Document:

EXHIBIT 10.1
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                  PLEDGE, ESCROW AND PROMISSORY NOTE AGREEMENT
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THIS PLEDGE, ESCROW AND PROMISSORY NOTE AGREEMENT (this "Agreement") is made and
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entered  into as of October 12th 2004 by Lily Wang (the  "Pledgor"),  having her
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principal address at 300 Murchison Dr., Suite 202, Millbrae, CA 94030, in favour
of Sinovac Biotech Ltd. ("Lender"), having a principal address at No. 39 Shangdi
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Xi Road, Haidian District, Beijing, China 100085.

                                WITNESSETH THAT:
                                ----------------

WHEREAS,  Pledgor owes the Lender the unsecured sum of $1,849,000US (the "Loan")
                                                                          ----
which is now due and owing;

WHEREAS,  Pledgor has offered to grant the Lender  security on 3,000,000  common
shares  (the  "Shares")  in the  capital of the Lender  owned by the  Pledgor as
               ------
security for the Loan and to make payments in accordance with this Agreement

WHEREAS,  Pledgor has agreed to place into escrow and pledge herewith the Shares
represented  by  certificate  no.  2646 and to grant a pledge  of all  Pledgor's
rights  and  interests  in such  Shares to secure  with the  Shares the Loan and
recovery  of any part  thereof on default of payment and which Loan to be repaid
on or before November 15, 2006 in accordance with the terms of this Agreement.

WHEREAS,  Lender  (also  called  the  "Issuer")  has agreed to the terms of this
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Agreement  on the  condition  that  Pledgor (i) deliver the Shares and  transfer
authorities  ("Transfer  Documents") into escrow by the terms of this Agreement,
               -------------------
(ii)  pledge  to  Lender a  security  interest  in the  Shares as to all and any
interests,  residual,  option, or otherwise in the Shares, and (iii) execute and
deliver this Agreement in order to secure the payment and performance by Pledgor
of the Loan;

NOW,  THEREFORE,  in consideration of the premises and in order to induce Lender
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to make the Loan, Pledgor hereby agrees with Lender as follows:
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     SECTION  1.  LOAN.  Pledgor  hereby  promises  to pay to the  Lender or his
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designated  agent,  the sum of 1,849,000  United States dollars on the following
terms:

     (a)  the Loan shall be paid in Instalments of $200,000  commencing with the
          first payment  November 15, 2004 and the like amount each three months
          thereafter (each payment an  "Instalment")  with any remaining sum due
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          November 15, 2006 (each payment date being a "Maturity"  and the final
                                                        --------
          date being the "Due Date");
                          --------

     (b)  subject to the approval of the Lender, the Pledgor may make payment of
          any Instalment by assignment of an  appropriate  number of the Shares,
          or other  acceptable  assets or  securities,  with  such  fair  market
          valuations  as the  Lender may  require  and as are  acceptable  under
          relevant generally accepted accounting principles;

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     (c)  subject to payment of a 10% extension fee (10% of an  Instalment)  the
          Pledgor may defer an  Instalment  for 90 days twice during the term of
          this Agreement; and

     (d)  the Loan shall bear interest on the  declining  balance of the Loan at
          the rate of five percent (5%) per annum  payable with each  Instalment
          for the preceding three months.

     SECTION 2.  SHARE ESCROW. Pledgor hereby places into escrow with the Escrow
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Agent (as defined  below in the  attached  Schedule  "A" Escrow  Agreement)  the
Shares and all and every of its interest therein,  and Pledgor shall immediately
upon execution hereof deliver to the Escrow Agent:

          (a)  the certificates representing the Shares; and

          (b)  if  received  by Pledgor  prior to or after  escrow of the Shares
     herewith and before payment of the Loan or after  realisation by the Lender
     of the  Shares in  execution  of its  recourses  to recover  the Loan,  all
     additional  shares of stock of, or equity  interest in, Issuer from time to
     time  acquired by Pledgor in any manner  arising by share  dividend,  stock
     split, or otherwise of the Shares,  and the certificates  representing such
     additional  shares (any such additional shares shall constitute part of the
     Shares  under and as  defined  in this  Agreement),  and all  products  and
     proceeds of any of such additional Shares,  including,  without limitation,
     all dividends,  cash,  instruments,  subscriptions,  warrants and any other
     rights  and  options  and  other  property  from  time  to  time  received,
     receivable  or otherwise  distributed  in respect of or in exchange for any
     and all of such additional Shares.

     SECTION 3.  PLEDGE.  Pledgor hereby pledges to Lender, and grants to Lender
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a continuing first priority,  and perfected  security interest in, the following
(the "Pledged Collateral"):
      ------------------

          (a)  the Shares and the  certificates  representing the Shares and all
     interest of the Pledgor therein and extinguishment thereof upon exercise of
     the Pledge,  and all products and proceeds of any of the Shares  including,
     without  limitation,  all  dividends  (other  than  as  provided  elsewhere
     herein),  cash,  instruments and other property from time to time received,
     receivable or otherwise distributed in respect of or in exchange for any or
     all of the Shares; and

          (b)  all additional  shares of stock of, or equity interest in, Issuer
     from time to time  acquired  by  Pledgor  in  respect  to the Shares in any
     manner arising by share dividend,  stock split, or otherwise of the Shares,
     and  the  certificates   representing  such  additional  shares  (any  such
     additional  shares shall constitute part of the Shares under and as defined
     in this Agreement), and all products and proceeds of any of such additional
     Shares, including,  without limitation,  all dividends,  cash, instruments,
     subscriptions, warrants and any other rights and options and other property
     from time to time received,  receivable or otherwise distributed in respect
     of or in exchange for any and all of such additional Shares.

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     SECTION 4.  SECURITY FOR OBLIGATIONS.  This Agreement  secures (i)  the due
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and  punctual  payment  in full  (and  not  merely  the  collectibility)  of the
principal  of the  Loan,  and the  interest  thereon,  in each case when due and
payable,  according  to the terms of the Loan,  whether at stated  maturity,  by
reason of acceleration or otherwise;  (ii) the due and punctual  payment in full
(and  not  merely  the   collectibility)   of  the   obligations,   liabilities,
indebtedness  and all other  sums and  charges  which may at any time be due and
payable in accordance  with, or under the terms of, the Loan,  whether at stated
maturity,  by reason of  acceleration  or otherwise;  (iii) the due and punctual
payment (and not merely the  collectibility),  performance and observance of all
of this  Pledge  Agreement  and the  other  obligations,  terms,  covenants  and
conditions, whether now or hereafter existing, contained in any other collateral
Loan documents (collectively,  and together with the Loan, "Loan Documents") and
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to be performed or observed by Pledgor; (iv) the accuracy of the representations
and warranties made by Pledgor in all Loan Documents to which it is a party (all
of the foregoing are collectively  hereinafter called the  "Obligations");  (the
                                                            -----------
Obligations and all such obligations of Pledgor now or hereafter  existing under
this Agreement being referred to herein as the "Liabilities").
                                                -----------

     SECTION 5. DELIVERY OF SHARES. All certificates or instruments representing
     ---------- ------------------
or evidencing  the Shares and all necessary  transfer  documents in blank of the
Shares,  shall be delivered to the Escrow Agent pursuant  hereto and shall be in
suitable form for transfer by delivery, or shall be accompanied by duly executed
instruments  of  transfer  or  assignment  in blank,  all in form and  substance
satisfactory to Lender.

     SECTION 6.  REPRESENTATIONS AND WARRANTIES. Pledgor represents and warrants
     ----------  ------------------------------
as follows:

          (a)  The Shares have been duly  authorised  and validly issued and are
     fully paid and non-assessable.

          (b)  Pledgor  is  the  legal  and  beneficial  owner  of  the  Pledged
     Collateral, free and clear of any lien or any interests by any other person
     on the Pledged Collateral.

          (c)  Upon  the  delivery  by  the  Escrow  Agent  of the  Shares,  the
     certificate,  and the  Transfer  Documents,  in the  event of  default  the
     transfer  of the  Shares  pursuant  to this  Agreement  creates a valid and
     perfected  transfer  of the Shares to the Lender  with the caveat  that the
     Shares are subject to such hold period as may be stated on the certificate.

          (d)  Upon the delivery to Lender of the Pledged Collateral, the pledge
     of the Pledged  Collateral  pursuant to this Agreement  creates a valid and
     perfected first priority  interest in the Pledged  Collateral  securing the
     payment of the Liabilities for the benefit of Lender.

          (e)  No authorisation,  approval, or other action by, and no notice to
     or filing with, any governmental authority or regulatory body or the Issuer
     is required (except applicable material change reports and insider reports)
     (i) for the pledge by Pledgor of the  Pledged  Collateral  pursuant to this
     Agreement or for the  execution,  delivery or performance of this Agreement
     by  Pledgor  or (ii) for the  transfer  herein  provided  or (iii)  for the

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     exercise  by Lender of the rights  provided  for in this  Agreement  or the
     remedies in respect of the Pledged Collateral pursuant to this Agreement.

          (f)  Pledgor has full power and authority to enter into this Agreement
     and has the right to vote,  pledge  and grant a  security  interest  in the
     Shares as provided by this Agreement.

          (g)  This Agreement has been duly  authorised,  executed and delivered
     by  Pledgor  and  constitutes  a legal,  valid and  binding  obligation  of
     Pledgor,  enforceable  against Pledgor in accordance with its terms, except
     as such  enforceability  may be  limited  by the  effect of any  applicable
     bankruptcy, insolvency, reorganisation, moratorium or other similar laws.

          (h)  The preamble to this  Agreement is made a part of this  Agreement
     and the terms stated therein are true and accurate.

     SECTION 7.  FURTHER  ASSISTANCE.  Pledgor  agrees that at any time and from
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time to time,  at the  expense of Pledgor,  Pledgor  will  promptly  execute and
deliver,  or cause to be executed  and  delivered,  all stock  powers,  proxies,
assignments,  instruments  and  documents and take all further  action,  that is
reasonably  necessary,  at Lender's request, in order to perfect any transfer or
security  interest granted or purported to be granted hereby or to enable Lender
to exercise  and enforce its rights and remedies  hereunder  with respect to any
Pledged Collateral and to carry out the provisions and purposes hereof.

     SECTION 8.  TRANSFER OF SHARES Pledgor hereby authorises Lender at any time
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to cause the Shares to be transferred  and registered to the Lender or any other
party the Lender may  determine  for the purpose of  realising  on the Shares to
acquire proceeds to pay the Loan.

     SECTION 9.  TRANSFERS  AND OTHER LIENS.  Except for the purpose of securing
     ----------  --------------------------
proceeds  to  retire  the  Loan,  Pledgor  agrees  that it will  not (i) sell or
otherwise  dispose  of, or grant any option  with  respect to, any of the Shares
until the Loan comes due, is unpaid and any  rectification of default period has
expired  unremedied , except with the written  permission of the Pledgor,  which
shall not be unreasonably  with held, or (ii) create or permit to exist any lien
upon or with respect to any of the Pledged  Collateral,  except for the security
interest granted under this Agreement.

     SECTION 10.  LENDER  APPOINTED ATTORNEY-IN-FACT.  In addition to all of the
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powers granted to Lender pursuant to the Loan, Pledgor hereby appoints Lender as
Pledgor's  attorney-in-fact,  with  full  authority  in the  place  and stead of
Pledgor and in the name of Pledgor or  otherwise,  from time to time in Lender's
discretion  to take any action and to execute any  instrument  which  Lender may
deem necessary or advisable to further perfect and protect the security interest
granted hereby,  including,  without limitation, to receive, endorse and collect
all instruments made payable to Pledgor  representing any dividend,  interest or
principal payment or other  distribution in respect of the Pledged Collateral or
any part thereof and to give full discharge for the same.

     SECTION 11.  LENDER MAY PERFORM.  If Pledgor fails to perform any agreement
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contained  herein,  Lender may itself  perform,  or cause  performance  of, such
agreement,  and  the  reasonable  expenses  of  Lender  incurred  in  connection
therewith shall be payable by Pledgor.

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     SECTION 12.  NO  ASSUMPTION  OF DUTIES;  REASONABLE CARE.  The  rights  and
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powers  granted to Lender  hereunder of the Pledge are being granted in order to
preserve and protect Lender's security interest in and to the Pledged Collateral
granted hereby and shall not be interpreted to, and shall not, impose any duties
on Lender in  connection  therewith.  Lender  shall be deemed to have  exercised
reasonable care in the custody and preservation of the Pledged Collateral in its
possession if the Pledged Collateral is accorded treatment  substantially  equal
to that which Lender accords its own property,  it being  understood that Lender
shall not have any  responsibility  for (i)  ascertaining  or taking action with
respect to calls, conversions,  exchanges,  maturities, tenders or other matters
relative  to any Pledged  Collateral,  whether or not Lender has or is deemed to
have knowledge of such matters,  or (ii) taking any necessary  steps to preserve
rights against any parties with respect to any Pledged Collateral.

     SECTION 13.  SUBSEQUENT CHANGES AFFECTING COLLATERAL. Pledgor represents to
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Lender  that  Pledgor  has made its own  arrangements  for  keeping  informed of
changes or potential changes affecting the Pledged  Collateral  (including,  but
not limited to, rights to convert,  rights to  subscribe,  payment of dividends,
payments of interest and/or principal, reorganisation or other exchanges, tender
offers  and  voting  rights),  and  Pledgor  agrees  that  Lender  shall have no
responsibility  or  liability  for  informing  Pledgor  of any such  changes  or
potential  changes or for taking any action or  omitting to take any action with
respect thereto.  Pledgor  covenants that it will not, without the prior written
consent of  Lender,  sell or  otherwise  dispose  of, or grant any  option  with
respect to, any of the Pledged  Collateral or create or permit to exist any lien
upon or with respect of any of the Pledged Collateral.

     SECTION 14.  REMEDIES  UPON  DEFAULT.  If  any Event of Default  shall have
     -----------  -----------------------
occurred and be continuing and Pledgor shall not have rectified  within ten (10)
days of notice of default,  Lender shall,  in addition to all other rights given
by law or by this  Agreement,  the Loan or  otherwise,  have all the  rights and
remedies  with respect to the Pledged  Collateral  of a secured  party under the
laws of British  Columbia  and Lender  may,  without  notice and at its  option,
transfer or register,  and Pledgor shall register or cause to be registered upon
request therefore by Lender,  the Pledged  Collateral or any part thereof on the
books of Issuer into the name of Lender or Lender's nominee(s),  indicating that
such  Pledged  Collateral  is subject to the  security  interest  hereunder.  In
addition, with respect to any Pledged Collateral which shall then be in or shall
thereafter  come into the  possession  or custody of Lender,  Lender may sell or
cause the same to be sold at any broker's board or at public or private sale, in
one or more sales or lots, at such price or prices as Lender may deem best,  for
cash or on credit or for future delivery, without assumption of any credit risk,
all in accordance  with the terms and provisions of the Loan and this Agreement,
or may exercise such other  remedies as may be provided under law. The purchaser
of any or all  Pledged  Collateral  so  sold  shall  thereafter  hold  the  same
absolutely,  free from any claim,  encumbrance or right of any kind  whatsoever.
Any sale of the Pledged  Collateral  shall be  conducted  by Lender  without any
notice  requirement  and as full owner  thereof  and Lender is not  required  to
conduct the same in conformity  with  commercial  practices of banks,  insurance
companies,   commercial  finance  companies,  or  other  financial  institutions
disposing of property  similar to the Pledged  Collateral.  Any  requirement  of
notice,  demand or  advertisement  for sale is, to the extent  permitted by law,
waived.  All expenses  (including  court costs and reasonable  attorneys'  fees,
expenses and  disbursements)  of, or incident to, the  enforcement of any of the
provisions  hereof shall be  recoverable  from the proceeds of the sale or other
disposition of the Pledged Collateral.

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                                        6

     SECTION 15.  EXPENSES. Pledgor will upon demand pay to Lender the amount of
     -----------  --------
any and all reasonable expenses,  including,  without limitation, the reasonable
fees,  expenses and  disbursements  of its counsel (and, upon the occurrence and
during  the  continuance  of  an  Event  of  Default,  the  fees,  expenses  and
disbursements of any investment  banking firm,  business broker or other selling
agent and any other  experts and agents  retained by Lender),  which  Lender may
incur in connection  with (i) the  administration  of this  Agreement,  (ii) the
custody  or  preservation  of,  or  the  sale  of,  collection  from,  or  other
realisation  upon,  any  of  the  Pledged  Collateral,  (iii)  the  exercise  or
enforcement  of any of the  rights of Lender  hereunder  or (iv) the  failure by
Pledgor to perform or observe any of the provisions hereof.

     SECTION 16.  SECURITY INTEREST ABSOLUTE.  All rights of Lender and security
     -----------  --------------------------
interests hereunder, and all obligations of Pledgor hereunder, shall be absolute
and unconditional irrespective of:

          (a)  any lack of validity or  enforceability  of the Loan or any other
     agreement or instrument relating thereto;

          (b)  any change in the time,  manner or place of payment of, or in any
     other term of, all or any of the  Liabilities,  or any other  amendment  or
     waiver of or any consent to any departure from the Loan;

          (c)  any exchange,  surrender,  release or non-perfection of any other
     collateral,  or any  release  or  amendment  or  waiver  of or  consent  to
     departure from any guaranty, for all or any of the Liabilities; or

          (d)  any  other  circumstances  which  might  otherwise  constitute  a
     defence  available  to,  or a  discharge  of,  Pledgor  in  respect  to the
     Liabilities or of this Agreement.

     SECTION 17.  MISCELLANEOUS PROVISIONS.
     -----------  ------------------------

     SECTION  17.1   Notices.   All  notices,   approvals,   consents  or  other
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communications  required or desired to be given  hereunder  shall be in the form
and manner,  and  delivered  to each of the parties  hereto at their  respective
addresses, set forth first herein.

     SECTION 17.2  Headings.  The headings in this Agreement are for purposes of
     ------------  --------
reference only and shall not affect the meaning or construction of any provision
of this Agreement.

     SECTION 17.3  Severability. The provisions of this Agreement are severable,
     ------------  ------------
and if any clause or provision shall be held invalid or  unenforceable  in whole
or in part in any jurisdiction,  then such invalidity or unenforceability  shall
affect in that jurisdiction only such clause or provision,  or part thereof, and
shall  not  in  any  manner  affect  such  clause  or  provision  in  any  other
jurisdiction  or  any  other  clause  or  provision  of  this  Agreement  in any
jurisdiction.

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     SECTION 17.4  Amendments, Waivers and Consents.  Any amendment or waiver of
     ------------  --------------------------------
any provision of this Agreement and any consent to any departure by Pledgor from
any  provision of this  Agreement  shall be  effective  only if made or given in
writing.

     SECTION 17.5  Continuing Security  Interest.  This Agreement shall create a
     ------------  -----------------------------
continuing  security interest in the Pledged  Collateral and shall (i) remain in
full force and effect until payment in full (including  after the date for final
payment) of the Obligations  and of the Loan and any other Loan Documents,  (ii)
be binding upon Pledgor, its successors and assigns,  and (iii) enure,  together
with the rights and remedies of Lender  hereunder,  to the benefit of Lender and
its successors, transferees and assigns.

     SECTION 17.6  Reinstatement. To the extent permitted by law, this Agreement
     ------------  -------------
shall  continue  to be  effective  or be  reinstated  if at any time any  amount
received by Lender in respect of the  Liabilities is rescinded or must otherwise
be restored or returned by Lender upon the insolvency, bankruptcy,  dissolution,
liquidation  or  reorganisation  of  Pledgor  or  upon  the  appointment  of any
receiver,  intervenor,  conservator,  trustee or similar official for Pledgor or
any substantial  part of its assets,  or otherwise,  all as though such payments
had not been made.

     SECTION 17.7  Survival of Provisions.  All  representations, warranties and
     ------------  ----------------------
covenants of Pledgor  contained  herein shall survive the execution and delivery
of this Agreement,  and shall terminate only upon the full and final payment and
performance by Pledgor of the Obligations  secured hereby and termination of the
Loan and any other Loan Documents.

     SECTION 17.8  Waiver of Demand.  Pledgor waives presentment  and demand for
     ------------  ----------------
payment of any of the  Liabilities,  protest and notice of  dishonour or default
with respect to any of the  Liabilities,  and all other notices to which Pledgor
might otherwise be entitled, except as otherwise expressly provided herein.

     SECTION  17.9  Authority  of Lender.  Lender  shall have and be entitled to
     -------------  --------------------
exercise all powers  hereunder which are  specifically  granted to Lender by the
terms hereof,  together  with such powers as are  reasonably  incident  thereto.
Lender may perform any of its duties hereunder or in connection with the Pledged
Collateral  by or through  agents or  employees  and shall be entitled to retain
counsel and to act in reliance  upon the advice of counsel  concerning  all such
matters. Neither Lender nor any officer,  employee,  attorney or agent of Lender
shall be liable to Pledgor for any action  taken or omitted to be taken by it or
them  hereunder,  except  for  its or  their  own  gross  negligence  or  wilful
misconduct,  nor shall Lender be responsible for the validity,  effectiveness or
sufficiency  hereof or of any document or security  furnished  pursuant  hereto.
Lender and its  officers,  employees,  attorneys and agents shall be entitled to
rely on any communication,  instrument or document  reasonably believed by it or
them to be genuine  and  correct  and to have been  signed or sent by the proper
person or persons.  Pledgor agrees to indemnify and hold harmless Lender and any
person of the Lender  from and against  any and all costs,  expenses  (including
reasonable fees, expenses and disbursements of attorneys and paralegals), claims
and liabilities  incurred by Lender or such person hereunder,  unless such claim
or liability shall be due to wilful  misconduct or gross  negligence on the part
of Lender or such person.

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                                        8

     SECTION 17.10  Release; Termination of Agreement. Subject to the provisions
     -------------  ---------------------------------
of Section 17.6  hereof,  this  Agreement  shall  terminate  upon full and final
payment and performance of all the Obligations.

     SECTION 17.11  Counterparts.  This Agreement may be executed in one or more
     -------------  ------------
counterparts and may be executed by facsimile,  each of which shall be deemed an
original but all of which shall together constitute one and the same agreement.

     SECTION 17.14  Governing Law; Submission to Jurisdiction; Counsel
     -------------  --------------------------------------------------

          (a)  This  Agreement  shall be governed by and  interpreted  under the
     laws of the Province of British  Columbia  and any dispute  arising out of,
     connected with,  related to, or incidental to the relationship  established
     between Pledgor and Lender in connection  with this Agreement,  and whether
     arising in  contract,  tort,  equity or  otherwise,  shall be  resolved  in
     British Columbia, Canada

          (b)  Pledgor (i) agrees that Lender  shall not have any  liability  to
     Pledgor  (whether  sounding  in tort,  contract  or  otherwise)  for losses
     suffered  by  Pledgor in  connection  with,  arising  out of, or in any way
     related to, the transactions  contemplated and the relationship established
     by this  Agreement,  or any act,  omission or event occurring in connection
     therewith,  unless  it is  determined  by a  judgement  of a court  that is
     binding on Lender (which judgement shall be final and not subject to review
     on appeal)  that such  losses were the result of acts or  omissions  on the
     part of Lender  constituting gross negligence or wilful misconduct and (ii)
     waives,  releases  and  agrees  not to sue upon any  claim  against  Lender
     (whether  sounding in tort,  contract or  otherwise),  except a claim based
     upon gross negligence or wilful misconduct. Whether or not such damages are
     related to a claim that is subject to the waiver effected above and whether
     or not such waiver is effective,  Lender shall not have any liability  with
     respect to, and Pledgor hereby waives,  releases and agrees not to sue upon
     any claim for, any special,  indirect,  consequential  or punitive  damages
     suffered  by  Pledgor in  connection  with,  arising  out of, or in any way
     related to the transactions contemplated or the relationship established by
     this  Agreement,  or any act,  omission or event  occurring  in  connection
     therewith,  unless  it is  determined  by a  judgement  of a court  that is
     binding on Lender (which judgement shall be final and not subject to review
     on appeal),  that such  damages were the result of acts or omissions on the
     part of Lender constituting wilful misconduct.

          (c)  Pledgor  and  Lender  acknowledges  that for the  purpose of this
     Agreement and the security  contemplated herein that Devlin Jensen acts for
     the Lender, Pledgor and Lender release Devlin Jensen from any conflict with
     the Escrow Agent duties which have been requested of Devlin Jensen, Pledgor
     and Lender subscribe to and endorse the Escrow Agent provisions of Schedule
     "A" following their initial signatures hereto, and Pledgor has been advised
     to seek its own counsel and has taken its own counsel for this purpose.

          (d)  Pledgor  waives the  posting of any bond  otherwise  required  of
     Lender in connection with any judicial process or proceeding to enforce any
     judgement or other court order  entered in favour of Lender,  or to enforce
     by specific  performance,  temporary  restraining  order or  preliminary or
     permanent  injunction  this  Agreement  or any other  Agreement or document
     between Pledgor and Lender.

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                                        9

     IN WITNESS  WHEREOF,  Pledgor and Lender have each caused this Agreement to
be duly executed and delivered as of the date first above written.

                                               PLEDGOR:

                                               Lily Wang
                                               ---------

                                               /s/ Lily Wang
                                               ------------------------
                                               Signature

                                               LENDER:

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

                                               Per: /s/ Weidong Yin
                                                   --------------------
                                                   Authorized Signatory

<PAGE>

                                       10

                                  SCHEDULE "A"
                                  ------------

                                ESCROW AGREEMENT
                                ----------------

     THIS ESCROW AGREEMENT is made and dated effective (the "Effective Date") as
     ---------------------
of the 12th day of October, 2004 and is a collateral agreement and attached as a
document to the above  Pledge,  Share  Transfer and  Promissory  Note  Agreement
("Pledge Agreement").

BETWEEN:
-------

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

               (hereinafter referred to as the "Lender" or the "Issuer");

                                                               OF THE FIRST PART
                                                               -----------------

AND:
---

               LILY WANG
               ---------

               (hereinafter referred to as "Pledgor")

                                                              OF THE SECOND PART
                                                              ------------------

               (the  foregoing  hereinafter  also  singularly  referred  to as a
               "Party"  and  collectively  referred to as the  "Parties"  as the
               context so requires).

AND
---

               Devlin   Jensen  or  such   escrow   agent  as  the  Parties  may
               -----------------------------------------------------------------
               subsequently  appoint or such escrow agent as subsequently may be
               -----------------------------------------------------------------
               appointed by Devlin Jensen or a court of competent  jurisdiction,
               ----------------------------------------------------------------
               of 2550-555 West Hastings Street, Vancouver, BC V6B 4N5

               (hereinafter  referred  to  as  the  "Escrow  Agent"  but  not  a
               "Party");

                                                               OF THE THIRD PART
                                                               -----------------

WHEREAS:
-------

A.   The Parties have  requested  that the Escrow Agent act as escrow  holder of
     the  Shares as  contemplated  by the  Pledge,  Escrow and  Promissory  Note
     Agreement and the Escrow Agent has agreed subject to the below terms;
B.   All  definitions of the Pledge,  Escrow and  Promissory  Note Agreement are
     herein  incorporated  by reference but none of the terms or  obligations of
     the Pledge  Agreement are  incorporated  herein and the Escrow Agent is not
     imposed with any obligations other than those of this Escrow Agreement;

<PAGE>

                                       11

C.   The Issuer has also joined to this Agreement to assist in the correction of
     any  defects  of Shares or  delivery  and to ensure  the  acceptability  of
     transfer of the Shares;

     NOW  THEREFORE  THIS  AGREEMENT  WITNESSES  that  in  consideration  of the
     ------------------------------------------
premises  and  consideration  now provided by each of the Parties and the Escrow
Agent hereto,  each to the other (the receipt  whereof is hereby  acknowledged),
and in further consideration of the mutual covenants and conditions  hereinafter
contained,  the  Parties  each with the other and with the Escrow  Agent  hereto
agree as follows:

1.   The  Lender  and  Pledgor  hereby  agree to the  deposit  of the Shares and
     Transfer Documents  (collectively hereafter the "Shares") with and that the
     same shall be delivered to the Escrow Agent to be held in  accordance  with
     this Agreement.

2.   The Escrow Agent hereby agrees to accept delivery and custody of the Shares
     for the purposes of this Agreement on the following specific agreements and
     understanding   by  the  Lender  and  Pledgor  and  such  Parties   warrant
     irrevocably to abide by and that they are bound by such provisions:

     (a)  the  Escrow  Agent is  general  counsel  for  Lender  but not for this
          document or the Pledge  Agreement,  such is recognized by the Parties,
          all  Parties  waive  conflict  thereof,  the Lender and  Pledgor  have
          received  actual and specific  legal counsel from separate  counsel in
          regard to this matter,  and the Lender and Pledgor are executing  this
          Agreement  without any reliance or expectation  whatever of the Escrow
          Agent except as escrow holder as specifically required by the terms of
          the escrow of this Agreement;
     (b)  this agreement constitutes covenants only and there is no trust hereof
          and should any trust be implied hereof (which would be contrary to the
          intention of this Agreement) then such is a limited trust specifically
          for the purposes of this Agreement and for no other purpose,  shall be
          interpreted  strictly  and  with  limitation  and  not by  inferential
          interpretation and not widely and generously;
     (c)  the Escrow Agent may resign at any time and tender the Shares to court
          or  appoint  an  alternate  escrow  agent and tender the Shares to the
          alternate and  immediately  upon such tendering the Escrow Agent shall
          be relieved of all and any accountability thereafter;
     (d)  the duty of the Escrow  Agent is solely  that of good faith and normal
          care merely to preserve the Shares and communicate adequately with the
          Parties  and the  Escrow  Agent  shall have no duty or  obligation  to
          determine any rights between the Parties, to interpret this Agreement,
          or to take any other act other than to  preserve  the  Shares.  In the
          event of  conflict  in respect  to the  Shares  the  Escrow  Agent may
          determine  to  retain  possession  of  the  Shares  without  liability
          whatsoever  until  instructed  by mutual  direction  of the Parties or
          until directed by a court of competent jurisdiction. In the event that
          the Escrow Agent has  communicated  any matter to a Party notifying of
          an act or an  understanding  or an  interpretation  or an intention to
          deliver  or  receipt  of a matter  or any other  matter  for which the
          Escrow Agent is giving  information  or notice or requesting  response
          then a Party  shall not  complain  and shall have  waived all right to
          complain  for the  matters  disclosed  therein  if the  Party  has not
          objected  within ten business  days thereof and if the Escrow Agent is
          requesting  response then a Party shall answer within such time frame.
          The  Escrow  Agent  shall  be  absolutely  entitled  to rely  upon the
          veracity,  truthfulness,  authenticity, and integrity of communication
          by the  Parties  and shall not be  obliged to inquire as to their bona
          fides or assume any defect  therein  and should a Party  effect  false
          communications  or  should a third  party  employ  instruments  of the
          Parties to effect false or deceptive  acts then the Escrow Agent shall
          have no  liability  therefore.  In the  event the  Shares  are lost or
          destroyed  while in the  possession of the Escrow  Agent,  the Parties
          agree that such is a non-actionable  accident without cost or recourse

<PAGE>

                                       12

          to the Escrow  Agent and the Parties  warrant to effect all matters as
          shall be required to cancel the lost  certificate and replace the same
          into the possession of the Escrow Agent;
     (e)  the Parties waive any and all claims  against the Escrow Agent for any
          acts conducted pursuant hereto except only where the Escrow Agent acts
          in fraud or overt bad faith for personal  profit (and for such purpose
          error,  negligence,  confusion  or  mistake of  interpretation,  force
          majeure, act of third party,  employee error and the like shall not be
          extended to be  interpreted  as bad faith but bad faith shall mean its
          normal and extreme  meaning of an act taken with the objective  intent
          of  effecting  a wrong  purpose)  and any claim in respect to the same
          shall be consequent upon actual and observable and documented  default
          of such nature and not  inferential or interpretive or speculative and
          in the  interpretation  of such  matters  the onus and burden of proof
          (whether at trial or on a motion,  inter alia,  by the Escrow Agent to
          dismiss for  insufficient  evidence)  shall be on the claimant  making
          claim  against  the  Escrow  Agent and shall be on a level of beyond a
          reasonable  doubt. A Party making  complaint  against the Escrow Agent
          for default based upon inferential, speculative or interpretive claims
          shall be deemed  irrevocably to be acting in bad faith and maliciously
          or for collateral improper purposes (in this latter case such shall be
          inferred if the facts reasonably illustrate that such claim is made in
          whole or in part to exert a leverage) and such a claiming  Party shall
          be  liable  for  the  maximal  damages  and  costs  allowable  in  the
          appropriate jurisdiction;
     (f)  the Parties,  jointly and severally  (and a  contributing  Party shall
          have a right of claim from the  non-contributing  Parties),  do hereby
          warrant  and agree from time to time and at all times  hereafter  well
          and truly to save,  defend and keep  harmless and fully  indemnify the
          Escrow Agent,  its successors and assigns,  from and against all loss,
          costs,  charges,  damages and  expenses  which the Escrow  Agent,  its
          successors or assigns, may at any time hereafter bear, sustain, suffer
          or be put to for or by reason or on  account  of its  acting as Escrow
          Agent pursuant to this Agreement except only in the event of bad faith
          or fraud, which shall not be assumed or employed as a plea to defeat a
          claim for indemnity  unless such has first been adjudged by a court of
          competent  jurisdiction.  Unless a claimant  shall first have received
          approval of a court of competent jurisdiction, pursuant to motion duly
          served  and  replied  in the  ordinary  course  (and  not ex  parte or
          expedited),   and  unless  such  court  has  found  on  a  balance  of
          probabilities  on the evidence  served by both parties that the Escrow
          Agent did  probably  commit  fraud or bad faith,  then  failure to pay
          indemnity  or advance  costs  shall be a  fundamental  default of this
          Agreement  and shall be  irrevocably  deemed to be an act of bad faith
          and malice and the claim of the claimant shall be dismissed completely
          with prejudice for such matter alone. The Escrow Agent may, at it sole
          election,  require that one or either Parties pre-advance any costs or
          fees to which  the  Escrow  Agent may be put upon  delivering  to such
          Party estimates, quotes, or bills of the relevant professionals; and
     (g)  in case proceedings  should hereafter be taken in any court respecting
          the Shares  hereby  escrowed or  respecting  the Escrow  Agent and its
          duties and acts (or  allegations of misdeeds),  the Escrow Agent shall
          not be obliged  to defend any such  action or submit its rights to the
          court  until it shall  have been  indemnified  by good and  sufficient
          security  or advance of expected  costs in  addition to the  indemnity
          given  against its costs of such  proceedings  and in the event that a
          Party or Parties refuses or neglects to provide indemnity or otherwise
          violates  the terms of this  section then the Escrow Agent shall have,
          as a  matter  of  right,  the  election  to  enjoin  and  suspend  the
          proceedings until the Parties provide proper and sufficient  indemnity
          and until the actions and pleadings of the Parties are consistent with
          and compliant with the  obligations  and  restrictions of this section
          and in the event that a pleading Party does not so conform its actions
          and provide  indemnity then the Escrow Agent shall have the right, and
          the pleading Party waives all defenses,  to have any actions dismissed
          with prejudice as a consequence of such default of the pleading Party.

<PAGE>

                                       13

3.   The Shares shall be  delivered  into  possession  of the Escrow Agent to be
     held and  delivered by the Escrow Agent as follows in  accordance  with the
     following circumstances:

     (a)  the  Shares  shall be  delivered  to the  Lender in the event that the
          Lender shall give written notice of unremedied  default of the Loan or
          Collateral  Documents  and,  upon the Escrow  Agent giving the Pledgor
          five  (5)  business   days  notice,   the  Pledgor  has  not  provided
          documentary proof materially contravening the Lender's notice; or

     (b)  the Shares  shall be delivered to the Pledgor in the event the Pledgor
          gives the  Escrow  Agent  notice of payment of Loan and the Lender has
          not  objected  within five (5)  business  days of notice by the Escrow
          Agent.  The  Pledgor  may  request  release of up to 15% of the Shares
          after each Installment  payment of the Loan of the Pledge,  Escrow and
          Promissory Note Agreement; or

     (c)  in the event that if neither Party has given notice as to  instruction
          for  delivery  of the  Shares  within  six  months of the Due Date the
          Escrow Agent may determine, after ten business days notice, to deliver
          the Shares to the Pledgor or, failing  delivery by  non-acceptance  or
          non-location of the Pledgor, to the Issuer.

     Instructions to or by the Escrow Agent as to the forgoing shall be given by
     written copy to the Escrow Agent with copies to the Parties. In all matters
     in respect to the  forgoing the Escrow Agent shall copy each Party with all
     correspondence.  At the time of intention to deliver the Shares as above if
     no objection is taken within the stated time then the Parties shall have no
     complaint and the Escrow Agent shall be fully and completely  discharged of
     all duties,  accountabilities  or claims and this Agreement shall terminate
     but that the  provisions of section 2 hereof shall continue for the benefit
     of the Escrow Agent for a period of ten years.

     The Pledgor  hereby  permits the Escrow Agent to register the Shares in the
     name of the  Escrow  Agent,  or any  contracted  nominee,  and to split the
     Shares  into   several   certificates   for  the   purposes  of   efficient
     administration  of this  escrow.  The  Escrow  Agent or his  nominee  shall
     provide the Pledgor with voting powers of attorney in respect to any Shares
     so registered.

4.   The Lender agrees that the Shares are delivered pursuant to exemptions from
     prospectus requirements,  the Lender is an exempt  sophisticated/accredited
     investor  who does not  require  qualification,  filing,  notice,  or other
     qualifying act in their jurisdiction and the Lender agrees and acknowledges
     that the  Shares are or may be subject  to  restrictions  under  prevailing
     securities  laws and that the  certificate  for the same will be  impressed
     with the appropriate legends advised by counsel.

5.   The Lender  shall be entitled to a letter or receipt  from the Escrow Agent
     stating  the Shares are held by the  Escrow  Agent  subject to the terms of
     this  Agreement;  but such letter or receipt shall not be  assignable.  The
     cost of this Agreement shall be borne by the Issuer.

6.   This  Agreement  shall  enure to the  benefit  of and be  binding  upon the
     Parties  and the  Escrow  Agent  hereto,  their  and each of  their  heirs,
     executors,  administrators,  successors and permitted assigns.  All notices
     shall be delivered to the Parties at the  addresses set forth in the Pledge
     Agreement or to the e-mails set forth below and delivery  thereto  shall be
     considered  absolute  regardless  of whether an occupant  is  present.  All
     addresses  for notice  shall be  changed  only with  delivery  of notice of
     change.

<PAGE>

                                       14

7.   This  Agreement  may be executed in several parts in the same form and such
     part as so executed  shall together  constitute one original  agreement and
     such parts,  if more than one,  shall be read  together and construed as if
     all the signing  Parties  hereto had executed  one copy of this  Agreement.
     This Agreement and executions may be exchanged by fax and such faxed copies
     shall be irrevocably deemed originals.

8.   This Agreement  shall be subject to the exclusive  jurisdiction  of British
     Columbia and the courts thereof.

9.   The Issuer  warrants that regardless of any defect,  actual or alleged,  in
     any  transfer  documents of the Shares,  or of the Shares,  that the Issuer
     will take and act upon and conclude,  without  debate,  the requests of the
     Escrow Agent,  the Pledgor or the Lender  (individually or collectively) to
     transfer  the  Shares to the Lender at such time as the Lender may take the
     same in accordance with the Pledge Agreement.

     IN WITNESS WHEREOF the Parties have executed these presents as and from the
     ------------------
day and year above written.

DEVLIN JENSEN                                        )
-------------                                        )
                                                     )
                                                     )
Per:  /s/ Pat Devlin                                 )
-----------------------------------------------------)
         Authorized Signatory                        )

SINOVAC BIOTECH LTD.                                 )
--------------------                                 )
                                                     )
                                                     )
Per:     /s/ Weidong Yin                             )
--------------------------------------------         )
         Authorized Signatory                        )

LILY WANG                                            )
---------                                            )
                                                     )
                                                     )
         /s/ Lily Wang                               )
-----------------------------------------------------)
         Signature                                   )EXHIBIT 10.2
------------

                     PLEDGE, ESCROW AND INDEMNITY AGREEMENT
                     --------------------------------------

THIS PLEDGE,  ESCROW AND  INDEMNITY  AGREEMENT  (this  "Agreement")  is made and
                                                        ---------
entered into as of October 12th 2004 by Heping Wang (the "Pledgor"),  having his
                                        -----------       -------
principal  address at c/o 120 Huoju Rd., High Tech.  Developing  Zone  Tangshan,
Hbei  Province,  China 063000,  in favour of Sinovac  Biotech Ltd.  ("Lender" or
                                             ---------------------    ------
"Indemnitee"),  having a  principal  address at No. 39 Shangdi Xi Road,  Haidian
 ----------
District, Beijing, China 100085.

                                WITNESSETH THAT:
                                ----------------

WHEREAS,  Indemnitee  owes the China  Venture Fund the sum of 9,000,000 RMB (the
"Loan"), plus accrued interest, which is due and owing on demand;
 ----

WHERAS, the Indemnitee  acquired the Loan plus accrued interest in the course of
acquiring  Tangshan Yian Biological  Engineering  Co., Ltd. from the Pledgor and
for which  the  Pledgor  agreed  to  indemnify  and pay the  Indemnitee  for all
payments  and cost (the  "Indemnity")  of the Loan as and when  incurred  by the
                          ---------
Indemnitee and within thirty (30) days of demand for any  Indemnity,  whether in
whole or part, and Pledgor has agreed to provide security for such Indemnity;

WHEREAS,  Pledgor has offered to grant the Lender  security on 1,500,000  common
shares  (the  "Shares")  in the  capital of the Lender  owned by the  Pledgor as
               ------
security for the Indemnity and Loan (hereafter  collectively also referred to as
"Loan") and to make payments in accordance with this Agreement
 ----

WHEREAS,  Pledgor has agreed to place into escrow and pledge herewith the Shares
represented  by  certificate  no.  2648 and to grant a pledge  of all  Pledgor's
rights  and  interests  in such  Shares to secure  with the  Shares the Loan and
recovery  of any part  thereof on default of payment and which Loan to be repaid
in accordance with the terms of this Agreement.

WHEREAS,  Lender  (also  called  the  "Issuer")  has agreed to the terms of this
                                       ------
Agreement  on the  condition  that  Pledgor (i) deliver the Shares and  transfer
authorities  ("Transfer  Documents") into escrow by the terms of this Agreement,
               -------------------
(ii)  pledge  to  Lender a  security  interest  in the  Shares as to all and any
interests,  residual,  option, or otherwise in the Shares, and (iii) execute and
deliver this Agreement in order to secure the payment and performance by Pledgor
of the Loan;

NOW,  THEREFORE,  in consideration of the premises and in order to induce Lender
--------------------------------------------------------------------------------
to make the Loan, Pledgor hereby agrees with Lender as follows:
---------------------------------------------------------------

     SECTION 1.  LOAN AND INDEMNITY.  Pledgor hereby acknowledges  his liability
     ----------  ------------------
to Indemnify the  Indemnitee  for the Loan and hereby  promises to pay to or for
the Lender  such of the Loan as the  Indemnitee  may suffer to pay from  time-to
-time on the following terms:

<PAGE>

                                        2

     (a)  the  Indemnitee  shall  submit to the  Pledgor  notice of all  demands
          ("Demand")  for  payment  of all or any  part  of  the  Loan  and  the
            ------
          Indemnitee shall pay,  subject to any lawful  defenses,  the Demand at
          and when the Demand requires; and

     (b)  in the event that  Indemnitee  shall pay any of the Loan the Indemitee
          shall  deliver on the Pledgor  notice of such  payment  (and  evidence
          thereof) and the Pledgor shall repay the  Indemitee  within 30 days of
          such notice;

     SECTION 2.  SHARE ESCROW. Pledgor hereby places into escrow with the Escrow
     ----------  ------------
Agent (as defined  below in the  attached  Schedule  "A" Escrow  Agreement)  the
Shares and all and every of its interest therein,  and Pledgor shall immediately
upon execution hereof deliver to the Escrow Agent:

          (a)  the certificates representing the Shares; and

          (b)  if  received  by Pledgor  prior to or after  escrow of the Shares
herewith and before  payment of the Loan or after  realisation  by the Lender of
the Shares in execution of its  recourses  to recover the Loan,  all  additional
shares of stock of, or equity  interest in, Issuer from time to time acquired by
Pledgor in any manner arising by share  dividend,  stock split,  or otherwise of
the Shares,  and the certificates  representing such additional shares (any such
additional  shares shall  constitute  part of the Shares under and as defined in
this Agreement), and all products and proceeds of any of such additional Shares,
including, without limitation, all dividends, cash, instruments,  subscriptions,
warrants and any other rights and options and other  property  from time to time
received,  receivable or otherwise  distributed in respect of or in exchange for
any and all of such additional Shares.

     SECTION 3.  PLEDGE.  Pledgor hereby pledges to Lender, and grants to Lender
     ----------  ------
a continuing first priority,  and perfected  security interest in, the following
(the "Pledged Collateral"):
      ------------------

          (a)  the Shares and the  certificates  representing the Shares and all
     interest of the Pledgor therein and extinguishment thereof upon exercise of
     the Pledge,  and all products and proceeds of any of the Shares  including,
     without  limitation,  all  dividends  (other  than  as  provided  elsewhere
     herein),  cash,  instruments and other property from time to time received,
     receivable or otherwise distributed in respect of or in exchange for any or
     all of the Shares; and

          (b)  all additional  shares of stock of, or equity interest in, Issuer
     from time to time  acquired  by  Pledgor  in  respect  to the Shares in any
     manner arising by share dividend,  stock split, or otherwise of the Shares,
     and  the  certificates   representing  such  additional  shares  (any  such
     additional  shares shall constitute part of the Shares under and as defined
     in this Agreement), and all products and proceeds of any of such additional
     Shares, including,  without limitation,  all dividends,  cash, instruments,
     subscriptions, warrants and any other rights and options and other property
     from time to time received,  receivable or otherwise distributed in respect
     of or in exchange for any and all of such additional Shares.

     SECTION 4.  SECURITY FOR OBLIGATIONS.  This  Agreement  secures (i) the due
     ----------  ------------------------
and  punctual  payment  in full  (and  not  merely  the  collectibility)  of the

<PAGE>

                                        3

principal  of the  Loan,  and the  interest  thereon,  in each case when due and
payable,  according to the terms of this Agreement,  whether at stated maturity,
by reason of  acceleration  or otherwise;  (ii) the due and punctual  payment in
full  (and not  merely  the  collectibility)  of the  obligations,  liabilities,
indebtedness  and all other  sums and  charges  which may at any time be due and
payable in accordance  with, or under the terms of, the Loan,  whether at stated
maturity,  by reason of  acceleration  or otherwise;  (iii) the due and punctual
payment (and not merely the  collectibility),  performance and observance of all
of this  Pledge  Agreement  and the  other  obligations,  terms,  covenants  and
conditions, whether now or hereafter existing, contained in any other collateral
Loan documents (collectively,  and together with the Loan, "Loan Documents") and
                                                            --------------
to be performed or observed by Pledgor; (iv) the accuracy of the representations
and warranties made by Pledgor in all Loan Documents to which it is a party (all
of the foregoing are collectively  hereinafter called the  "Obligations");  (the
                                                            -----------
Obligations and all such obligations of Pledgor now or hereafter  existing under
this Agreement being referred to herein as the "Liabilities").
                                                -----------

     SECTION 5. DELIVERY OF SHARES. All certificates or instruments representing
     ---------- ------------------
or evidencing  the Shares and all necessary  transfer  documents in blank of the
Shares,  shall be delivered to the Escrow Agent pursuant  hereto and shall be in
suitable form for transfer by delivery, or shall be accompanied by duly executed
instruments  of  transfer  or  assignment  in blank,  all in form and  substance
satisfactory to Lender.

     SECTION 6.  REPRESENTATIONS AND WARRANTIES. Pledgor represents and warrants
     ----------  ------------------------------
as follows:

          (a)  The Shares have been duly  authorised  and validly issued and are
     fully paid and non-assessable.

          (b)  Pledgor  is  the  legal  and  beneficial  owner  of  the  Pledged
     Collateral, free and clear of any lien or any interests by any other person
     on the Pledged Collateral.

          (c)  Upon  the  delivery  by  the  Escrow  Agent  of the  Shares,  the
     certificate,  and the  Transfer  Documents,  in the  event of  default  the
     transfer  of the  Shares  pursuant  to this  Agreement  creates a valid and
     perfected  transfer  of the Shares to the Lender  with the caveat  that the
     Shares are subject to such hold period as may be stated on the certificate.

          (d)  Upon the delivery to Lender of the Pledged Collateral, the pledge
     of the Pledged  Collateral  pursuant to this Agreement  creates a valid and
     perfected first priority  interest in the Pledged  Collateral  securing the
     payment of the Liabilities for the benefit of Lender.

          (e)  No authorisation,  approval, or other action by, and no notice to
     or filing with, any governmental authority or regulatory body or the Issuer
     is required (except applicable material change reports and insider reports)
     (i) for the pledge by Pledgor of the  Pledged  Collateral  pursuant to this
     Agreement or for the  execution,  delivery or performance of this Agreement
     by  Pledgor  or (ii) for the  transfer  herein  provided  or (iii)  for the
     exercise  by Lender of the rights  provided  for in this  Agreement  or the
     remedies in respect of the Pledged Collateral pursuant to this Agreement.

<PAGE>

                                        4

          (f)  Pledgor has full power and authority to enter into this Agreement
     and has the right to vote,  pledge  and grant a  security  interest  in the
     Shares as provided by this Agreement.

          (g)  This Agreement has been duly  authorised,  executed and delivered
     by  Pledgor  and  constitutes  a legal,  valid and  binding  obligation  of
     Pledgor,  enforceable  against Pledgor in accordance with its terms, except
     as such  enforceability  may be  limited  by the  effect of any  applicable
     bankruptcy, insolvency, reorganisation, moratorium or other similar laws.

          (h)  The preamble to this  Agreement is made a part of this  Agreement
     and the terms stated therein are true and accurate.

     SECTION 7.  FURTHER  ASSISTANCE.  Pledgor  agrees that at any time and from
     ----------  -------------------
time to time,  at the  expense of Pledgor,  Pledgor  will  promptly  execute and
deliver,  or cause to be executed  and  delivered,  all stock  powers,  proxies,
assignments,  instruments  and  documents and take all further  action,  that is
reasonably  necessary,  at Lender's request, in order to perfect any transfer or
security  interest granted or purported to be granted hereby or to enable Lender
to exercise  and enforce its rights and remedies  hereunder  with respect to any
Pledged Collateral and to carry out the provisions and purposes hereof.

     SECTION 8.  TRANSFER OF SHARES   Pledgor  hereby  authorises  Lender at any
     ----------  ------------------
time to cause the Shares to be  transferred  and registered to the Lender or any
other party the Lender may  determine for the purpose of realising on the Shares
to acquire proceeds to pay the Loan.

     SECTION 9.  TRANSFERS  AND OTHER LIENS.  Except for the purpose of securing
     ----------  --------------------------
proceeds  to  retire  the  Loan,  Pledgor  agrees  that it will  not (i) sell or
otherwise  dispose  of, or grant any option  with  respect to, any of the Shares
until the Loan comes due, is unpaid and any  rectification of default period has
expired  unremedied , except with the written  permission of the Pledgor,  which
shall not be unreasonably  with held, or (ii) create or permit to exist any lien
upon or with respect to any of the Pledged  Collateral,  except for the security
interest granted under this Agreement.

     SECTION 10.  LENDER  APPOINTED ATTORNEY-IN-FACT.  In addition to all of the
     -----------  ----------------------------------
powers granted to Lender pursuant to the Loan, Pledgor hereby appoints Lender as
Pledgor's  attorney-in-fact,  with  full  authority  in the  place  and stead of
Pledgor and in the name of Pledgor or  otherwise,  from time to time in Lender's
discretion  to take any action and to execute any  instrument  which  Lender may
deem necessary or advisable to further perfect and protect the security interest
granted hereby,  including,  without limitation, to receive, endorse and collect
all instruments made payable to Pledgor  representing any dividend,  interest or
principal payment or other  distribution in respect of the Pledged Collateral or
any part thereof and to give full discharge for the same.

     SECTION 11.  LENDER MAY PERFORM.  If Pledgor fails to perform any agreement
     -----------  ------------------
contained  herein,  Lender may itself  perform,  or cause  performance  of, such
agreement,  and  the  reasonable  expenses  of  Lender  incurred  in  connection
therewith shall be payable by Pledgor.

     SECTION 12.  NO  ASSUMPTION OF DUTIES;  REASONABLE  CARE.  The  rights  and
     -----------  -------------------------------------------
powers  granted to Lender  hereunder of the Pledge are being granted in order to

<PAGE>

                                        5

preserve and protect Lender's security interest in and to the Pledged Collateral
granted hereby and shall not be interpreted to, and shall not, impose any duties
on Lender in  connection  therewith.  Lender  shall be deemed to have  exercised
reasonable care in the custody and preservation of the Pledged Collateral in its
possession if the Pledged Collateral is accorded treatment  substantially  equal
to that which Lender accords its own property,  it being  understood that Lender
shall not have any  responsibility  for (i)  ascertaining  or taking action with
respect to calls, conversions,  exchanges,  maturities, tenders or other matters
relative  to any Pledged  Collateral,  whether or not Lender has or is deemed to
have knowledge of such matters,  or (ii) taking any necessary  steps to preserve
rights against any parties with respect to any Pledged Collateral.

     SECTION 13.  SUBSEQUENT CHANGES AFFECTING COLLATERAL. Pledgor represents to
     -----------  ---------------------------------------
Lender  that  Pledgor  has made its own  arrangements  for  keeping  informed of
changes or potential changes affecting the Pledged  Collateral  (including,  but
not limited to, rights to convert,  rights to  subscribe,  payment of dividends,
payments of interest and/or principal, reorganisation or other exchanges, tender
offers  and  voting  rights),  and  Pledgor  agrees  that  Lender  shall have no
responsibility  or  liability  for  informing  Pledgor  of any such  changes  or
potential  changes or for taking any action or  omitting to take any action with
respect thereto.  Pledgor  covenants that it will not, without the prior written
consent of  Lender,  sell or  otherwise  dispose  of, or grant any  option  with
respect to, any of the Pledged  Collateral or create or permit to exist any lien
upon or with respect of any of the Pledged Collateral.

     SECTION  14.  REMEDIES  UPON  DEFAULT.  If any Event of Default  shall have
     ------------  -----------------------
occurred and be continuing and Pledgor shall not have rectified  within ten (10)
days of notice of default,,  Lender shall, in addition to all other rights given
by law or by this  Agreement,  the Loan or  otherwise,  have all the  rights and
remedies  with respect to the Pledged  Collateral  of a secured  party under the
laws of British  Columbia  and Lender  may,  without  notice and at its  option,
transfer or register,  and Pledgor shall register or cause to be registered upon
request therefore by Lender,  the Pledged  Collateral or any part thereof on the
books of Issuer into the name of Lender or Lender's nominee(s),  indicating that
such  Pledged  Collateral  is subject to the  security  interest  hereunder.  In
addition, with respect to any Pledged Collateral which shall then be in or shall
thereafter  come into the  possession  or custody of Lender,  Lender may sell or
cause the same to be sold at any broker's board or at public or private sale, in
one or more sales or lots, at such price or prices as Lender may deem best,  for
cash or on credit or for future delivery, without assumption of any credit risk,
all in accordance  with the terms and provisions of the Loan and this Agreement,
or may exercise such other  remedies as may be provided under law. The purchaser
of any or all  Pledged  Collateral  so  sold  shall  thereafter  hold  the  same
absolutely,  free from any claim,  encumbrance or right of any kind  whatsoever.
Any sale of the Pledged  Collateral  shall be  conducted  by Lender  without any
notice  requirement  and as full owner  thereof  and Lender is not  required  to
conduct the same in conformity  with  commercial  practices of banks,  insurance
companies,   commercial  finance  companies,  or  other  financial  institutions
disposing of property  similar to the Pledged  Collateral.  Any  requirement  of
notice,  demand or  advertisement  for sale is, to the extent  permitted by law,
waived.  All expenses  (including  court costs and reasonable  attorneys'  fees,
expenses and  disbursements)  of, or incident to, the  enforcement of any of the
provisions  hereof shall be  recoverable  from the proceeds of the sale or other
disposition of the Pledged Collateral.

     SECTION 15.  EXPENSES. Pledgor will upon demand pay to Lender the amount of
     -----------  --------
any and all reasonable expenses,  including,  without limitation, the reasonable

<PAGE>

                                        6

fees,  expenses and  disbursements  of its counsel (and, upon the occurrence and
during  the  continuance  of  an  Event  of  Default,  the  fees,  expenses  and
disbursements of any investment  banking firm,  business broker or other selling
agent and any other  experts and agents  retained by Lender),  which  Lender may
incur in connection  with (i) the  administration  of this  Agreement,  (ii) the
custody  or  preservation  of,  or  the  sale  of,  collection  from,  or  other
realisation  upon,  any  of  the  Pledged  Collateral,  (iii)  the  exercise  or
enforcement  of any of the  rights of Lender  hereunder  or (iv) the  failure by
Pledgor to perform or observe any of the provisions hereof.

     SECTION 16.  SECURITY INTEREST ABSOLUTE.  All rights of Lender and security
     -----------  --------------------------
interests hereunder, and all obligations of Pledgor hereunder, shall be absolute
and unconditional irrespective of:

          (a)  any lack of validity or  enforceability  of the Loan or any other
     agreement or instrument relating thereto;

          (b)  any change in the time,  manner or place of payment of, or in any
     other term of, all or any of the  Liabilities,  or any other  amendment  or
     waiver of or any consent to any departure from the Loan;

          (c)  any exchange,  surrender,  release or non-perfection of any other
     collateral,  or any  release  or  amendment  or  waiver  of or  consent  to
     departure from any guaranty, for all or any of the Liabilities; or

          (d)  any  other  circumstances  which  might  otherwise  constitute  a
     defence  available  to,  or a  discharge  of,  Pledgor  in  respect  to the
     Liabilities or of this Agreement.

     SECTION 17.  MISCELLANEOUS PROVISIONS.
     -----------  ------------------------

     SECTION 17.1  Notices.    All  notices,   approvals,   consents  or   other
     ------------  --------
communications  required or desired to be given  hereunder  shall be in the form
and manner,  and  delivered  to each of the parties  hereto at their  respective
addresses, set forth first herein.

     SECTION 17.2  Headings.  The headings in this Agreement are for purposes of
     ------------  --------
reference only and shall not affect the meaning or construction of any provision
of this Agreement.

     SECTION 17.3  Severability. The provisions of this Agreement are severable,
     ------------  ------------
and if any clause or provision shall be held invalid or  unenforceable  in whole
or in part in any jurisdiction,  then such invalidity or unenforceability  shall
affect in that jurisdiction only such clause or provision,  or part thereof, and
shall  not  in  any  manner  affect  such  clause  or  provision  in  any  other
jurisdiction  or  any  other  clause  or  provision  of  this  Agreement  in any
jurisdiction.

     SECTION 17.4  Amendments, Waivers and Consents.  Any amendment or waiver of
     ------------  --------------------------------
any provision of this Agreement and any consent to any departure by Pledgor from
any  provision of this  Agreement  shall be  effective  only if made or given in
writing.

<PAGE>

                                        7

     SECTION 17.5  Continuing  Security Interest.  This Agreement shall create a
     ------------  -----------------------------
continuing  security interest in the Pledged  Collateral and shall (i) remain in
full force and effect until payment in full (including  after the date for final
payment) of the Obligations  and of the Loan and any other Loan Documents,  (ii)
be binding upon Pledgor, its successors and assigns,  and (iii) enure,  together
with the rights and remedies of Lender  hereunder,  to the benefit of Lender and
its successors, transferees and assigns.

     SECTION 17.6  Reinstatement. To the extent permitted by law, this Agreement
     ------------  -------------
shall  continue  to be  effective  or be  reinstated  if at any time any  amount
received by Lender in respect of the  Liabilities is rescinded or must otherwise
be restored or returned by Lender upon the insolvency, bankruptcy,  dissolution,
liquidation  or  reorganisation  of  Pledgor  or  upon  the  appointment  of any
receiver,  intervenor,  conservator,  trustee or similar official for Pledgor or
any substantial  part of its assets,  or otherwise,  all as though such payments
had not been made.

     SECTION 17.7  Survival of Provisions.  All representations,  warranties and
     ------------  ----------------------
covenants of Pledgor  contained  herein shall survive the execution and delivery
of this Agreement,  and shall terminate only upon the full and final payment and
performance by Pledgor of the Obligations  secured hereby and termination of the
Loan and any other Loan Documents.

     SECTION 17.8  Waiver of Demand.  Pledgor waives presentment  and demand for
     ------------  ----------------
payment of any of the  Liabilities,  protest and notice of  dishonour or default
with respect to any of the  Liabilities,  and all other notices to which Pledgor
might otherwise be entitled, except as otherwise expressly provided herein.

     SECTION  17.9  Authority  of Lender.  Lender  shall have and be entitled to
     -------------  --------------------
exercise all powers  hereunder which are  specifically  granted to Lender by the
terms hereof,  together  with such powers as are  reasonably  incident  thereto.
Lender may perform any of its duties hereunder or in connection with the Pledged
Collateral  by or through  agents or  employees  and shall be entitled to retain
counsel and to act in reliance  upon the advice of counsel  concerning  all such
matters. Neither Lender nor any officer,  employee,  attorney or agent of Lender
shall be liable to Pledgor for any action  taken or omitted to be taken by it or
them  hereunder,  except  for  its or  their  own  gross  negligence  or  wilful
misconduct,  nor shall Lender be responsible for the validity,  effectiveness or
sufficiency  hereof or of any document or security  furnished  pursuant  hereto.
Lender and its  officers,  employees,  attorneys and agents shall be entitled to
rely on any communication,  instrument or document  reasonably believed by it or
them to be genuine  and  correct  and to have been  signed or sent by the proper
person or persons.  Pledgor agrees to indemnify and hold harmless Lender and any
person of the Lender  from and against  any and all costs,  expenses  (including
reasonable fees, expenses and disbursements of attorneys and paralegals), claims
and liabilities  incurred by Lender or such person hereunder,  unless such claim
or liability shall be due to wilful  misconduct or gross  negligence on the part
of Lender or such person.

     SECTION 17.10  Release; Termination of Agreement. Subject to the provisions
     -------------  ---------------------------------
of Section 17.6  hereof,  this  Agreement  shall  terminate  upon full and final
payment and performance of all the Obligations.

<PAGE>

                                        8

     SECTION 17.11  Counterparts.  This Agreement may be executed in one or more
     -------------  ------------
counterparts and may be executed by facsimile,  each of which shall be deemed an
original but all of which shall together constitute one and the same agreement.

     SECTION 17.14  Governing Law; Submission to Jurisdiction; Counsel
     -------------  --------------------------------------------------

          (a)  This  Agreement  shall be governed by and  interpreted  under the
     laws of the Province of British  Columbia  and any dispute  arising out of,
     connected with,  related to, or incidental to the relationship  established
     between Pledgor and Lender in connection  with this Agreement,  and whether
     arising in  contract,  tort,  equity or  otherwise,  shall be  resolved  in
     British Columbia, Canada

          (b)  Pledgor (i) agrees that Lender  shall not have any  liability  to
     Pledgor  (whether  sounding  in tort,  contract  or  otherwise)  for losses
     suffered  by  Pledgor in  connection  with,  arising  out of, or in any way
     related to, the transactions  contemplated and the relationship established
     by this  Agreement,  or any act,  omission or event occurring in connection
     therewith,  unless  it is  determined  by a  judgement  of a court  that is
     binding on Lender (which judgement shall be final and not subject to review
     on appeal)  that such  losses were the result of acts or  omissions  on the
     part of Lender  constituting gross negligence or wilful misconduct and (ii)
     waives,  releases  and  agrees  not to sue upon any  claim  against  Lender
     (whether  sounding in tort,  contract or  otherwise),  except a claim based
     upon gross negligence or wilful misconduct. Whether or not such damages are
     related to a claim that is subject to the waiver effected above and whether
     or not such waiver is effective,  Lender shall not have any liability  with
     respect to, and Pledgor hereby waives,  releases and agrees not to sue upon
     any claim for, any special,  indirect,  consequential  or punitive  damages
     suffered  by  Pledgor in  connection  with,  arising  out of, or in any way
     related to the transactions contemplated or the relationship established by
     this  Agreement,  or any act,  omission or event  occurring  in  connection
     therewith,  unless  it is  determined  by a  judgement  of a court  that is
     binding on Lender (which judgement shall be final and not subject to review
     on appeal),  that such  damages were the result of acts or omissions on the
     part of Lender constituting wilful misconduct.

          (c)  Pledgor  and  Lender  acknowledges  that for the  purpose of this
     Agreement and the security  contemplated herein that Devlin Jensen acts for
     the Lender, Pledgor and Lender release Devlin Jensen from any conflict with
     the Escrow Agent duties which have been requested of Devlin Jensen, Pledgor
     and Lender subscribe to and endorse the Escrow Agent provisions of Schedule
     "A" following their initial signatures hereto, and Pledgor has been advised
     to seek its own counsel and has taken its own counsel for this purpose.

               [The rest of this page is intentionally left blank]

<PAGE>

                                        9

          (d)  Pledgor  waives the  posting of any bond  otherwise  required  of
     Lender in connection with any judicial process or proceeding to enforce any
     judgement or other court order  entered in favour of Lender,  or to enforce
     by specific  performance,  temporary  restraining  order or  preliminary or
     permanent  injunction  this  Agreement  or any other  Agreement or document
     between Pledgor and Lender.

     IN WITNESS  WHEREOF,  Pledgor and Lender have each caused this Agreement to
be duly executed and delivered as of the date first above written.

                                               PLEDGOR:

                                               Heping Wang
                                               -----------

                                                 /s/ Heping Wang
                                               ------------------------
                                               Signature

                                               LENDER:

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

                                               By: /s/ Weidong Yin
                                                  ---------------------
                                                   Authorised Signatory

<PAGE>

                                       10

                                  SCHEDULE "A"
                                  ------------

                                ESCROW AGREEMENT
                                ----------------

     THIS ESCROW AGREEMENT is made and dated effective (the "Effective Date") as
     ---------------------
of the 12th day of October, 2004 and is a collateral agreement and attached as a
document  to  the  above  Pledge,   Escrow  and  Indemnity   Agreement  ("Pledge
Agreement").

BETWEEN:
-------

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

               (hereinafter referred to as the "Lender" or the "Issuer");

                                                               OF THE FIRST PART
                                                               -----------------
AND:
---

               HEPING WANG
               -----------

               (hereinafter referred to as "Pledgor")

                                                              OF THE SECOND PART
                                                              ------------------

               (the  foregoing  hereinafter  also  singularly  referred  to as a
               "Party"  and  collectively  referred to as the  "Parties"  as the
               context so requires).

AND
---

               Devlin   Jensen  or  such   escrow   agent  as  the  Parties  may
               -----------------------------------------------------------------
               subsequently  appoint or such escrow agent as subsequently may be
               -----------------------------------------------------------------
               appointed by Devlin Jensen or a court of competent  jurisdiction,
               ----------------------------------------------------------------
               of 2550-555 West Hastings Street, Vancouver, BC V6B 4N5

               (hereinafter  referred  to  as  the  "Escrow  Agent"  but  not  a
               "Party");

                                                               OF THE THIRD PART
                                                               -----------------

WHEREAS:
-------

A.   The Parties have  requested  that the Escrow Agent act as escrow  holder of
     the Shares as  contemplated by the Pledge,  Escrow and Indemnity  Agreement
     and the Escrow Agent has agreed subject to the below terms;
B.   All  definitions of the Pledge,  Escrow and Indemnity  Agreement are herein
     incorporated  by  reference  but none of the  terms or  obligations  of the
     Pledge  Agreement  are  incorporated  herein  and the  Escrow  Agent is not
     imposed with any obligations other than those of this Escrow Agreement;

<PAGE>

                                       11

C.   The Issuer has also joined to this Agreement to assist in the correction of
     any  defects  of Shares or  delivery  and to ensure  the  acceptability  of
     transfer of the Shares;

     NOW  THEREFORE  THIS  AGREEMENT  WITNESSES  that  in  consideration  of the
     ------------------------------------------
premises  and  consideration  now provided by each of the Parties and the Escrow
Agent hereto,  each to the other (the receipt  whereof is hereby  acknowledged),
and in further consideration of the mutual covenants and conditions  hereinafter
contained,  the  Parties  each with the other and with the Escrow  Agent  hereto
agree as follows:

1.   The  Lender  and  Pledgor  hereby  agree to the  deposit  of the Shares and
     Transfer Documents  (collectively hereafter the "Shares") with and that the
     same shall be delivered to the Escrow Agent to be held in  accordance  with
     this Agreement.

2.   The Escrow Agent hereby agrees to accept delivery and custody of the Shares
     for the purposes of this Agreement on the following specific agreements and
     understanding   by  the  Lender  and  Pledgor  and  such  Parties   warrant
     irrevocably to abide by and that they are bound by such provisions:

     (a)  the  Escrow  Agent is  general  counsel  for  Lender  but not for this
          document or the Pledge  Agreement,  such is recognized by the Parties,
          all  Parties  waive  conflict  thereof,  the Lender and  Pledgor  have
          received  actual and specific  legal counsel from separate  counsel in
          regard to this matter,  and the Lender and Pledgor are executing  this
          Agreement  without any reliance or expectation  whatever of the Escrow
          Agent except as escrow holder as specifically required by the terms of
          the escrow of this Agreement;
     (b)  this agreement constitutes covenants only and there is no trust hereof
          and should any trust be implied hereof (which would be contrary to the
          intention of this Agreement) then such is a limited trust specifically
          for the purposes of this Agreement and for no other purpose,  shall be
          interpreted  strictly  and  with  limitation  and  not by  inferential
          interpretation and not widely and generously;
     (c)  the Escrow Agent may resign at any time and tender the Shares to court
          or  appoint  an  alternate  escrow  agent and tender the Shares to the
          alternate and  immediately  upon such tendering the Escrow Agent shall
          be relieved of all and any accountability thereafter;
     (d)  the duty of the Escrow  Agent is solely  that of good faith and normal
          care merely to preserve the Shares and communicate adequately with the
          Parties  and the  Escrow  Agent  shall have no duty or  obligation  to
          determine any rights between the Parties, to interpret this Agreement,
          or to take any other act other than to  preserve  the  Shares.  In the
          event of  conflict  in respect  to the  Shares  the  Escrow  Agent may
          determine  to  retain  possession  of  the  Shares  without  liability
          whatsoever  until  instructed  by mutual  direction  of the Parties or
          until directed by a court of competent jurisdiction. In the event that
          the Escrow Agent has  communicated  any matter to a Party notifying of
          an act or an  understanding  or an  interpretation  or an intention to
          deliver  or  receipt  of a matter  or any other  matter  for which the
          Escrow Agent is giving  information  or notice or requesting  response
          then a Party  shall not  complain  and shall have  waived all right to
          complain  for the  matters  disclosed  therein  if the  Party  has not
          objected  within ten business  days thereof and if the Escrow Agent is
          requesting  response then a Party shall answer within such time frame.
          The  Escrow  Agent  shall  be  absolutely  entitled  to rely  upon the
          veracity,  truthfulness,  authenticity, and integrity of communication
          by the  Parties  and shall not be  obliged to inquire as to their bona
          fides or assume any defect  therein  and should a Party  effect  false
          communications  or  should a third  party  employ  instruments  of the
          Parties to effect false or deceptive  acts then the Escrow Agent shall
          have no  liability  therefore.  In the  event the  Shares  are lost or
          destroyed  while in the  possession of the Escrow  Agent,  the Parties
          agree that such is a non-actionable  accident without cost or recourse

<PAGE>

                                       12

          to the Escrow  Agent and the Parties  warrant to effect all matters as
          shall be required to cancel the lost  certificate and replace the same
          into the possession of the Escrow Agent;
     (e)  the Parties waive any and all claims  against the Escrow Agent for any
          acts conducted pursuant hereto except only where the Escrow Agent acts
          in fraud or overt bad faith for personal  profit (and for such purpose
          error,  negligence,  confusion  or  mistake of  interpretation,  force
          majeure, act of third party,  employee error and the like shall not be
          extended to be  interpreted  as bad faith but bad faith shall mean its
          normal and extreme  meaning of an act taken with the objective  intent
          of  effecting  a wrong  purpose)  and any claim in respect to the same
          shall be consequent upon actual and observable and documented  default
          of such nature and not  inferential or interpretive or speculative and
          in the  interpretation  of such  matters  the onus and burden of proof
          (whether at trial or on a motion,  inter alia,  by the Escrow Agent to
          dismiss for  insufficient  evidence)  shall be on the claimant  making
          claim  against  the  Escrow  Agent and shall be on a level of beyond a
          reasonable  doubt. A Party making  complaint  against the Escrow Agent
          for default based upon inferential, speculative or interpretive claims
          shall be deemed  irrevocably to be acting in bad faith and maliciously
          or for collateral improper purposes (in this latter case such shall be
          inferred if the facts reasonably illustrate that such claim is made in
          whole or in part to exert a leverage) and such a claiming  Party shall
          be  liable  for  the  maximal  damages  and  costs  allowable  in  the
          appropriate jurisdiction;
     (f)  the Parties,  jointly and severally  (and a  contributing  Party shall
          have a right of claim from the  non-contributing  Parties),  do hereby
          warrant  and agree from time to time and at all times  hereafter  well
          and truly to save,  defend and keep  harmless and fully  indemnify the
          Escrow Agent,  its successors and assigns,  from and against all loss,
          costs,  charges,  damages and  expenses  which the Escrow  Agent,  its
          successors or assigns, may at any time hereafter bear, sustain, suffer
          or be put to for or by reason or on  account  of its  acting as Escrow
          Agent pursuant to this Agreement except only in the event of bad faith
          or fraud, which shall not be assumed or employed as a plea to defeat a
          claim for indemnity  unless such has first been adjudged by a court of
          competent  jurisdiction.  Unless a claimant  shall first have received
          approval of a court of competent jurisdiction, pursuant to motion duly
          served  and  replied  in the  ordinary  course  (and  not ex  parte or
          expedited),   and  unless  such  court  has  found  on  a  balance  of
          probabilities  on the evidence  served by both parties that the Escrow
          Agent did  probably  commit  fraud or bad faith,  then  failure to pay
          indemnity  or advance  costs  shall be a  fundamental  default of this
          Agreement  and shall be  irrevocably  deemed to be an act of bad faith
          and malice and the claim of the claimant shall be dismissed completely
          with prejudice for such matter alone. The Escrow Agent may, at it sole
          election,  require that one or either Parties pre-advance any costs or
          fees to which  the  Escrow  Agent may be put upon  delivering  to such
          Party estimates, quotes, or bills of the relevant professionals; and
     (g)  in case proceedings  should hereafter be taken in any court respecting
          the Shares  hereby  escrowed or  respecting  the Escrow  Agent and its
          duties and acts (or  allegations of misdeeds),  the Escrow Agent shall
          not be obliged  to defend any such  action or submit its rights to the
          court  until it shall  have been  indemnified  by good and  sufficient
          security  or advance of expected  costs in  addition to the  indemnity
          given  against its costs of such  proceedings  and in the event that a
          Party or Parties refuses or neglects to provide indemnity or otherwise
          violates  the terms of this  section then the Escrow Agent shall have,
          as a  matter  of  right,  the  election  to  enjoin  and  suspend  the
          proceedings until the Parties provide proper and sufficient  indemnity
          and until the actions and pleadings of the Parties are consistent with
          and compliant with the  obligations  and  restrictions of this section
          and in the event that a pleading Party does not so conform its actions
          and provide  indemnity then the Escrow Agent shall have the right, and
          the pleading Party waives all defenses,  to have any actions dismissed
          with prejudice as a consequence of such default of the pleading Party.

<PAGE>

                                       13

3.   The Shares shall be  delivered  into  possession  of the Escrow Agent to be
     held and  delivered by the Escrow Agent as follows in  accordance  with the
     following circumstances:

     (a)  the  Shares  shall be  delivered  to the  Lender in the event that the
          Lender shall give written notice of unremedied  default of the Loan or
          Collateral  Documents  and,  upon the Escrow  Agent giving the Pledgor
          five  (5)  business   days  notice,   the  Pledgor  has  not  provided
          documentary proof materially contravening the Lender's notice; or

     (b)  the Shares  shall be delivered to the Pledgor in the event the Pledgor
          gives the  Escrow  Agent  notice of payment of Loan and the Lender has
          not  objected  within five (5)  business  days of notice by the Escrow
          Agent; or

     (c)  in the event that if neither Party has given notice as to  instruction
          for  delivery  of the  Shares  within  six  months of the Due Date the
          Escrow Agent may determine, after ten business days notice, to deliver
          the Shares to the Pledgor or, failing  delivery by  non-acceptance  or
          non-location of the Pledgor, to the Issuer.

     Instructions to or by the Escrow Agent as to the forgoing shall be given by
     written copy to the Escrow Agent with copies to the Parties. In all matters
     in respect to the  forgoing the Escrow Agent shall copy each Party with all
     correspondence.  At the time of intention to deliver the Shares as above if
     no objection is taken within the stated time then the Parties shall have no
     complaint and the Escrow Agent shall be fully and completely  discharged of
     all duties,  accountabilities  or claims and this Agreement shall terminate
     but that the  provisions of section 2 hereof shall continue for the benefit
     of the Escrow Agent for a period of ten years.

     The Pledgor  hereby  permits the Escrow Agent to register the Shares in the
     name of the  Escrow  Agent,  or any  contracted  nominee,  and to split the
     Shares  into   several   certificates   for  the   purposes  of   efficient
     administration  of this  escrow.  The  Escrow  Agent or his  nominee  shall
     provide the Pledgor with voting powers of attorney in respect to any Shares
     so registered.

4.   The Lender agrees that the Shares are delivered pursuant to exemptions from
     prospectus requirements,  the Lender is an exempt  sophisticated/accredited
     investor  who does not  require  qualification,  filing,  notice,  or other
     qualifying act in their jurisdiction and the Lender agrees and acknowledges
     that the  Shares are or may be subject  to  restrictions  under  prevailing
     securities  laws and that the  certificate  for the same will be  impressed
     with the appropriate legends advised by counsel.

5.   The Lender  shall be entitled to a letter or receipt  from the Escrow Agent
     stating  the Shares are held by the  Escrow  Agent  subject to the terms of
     this  Agreement;  but such letter or receipt shall not be  assignable.  The
     cost of this Agreement shall be borne by the Issuer.

6.   This  Agreement  shall  enure to the  benefit  of and be  binding  upon the
     Parties  and the  Escrow  Agent  hereto,  their  and each of  their  heirs,
     executors,  administrators,  successors and permitted assigns.  All notices
     shall be delivered to the Parties at the  addresses set forth in the Pledge
     Agreement or to the e-mails set forth below and delivery  thereto  shall be
     considered  absolute  regardless  of whether an occupant  is  present.  All
     addresses  for notice  shall be  changed  only with  delivery  of notice of
     change.

7.   This  Agreement  may be executed in several parts in the same form and such
     part as so executed  shall together  constitute one original  agreement and
     such parts,  if more than one,  shall be read  together and construed as if
     all the signing  Parties  hereto had executed  one copy of this  Agreement.
     This Agreement and executions may be exchanged by fax and such faxed copies
     shall be irrevocably deemed originals.

<PAGE>

                                       14

8.   This Agreement  shall be subject to the exclusive  jurisdiction  of British
     Columbia and the courts thereof.

9.   The Issuer  warrants that regardless of any defect,  actual or alleged,  in
     any  transfer  documents of the Shares,  or of the Shares,  that the Issuer
     will take and act upon and conclude,  without  debate,  the requests of the
     Escrow Agent,  the Pledgor or the Lender  (individually or collectively) to
     transfer  the  Shares to the Lender at such time as the Lender may take the
     same in accordance with the Pledge Agreement.

     IN WITNESS WHEREOF the Parties have executed these presents as and from the
     ------------------
day and year above written.

DEVLIN JENSEN                                        )
-------------                                        )
                                                     )
                                                     )
   /s/ Pat Devlin                                    )
-----------------------------------------------------)
Per: Authorized Signatory                            )

SINOVAC BIOTECH LTD.                                 )
--------------------                                 )
                                                     )
                                                     )
    /s/ Weidong Yin                                  )
-----------------------------------------------------)
Per: Authorized Signatory                            )

HEPING WANG                                          )
-----------                                          )
                                                     )
                                                     )
    /s/ Heping Wang                                  )
-----------------------------------------------------)
Signature                                            )

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]