Document:

Regional Distribution Agreement dated January 1, 2007

 Exhibit 10.12 
 English Translation 
 Regional Distribution Contract of 
 Guizhou Tongjitang Pharmaceutical Co., Ltd. 
 Party A:
        Guizhou Tongjitang Pharmaceutical Co., Ltd. (“Party A”) 
 Address:
        7/F, Fuzhong International Plaza, No. 126 Xinhua Road, Guiyang 
 Legal Representative: Xiaochun WANG

 Party B:         Shanghai Leiyunshang Pharmaceutical Co., Ltd. Sales Branch (“Party B”) 
 Address:         No. 1500 Zhongshan Western Road, Shanghai 
 Legal Representative: 
 In order to regulate and protect the distribution market of Party A’s products and protect
Party B’s legitimate interests, based on the cooperation principle of “mutual benefits” and “win-win”, both Parties have agreed as follows through friendly consultation: 
  

	1.	Party A authorizes Party B to distribute Party A’s products within the following territory: Shanghai. 

  

	2.	Contract Term: one year, from January 1, 2007 to December 31, 2007. If both Parties want to continue their cooperation upon the expiration of the Contract Term, they shall
enter into a separate agreement within 30 days prior to the expiration of the Contract Term. If no separate written agreement is entered into within the said 30 days, the Contract shall terminate automatically upon the expiration of the Contract
Term. 

  

	3.	Party B shall jointly with Party A fill in a Product Order, setting forth and confirming products, specification, amounts, delivery dates, settlement methods, delivery locations.
Product Orders shall constitute an integral part of this Contract. 

  

	4.	The product names, specifications and unit prices are set out as follows: 

  

									
	 Product Name
	  	Classification	  	Specifications	  	Unit	  	Price
	 Xianling Gubao
	  	First Class	  	0.5g x 40s x 200
bottles	  	Bottles	  	27.88

 If price adjustments are needed due to special reasons, Party A and Party B shall resolve the adjustments through
consultation. After the Parties agree to an adjusted price, this price shall be incorporated in new Product Orders. Product Orders shall constitute an integral part of this Contract. If the price set out on a signed Product Order requires
adjustments, the price set out on the VAT invoices shall be deemed to be the final purchase price. 

	5.	The Party A’s products must comply with the state quality standards and requirements and must carry the required approval document numbers, production serial numbers and
expiration dates. The product packages, labels and instructions must comply with the relevant state requirements. Party B shall ensure it has the required qualification in the business of medicine distribution. 

  

	6.	Terms of Payment 

  

	 	1)	Payment Before Delivery. In the case of Xianling Gubao, payment shall be made before delivery; in the case of other products, please refer to supplementary agreements.

  

	 	2)	Party B shall make payments by wire transfers or bank checks. 

  

	 	3)	Party B shall remit the payment into the following account designated by Party A; and Party B shall not remit the payment to any other accounts without authorization of Party A;
Otherwise, Party B shall be liable for all the economic losses incurred thereby. The account designated by Party A is: 

  

			
	Payee:	  	Guizhou Tongjitang Pharmaceutical Co., Ltd.
		
	Account No.:	  	2402006009007001890
		
	Bank:	  	Industrial and Commercial Bank of China, Guizhou Guiyang Branch, Xiaohe Sub-Branch

  

	7.	Goods, Delivery and Invoicing 

  

	 	1)	After Party B pays for the products according to the Contract, Party A shall deliver the products to Party B in accordance with the Product Order signed by the Party B’s
authorized representative and stamped with the Party B’s official stamp. 

  

	 	2)	Party A shall deliver products to Party B by post and shall bear the shipping costs, subject to written agreements by both Parties on the manner of delivery and assumption of
shipping costs. 

  

	 	3)	Party A shall issue to Party B VAT invoices based on the agreed price. Party B shall, after receiving sales invoices from Party A, timely inspect the products and fill in the
Invoice Receipts and return such receipts to Party A’s clerks. If Party B finds errors in the sales invoices, it shall immediately notify Party A of such errors and request an exchange of invoices with reasonable evidence for the exchange. Any
postage and other losses associated with invoice exchanges shall be borne by the party that caused such exchange. 

  

	8.	Quality, Inspection and Acceptance of Products and the Term to Raise Objection 

  

	 	1)	Party A undertakes that the products it supplies are in compliance with the relevant state quality standards. 

  

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	 	2)	If Party B finds the quality and/or quantity of the goods delivered by Party A to deviate from its agreements with Party A, it shall submit written objection within three days after
the arrival of the products; if the objection is submitted beyond the time limit, the goods delivered by Party A shall be deemed to in compliance with the provisions hereof. If Party B believes that the products’ quality is not in compliance
with the state standards, it shall present to Party A Medicine Inspection Report issued by the provincial medicine inspection authority as approved by Party A. 

  

	 	3)	Party A shall reply in writing within 10 days upon receipt of the written objection from Party B; otherwise, the objection by Party B shall be deemed as being accepted by Party A.
After Party A confirms the objection in writing, the products to which Party B objected may be returned or exchanged and any deficiency in quantity may be replenished. 

  

	9.	Anti-Corruption in Commercial Dealings 

 Party B agrees not
to, directly or indirectly through any intermediary, provide, pay, commit to pay or authorize payments or any item of values to any party and government departments, institutions, officials, employees and senior employees or representatives of any
such department or candidates for party and government officials in order to induce such person to use his or her influence to help Party A obtain or maintain businesses or to give Party A or other persons interests. Party B shall, at any time, upon
request by Party A, produce evidence for compliance to Party A. Any breach of this provision shall constitute a material breach of this Contract, in which case, the Party A shall have the right to terminate this Contract immediately. 
  

	10.	Material Provisions Regarding Sales: the products supplied by Party A to Party B consist of two types: Xianling Gubao capsules in bottles (with details in the chart in
Section 4 hereof) and other products. 

  

	 	1)	For each type of products, Party B shall not conduct sales outside of the designated areas as provided in this Contract. Party B shall supervise and cause its sub-distributors not
to conduct sales outside of the designated areas. Party B shall have the right to stop supplying the products to the sub-distributors who do not comply with this requirement. 

  

	 	2)	For Xianling Gubao, Party B shall allocate products to its sub-distributors within the designated areas and also shall make such allocation in conformity with the commercial scope
approved by the Party A’s representatives with signatures. After Party B receives written urgent notice from Party A (with Party A’s official stamp (originals or fax copies) or signatures from the Party A’s representatives), Party B
shall immediately stop allocating Xianling Gubao to a particular or a few sub-distributors. 

  

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	 	3)	Any incompliance by Party B with the above two provisions shall constitute acts of diversion of goods. If such acts happen, Party A shall have the right to terminate this Contract
at any time. Party B shall unconditionally settle all the outstanding dues with Party A and compensate Party A for all the resulting losses suffered by Party A. 

  

	11.	Other Rights and Obligations of Both Parties 

  

	 	1)	Party A may launch activities to advertise and promote the products hereunder within Party B’s distribution territory, and may advertise on medium such as TV and newspapers; it
may also organize professional OTC team to make end-promotion and maintenance in order to promote the distribution of the products within Party B’s distribution territory. 

  

	 	2)	Party A may cease the supply of products if it discovers the following acts of Party B, and Party B is obliged to settle the payment with Party A unconditionally and take the
liability for breach of contract: 

  

	 	•	 	 Party B fails to settle records or deceptively prepare Flowing Chart for Product Distribution; 

  

	 	•	 	 Party B fails to make payment to Party A timely; 

  

	 	•	 	 Party B fails to timely dispatch products to the end market, which causes the products to be out of stock on the part of retailers; 

  

	 	•	 	 Party B fails to cooperate on matters relating to bidding in Party A’s distribution market; and 

  

	 	•	 	 Part B uses Party A’s products for price discount promotion without consent of Party A or exchanges Party A’s products for products of other companies.

  

	 	 3)
	 Party B shall timely prepare the Flowing Chart for Product Distribution and Statement of Supply, Distribution and Stock
of Products, and after affixing its official seal on such statements, Party B shall submit them to Party A between 26th of each month and fifth of the next month. 

  

	 	4)	After receiving the statement of accounts from Party A, Party B shall finish verifying the accounts within five days and return them to Party A after affixing the official seal.

  

	 	5)	Party B shall not pay dues in cash to the business representatives or other personnel of Party A, nor shall Party B lend such payment to the business representatives or other
personnel of Party A. Party A does not acknowledge any of the above acts of Party B and will not take any relevant liability. 

  

	 	6)	Without written consent of Party A, Party B shall not lend or allocate the above products to anybody. Otherwise, Party B shall bear all the liabilities arising from product
diversion and all the economic losses. 

  

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	12.	Liability for Breach of this Contract 

  

	 	1)	Party B shall perform the obligation of payment within the term as provided hereunder, and it shall be liable for liquidated damages at 1% of the outstanding amount that it fails to
pay within such term; 

  

	 	2)	If Party B engages in acts of product diversion, Party B shall pay RMB5,000 to Party A as liquidated damages for each product so diverted (the number of products shall be counted by
reference to each serial number of each batch number). Determination of product diversion: in addition to the acts of product diversion as stipulated in Section 10 hereof, acts of product diversion shall be deemed to have occurred if Party B
acquired Party A’s products from channels not approved by Party A’s authorized representatives or business managers. If Party B commits product diversion for more than two times, Party A shall have the right to terminate Party’s
regional distributor qualification, in which case, Party B shall be obligated to smoothly transfer its hospital customers to the distributors approved by Party A. Otherwise, Party B shall pay RMB50,000 to Party A for such breach.

  

	 	3)	If Party B orders products in the name of hospitals, but actually distributes them to OTC markets (including retail pharmacies, retail shops), Party A shall have the right to
terminate all the supports it gives to Party B. Party B shall pay RMB5,000 to Party A as liquidated damages. The number of products subject to the acts described in this subsection shall be counted in the same manner as the products subject to
product diversion are counted. 

  

	 	4)	Both Parties shall perform their respective obligations hereunder, and if the breach of contract of either Party causes economic losses to the other Party, it shall compensate the
other Party for all the losses incurred. 

  

	13.	Dispute Resolutions 

 Any disputes arising during the
performance hereof shall be resolved by mutual consultations; and the written document produced thereby shall be attached hereto and have the same legal force as this Contract. Should no agreement be reached within 30 days, either Party may initiate
legal proceeding before the court where it is located. 
  

	14.	The Contract shall take effect upon execution and affixing of official seals by both Parties. 

  

	15.	The Contract is in duplicates, and Party A and Party B shall each hold one copy. 

  

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	 Party A: Guizhou Tongjitang
 Pharmaceutical Co.,
Ltd
	  	 Party B: Shanghai Leiyunshang
 Pharmaceutical Co.,
Ltd. Distribution
 Branch Company

	 Address: 7/F, Fuzhong International
 Plaza, No. 126
Xinhua Road, Guiyang
	  	Address:
	Authorized Representative: Chen Liang	  	Authorized Representative: /s/ and seal
	Date: January 1, 2007	  	Date: January 1, 2007

  

 6Real Property Lease Agreement dated July 11, 2006

 Exhibit 10.13 
 English Translation 
 Shenzhen Municipal Real Property Lease Agreement (Form) 
 Registration No.: 0108535 
 Prepared by
Shenzhen Municipal Real Property Lease Administration Office 
 Property Lease Agreement 
  

			
	 Landlord:    
	  	 Baiying Property (Shenzhen) Co., Ltd.

		  	 Baiying Medical Device Park, No. 3 Industry Road, Shekou, Nanshan District,
 Shenzhen, 518067

		
	 Tenant:
	  	 Unisources Enterprises Limited

		  	Room 2701, 27/F, Two International Finance Center
		  	8 Finance Street, Central, Hong Kong
		  	Business License: 625908

 According to the Contract Law of the People’s Republic of China, the PRC Administration of Urban Real
Property Law and Leasing of Premises Regulations of Shenzhen Special Economic Zone as well as the respective implementing rules, both the Landlord and Tenant hereby enter into this agreement (“Lease”). 
  

	 	1.	The Landlord agrees to lease to the Tenant the property located at 5/F, Block B, Baiying Medical Device Park, Shekou, Nanshan District, Shenzhen (the “Property”). The
construction area size of the Property is 791.1 m2, on the fifth floor. 

 The owner of the Property is Hong Kong Baiying Development Co., Ltd. The number of the property ownership certificate is Shen Fang Di Zi No. 4000166474.

  

	 	2.	The monthly rent per square meter of the Property is RMB46.0, and the total monthly rent is RMB36,390.6. 

  

	 	3.	The Tenant shall pay the first month rent of RMB36,390.6 by July 11, 2006. 

  

	 	4.	The Tenant shall pay the rent to the Landlord no later than the first fifth date of each month. The Landlord shall provide an official invoice to the Tenant upon receipt of the
rent. 

  

	 	5.	The term of this Lease starts from July 11, 2006 and ends on July 10, 2009. 

  

	 	6.	The usage of the Property shall be for production facilities. However, if the Tenant intends to use the Property for other uses, it shall obtain written consent from the Landlord
and such other uses shall also comply with the requirements of the relevant laws and regulations. If the Tenant intends to change the prescribed use and such change requires a government approval, it must obtain the approval of the real estate
authorities. 

  

	 	7.	The Landlord shall transfer the possession of the Property to the Tenant before July 11, 2006 and attend to the related transfer matters. If the Landlord is late for
transferring the possession, if requested by the Tenant, the expiration date of this Lease will be extended accordingly. Both parties shall sign this Lease and file this Lease with the authorities for record. 

	 	8.	At the time of the transfer of the possession, both parties shall confirm the conditions of the Property and its accompanying facilities and document them in the exhibit to the
Lease. 

  

	 	9.	At the time of the handover, the Landlord may require a two-month deposit equal to RMB72,781.2 from the Tenant. In return, the Landlord shall issue a receipt for the security
deposit to the Tenant. The Landlord shall return the security deposit to the Tenant if all of the conditions below are satisfied: 

 the Lease expired, 
  

	 	1.	the Tenant settled rents, management fees and other miscellaneous fees; 

  

	 	2.	the Tenant settled water, electricity, broadband and other miscellaneous fees; and 

  

	 	3.	the Property passed inspection and the Tenant surrendered the possession. 

  

	 	10.	During the Lease, the Landlord shall be responsible for paying the land use fee, taxes related to the Property and rental management fee. The Tenant shall be responsible for paying
utilities, hygiene fee, property management fee, maintenance fee, air conditioning fee and other fees resulting from use of the Property. 

  

	 	11.	The Landlord shall ensure the Property and its accompanying facilities can be used for the purpose for which the Lease is intended and the safety meets the requirements of the
relevant laws and regulations. The Tenant shall have the right to request indemnification from the Landlord for any personal injuries or property losses suffered by the Tenant at the premises of the Property resulting from the Landlord’s
willful acts or negligence. 

  

	 	12.	The Tenant shall reasonably use the Property and its accompanying facilities and shall not use the Property for any illegal purpose. The Landlord shall not interfere with or disrupt
the lawful and reasonable use of the Property by the Tenant. 

  

	 	13.	During the Tenant’s use of the Property, if the Property or its accompanying facilities is damaged or becomes defective not for reasons attributable to the negligence of the
Tenant and such damage and defects may hinder safety and normal use of the Property and its accompanying facilities, the Tenant shall timely notify the Landlord and shall take effective measures to prevent the defects from worsening. The Landlord
shall, within three days after receiving the Tenant’s notice, fix or entrust the Tenant to fix the defects. If the Tenant is unable to notify the Landlord or the Landlord fails to fix the defects within the specified period after getting the
notice from the Tenant, the Tenant may fix the defects on behalf of the Landlord after filing a notice with the lease registration authorities. In case of an emergency that requires immediate repair, the Tenant shall repair the defects on behalf of
the Landlord and then notify the Landlord of the situations timely. 

  

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As to the expenses incurred under the two scenarios as described above (including the reasonable expenses incurred as a result of the Tenant fixing the
defects on behalf of the Landlord or preventing the defects from worsening), the Landlord shall bear such expenses. If the Tenant fails to fulfill its obligations under these two scenarios and fails to notify the Landlord timely or take appropriate
measures, resulting in incurring additional losses, the Tenant shall bear the expenses incurred for such additional losses. 

  

	 	14.	If the Property or its accompanying facilities is damaged or becomes defective due to the Tenant’s improper or unreasonable use of the Property and such damage and defects may
hinder safety and normal use of the Property and its accompanying facilities, the Tenant shall timely notify the Landlord and shall fix the defects or pay for repair. If the Tenant refuses to fix the defects or pay for the repair, the Landlord may
arrange to repair the defects after notifying a notice with the lease registration authorities and the Tenant shall bear the repair expenses. 

  

	 	15.	During the term of the Lease, the Landlord or the Tenant shall enter into another agreement if either party intends to change the construction structure of the Property, expand or
renovate the Property. If the approval of the authorities is required for any of the above-mentioned acts, the relevant party shall apply to the authorities for approval. 

  

	 	16.	During the term of the Lease, the Tenant shall not sub-lease all or part of the Property to a third party. 

  

	 	17.	During the term of the Lease, if the Landlord intents to transfer all or part of the Property to a third party, it shall provide a one-month advance written notice to the Tenant,
who shall have the right of the first refusal to purchase the Property on the same terms and conditions offered to the third party. If the Property is transferred to a third party, at the time the transfer agreement is signed, the Landlord is
obligated to notify the transferee that the transferee shall continue to perform this Lease. 

  

	 	18.	If any of the following occurs, this Lease may be terminated or amended: 

  

	 	a.	Force majeure, making this Lease not enforceable; 

  

	 	b.	Requisition, purchase, reclamation or demolition of the Property by the government; or 

  

	 	c.	Agreement by both parties. 

  

	 	19.	If any of the following occurs, resulting losses to the Landlord, the Landlord may seek indemnification from the Tenant: 

  

	 	a.	The rent is overdue for more than 30 calendar days; 

  

	 	b.	The Landlord suffered losses equal to at least one-month rent resulting from Tenant’s failure to pay the rent on time; 

  

	 	c.	The Tenant used the Property to engage in illegal activities, harm the interests of the public or other people; 

  

 3 

	 	d.	The Tenant changed the construction structure of the Property or the intended use of the Property without the Landlord’s consent; 

  

	 	e.	The Tenant breached Section 14 of this Lease by not fixing the defects or paying for repair, which resulted in the severe damage to the Property; 

  

	 	f.	Without the Landlord’s consent and the approval of the relevant authorities, the Tenant renovated the Property. 

  

	 	g.	The Tenant sub-leased the Property to a third party without the Landlord’s consent. 

 In addition to seeking indemnification from the Tenant or suing the Tenant for breach of the Lease, the Landlord may terminate the Lease or request amending the Lease. 
  

	 	20.	If any of the following occurs, resulting losses to the Tenant, the Tenant may seek indemnification from the Landlord: 

  

	 	a.	The Landlord is late for more than two months in handing over the possession of the Property to the Tenant; 

  

	 	b.	The Tenant is unable to achieve the purpose of the Lease due to the breach of Section 11 of the Lease by the Landlord; 

  

	 	c.	The Landlord refused to fix the defects or pay for repairs in breach of Section 13 of the Lease; 

  

	 	d.	Without the approval of the relevant authorities, the Landlord changed the construction structure of the Property, expand or renovate the Property. 

 In addition to seeking indemnification from the Landlord or suing the Landlord for breach of the contract, the Tenant may terminate this Lease (the Tenant
shall return the possession of the Property to the Landlord after obtaining the indemnification) or request amending this Lease. 
 The Tenant
does not need to pay the rent to the Landlord after the Landlord received the notification from the Tenant and before the Tenant obtains indemnification from the Landlord. 
  

	 	21.	After the Lease is terminated, the Tenant shall move out and hand over the possession of the Property back to the Landlord within seven calendar days. The Tenant shall ensure that
the Property and its accompanying facilities are in good conditions (except for normal wear and tear) and shall also settle all the expenses payable by the Tenant and hand over the possession of the Property to the Landlord.

 If the Tenant fails to move out or hand over the possession of the Property within the specified time limit, the Landlord
shall have the right to take back the possession of the Property and charge the Tenant additional rent at a double rate for the period beyond the specified time limit. 
  

	 	22.	After the term of this Lease comes to an end, the Tenant, if wanting to renew the Lease, shall give a two-month prior notice to the Landlord. The Tenant shall be given the priority
to lease the Property on the equal conditions. Both parties shall re-enter into a lease agreement and register that agreement with the authorities. 

  

 4 

	 	23.	Both parties shall be bound by the provisions of this Lease. If one party breaches the Lease, it shall bear the corresponding liabilities under the Lease. 

 

	 	24.	Both parties may enter into a side agreement for other matters not contained in this Lease. The side agreement shall be part of the Lease and once executed, shall be of same force
and effect as the Lease. 

 During the term of the Lease, if both parties amend this Lease and the amendment requires
registration with the authorities, both parties shall do so. The registered amended lease shall be of the same force and effect as the Lease. 
  

	 	25.	If there is any dispute between the parties on this Lease, they should resolve the difference through consultation. If the dispute cannot be resolved through consultation, they may
apply to the registration authorities for mediation. If the dispute cannot be resolve through mediation, they may bring the disputes to the people’s courts. 

  

	 	26.	This Lease shall become effective upon execution. Both parties shall register this Lease with the authorities within ten days after the execution of this Lease.

  

	 	27.	The Lease shall be written in Chinese. 

  

	 	28.	This Lease has four original copies, with each of the Landlord, the Tenant, registration authorities and other relevant government authorities holding one original copy.

  

	
	 Landlord (Stamp)

	
	 Legal representative:

	 Telephone:

	 Bank Account No.:

	 Authorized representative (Signature)

	 Date: July 11, 2006

	
	 Tenant (Stamp)

	
	 Legal representative:

	 Telephone:

	 Bank Account No.:

	 Authorized representative (Signature)

	 Date: July 11, 2006

	
	 Registrar (Stamp)

	
	 Registration authorities (Signature)

	 Date: July 19, 2006

  

 5

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