Document:

Shanghai Assignment Agreement

 EXHIBIT 10.3 
  
 [Translated Version] 
  
 Original 
  
 Shanghai Assignment Agreement for Use Right of State-owned Land 
  
 (Medical Treatment & Sanitation) 
  
 Hu-Jia-Fang-Di(2005) Assignment Agreement No. 59 
  
  
 Shanghai Jiading District Housing and Land Administrative Bureau 

 
 16 May 2005 
  

 1 

 Shanghai Assignment Agreement for Use Right of State-owned Land 
  
 Assignor: Shanghai Jiading District Housing and Land Administrative Bureau 

(hereinafter referred to as “Party A”) 
  
 Legal Representative: Xu Bing Yan 
  
 Assignee: Shanghai DeAn Hospital (hereinafter referred to as “Party B”) 
  
 Legal Representative: Eric G. Carter 
  
 This agreement is entered into by and between Party A and Party B in accordance with Law of Administration of Land of the PRC (hereinafter
referred to as “Land Law”), Provisional Rules for Assignment and Transfer of the Use Right of State-owned Land in Cities and Towns of the PRC (hereinafter referred to as “Provisional Rules”), Measures Concerning Assignment of Use
Right of Land of Shanghai (hereinafter referred to as “Measures”) and the official document Hu-Jia-Fu-Tu (2005) No.86. 
  
 Article 1 
  
 Party A shall assign to Party B on “as is” basis the land plot which is located to the west of Moyu Northern Road, Jiading District, Shanghai. The land plot area covers 90711 square meters. The area,
location and four direction scope of the land plot are illustrated in the attached drawings, which has been signed and confirmed by both Parties. 
  
 Party B obtains the use right for fifty (50) years to the land plot with a consideration of the price USD 816,399 (Eight hundred and sixteen thousand three hundred and
ninety nine US dollars) as land premiums for the land use right. 
  
 Party A
agrees that Party B can pay the land premiums in RMB and the exchange rate between RMB and USD shall be the market exchange rate of RMB at the end of the prior month published by State Administration of Foreign Exchange (the middle exchange rate of
1USD/RMB). 
  
 Party B shall pay the land use fee (RMB 1 Yuan per 1 square meter)
to Shanghai Jiading District Housing and Land Administrative Bureau each year during the term of the land use. 
  
 Article 2 
  
 Party B shall pay USD
200,000 (Two hundred thousand US dollars) as the deposit to perform the Agreement to Shanghai Housing and Land Administrative Bureau within thirty (30) days after execution of the Agreement (before 15 June 2005). The deposit is the integral part of
the land premiums. 
  
 Party B shall pay off the remaining amount of USD 616,399
(Six hundred and sixteen thousand three hundred and ninety nine US dollars) to Shanghai Housing and Land Administrative Bureau within sixty (60) days after execution of the Agreement (before 15 July 2005). 
  
 Article 3 
  
 Party A shall be entitled to terminate the Agreement and claim for damages and Party B shall not have the right to claim refund of the paid
land premiums if Party B cannot pay land premiums as 

  

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scheduled (including deposit, the same as mentioned below). If Party B defers payment of land premiums, Party B shall submit a written application for the
deferral to Party A before the due date as prescribed in this Agreement. Party B shall pay a surcharge of 0.3% per day if Party A agrees to such deferred payment. Party A shall be entitled to terminate the Agreement if the payment has been delayed
beyond thirty (30) days without the consent by Shanghai Housing and Land Administrative Bureau. 
  
 Article 4 
  
 Party B shall apply for
initial registration of land use right to the district housing and land registration authority with such supporting documents as the payment certificate of land premiums, other relative certificate of payment and other relative materials, if Party B
has paid off the aforementioned land premiums and all and related expenses of land confiscation and relocation compensation as set forth in the Entrusted Relocation and Subordination Agreement which has been signed with the Housing and Land
Administrative Bureau of Jiading District, Shanghai. 
  
 Article 5

  
 The appendix - Use Conditions of State-owned Land Located to the West of
Moyu Northern Road, Jiading District, Shanghai (hereinafter referred to as “Land Use Conditions”) is the integral part of the Agreement and shall be equally authentic with the Agreement. 
  
 Article 6 
  
 The ownership of the land, which use right has been assigned, shall belong to the PRC. The State and its government shall have the
jurisdiction, administrative powers and other powers as well as such rights and interest as may be necessary to furtherance of social and public interest. The assignment shall exclude the underground minerals, resources, buried objects and public
facilities. 
  
 Article 7 
  
 Shanghai Municipal Government reserves the right of urban planning and design upon the land
plot. Within the land use term, reconstruction of buildings which has been constructed on the land according to the Land Use Conditions or application for renewal of the land use term shall comply with the then-current effective planning. The
Government assumes no liability for damages in the event Party B is affected by a planning alteration. 
  
 Article 8 
  
 Whenever Party B wishes to
alter the Land Use Conditions, it shall obtain the consent from Party A, and shall thereafter sign the supplemental agreement, pay the supplemental land premiums, and repeat the real estate registration. 
  
 Article 9 
  
 Party A shall within the land use term be entitled to supervise the development and utilization, assignment, lease, mortgage and termination
of the use right of the land plot in accordance with laws and regulations. 
  
 Article 10 
  
 Party B shall be entitled to claim damages if
Party A breaches any part of the Agreement. Party A shall be entitled to demand Party B to rectify the breach within the prescribed timeframes. Party A shall be entitled to terminate the Agreement as well as claim for damages if the performance on
the part of Party B is still not conforming . 
  
 Article 11 
  
 The Land use right can be transferred in accordance with laws and regulations only if the
quantity 

  

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of work completed in connection with the installation of the building on the land has satisfied the prescribed standard. In the event land use right is
legally transferred, the succeeding land users shall all be the successors of rights and obligations of Party B. The assignee or the the proportion of investment by the assignee should not be changed until Party B has fulfilled the requirements set
forth in this clause. [Translator remarks: this is a “as is” translation. The Chinese version on this point is unclear] 
  
 Article 12 
  
 A registration on alternation shall be made if the land use right is transferred, leased, mortgaged and inherited in accordance with laws and regulations or all contracts, drawings, vouchers record change of the
property right of the buildings and fixtures or both parties deem other documents necessary to be registered. 
  
 Article 13 
  
 Any dispute arising out of
the implementation of the Agreement shall be settled through consultation by the parties. In the event that the consultation fails, each party may apply to arbitration institution for arbitration or initiate a suit to the people’s court in a
place where the Agreement has been signed. 
  
 Article 14 
  
 The Agreement shall come into force as of the date of execution till the date of the
expiration of the land use right as set forth in Shanghai Property Ownership Certificate. 
  
 Article 15 
  
 The Agreement and its
Appendix -Use Conditions of the Land has been made in Chinese in eight (8) pages. In case of any discrepancy between the Chinese and other languages versions, the Chinese version shall prevail. 
  
 The amount of the Agreement shall be stated in figures and in words respectively and shall be
consistent. In the event any discrepancy between the amount in figures and in words, the amount in words shall prevail. 
  
 No alteration shall be made to the Agreement. The Agreement is made in three (3) originals. Each party holds one original. One original shall be submitted to housing and
land registration authority for initial registration of land use right. 
  
 Article 16 
  
 This Agreement is executed on 16 May 2005 in
Jiading District, Shanghai, the People’s Republic of China. 
  
 Party A : Shanghai Jia Ding District Housing and Land Administrative Bureau (Seal affixed) 
  
 Legal representative or authorized representative: Qin Yuanlin 
 Legal address: No. 64 Jinsha Road in Jiading District, Shanghai 
 Tel: 5953 6244 
 Fax: 5953 1631 
  
  

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 Party B : Shanghai DeAn Hospital (Seal affixed) 
  
 Legal representative or authorized representative: Zhao Deming 

Date of Signature: 16 May 2005 
 Legal
address: West to Moyu Northern Road, Anting Town, Jiading District, Shanghai 
     Tel: 5956 2394 
     Fax: 6259 0726 
  

 5 

 Use Conditions of State-owned Land located to the West of Moyu Northern Road, 
 Anting Town, Jiading District, Shanghai 
  
 The use conditions of State-owned land, which is located in the Western of Moyu Northern Road, Anting Town, Jiading District of Shanghai (hereinafter referred to as
“Land” and “Land Conditions” respectively), shall be as follows: 
  
 Article 1 Land use requirements 
  

	 	1.1	Purpose of using : Medical treatment & Sanitation 

  

	 	1.2	Years of using: Fifty (50) years 

  

	 	1.3	Floor Area Ratio: not more than ten thousand square meters per hectare (The total structure area shall not be more than 90711 square meter). 

  

	 	1.4	Green space percentage : not less than 30% of total area and the public mass green space shall not be less than 5% of total area. 

  

	 	1.5	Parking: be assigned in accordance with relative technical standards for Parking Lot in Shanghai. 

  

	 	1.6	Rest related parameters are ascertained on the basis of planning documents No. 1993 of Shanghai Jiading District Planning Administration Bureau. (Referring to the Attachment)

  

	 	1.7	Constructions inside the Land shall fulfill the requirements set forth in Technical Provisions of Shanghai concerning the Administration of City Urban Planning.

  
 Article 2 Requirements on Urban Construction Administration

  
 2.1 Party B shall comply with the related national and
Shanghai local regulations and rules concerning virescence, appearance of city, sanitation, environmental protection, fire control, traffic control, design and constructing, etc. 
  
 2.2 Party B shall allow all kinds of piping and pipelines be laid by passing through or crossing through the Land for public
utility purpose by the government. However, if the above-ground buildings and other attached objects of the Land are damaged, party B shall be entitled to apply for compensations from the empowered authorities pursuant to law and regulations.

  
 2.3 Party B should warrant that the personnel, the appliance
used in emergency and the vehicle, which is dispatched by Government administrations, Police, Fire Protection, can freely enter into the Land in course of execution of emergency rescue or public duty. 
  
 2.4 Party B shall compensate for having damaged or destroyed the surrounding
environments and facilities due to Party B’s activities processed on the Land and thus causing any loss of the interest of State or of any individual. 
  
 Article 3 Requirements of Construction Administration 
  
 3.1 Party B shall commence constructing before 16 November 2005, and the construction shall be completed before 16 November 2006. 
  
 3.2 Party B shall apply for postponement to Party A thirty (30) days prior to
the deadline with sufficient reason, if Party B cannot commence constructing on scheduled set forth in Article 3.1. 

  

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The deferment shall not exceed one (1) year. 
  
 Except for consents of Party A, in the event it has been over one (1) year calculated from the date of expiration set forth in Article 3.1 before the Land
commences to be constructed, the related land administration authorities shall be entitled to collect no more than 20% of Land premiumss as charges for idle land; in the event it has been over two (2) years before the completion of the construction,
the related land administration departments shall be entitled to revoke the land use right unconditionally and take over all constructions and adheres on the Land. 
  
 3.3 Party B shall not be entitled to occupy any other land which exceeds the Land area for any reason without permission
from relevant authorities. With approval of relevant authorities and full filling examination and approval procedures and paying fees of usage, the other land outside the Land area can be temporarily occupied by Party B. 
  
 Any violation from provisions set forth in foregoing paragraph may be
constituted illegal acts of occupation of land. 
  
 Article 4 Marking and
Fixing the Circle 
  
 4.1 Party A shall bury and set up the boundary marks in
each point of turnings according to the Red Line Map of the Land. Party B shall take effective protective measure for the boundary marks buried by Party A to ensure that the forgoing boundary marks would not be moved or destroyed. In the event the
boundary marks have been moved or destroyed within the term of the use of the Land, Party B shall submit the written report to Party A immediately to apply for re-surveying and re-marking. 
  
 4.2 Party B shall assume all the expense occurred in re-measuring the Land and reburying the
boundary marks due to the loss, damage, move of boundary marks. 
  
 Article 5
Requirements to Municipal Facility and Dismantlement and Removal of Housing 
  
 5.1 Party B shall be responsible for the relevant affairs of municipal facility on the Land at its affiliated cost. 
  
 5.2 Party B shall accomplish the dismantlement and removal of existing buildings on the Land at its own expense in accordance with the Detailed Rules of Shanghai City on
Dismantlement and Removal of Housing, if Party B is responsible for the dismantlement and removal of housing. 
  
 5.3 Party B, or the contractor of the construction project entrusted by Party B, shall restore timely or repave in the event that the construction results in damages of the exposed drains, watercourse, cable, and
other facilities, buildings, at its own expense. 
  
 5.4 Party B shall not damage
and shall take effective measures to protect the municipal facilities on the Land; otherwise, party B shall undertake all expenses occurred for the restoration. 
  

5.5 All users shall jointly pay for the restoration and management of the common path to the Land and adjacent land. 
  
 Article 6 Requirements to Transfer, Lease, and Mortgage of the Land Use Right

  
 6.1 The use right of the Land and the above-ground buildings shall be
transferred incidentally with the above-ground buildings in compliance with the law of PRC, and shall pay the taxation pursuant to Chinese taxation law, provided that the construction on the Land has satisfied the terms set forth in Article 11 of
the Agreement. 
  
 6.2 The use right of the Land shall not be transferred, leased
in the event that the Land is not used, invested and developed in accordance with the Agreement and the Use Conditions of the Land. 
  

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 6.3 The use right of the Land shall be mortgaged; however, the mortgage loan shall be used in the development of the Land
before the completion of the buildings on the Land. The above-ground buildings and other attached objects shall be mortgaged incidentally with the mortgage of the use right of the Land. The rights and interest of mortgagee and mortgager shall be
protected in accordance with Measures of Shanghai City on Mortgage of the Real Estate. 
  
 6.4 Sales, lease, donation and heritage of partial floors of the buildings shall be in compliance with the Rules of Shanghai City on Registration of the Real Estate, the Rules of Shanghai City on Transfer of the Real Estate and other rules
promulgated by Shanghai Bureau of Management on Real Estate and Land. 
  
 6.5 The
lessor and lessee shall enter into the agreement which clearly provides the leasing relationship and right and obligation of both parties when the buildings are leased. The leasing shall be supervised by the relevant authorities. 
  
 The lease Agreement shall be registered and recorded in the Registration Organ of the
District. 
  
 Article 7 Requirements to Protection, Restoration, Reconstruction
and Rebuild of the Buildings 
  
 7.1 Party B shall warrant that the buildings
built and to be built are in good conditions, workable and usable during the term of the use of the Land; and Party B shall assume all expenses. 
  
 7.2 Party B shall not dismantle, change and rebuild the public facilities and the above-ground buildings of the Land without the prior consent of Party A during the term
of the use of the Land. 
  

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Remittance Instruction of Payment of Land Premiums to Shanghai 
 Housing and Land Administrative Bureau 
  

	I.	Notice for payment of land premiums 

  

	 	1.	Please state clearly the title of the land and the number of the assignment agreement on the remittance in order to record to the account book. The remitter shall be self-liable for
occurred errors, due to the failure of stating the title of land and the number of the assignment agreement. 

  

	 	2.	The land premiums, which are remitted into our account, shall be in consistent with the provisions set forth in the agreement. The remittance fees for remittance shall be assumed by
the remitter. 

  

	 	3.	After the competition of the remittance, the client is engaged to send a facsimile of bank receipt to us (Shanghai Housing and Land Administrative Bureau), for the purpose of
recording the payment to the account timely. (facsimile Nr. 58793601) 

  

	II.	Payment of land premiums for USD paid overseas 

  

	 	1.	Pursuant to Official Reply of the State Administration of Foreign Exchange on the Relevant Issues Concerning Foreign Exchange Registration for Purchase Acquisition
of Internal Land Use Right to the Use of Land Within China by Foreign Investors (hereinafter referred to as “the Reply”), prior to legally establishment of a foreign invested enterprise within China, Advance
payments of land premiums as security deposit shall be paid by foreign investors to Land Administrative Authorities. In order to assure the accurate use of the deposit for land, hereunder are stipulations on relative issues concerning the inward
remittance, usage, transfer, and outward remittance of the deposit for land: 

  

	 	(1)	If foreign investors are required to pay the land security deposit to the land administrative authorities before legally establishing foreign invested enterprise within China, they
shall apply to Foreign Exchange Administrative Bureau to open temporary land security deposit accounts, which shall preserve the land security deposit of foreign exchange paid by the foreign investors, who shall pay the land security deposit to the
land administrations through those accounts. 

  

	 	(2)	The term of temporary account of land security deposit is 6 months, if it is necessary to be extended upon expiration, an application shall be filed to Foreign Exchange
Administrative Bureau. 

  

	 	(3)	Land security deposit disbursed by the foreign investors to Land Administrative Authorities should be paid in the currency of RMB and through the temporary accounts. Each settlement
of exchange under temporary land deposit account shall be verified by Foreign Exchange Administrative Bureau, and the settlement shall be limited merely for the purpose of the purchase of land use right and real properties attached to the land, The
initiation expenditure occurred for the establishment of foreign investment enterprises shall still be disbursed from the temporary account. 

  

	 	(4)	After submitting the land security deposit, if the foreign investors fail to establish foreign investment enterprise, they shall apply to Foreign Exchange Administrative Bureau to
close the temporary land security deposit account and the remaining capitals in the account and the returned land security deposit may be remitted out of China upon the approval of Foreign Exchange Administrative Bureau. 

  

	 	(5)	The foreign exchange remitted into the temporary land security deposit account by the foreign investors may be used as the capital contribution after the establishment of foreign
invested enterprise. 

  

	 	2.	US dollar Remittance path (paid overseas) 

  

	 	(1)	 It is advised that the foreign investor finds out the remittance path of the bank which the account is opened. It is necessary to find out the US dollar remittance
path of the bank, which the foreign investor will choose it to open a temporary land 

  

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deposit account. For instance, if the foreign investor is going to open a temporary land deposit account in banking department of China Construction Bank
Shanghai Branch, the US dollar remittance path of which is PLS REMIT USD              (the amount of remittance) TO (the account name of temporary land deposit opened by the foreign
investor) A/C NO.                         (the account number of temporary land deposit) WITH CHINA CONSTRUCTION BANK,
SHANGHAI BRANCH (SWIFT CODE: PCBCCNBJSHX) BANKING DEPARTMENT THROUGH WACHOVIA BANK NATIONAL ASSOCIATION, NEW YORK (SWIFT CODE: PNBPUS 3NNYC) WITH A/C NO. 2000191184558. 

  

	 	(2)	Settlements of land premiums in foreign exchange under the temporary land account 

  
 Payee: Shanghai Housing and Land Administrative Bureau 
 Account number of payee: 05550400261003702 
 Bank of payee: Banking department of China Construction Bank Shanghai Branch 
  

	 	(3)	Relevant correspondence address of bank 

  
 Banking department of China Construction Bank Shanghai Branch 
 Address: Room 1704, No. 200 of Huaihai Middle Road, Shanghai 
 Telephone: 63181818-1704, 1733, 1723

 Facsimile: 63181818-1763, 1799 
  

	III.	Payment of land premiums by RMB paid within China 

  
 Payee: Shanghai Housing and Land Administrative Bureau 
 Account number of payee: 066726-00149055512 
 Bank of payee: Bank of Communications Shanghai Branch

 Address: Second floor of Zhuye Plaza, No. 99 of Beijing West Road, Shanghai 
  

 10Shanghai Land Confiscation & Relocation Compensation Agreement

 EXHIBIT 10.4 
  
 Original 
  
 Shanghai Land Confiscation & Relocation Compensation Agreement 
 Hujiadizi(2005) No.33 
  
 Party A: Shanghai
Jiading District Housing and Land Administration Bureau 
  
 Party B:
Shanghai DeAn Hospital 
  
 In accordance with “Shanghai Assignment
Agreement for Use Right of State-owned Land”[Hujiafangdi(2005) No.59 ] (hereinafter referred to as the “Assignment Agreement”) entered into by and between Shanghai Jiading District Housing and Land Administration Bureau and Shanghai
DeAn Hospital,, both parties, through consultation, hereby agree the following terms with binding: 
  
 Article 1 
  
 Party A shall provide a
plot, area of 90711 square meters, located in Xinjing Villege, Jiading District of Shanghai, on the same conditions in accordance with the scope and area agreed in the Assignment Agreement [Hujiafangdi (2005) No.59] (Attached drawing as reference).

  
 Article 2 
  
 The assignment fee of land, in accordance with the relative regulation of assignment of use
right of State-owned Land in Shanghai, shall be ascertained according to the assignment fee for land without tract development which is approved and determined by Shanghai Housing and Land Administration Bureau. 
  
 Part of total amount of assignment fee hereinto shall be paid to Shanghai Housing and Land
Administration Bureau as the assignment fee set forth in the Assignment Agreement, and the remaining part shall be paid to Jiading District Housing and Land Administration Bureau for paying fees to be incurred in the confiscation of the land,
including planning fee for Land, compensation fee for young crops, compensation fee for farm facilities and compensation fee for labor resettlement. 
  
 Article 3 
  
 Party A shall be responsible for the work of confiscating the land in a price of USD1, 904,931 (Capitalize: one million nine hundred and four thousand nine hundred and thirty one USD) with which to pay various fees
relating to land and compensation fee for labor resettlement and etc. 
  
 Article 4 
  
 Party B shall pay 50% of the total price as USD
952,465 (Capitalize: ninety hundred and fifty-two thousand four hundred and sixty-five USD) to Party A within thirty (30) days after execution of this Agreement (before 15 June 2005). 
  
 Article 5 
  
 Party B shall pay the remaining part as of USD 952,466 (Capitalize: ninety hundred and fifty-two thousand four hundred and sixty six USD) after deduction of the
prepayment, to Party A within sixty (60) days after execution of this Agreement (before 15 July 2005). Party A shall deliver the plot to Party A within thirty (30) days after accomplishing confiscation of the plot upon receipt of all payment from
Party B. 

 Article 6 
  
 Party A shall agree Party B to pay the assignment fees in RMB. The rate of exchange between RMB and USD shall be converted by the middle price based on the exchange rate
of RMB published by State Administration of Foreign Exchange at the end of the prior month (1 USD / RMB). 
  
 Article 7 
  
 If Party B fails to pay the
assignment fee for land use right on schedule, Party A shall be entitled to claim damages for breach, and Party B shall not be entitled to request refund of assignment fee paid. 
  
 If Party B wishes to defer the payment of assignment fee, Party B shall submit a written application for the deferral to Party A before the
due date stipulated in this Agreement. Party B shall pay delay fee as of 0.3% of the assignment fee per day for the deferral upon the consent of Party A. 
  
 Article 8 
  
 Both Parties agree that all works to fulfill paying the fees as set forth in this Agreement for confiscation of land, compensation for young crops, compensation for farm facilities and compensation for labor
resettlement, shall be supervised by Shanghai Housing and Land Administration Bureau. 
  
 Article 9 
  
 Any dispute arising from the execution of the
Agreement shall be settled through consultation by both parties. In case the settlement is failed, each party may bring a suit to the Court where the Agreement is entered into. 
  
 Article 10 
  
 The Agreement has one original and two duplicate originals. Each party holds one original. One original shall be submitted to Real Estate Registration Authorities for
initial registration of Land use right. 
  
 Article 11 
  
 This Agreement shall be effective as of the date of execution of this Agreement. 

 
 Article 12 
  
 This Agreement is made in Chinese. 
  
 Article 13 
  
 This Agreement is officially signed at Jiading District, Shanghai, PRC on 16 May 2005. 
  
 Party A: Shanghai Jia Ding District Housing and Land Administration Bureau (Seal) 
  
 Legal Representative or Authorized Representative: Qin Yuanlin 
  
 Corresponding Address: No. 64 Jinsha Road in Jia Ding District in Shanghai 
  
 Corresponding Telephone: 59528743 
  
 Party B: Shanghai De An Hospital (Seal) 
  
 Legal Representative or Authorized Representative: Zhao Deming 
  
 Corresponding Address: the western of Moyu Northern Road, Anting Town, Shanghai 
  

Corresponding Telphone: 59562394

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