Document:

GARRETT
                  COLLEGE

              
	
                GARRETT
                  INFORMATION ENTERPRISE CENTER

              
	
                LEASE
                  AGREEMENT

              
	 
	
                THIS
                  AGREEMENT,
                  made this 1st
                  day
                  of June
                  ,
                  2006, by and between Garrett College “Lessor”, and: Solution Technology
                  International “Lessee”.

              

      

       

      
        	
                Lessor:

              	
                Garrett
                  College

              	 	
                Lessee:

              	
                Solution
                  Technology International

              
	
                Address:

              	
                687
                  Mosser Road

              	 	
                Address:

              	
                685
                  Mosser Road, Suite 11

              
	 	
                McHenry,
                  Maryland 21541

              	 	 	
                McHenry,
                  MD 21541

              
	
                Contact:

              	
                Ms.
                  Lydia Reiser

              	 	
                Contact:

              	
                Dan
                  L. Jonson

              
	
                Telephone:

              	
                (301)
                  387-3167

              	 	
                Telephone:

              	
                301-387-

              
	
                E-mail:

              	
                lreiser@garrettcollege.edu

              	 	
                E-mail:

              	
                dljonson@stius.com

              

      

       

      
        	
                1.

              	
                Recitals

              
	 	 
	 	
                1.1

              	
                Garrett
                  College (the “College”) is a public community college accredited in the
                  State of Maryland.

              
	 	 	 
	 	
                1.2

              	
                The
                  College has a mission to support both the educational and economic
                  needs
                  of the community.

              
	 	 	 
	 	
                1.3

              	
                The
                  College in furtherance of this mission has, with the support and
                  cooperation of Garrett County, Maryland, government, local economic
                  development, the State of Maryland, the Economic Development
                  Administration and the Appalachian Regional Commission, constructed
                  a
                  facility known as the Garrett Information Enterprise Center
                  (GIEC).

              
	 	 	 
	 	
                1.4

              	
                GIEC,
                  owned and operated by the College, consists of approximately 20,000
                  square
                  feet including 20 offices of varying sizes ranging from 300 square
                  feet to
                  1,250 square feet, as well as common areas including the main and
                  secondary entrances, the main lobby, central restrooms, the kitchenette,
                  and a conference room.

              
	 	 	 
	 	
                1.5

              	
                GIEC’s
                  mission is to support the economic growth of Garrett County by
                  creating an
                  environment for facilitating the successful development of information
                  intensive companies.

              
	 	 	 
	
                2.

              	
                Lease/Rental
                  Agreement

              
	 	 	 
	 	
                2.1

              	
                Space
                  Description

              
	 	 	 
	 	
                2.1.1

              	
                The
                  Lessor leases unto the Lessee the premises (the “Premises”) known and
                  described as room(s) numbered 111
                  containing
                  1,163
                  net
                  usable square feet of space.

              
	 	 	 
	 	
                2.1.2

              	
                Lessee
                  also has the right to use of corridors and common areas in accordance
                  with
                  established policies, all as shown on the plat of the Premises
                  in Exhibit
                  1 attached hereto including the main and secondary entrances, the
                  main
                  lobby, the central restrooms, the kitchenette, and the conference
                  room
                  through appropriate reservations. The total billable square feet
                  is
                  1696
                  at
                  $10.00
                  per square foot.

              

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        	 	
                2.2

              	
                Security
                  Deposit

              
	 	 	 
	 	 	
                The
                  Lessee shall, prior to occupancy, post a security deposit equal
                  to two (2)
                  months rent. Upon expiration or termination of the Lease, the security
                  deposit will be returned to the Lessee, less any rent due and/or
                  costs to
                  repair damages to the Premises occasioned by Lessee’s use and occupation
                  thereof. Promptly after expiration or termination of the Lease,
                  Lessor
                  will inspect the Premises and notify Lessee, in writing, of any
                  sum to be
                  retained by Lessor from the security deposit and an explanation
                  of such
                  retention, including copies of any estimates of damage, if any.
                  The Lessee
                  shall surrender the premises in the condition in which it was received,
                  ordinary wear and tear excepted. 

              
	 	 	 
	 	
                2.3

              	
                Rental
                  Payment

              
	 	 	 
	 	
                2.3.1

              	
                The
                  term of the Lease shall be for one (1) year. The Lease shall commence
                  and
                  the Lessee shall begin to pay rent upon 1st
                  Day of June,
                  2006.

              
	 	 	 
	 	
                2.3.2

              	
                The
                  rent due by Lessee to Lessor is $16,960.00
                  per annum, payable in equal monthly installments of $
                  1,414.00.

              
	 	 	 
	 	
                2.3.3

              	
                Rental
                  payments shall be payable to the Lessor during normal business
                  hours and
                  shall be due on the first business day of the month. In the event
                  that the
                  Lease commences after the first day of the month, the rental payment
                  amount will be prorated accordingly.

              
	 	 	 
	 	
                2.3.4

              	
                Payments
                  to the Lessor pursuant to paragraph 2.3.3 of this Lease shall be
                  made no
                  later than five (5) days after the due date. Any payment more than
                  five
                  (5) days late shall be subject to a late payment fee of five percent
                  (5%)
                  of the amount more than five (5) days in arrears.

              
	 	 	 
	 	
                2.4

              	
                Renewal
                  Options

              
	 	 	 
	 	 	
                Lessee
                  shall have the option to renew this Lease subject to the same terms
                  and
                  conditions except that the renewal rent may be renegotiated. The
                  Lessee
                  agrees to complete the Incubating Tenant Lease Renewal/Non-Renewal
                  Form
                  and submit to the Lessor not less than ninety (90) days advance
                  written
                  notice of its intention to renew the Lease. 

              
	 	 	 
	 	
                2.5

              	
                Holding
                  Over

              
	 	 	 
	 	 	
                The
                  continued occupancy of the Premises by the Lessee after the initial
                  term,
                  or any renewal thereof as herein provided (the expiration date),
                  shall
                  create a tenancy at will, subject to all the terms and conditions
                  of this
                  Lease except that the Lessor shall be entitled to double rent for
                  any such
                  period. 

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	 	
                2.6

              	
                Waiver
                  of Conditions

              
	 	 	 
	 	 	
                The
                  waiver at any time by the Lessor or the Lessee of any particular
                  covenant
                  or condition of the Lease shall extend to the particular case only,
                  for
                  the particular time and in the particular manner specified, and
                  such
                  waiver shall not be construed or understood as waiving any further
                  or
                  other rights of any character whatever. 

              
	 	 	 
	 	
                2.7

              	
                During
                  the term of this Lease, or any renewal thereof s provided in §2.5 hereof,
                  Lessee shall have the option to lease by separate agreement any
                  unoccupied
                  space adjacent to the demised premises. In the event of inquiry
                  by a third
                  party expressing an interest in leasing any such adjacent space,
                  Lessee
                  shall have fifteen (15) days from the date of written notice from
                  Lessor
                  of any such interest to exercise the option; provided, however,
                  that
                  Lessee is not in default of any of the provisions of this Lease.
                  Exercise
                  of the option shall be in writing directed to the Lessor.
                  

              
	 	 	 
	
                3.

              	
                Facilities:
                  Usage & Responsibilities

              
	 	 	 
	 	
                3.1

              	
                Parking

              
	 	 	 
	 	 	
                During
                  the term of this Lease, the Lessee shall have the privilege of
                  use in
                  common parking spaces in the Lessor’s parking lot free of charge.
                  

              
	 	 	 
	 	
                3.2

              	
                Electricity

              
	 	 	 
	 	 	
                Electricity
                  shall be provided and paid by the Lessor

              
	 	 	 
	 	
                3.3

              	
                Heating
                  and Air Conditioning

              
	 	 	 
	 	 	
                Heating
                  and air conditioning shall be provided and paid by the
                  Lessor.

              
	 	 	 
	 	
                3.4

              	
                Custodial
                  Services

              
	 	 	 
	 	 	
                Cleaning
                  services and supplies will be the responsibility of the Lessee
                  except for
                  the common areas which are the responsibility of the
                  Lessor.

              
	 	 	 
	 	
                3.5

              	
                Snow
                  Removal

              
	 	 	 
	 	 	
                Snow
                  removal will be the responsibility of the Lessor.

              
	 	 	 
	 	
                3.6

              	
                Water
                  and Sewer Service

              
	 	 	 
	 	 	
                Water
                  and sewer service shall be provided and paid by the
                  Lessor.

              
	 	 	 
	 	
                3.7

              	
                Telephone
                  and Internet/Postage Machine Usage

              
	 	 	 
	 	 	
                The
                  Lessee shall be responsible for securing its telephone and Internet
                  services; however, the building is prewired with fifty (50) pairs
                  of
                  twenty four (24) gauge plenum rated telephone cable installed to
                  a
                  telephone distribution panel in each office. A common postage meter
                  is
                  available in the copy center. All tenants pay a monthly rental
                  fee on this
                  machine in the amount of $12.00 regardless of usage. Actual postage
                  use is
                  billed monthly.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	 	
                3.8

              	
                Signage

              
	 	 	 
	 	 	
                Lessee
                  must install an interior sign in the common area outside the office
                  suite.
                  Any signage on the grounds of GC only with the prior written approval
                  of
                  the Lessor, and subject to such limitations as to location, size,
                  height
                  and content as Lessor shall prescribe. Written approval will not
                  be
                  unreasonably withheld. 

              
	 	 	 
	 	
                3.9

              	
                Alterations

              
	 	 	 
	 	
                3.9.1

              	
                Lessee
                  shall not make any alterations, additions or improvements to the
                  Premises
                  without Lessor’s prior written approval which approval shall not be
                  unreasonably withheld. All alterations, additions or improvements
                  made by
                  either of the parties hereto upon the Premises shall be the property
                  of
                  the Lessor and shall remain upon and be surrendered with the Premises
                  at
                  the termination of this Lease, provided, however, that the Lessee
                  shall
                  have the privilege of installing furniture or equipment necessary
                  in the
                  conduct of its business and these shall remain the property of
                  the Lessee
                  and may be removed by the Lessee during its tenancy. Equipment
                  or fixtures
                  which cannot be removed from the Premises without causing structural
                  damage (other than minor damage) shall remain in place and become
                  the
                  property of the Lessor.

              
	 	 	 
	 	
                3.9.2

              	
                Lessee
                  may install, with prior written approval of Lessor, lines or special
                  wiring for telephones and other electronic or communications equipment
                  necessary in the conduct of its business and these shall remain
                  the
                  property of the Lessee, and may be realigned, maintained or removed
                  at the
                  sole option of the Lessee during its tenancy or upon expiration
                  or
                  termination of this Lease.

              
	 	 	 
	 	
                3.10

              	
                Campus
                  Use

              
	 	 	 
	 	
                3.10.1

              	
                Lessee
                  may use other campus facilities and services including, but not
                  limited
                  to, cafeteria, library, computer rooms, teleconferencing, conference
                  and
                  classrooms subject to college policies, procedures, rules and regulations
                  and any associated fees.

              
	 	 	 
	 	
                3.11

              	
                Damages/Repairs

              
	 	 	 
	 	
                3.11.1

              	
                Lessee
                  shall give to Lessor prompt written notice of any accidents or
                  damage to,
                  or defects in the roof, the exterior of the building, plumbing,
                  electric
                  lights, or heating apparatus. All repairs to the Premises as well
                  as
                  repairs to the exterior of the building of which the Premises are
                  a part
                  to be made and paid for by the Lessor including any costs incurred
                  and
                  associated with the movement of Lessee’s equipment, furniture and
                  fixtures, if such moving is required to make the repairs.
                  

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	 	
                3.11.2

              	
                The
                  Lessee shall keep the Premises in good condition during the period
                  of the
                  Lease and shall make such repairs to the Premises as are caused
                  by the
                  carelessness or negligence of the Lessee, its agents, employees
                  or
                  invitees.

              
	 	 	 
	 	
                3.12

              	
                Right
                  of Access

              
	 	 	 
	 	 	
                Lessor
                  reserves the right to enter the demised premises at reasonable
                  times to
                  assure Lessee’s compliance with the provisions of this Lease and to meet
                  Lessor’s obligations hereunder. The date and time of entry shall be
                  mutually agreed upon.

              
	 	 	 
	 	 	
                No
                  advance notice shall be required in cases of emergency.

              
	 	 	 
	 	
                3.13

              	
                Catastrophic
                  Events

              
	 	 	 
	 	 	
                If
                  during the term of this Lease the building is so damaged by fire
                  or other
                  casualty that the Premises are rendered unfit for occupancy rent
                  shall
                  abate during such period. If the Premises cannot be repaired within
                  sixty
                  (60) days from the happening of such casualty, the Lessee shall
                  have the
                  option to declare this Lease void as of the date of such casualty.
                  In such
                  case Lessee’s liability for rent terminates as of the date of damage.
                  Lessee shall surrender the premises to the Lessor who may enter
                  upon and
                  repossess the Premises. If the damage is such that the Premises
                  can be
                  repaired within sixty (60) days, Lessor shall enter and repair
                  the same
                  promptly. 

              
	 	 	 
	
                4.

              	
                Insurance/Indemnification

              
	 	 	 
	 	
                4.1

              	
                Lessee
                  Coverage 

              
	 	 	 
	 	 	
                Lessee
                  shall secure and maintain during the term of this Lease, or any
                  renewal
                  thereof, a policy of insurance insuring Lessee, its employees,
                  agents and
                  servants against liability for injury or damage to third persons
                  arising
                  out of the conduct of Lessee’s business, or in any way related to Lessee’s
                  use and occupancy of the Premises. 

              
	 	 	 
	 	
                4.1.1

              	
                Coverage
                  shall be a minimum of Five Hundred Thousand Dollars ($500,000)
                  and Lessee
                  shall provide Lessor with documentary evidence that such insurance
                  is in
                  place at the time of the execution of the Lease.

              
	 	 	 
	 	
                4.1.2

              	
                Lessor
                  shall not be responsible for any interruption of Lessee’s business from
                  any cause whatever, nor for loss or damage to Lessee’s property in the
                  Premises. 

              
	 	 	 
	 	
                4.1.3

              	
                Lessee
                  shall indemnify and hold harmless GIEC, Garrett College, its Board
                  of
                  Trustees and its Officers, agents and employees from liability
                  arising out
                  of or in anyway related to Lessee’s use and occupancy of the
                  Premises.

              
	 	 	 
	
                5.

              	
                Assignment
                  & Subletting

              
	 	 	 
	 	
                5.1

              	
                Assignment

              
	 	 	 
	 	 	
                Lessee
                  shall not assign or sublet its interests in this Lease without
                  the prior
                  written consent of Lessor. Any assignment or sublease shall not
                  relieve
                  Lessee of any of its obligations under this
                  Lease.

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	
                6.

              	
                Termination
                  of Lease

              
	 	 	 
	 	
                6.1

              	
                If
                  Lessee fails to fulfill its obligations under the Lease properly
                  and on
                  time, or otherwise violates any provision of this Lease, the Lessor
                  may
                  terminate this Lease by written notice to the Lessee. The notice
                  shall
                  specify the acts or omissions relied upon as cause for
                  termination.

              
	 	 	 
	 	
                6.2

              	
                Mediation

              
	 	 	 
	 	
                6.2.1

              	
                Lessor
                  and Lessee agree that any claim, dispute or other matter arising
                  out of or
                  related to the Lease shall be submitted to mediation as a condition
                  precedent to the institution of any legal action by either party.
                  

              
	 	 	 
	 	
                6.2.2

              	
                Lessor
                  and Lessee shall mutually agree upon a mediator and shall share
                  in the
                  fees and costs involved in the mediation. Mediation shall be held
                  on the
                  Premises of the College unless another location is mutually agreed
                  upon.
                  The recommendations of a mediator may be rejected in whole or in
                  part by
                  either Lessor or Lessee. 

              
	 	 	 
	
                7.

              	
                Compliance

              
	 	 	 
	 	
                7.1

              	
                Lessee
                  covenants and agrees to comply with their general policies and
                  procedures
                  which have been, or may hereafter be, adopted by GCC, or imposed
                  by state
                  or federal laws and regulations and made applicable to the campus
                  and
                  facilities of the College, including the Garrett Information Enterprise
                  Center.

              
	 	 	 
	 	
                7.2

              	
                This
                  Lease is made and executed in the State of Maryland; its provisions
                  shall
                  be construed in accordance with the laws of the State of Maryland.
                  

              
	 	 	 
	 	
                7.3

              	
                Complete
                  Agreement

              
	 	 	 
	 	 	
                This
                  Lease contains the full and complete understanding between the
                  parties as
                  of the date of its execution. There are no oral or collateral agreements
                  or understandings which affect the relationship between the parties.
                  

              
	 	 	 
	 	
                7.4

              	
                Amendment

              
	 	 	 
	 	 	
                The
                  terms of this Lease may be changed only by written amendment signed
                  by
                  Lessor and Lessee. 

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	
                8.

              	
                Contact
                  Information

              
	 	 	 
	 	
                8.1

              	
                Contact

              
	 	 	 
	 	
                8.1.1

              	
                For
                  inquiries concerning performance, interpretation or modification
                  of the
                  Lease and to inspect the Premises, Lessor shall contact Michael
                  Kilgus,
                  Dean of Administration, Garrett College or Lydia Reiser, Director,
                  Garrett
                  Information Enterprise Center

              

      

       

      
        	
                IN
                  WITNESS WHEREOF, the parties have executed this Lease Agreement
                  as of the
                  day and year first written above.

              

      

       

      
        	 	 	 
	
                ATTEST:

              	 	
                LESSOR:
                  GARRETT COLLEGE

              
	 	 	 
	 	 	 
	 	
              	
                By

              	
                (SEAL)

              
	
                

              	 	
                
                  

                

              	 

      

       

      
        	 	
              	
                LESSEE:
                  

              
	 	 	 
	 	 	 
	 	 	
                By

              	
                (SEAL)

              
	
                

              	 	
                
                  

                

              	 

      

       

      
        
          
          

        

        
          7Agreement
        on Joint Incorporation of

      Kiwa-CAU
        Bio-Tech Research & Development Center between 

      China
        Agricultural University and 

      Kiwa
        Bio-Tech Products (Shandong) Limited

      

      

      WHEREAS:

       

      (1)
        Kiwa
        Bio-Tech Products (Shandong) Limited (hereinafter
        referred to as ” Kiwa Shandong.”), a China-based subsidiary company
        solely-funded by Kiwa Bio-Tech Products Group Corporation incorporated in
        China,
        engaging in the bio-tech products industry. Kiwa
        Bio-Tech Products Group Corporation
        (hereinafter referred to as ”Kiwa”,
        a
        company registered in Delaware, U.S.A. and listed in NASDAQ OTCBB, with bio-tech
        industry as its strategic orientation, with bio-fertilizers as its starting
        points and gradually extending to bio-feeds, bio-environment protection,
        bio-pharmaceuticals, bio-seeds and bio-energy.

       

      (2)
        China
        Agricultural University (hereinafter
        referred to as ”CAU”)
        and
        its subordinated “CAU
        Institute of Botany Ecological Engineering” (hereinafter
        referred to as ”Eco-Institute”)
        are
        leading in the world in the agriculture-related technological fields such
        as
        plant pathology, plant nutrition, Plant Ecology and microorganism.

       

      (3)
        In
        April 2004, Kiwa
        signed
        the Patent Rights Transfer Contract for the patented “High
        Efficiency Hybrid Yield-Increasing Fungus and its Manufacturing Process” With
        CAU.

       

      (4)
        Both
        parties agree to take the market-driven R & D as the direction of
        cooperation between Kiwa Group, Kiwa Shandong and CAU, mutually supplement
        their
        advantages, carry out technical renovation, speed up scientific and
        technological achievements transformation and industrialization, and gradually
        build the world leading bio-tech R & D Center. This Agreement is, through
        friendly discussions, made by and between both parties on the subject matter
        of
        joint incorporating the ”Kiwa-CAU Bio-Tech Research & Development Center”
(hereinafter referred to as “R & D Center”). Both parties agree as
        follows:

       

      Article
        1 Investment and Incorporation of the R & D Center

       

      
        	
                1.1

              	
                Kiwa
                  Shandong and CAU shall utilize their respective advantage resources
                  to
                  jointly set up Kiwa-CAU Bio-Tech R & D Center, the R & D Center
                  shall be an affiliate of Kiwa
                  Shandong.

              

      

      
        	
                1.2

              	
                Kiwa
                  Shandong agrees to invest RMB1,000,000 each year as the funds for
                  R &
                  D to the R & D Center, such R & D funds shall be used for the
                  following purposes:

              

      

      
        	
                (1)

              	
                The
                  allowances and travel expenses for the staff of the R & D
                  Center;

              

      

      
        	
                (2)

              	
                The
                  equipment, instruments and consumables added for the R & D project as
                  identified by both parties;

              

      

      
        	
                (3)

              	
                Other
                  costs and expenses related to the R & D activities of the
                  Center.

              

      

      
        	
                1.3

              	
                CAU
                  agrees to provide the R & D Center with the following
                  resources:

              

      

      
        	
                (1)
                  

              	
                The
                  R & D staff of CAU to join the R & D Center shall not be less than
                  six, and at least three of them shall be with professor or doctorate
                  and
                  above title, at least two of them shall be with master
                  degree;

              

      

      
        	
                (2)
                  

              	
                The
                  Eco-Institute shall be used as the base and the carrier to set
                  up the R
                  & D Center, and the R & D Center shall be allowed to use the
                  experimental space and the facilities of the Eco-Institute free
                  of charge,
                  and provide conveniences to the use of other technical documents,
                  laboratories and research institutes of
                  CAU.

              

      

      
        	
                1.4
                  

              	
                Kiwa
                  Shandong may, according to the circumstances of specific R & D
                  project, appoint appropriate personnel to join the R & D Center to
                  carry out the project R & D
                  Center.

              

      

       

      
        
           

        

        
          Page
            1

          
            

          

        

        
           

        

      

       

      Article
        2 Objective and Task of the R & D Center

       

      
        	
                2.1
                  

              	
                As
                  the R & D organization of Kiwa Shandong, the R & D Center shall
                  fulfill the overall R & D functions of Kiwa Shandong, including
                  technical planning, technical consultancy and new technology and
                  new
                  products development. The R & D Center shall set its foot on Microbial
                  fermentation engineering, carry out the research and development
                  of
                  bio-engineering technology in an all-round way, gradually bring
                  Kiwa
                  Shandong to enter the industries including bio-fertilizers, bio-feeds,
                  bio-pharmaceuticals (bio- pesticides,
                  bio- veterinary,
                  bio-medicines), bio-energy, bio-environment protection and
                  bio-seeds.

              

      

      
        	
                2.2
                  

              	
                The
                  R & D Center shall complete the following R & D tasks each
                  year:

              

      

      
        	
                ø1÷

              	
                Three
                  new technological achievements get
                  patented;

              

      

      
        	
                ø2÷

              	
                Two
                  technological achievements pass the provincial level or ministerial
                  level
                  scientific and technological achievements
                  qualification;

              

      

      
        	
                ø3÷

              	
                Develop
                  two new products which can be
                  industrialized.

              

      

      
        	
                2.3
                  

              	
                The
                  R & D Center shall also be responsible for subsequent perfection of
                  the existing product-related technologies of Kiwa Shandong, Kiwa
                  Shandong
                  shall be responsible for providing relating production and process
                  data.

              

      

      
        	
                2.4

              	
                Both
                  parties agree to set up the international R & D Center. CAU and the R
                  & D Center shall provide Kiwa Shandong with the latest information
                  of
                  bio-techs at home and abroad, and make full use of its status in
                  the
                  international agriculture research field to provide the R & D staff of
                  Kiwa Shandong with opportunities to famous agencies and experts
                  at home
                  and abroad, and assist Kiwa Shandong in feasibility study on the
                  introduced new technologies and new products. Kiwa Shandong and
                  its parent
                  shall be responsible for contacting the international famous scientific
                  research institutions and universities in the U.S. and other regions,
                  recruiting expert consultants from home and abroad, creating conditions
                  for international exchange, and introducing new technologies and
                  new
                  products from abroad.

              

      

      
        	
                2.5
                  

              	
                The
                  R & D Center shall fulfill the function of training quality control
                  personnel and technicians for Kiwa Shandong, and providing technical
                  support for the marketing center.

              

      

      

      Article
        3 Management and Coordination of the R & D Center

      
        	
                3.1

              	
                The
                  R & D Center shall adopt the responsibility system of director. The
                  director of the R & D Center shall be the director of the
                  Eco-Institute, who shall be responsible for project planning, personnel
                  recruitment and daily management of the R & D Center. The directors of
                  the R & D Center shall report his work to the chief executive officer
                  of Kiwa Shandong. Project planning shall acquire prior consent
                  of Kiwa
                  Shandong.

              

      

      
        	
                3.2

              	
                The
                  R & D Center shall prepare the overall R &D plan and the annual R
                  &D plan for Kiwa Shandong, such plans shall be implemented after
                  approval by the chief executive officer of Kiwa Shandong. The annual
                  R
                  &D plan shall include the R &D projects, and the technical
                  objective, technical contents, technical method and routes of each
                  project, R &D schedule and duration for each
                  project.

              

      

      
        	
                3.3
                  

              	
                The
                  main R &D personnel of the R & D Center shall be recruited on
                  labor contract basis, and Kiwa Shandong shall sign labor contract
                  with the
                  employees.

              

      

      
        	
                3.4
                  

              	
                The
                  annual R & D funds shall be allotted in the following
                  schedule:

              

      

      
        	
                (1)

              	
                The
                  RMB500,000 for the third quarter and the fourth quarter of 2006
                  shall be
                  allotted by two times before 31 December
                  2006.

              

      

      
        	
                (2)
                  

              	
                The
                  annual R & D funds for the subsequent years shall be allotted in the
                  following schedule:

              

      

      Before
        Jan. 31 RMB300,000

      Before
        April 30 RMB 300,000

      Before
        July 31 RMB400,000

      

      
        	
                3.5
                  

              	
                The
                  financial management of the R & D Center shall adopt the budget
                  management as the principle. The director of the R & D Center shall
                  prepare the annual budget according to the annual R & D plan, and use
                  the R & D funds according to the budget. The detailed rules for
                  financial management shall be worked out by the R & D Center and
                  implemented after approval by Kiwa
                  Shandong.

              

      

      
        	
                3.6
                  

              	
                The
                  director of the R & D Center shall at a quarterly basis report his
                  work and R &D progress of previous month in writing to the leaders in
                  charge of Kiwa Shandong and CAU.

              

      

       

      
        
           

        

        
          Page
            2

          
            

          

        

        
           

        

      

       

      Article
        4 Share, Delivery and Acceptance of the Technical
        Achievements

      
        	
                4.1
                  

              	
                Both
                  parties agree that, the technological achievements of the R & D Center
                  shall be shared by Kiwa Shandong and CAU. Kiwa Shandong shall have
                  the
                  right of preference to choose the projects, but each party shall
                  apply for
                  patents separately. Either party shall have the ownership to the
                  patents
                  and know-how applied for by him:

              

      

      
        	
                (1)

              	
                For
                  invention patent, Kiwa Shandong 2ôCAU
                  1.

              

      

      
        	
                (2)

              	
                For
                  provincial level or ministerial level qualification of scientific
                  and
                  technological achievements: Kiwa Shandong 1, CAU
                  1.

              

      

      
        	
                (3)
                  

              	
                For
                  new products, Kiwa Shandong 1, CAU 1. For new products owned by
                  CAU, Kiwa
                  Shandong shall have the right to preference in implementation,
                  and the
                  specific transfer price shall be agreed by both
                  parties.

              

      

      
        	
                4.2
                  

              	
                Both
                  parties agree that, when the following work is done, the delivery
                  of R
                  & D technical achievements shall be
                  realized:

              

      

      
        	
                (1)

              	
                For
                  project to apply for invention patent, when the technical documents
                  for
                  patent application are prepared and pass the new item retrieval
                  and the
                  patent application is accepted;

              

      

      
        	
                (2)
                  

              	
                For
                  project to apply for provincial level or ministerial level qualification
                  of scientific and technological achievements: when the detailed
                  technical
                  documents are prepared and the certificate for qualification of
                  science
                  and technology is issued;

              

      

      
        	
                (3)
                  

              	
                For
                  new product development: when the detailed technical background
                  documents
                  are prepared, including the product compositions, application effect,
                  feasibility study reports (to be prepared by itself), technical
                  standards
                  and specifications, process flow charts, equipment flow charts,
                  and can
                  produce qualified products.

              

      

      

      Article
        5 Technical Risks

      
        	
                5.1
                  

              	
                Where
                  the R & D Center identifies any technical risk which may lead to
                  failure or partial failure of the R & D, the R & D Center shall,
                  within ten days, notify Kiwa Shandong and take necessary actions
                  to
                  minimize the loss; CAU shall have the obligation to take necessary
                  actions
                  to remind the R & D Center to pay attention to the technical risks
                  which may exist, and urge the R & D Center to notify Kiwa Shandong, so
                  as to avoid unnecessary investment.

              

      

      
        	
                5.2

              	
                During
                  performance of this Agreement, in case the technology as the research
                  subject has been made public by others (including by way of patent
                  rights), either party shall give a timely notice to the
                  other.

              

      

      

      Article
        6 Technical Confidentiality 

      
        	
                6.1

              	
                The
                  R & D personnel of CAU, Eco-Institute and the R & D Center shall
                  keep confidential all the technical secrets and other business
                  secrets
                  related to the business of Kiwa Shandong, which are available to
                  them
                  during the process of R & D . Unless otherwise consent in writing is
                  acquired from Kiwa Shandong, no R & D personnel shall disclose, make
                  available, announce, release, publish, pass on, transfer or otherwise
                  to a
                  third party the business secrets, nor provide such third party
                  with the
                  conditions to know the business secrets, nor use the business secrets
                  for
                  himself or for the third party for purpose other than fulfillment
                  of his
                  duty.

              

      

      
        	
                6.2

              	
                CAU
                  and Kiwa Shandong shall be liable for keeping confidential the
                  technological achievements shared by the other
                  party.

              

      

      
        	
                6.3

              	
                The
                  intellectual property rights protection-related laws and the other
                  provision hereof shall be applicable to the technological achievements
                  formed in the R & D project of the R & D Center; Where for any
                  reason it is necessary to terminate the R & D project, a written
                  confirmation shall be provided by Kiwa Shandong. During the contract
                  terms
                  or within two year after the contract expires, the R & D personnel
                  shall not be employed as a consultant or to take any other position
                  in the
                  companies which are implementing the same project as this R & D
                  project.

              

      

      
        	
                6.4

              	
                Where
                  any of the above party violates its confidentiality obligations,
                  it shall
                  pay the liquidated damages to the party suffering the loss with
                  the
                  interests gained from this Agreement as the standard, including
                  the
                  technological achievements and allowances it
                  shares.

              

      

      

      
        
           

        

        
          Page
            3

          
            

          

        

        
           

        

      

      Article
        7 Technical Implementation and Subsequent Improvement

       

      
        	
                7.1

              	
                R
                  & D Center shall be responsible for all-the-way guidance, improvement
                  and perfection during the industrialization implementation process
                  of R
                  & D scientific and technological
                  achievements.

              

      

      
        	
                7.2
                  

              	
                Both
                  parties agree that either party shall have the right to use the
                  technological achievements of the R & D Center and carry out
                  subsequent improvement. Where either party improves the achievements
                  owned
                  by itself, such party shall be entitled to the technological achievements
                  improved subsequently by itself. Where either party improves the
                  achievements owned by the other party, the new technological achievements
                  so produced with substantial or innovative technological progress
                  characteristics shall be shared by both
                  parties.

              

      

      

      Article
        8 Termination

       

      
        	
                8.1
                  

              	
                Where
                  Kiwa Shandong fails to allot the funds for R & D in accordance with
                  the budget for two consecutive quarters, CAU shall have the right
                  to
                  terminate this Agreement, but Kiwa Shandong shall have no right
                  to share
                  the technological achievements produced in that
                  year.

              

      

      
        	
                8.2
                  

              	
                Where
                  the R & D Center fails to fulfill the annual R & D plan, and the
                  objective and tasks provided in Article 2.2, Kiwa Shandong shall
                  have the
                  right to terminate this Agreement, and shall have the right to
                  claim for
                  return of the equipment, apparatus and instruments purchased for
                  R & D
                  funds for that year.

              

      

      

      Article
        9 Supplementary Provisions 

       

      
        	
                9.1
                  

              	
                CAU
                  agrees that the R & D Center can hang the plate with the wording
                  "Kiwa-CAU Bio-Tech R & D Center” at the offices of
                  Eco-InstituteôKiwa
                  Shandong. After signing of this Agreement, Kiwa Shandong may use
                  the
                  wording ”Cooperation Partner---China Agriculture University” in all kinds
                  of press or occasions including TV, news, broadcasting, newspapers,
                  magazines, websites, pamphlets, posters, releases and expositions.
                  But
                  Kiwa Shandong shall commit not to carry out any activity which
                  may ruin
                  the reputation of CAU. CAU agrees to hang the plate with the wording
”Kiwa
                  Shandong -China Agriculture University Cooperative Research Base” at its
                  experimental base.

              

      

      
        	
                9.2

              	
                This
                  Agreement shall remain valid for ten years starting from 1 July
                  2006. This
                  Agreement shall be binding on both parties during the period of
                  validity,
                  except as amended by both parties in writing or rescinded in accordance
                  with Article 8 or expired.

              

      

      
        	
                9.3

              	
                This
                  Agreement shall become effective from the date executed by both
                  parties.
                  This Agreement shall be made in duplicate, each party shall hold
                  one
                  original copy, and each original copy shall be equally
                  authentic.

              

      

      

      China
        Agriculture University (Seal)
        

      /s/:
        Qi
        xin Sun  

      Vice
        chancellor

      Date:
        November 14, 2006

       

      

      Kiwa
        Bio-Tech Products (Shandong) Limited
        (Seal)

      /s/:
        Wei
        Li  

      Chief
        Executive Officer

      Date:
        November 14, 2006

       

      
        
           

        

        
          Page
            4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]