notify
      Party A, and his guarantee obligation shall not be reduced or exempted.

    

    Article
      5. Independence of the contract

    This
      contract is independent to the Main Contract, and its effectiveness shall not
      be
      affected by the invalidation of the Main Contract. In case the Main Contract
      is
      invalid, Party A shall still be responsible for the debt created by the debtor.
      

    

    Article
      6. Safekeeping of the mortgaged goods.

    Within
      the mortgage term, Party A shall properly keep the mortgaged goods from damage,
      and receive Party B’s inspection at any time. In case the mortgaged goods are
      damaged, lost or evidently devalued, Party A shall promptly notify Party B,
      and
      provide Party B with additional guarantee at a value equivalent to the
      devaluation within 20 working days.

    

    Article
      7. Insurance for the mortgaged goods

    Within
      the mortgage term, before the debt has been fully repaid, Party A shall purchase
      asset insurance for the mortgaged good in accordance with the applicable law
      and
      regulations. Before the guaranteed credit has been fully received, Party A
      shall
      not stop or revoke the insurance. In case the insurance expire before the credit
      has been fully realized, Party A shall extend the insurance.

    

    Within
      the mortgage term, original copy insurance certificate shall be kept by Party
      B.

    

    Party
      A
      shall instruct the insurer to note on the insurance certificate that Party
      B is
      the primary beneficiary of the insurance. In case of the accident, the insurer
      shall deposit the compensation directly to Party B’s banking account. For the
      insured mortgaged goods which didn’t put Party B as the primary beneficiary,
      modification change Party B as the primary beneficiary is
      necessary.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Regarding
      the insurance compensation, Party A acknowledges that Party B has the rights
      choose the following options, and shall assist Party B in administration
      procedures,

    	1.  	
            To
              fully repay or fully repay in advance the debt principles and interests
              and related cost under the Main Contract.

          

    	2.  	
            To
              put as fixed deposit, the voucher shall be used as
              pledge

          

    	3.  	
            Upon
              consent from Party B, to repair the mortgaged goods in efforts to restore
              the value.

          

    	4.  	
            To
              be withdrew by a third party appointed by Party
              B.

          

    	5.  	
            After
              new guarantee provided to Party B’s satisfaction, the insurance
              compensation then can be disposed solely by Party A.
              

          

    

    Article
      8. Third party damage compensation

    Within
      the mortgage term, if the mortgaged good is devalued because of a third party’s
      activity, the damage compensation shall be deposited to Party B’s banking
      account. Regarding the damage compensation, Party A acknowledges that Party
      B
      has the rights choose the following options, and shall assist Party B in
      administration procedures,

    	1.  	
            To
              fully repay or fully repay in advance the debt principles and interests
              and related cost under the Main Contract.

          

    	2.  	
            To
              put as fixed deposit, the voucher shall be used as
              pledge

          

    	3.  	
            Upon
              consent from Party B, to repair the mortgaged goods in efforts to restore
              the value.

          

    	4.  	
            To
              be withdrew by a third party appointed by Party
              B.

          

    	5.  	
            After
              new guarantee provided to Party B’s satisfaction, the insurance
              compensation then can be disposed solely by Party A.
              

          

    

    Within
      the mortgage term, in case the mortgaged goods was devalued by third party’s
      activity and the new value is not enough to fully repay the debt under the
      Main
      Contract, Party A shall re-provide guarantee to Party B’s satisfaction. The
      original mortgaged good with remained value shall still be as the
      guarantee.

    

    Article
      9. Mortgaged goods disposal

    	1.  	
            Within
              the mortgage term, Party A shall not bestowal, transfer, leasing,
              repeatedly mortgage, moving out or dispose the mortgaged goods in other
              means without approval from Party B.

          

    	2.  	
            Within
              the mortgage term, Party A shall obtain Party B’s written approval before
              disposing the mortgaged goods. Regarding the income gained from disposing
              the goods, Party A acknowledges that Party B has the rights choose
              the
              following options, and shall assist Party B in administration
              procedures:

          

    	a.  	
            To
              fully repay or fully repay in advance the debt principles and interests
              and related cost under the Main Contract.

          

    	b.  	
            To
              put as fixed deposit, the voucher shall be used as
              pledge

          

    	c.  	
            To
              be withdrew by a third party appointed by Party
              B.

          

    	d.  	
            After
              new guarantee provided to Party B’s satisfaction, the insurance
              compensation then can be disposed solely by Party A.
              

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Article
      10. Realize the mortgage credit

    Should
      one of following occurs, Party B has the rights to dispose the mortgaged
      goods:

    	1.  	
            Entire
              or partial of the debt principles or interests on due, Party A failed
              to
              fully repay the debt.

          

    	2.  	
            Other
              occasions that allow Party B to realize the credit in
              advance.

          

    

    Article
      11. Default liabilities

    Within
      the mortgage term, in case Party A violates Clause 1, 6, 7, 8 and 9, Party
      B has
      the rights to require Party A to take corrective actions, provide additional
      guarantee, pay the compensation, and Party B also has the rights to dispose
      the
      mortgaged goods in advance.

    For
      the
      fund gained from disposing the mortgaged goods, Party A acknowledges that Party
      B has the rights choose the following options, and shall assist Party B in
      administration procedures,

    	1.  	
            To
              fully repay or fully repay in advance the debt principles and interests
              and related cost under the Main Contract.

          

    	2.  	
            To
              put as fixed deposit, the voucher shall be used as
              pledge

          

    	3.  	
            To
              be withdrew by a third party appointed by Party
              B.

          

    	4.  	
            After
              new guarantee provided to Party B’s satisfaction, the insurance
              compensation then can be disposed solely by Party
              A

          

    

    Article
      12. Registration and revoking registration

    The
      mortgaged goods shall be registered in accordance with the legal requirements.
      After the contract signed, both Parties shall have the mortgaged goods
      registered. After the Contract entered into effect, Party A shall hand over
      the
      original copies of related certificate and registration document to Party B.
      

    After
      the
      entire debts under the Main Contract has been fully repaid, Party B shall timely
      work together with Party A to revoke the registration.

    

    Article
      13 cost 

    Cost
      related to appraisal, notarization, insurance, registration, safekeeping and
      delivery shall be borne by Party A.

    

    Article
      14. Others

    BLANK

    

    Article
      15. Dispute settlement

    Should
      disputes arise in performing the contract, negotiation shall be referred first
      to settle the disputes. In case the dispute cannot be settled through
      negotiations or mediation, it shall be settled following _1_
      below:

    	1.  	
            Through
              litigation procedures at the local court where Party B is
              located.

          

     

    During
      litigation or arbitration, those clauses which are not disputed shall still
      be
      in effect. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Article
      16. List of mortgaged goods

    

    The
      list
      of mortgaged goods is as following:

     

    
      	
              Name

            	
              Property
                Certificate and No.

            	
              address

            	
              value
                showing on the invoice

            	
              Appraised
                value

            	
              Value
                under other guarantee

            	
              notes

            
	
              Buildings
                

            	
              HuFangDiPu(2000)

              No.
                069354

            	
              58-4705
                Yang Gao North Road

            	
              BLANK

            	
              RMB
                42,884,900.00

            	
              BLANK

            	
              BLANK

            

    

    

    Article
      17. after meet the following conditions, the Contract will come into
      effect:

    	1.  	
            The
              Contract shall be signed by the legal representatives of both Parties
              and
              stamped. 

          

    	2.  	
            the
              mortgaged goods under “mortgaged goods list” have been registered.
              

          

    

    Article
      18. This contract is in TWO copies.

    

    Article
      19 Declaration. 

    	1.  	
            Party
              A understands clearly Party B’s scope of business and authorization.
              

          

    	2.  	
            Party
              A has read through the contract, especially the clauses in BOLD fonts.
              As
              requested by Party A, Party B has made explanations to some clauses.
              Party
              acknowledges that he fully understand the meaning of the contract clauses
              and related legal liabilities.

          

    	3.  	
            Party
              A has the legal rights to sign this
              contract.

          

    

    Signatures
      and Stamps of both parties.

    

    Party
      A:
      Shanghai wanxing bio-pharmaceutical Com., Ltd.

    Legal
      Representative: Yang Banjun

    Oct.
      17,
      2002

    

    Mortgagee
      (Party B): China Construction Bank Shanghai Yangpu Branch

    Manager:
      Cui Zhuxi

    Oct.
      17,
      2002Contract
      No. 29031100198101 

    

    Current
      Capital Loan Contract (6) 

    

    Party
      A:
      Wanxing bio-pharmaceutical company

    Party
      B:
      China industrial and commercial bank Pudong branch

    

    

    Content

    	1.  	
            loan
              classification

          

    	2.  	
            loan
              intention

          

    	3.  	
            loan
              amount and term

          

    	4.  	
            loan
              interest

          

    	5.  	
            capital
              source of loan return

          

    	6.  	
            surety
              ship

          

    	7.  	
            both
              parties’ rights and liabilities

          

    	8.  	
            contract
              breach

          

    	9.  	
            contract
              effectiveness, modification, revoking and
              termination

          

    	10.  	
            dispute
              settlement

          

    	11.  	
            others

          

    	12.  	
            supplementary
              articles 

          

    

    In
      accordance with the needs stated in Clause 2.1, Party A is applying loan from
      Party B. Party B agreed to provide loan to Party A. in order to establish both
      parties’ rights and liabilities, both parties agreed to sign this contract in
      accordance with the regulations of <<contract law>>, 

    

    1.0 Loan
      Classification

    1.1  Loan
      under this contract is current capital loan (midterm or short
      term).

    

    2.0 Loan
      intention 

    2.1 The
      loan
      under this contract is intended to be used for current
      capital.
      

    2.2  Without
      written approval by Party B, Party A shall not change the intended purpose
      of
      using the loan

    

    3.0
      Loan amount and term

    3.1
      The
      total amount of loan is 16 million RMB (RMB 16,000,000.00)

    3.2
      The
      loan is in 12-months term, from April 23, 2003 to April 23, 2004

    3.3
      Party
      A shall withdraw the entire loan in one time in accordance with Clause 3.2.
      In
      case of special reasons, upon Party B’s written approval, withdraw can be
      postponed or advanced for _ days. The withdraw date and payback date shall
      be as
      of the actual date shown on the processing paper, which shall be deemed as
      part
      of the contract. Except the date, in case there is any discrepancy between
      the
      processing paper and the contract, the contract shall govern. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.0
      Loan Interest

    4.1
      The
      monthly interest of the loan under this contact is defined as 4.425%o (for
      midterm current capital, interests will be defined once for each year). Accrued
      interest cut-off day is 20th
      each
      month. 

    4.2
      In
      case the loan interest rate adjusted by the People’s Bank of China and
      adjustment applies to the loan under this Contract, Party B shall apply the
      adjusted interest rate with no need to inform Party A.

    

    5.0
      Capital Sources of Loan Return

    5.1
      sources of the capitals used by Party A to return the loan include, but not
      limited to, the following:

    5.1.1
      Sales
      income

    5.1.2
      Other
      legal income other than 5.1.1

    5.2
      No
      matter what contracts Party is obligated to have any clauses regarding Party
      A’s
      payback capital sources, all the clauses cannot affect Party A’s liabilities to
      payback the loan. Under no circumstance, Party A can reject the liability to
      payback the loan with citing Clause 8.1

    5.3
      Party
      A shall pay back the total interest as per the Contract, and shall return the
      principle on time.

    5.4
      Party
      A shall deposit enough capitals in the banking account before the due date,
      and
      authorize Party B to transfer from Party A’s bank account.

    

    6.0
      Suretyship

    6.1
      The
      suretyship type: guarantee mortgage. 

    6.2
      Party
      A has liability to help Party B in signing surety contract (No. 29031100198101
      )
      with the surety party.

    6.3
      in
      case the surety is changed which may against the credit right of Party B, upon
      Party B’s notice, Party A shall provide other surety to Party B’s
      satisfaction.

    

    7.0
      Both parties’ rights and liabilities

    7.1
      Party
      A’s rights and responsibilities:

    7.1.1
      Withdraw and use the loan in accordance with the contract
      regulations

    7.1.2
      shall not payback the loan in prior to the due date without written approval
      from Party B.

    7.1.3
      Shall be liable for the authenticity, accuracy and completeness of the documents
      provided during the process of loan application. 

    7.1.4
      Accept Party B’s investigation and audit regarding the use of the
      loan

    7.1.5
      Cooperate with Party B for his investigation and audit regarding the production,
      operation, project construction and financial conditions. Party A has the
      liability to provide related income statement and balance sheet to Party
      B.

    7.1.6
      Return the loan including principles and interests. 

    7.1.7
      bear all the related cost under this contract, including, but not limited to,
      notarization, appraise, evaluation, registration and others.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.1.8
      For
      all the payment inquiry letters issued by Party B, Party A shall return the
      receipts in three days.

    7.1.9
      in
      case Party A lease out its production, modify stock option, in alliance with
      other companies, merging, buy other companies, establish joint venture with
      other companies, company separation, reduce capital, change stock right,
      transfer big amount of capital and asset, or other changes which could affect
      Party B’s rights and interests, Party A shall inform Party B 30 days in advance
      and get his written approval. Otherwise, the above actions are prohibited before
      returning the loan and interests. 

    7.1.10
      in
      case of changes of location, contact address, business scope, legal
      representative and other registration information, Party A shall inform Party
      B
      in written format in 7 days of the change.

    7.1.11
      in
      case of any events which may affect the normal operation or cause negative
      impact on Party A’s liabilities in returning the loan, includes but not limited
      to involvement of major financial entanglement, liquidation, financial
      conditions deterioration and others, Party A shall inform Party B immediately
      in
      written.

    7.1.12
      in
      case Party A goes out of business, company is dismissed, production is stopped,
      production permit is revoked or canceled, Party A shall inform Party B in
      written in 5 days of the event happened, and guarantee to return the loan and
      interests immediately.

    

    7.2
      Party
      B’s rights and liabilities

    7.2.1
      Require Party A to provide all the related information

    7.2.2
      In
      accordance with the Contract or bylaws, transfer the due loan principle,
      interests, compound interest, interest penalty and all other cost from Party
      A’s
      banking account

    7.2.3
      In
      case Party A is escaping from Party B’s auditing, delay in paying back the loan
      and interests or other major actions that breach the contract, Party B has
      the
      rights to implement credit punishment, and report to related government
      authorities or other enterprises, and require Party A to return the loan through
      the means of public media.

    7.2.4
      Release the loan on time and in full amount in accordance with the contract
      clause, except delayed by Party A.

    7.2.5
      Maintain all the information regarding debt conditions, financial conditions,
      production and operations in confidential, except permitted by the contract
      or
      bylaws.

    

    8.0
      In breach of Contract

    8.1
      after
      the contract in effect, both parties shall be obligated by the Contract. Any
      party who failed in fulfilling his liabilities either entirely or partially
      shall take responsibility of the breach in accordance with the
      bylaws.

    8.2
      in
      case Party A delayed in withdraw the loan from Party B as per Clause 3.3, Party
      B has the rights to charge the postponed withdraw penalty using contract defined
      interested rate on a daily basis and 

    8.3
      in
      case Party B failed in issuing the loan as per Clause 3.3, he should be charged
      penalty using the contract defined interest rate on a daily basis

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8.4
      without
      written approval from Party B, in case Party return the loan in prior to the
      due
      date, Party B still has the rights to charge the full interest in accordance
      with the loan term and interest rate stated in the contract.

    8.5
      in
      case Party A failed in returning the loan and interests as per the contract,
      Party B has the rights to request Party A to return the loan and interests
      within specified periods, has the rights to transfer the capital from Party
      A’s
      bank account in Party B’s branch, and has the right to charge interest of the
      due amount of principle as per a rate of 0.021% on a daily basis, interest
      on a
      compound basis. 

    8.6
      in
      case Party A use the loan on the project differ from the intended, Party B
      has
      the right to cancel the loan, and has the right to take back the loan, entirely
      or partially, in prior to the due date, or even terminate the contract. Party
      B
      also has the right to charge interest on the misused principle as per a rate
      of
      0.05% on a daily basis, interest on a compound basis.

    8.7
      in
      case of 8.5 and 8.6 occur simultaneously, Party B shall choose the one that
      has
      severer penalty, but cannot apply both.

    8.8
      in
      case of one of following his action, Party A shall, within 7 days upon receipt
      of the written notice from Party B, provide remediation plan to Party B’s
      satisfaction. Otherwise, Party B has the right to stop or cancel the remaining
      loan, has the right to request a return the loan, entirely or partially, in
      prior to the due date. For the loan which cannot be returned, a late penalty
      will be charged on the late return interest rate and on a daily basis.

    8.8.1
      Provide balance sheet, income statement and other financial materials with
      fake
      information or hide important information.

    8.8.2
      Not
      cooperate or reject Party B’s auditing regarding the use of the loan, operation
      and financial conditions.

    8.8.3
      Without Party B’s approval, transfer or disposal, or threatening to transfer or
      disposal his major asset or capitals. 

    8.8.4
      Major part or entire of his asset was possessed by other creditors, or taken
      over by the assignee or the kind, or his asset was seized or frozen which may
      bring loss to Party B.

    8.8.5
      without Party B’s approval, Party A lease out its production, modify stock
      option, in alliance with other companies, merging, buy other companies,
      establish joint venture with other companies, company separation, reduce
      capital, change stock right, transfer big amount of capital and asset, or other
      changes which could affect Party B’s rights and interests or endanger Party B’s
      creditor’s right.

    8.8.6
      Changes to location, contact address, business scope, legal representative
      and
      other registration information or executing major investment to external project
      which may affect or threaten Party B’s credits. 

    8.8.7
      Involvement of major financial entanglement or financial conditions deteriorated
      which may impact or threaten Party B’s credits

    8.8.8
      Any
      others that may threaten or cause serious damage to Party B’s realization of its
      credit rights. 

    

    9.0
      contract effectiveness, modification, revoking and
      termination

    9.1
      This
      Contract will take effect after both parties; signatures and stamps. In case
      of
      suretyship exists, contract will take effect from the effectiveness of the
      suretyship contract. Contract will be terminated until the entire loan,
      interest, compound interest, interest penalty, breach fine and other cost was
      finally paid.

    9,2
      in
      case of the followings, Party B has the right to revoke the contract, and
      require Party A to return the loan and interest in prior to the due date and
      compensate for the damage:

    9.2.1
      Party
      A goes out of business, company is dismissed, production is stopped, production
      permit is revoked or canceled;

    9.2.2
      Changes
      to the surety which may bring negative impact to the Party B creditor’s right,
      and Party A failed in providing other surety as required by Party
      B;

    9.2.3
      Other
      severer breaching actions 

    9.3
      in
      case Party A wishes to defer the loan due date, he shall submit a written
      application together with surety’s agreement to prolong the suretyship term in
      30 days prior to the due date. After Party B’s investigation, and deferred term
      agreement signed, then the load could be deferred. The original Contract still
      in effect before signing the defer agreement. 

    9.4
      after
      effectiveness of the contract, except as stated in the contract, either party
      cannot make bold to modify or revoke the contract. If such a need really exists,
      a written agreement shall be reached upon negotiation. The original contract
      is
      still in effect before such agreement reached.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10.0
      dispute settlement

    10.1
      in
      case of dispute arising from executing the contract, negotiation shall be
      performed to settle the dispute. If agreement cannot be reached through
      negotiation, dispute shall be settled in accordance with Clause
      10.1.2

    10.1.1
      BLANK

    10.1.2
      through legislation by the Party B’s local court.

    

    11.0
      Others

    11.1 This
      Contract will take effect after both parties; signatures and stamps. In case
      of
      suretyship exists, contract will take effect from the effectiveness of the
      suretyship contract. 

    11.2
      This
      contract 12.3 showed it has five copies, Party A holds one copy and Party B
      holds four copies. All the copies have the same legal effect. 

    11.3
      Once
      party A can’t pay the interest, Party B has not only the right as clause 8.5
      mentioned but also has right to declare that all or part of the principles
      are
      due immediately.

    11.4
      The
      debtor shall bear the attorney cost and all other related cost which the credit
      used to realize his credit. 

    

    12.0
      Supplementary Articles

    12.1
      This
      supplementary articles are part of the contract, and have the same legal effect.
      

    12.2
      In
      case of the withdraw date or return date is not workday, and then it shall
      be
      deferred to the next following workday.

    12.3
      The
      contract is in _five_
      copies.
      Party A holds one copy and Party B holds four copies. All the copies have the
      same legal effect. 

    

    Party
      A: Shanghai Wanxing Bio-Pharmaceutical Co., Ltd. (stamp)

    

    Legal
      representative: (signature)

     

    Party
      B: Industrial and Commercial Bank of China, Pudong Branch
      (stamp)

    

    Legal
      representative: (signature)

    April
      23,
      2003    April
      23,
      2003 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Contract
      No. 29031100198101

    

    SURETYSHIP
      CONTRACT 6

    

    Surety
      (Party A): Beijing Wanxing vehicle service company 

    

    Address:28
      Qing nian road chaoyang district, P.R.China

    

    Legal
      representative: Xue hong 

    

    Creditor(Party
      B): Industrial
      and Commercial Bank of China, Pudong Branch

    Address:
      2024 Pudong Nan Road, Shnaghai, P. R. China

    Legal
      representative (manager): Ge shiyao

    

    Content

    

    Article
      1. Party A’s representations and warranties

    Article
      2. type and amount of the credit

    Article
      3. time limit for the debtor to perform the obligation

    Article
      4. mode of the surety

    Article
      5. the scope of the suretyship guaranty

    Article
      6. the term of the suretyship

    Article
      7. Party A’s rights and liabilities

    Article
      8. Party B’s rights and liabilities

    Article
      9. Liabilities when fails in performing the obligation

    Article
      10. contract’s effectiveness, modification, revoking and
      termination

    Article
      11. dispute settlement

    Article
      12. others

    Article
      13. supplementary articles.

    

    In
      the
      efforts to guarantee that the debtor perform his obligation under loan contact
      sign on April 23, 2003 (contract No. 29031100198101 hereinafter as main
      contract) between Shanghai Wanxing Bio-Pharmaceutical Co., Ltd and Party B
      of
      this contract , Party A agrees to act as surety. in order to establish both
      parties’ rights and liabilities, both parties agreed to enter this contract in
      accordance with the regulations of <<contract law>>, <<general
      loan regulation>> and other related bylaws.

    

    Article
      1. Party A’s representations and warranties

    

    	1.1  	
            in
              accordance with laws of P. R. China, Party A has the qualification
              to act
              as surety. 

          

    	1.2  	
            Party
              A has the enough financial capability to act as surety. Liabilities
              of
              surety shall not be changed by any change of financial conditions or
              other
              orders, and shall not be reduced or relieved no matter any others
              agreements signs by the surety with other
              parties.

          

    	1.3  	
            Party
              A is in full knowledge of the debtor’s intention of the loan, and wish to
              act as the surety voluntarily. All the contents under this contract
              are
              his true will. 

          

    	1.4  	
            In
              case the debtor fails in performing his obligation to return the loan
              and
              interest on time, Party B has the right to seek money from Party A.
              Party
              A shall authorize Party B to transfer money directly from Party A’s bank
              account in Party B’s branch.

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
Article
      2. Type and amount of the credit

     

    2.1
      the
      credit under the suretyship contract is in amount of RMB 16.0 million, which
      Party B released to the debtor under the Main Contract. 

    

    Article
      3. Time limit for the debtor to perform the obligation

    

    3.1
      The
      term of the Main Contract is for duration of 12 moths, from April 23, 2003
      to
      April 23, 2004 

    

    Article
      4. Mode of the surety

    

    4.1
      the
      mode of this suretyship contract is joint and several liabilities. 

    

    Article
      5. The scope of the suretyship guaranty

    

    5.1
      scope
      of the suretyship guaranty includes the loan principle, interest, compounded
      interest, penalty interest, breach penalty, compensation, cost to claim the
      credit right and other cost.

    

    Article
      6. the term of the surety ship

    

    6.1
      the
      term of the suretyship is for two years from the following day of the due date
      of the Main Contract.

    6.2
      in
      case the loan under the Main Contract is in several batches, the term of the
      suretyship shall be starting from the following day of each due date of each
      batch.

    6.3
      in
      case Party B wishes to request a earlier return of the loan in accordance with
      related clauses in the Main Contract, the term of the suretyship shall be from
      the following day of noticed date Party B issued to debtor for returning the
      loans.

    

    Article
      7. Party A’s rights and liabilities

    

    7.1
      provide materials as requested by Party B, and guarantee the material provided
      is accurate and legal.

    7.2
      Party
      B shall mail the receipt in three days after receiving loan return request
      or
      other request from Party B.

    7.3
      in
      case of the followings happened to Party A, Party B shall be
      informed:

    7.3.1
      operation system change, such as lease out its production, modify stock option,
      in alliance with other companies, merging, buy other companies, company
      separation, establish joint venture with foreign companies and
      others

    7.3.2
      Changes of scope of business and registered capital, and change of stock
      right

    7.3.3
      Financial conditions deterioration or involvement of major financial
      entanglement

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.3.4
      Bankrupt, company is dismissed, production is stopped, and business permit
      is
      revoked or canceled

    7.3.5
      Changes of location, contact address, or legal representative.

    7.4
      Party
      A shall inform Party B in 30 days advance in case of the change of Clause 7.3.1
      or 7.3.2, for changes of others, in 5 days advance.

    7.5
      An
      approval from Party A shall not be necessary in case Party B wishes to modify
      the main contract with the debtor, except modification is about term extension
      or increase the amount of loan. Party A shall still be obligated for the joint
      and several liabilities.

    7.6
      in
      case Party A transfers the credit to a third party, Party A shall still be
      obligated for the joint and several liabilities

    7.7
      While
      the contract is in effect, any type of suretyship provided by Party A to other
      parties shall not against Party B’s interest. 

    7.8
      While
      the contract is in effect, Party A shall guarantee perform all the obligation
      of
      this contract even in case of any separation, merging, stock option
      modifications or other events.

    7.9
      Party
      A will no longer be obligated to the suretyship after the debtor returned the
      entire due loan and interests. 

    

    Article
      8. Party B’s rights and liabilities

    

    8.1
      Party
      B has the rights to require Party A to provide documents which can prove his
      legal status.

    8.2
      Party
      B has the rights to require Party A to provide financial statement that can
      reflect his credit status and other information

    8.3
      in
      case the debtor has not return the debt, entirely or partially, to the Party
      B
      after the due time, Party B has the rights to require Party A to perform his
      suretyship obligation as per the contract.

    8.4
      in
      case of the following events, with the means of written notice, Party B has
      the
      rights to require Party A to perform his suretyship obligation at an earlier
      date. Party A shall perform his suretyship obligation within 10 days after
      receiving the written notice:

    8.4.1
      Party B revokes the Main Contract as per the related clauses in the
      contract

    8.4.2
      Party B wishes to require an earlier return of the loan as per related clauses
      in the contract

    8.5
      While
      the contract is in effect, Party B shall inform Party A on time in case he
      transfers the credit right to a third party as per the related clauses in the
      contract.

    

    Article
      9. Liabilities when fails in performing the obligation

    

    9.1
      in
      case a false representation and warranty is given in Article 1, Party A shall
      compensate Party B if there is a loss.

    9.2
      After
      the contract enters into effect, both parties shall perform his obligation
      with
      diligence. Either party failed in performing the obligation, either partially
      or
      entirely, shall take the liability of breaching the contract, and compensate
      the
      other party if there is a loss to the other party.

    9.3
      in
      cases the contract is of no effect due to Party A’s fault, Party A shall
      compensate Party B’s loss within the scope of the suretyship.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Article
      10. contract’s effectiveness, modification, revoking and
      termination

    

    10.1
      The
      contract shall enter into effect after the signatures by both parties. Only
      with
      the debtor returns the entire loan principle, interest, compounded interest,
      penalty interest, breach penalty, compensation, cost to claim the credit right
      and other cost, the contract will be expired.

    10.2
      This
      contract is independent to the Main Contract, and shall stay valid in case
      of no
      effect of the Main Contract. In case of the Main Contract is of no effect,
      Party
      A shall still perform his obligation. 

    10.3
      after effectiveness of the contract, except as stated in the contract, either
      party cannot make bold to modify or revoke the contract. If such a need really
      exists, a written agreement shall be reached upon negotiation. The original
      contract is still in effect before such agreement reached.

    

    Article
      11. dispute settlement

    

    11.1
      in
      case of dispute arising from executing the contract, negotiation shall be
      performed to settle the dispute. If agreement cannot be reached through
      negotiation, dispute shall be settled in accordance with Clause
      11.1.2

    11.1.1
      BLANK

    11.1.2
      through legislation by the Party B’s local court.

    

    Article
      12. others

    

    12.1
      This
      Contract will take effect after both parties; signatures and stamps. In case
      of
      suretyship exists, contract will take effect from the effectiveness of the
      suretyship contract. 

    12.2
      This
      contract 13.1 showed it has four copies, Party A holds one copy and Party B
      holds three copies. All the copies have the same legal effect. 

    12.3
      This
      debtor shall bear the attorney cost and all other related cost which the credit
      used to realize his credit. 

    

    Article
      13. supplementary articles.

    the
      contract is in __ copies. Party A holds 
      copy and
      Party B holds  copies.
      All the copies have the same legal effect.

    

    Party
      A: Beijing Wanxing vehicle service Co., Ltd.
      (stamp)

    

    Legal
      representative: (signature)

     

    

    Party
      B: Industrial and Commercial Bank of China, Pudong Branch
      (stamp)

    

    Legal
      representative: (signature)

    

    

    April
      23,
      2003

    April
      23,
      2003

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]