Labor Contract (Fixed term)

Party A：Xi’an Qinba Pharmaceutical Co.,Ltd.

Party B：Qiao Yufei

Sign Date:  2006  Year  12  Month  18  Day

Article 1 The basic information of the two parties

1. Party A: Xi’an Qinba Pharmaceutical Co.,Ltd.

Legal representative or authorized representative：Zhang Guiping

Registered Address: B0601, Chuangye Plaza, No.48 of Keji Road, Xi’an Hi-Tech Industries Development Zone

Business Address: B0601, Chuangye Plaza, No.48 of Keji Road, Xi’an Hi-Tech Industries Development Zone

2. Party B: Qiao Yufei

Gender: male

Census register type (non-agricultural class , agricultural class) non-agricultural class

ID Card No.: 61002730202033    

or other valid certification name             No.        

Home Address Building No.5 Xinke Garden Keji Road, Xi’an

Residential Address in Xi’an Building No.5 Xinke Garden Keji Road, Xi’an

The seat of the registered residence/household Shannxi Province(City) Xincheng  District(County) Xiwulu Street(Township)

Article 2 Terms of the Contract

3. This contract is a fixed-term labor contract.

The term of this contract shall commence on 2006 Year 12 Month 18 Day and ending on 2011 Year 12 Month 17 Day. The probationary period of this Contract shall end on     ∕Year ∕ Month ∕ Day.

Article 3 Working content and Working place

4. Party B agrees to work as General Manager Assistant and Secretary of the board of directors (job title) according to Party A’s work demand.

5. Party B’s work area or place is in Xi’an according to Party A’s position (job title) features.

Article 4 Working Hours & Rest & Vocation

6. Party A carries out 8 hours labor time system.

For standard labor time system, Party B’s normal work hours shall be no more than 8 hours per day and be no more than 40 hours per week, and the rest days are Saturday and Sunday .

For the integrated computation man-hour system or unfixed man-hour system, prior administrative licensing for special labor time system should be got from the labor administration department.

7. Party A carries out vocations like National Legal Holidays                    

Article 5 Remuneration

8. The payment of salary shall be made before the 10th day every month in monetary form. Month salary is 2,800 Yuan or carried out according to     ∕               

Party B’s salary in the probationary period is   ∕   Yuan.

Other terms agreed by the two parties about the salary Company will set performance wage and implemented in accordance with Party B’s performance, if complete the profit target of whole year, company will reward Party B for .2% of company’s net profits; reward Party B for 1% of company’s excessive profits; and a certain amount of stock options granted.

9. When Party A’s production work is not adequate to let Party B work, Party A pays to Party B      ∕     Yuan as month living allowance or pays according to

                          ∕                                         

Article 6 Social Security & Welfare

10. The two parties participate in social insurance according to regulations of the States and Xi’an. Party A goes through the formalities related to social insurance for Party B,  and undertakes corresponding obligations of the social insurance.

11. The medical treatment of Party B who is ill or injured not related to his/her employment should be carried out according to relevant regulations of the States and Xi’an. Party A pays 60% of the salary

                                         to Party B for the sick leave.

12. The treatment of Party B who suffers from occupational diseases or wounded in performance of duty should be carried out according to relevant regulations of the States and Xi’an.

13.Party A provides the following welfare to Party B social security benefit, pension insurance, unemployment insurance, medical insurance, labor insurance and other welfare State regulates.

Article 7 Working Conditions, Labor Safety and Protection against Occupational Hazards

14. Party A shall offer Party B the necessary occupational safety and health protection and working tools according to relevant regulations of Labor Safety of the States

15. Party A sets up safe production system according to relevant laws and regulations of the States. Party B shall strictly abide by the safety rules and disciplines made by Party A, prevent the industrial accident and reduce the occupational hazards.

16. Party A should establish and improve the occupational-disease-prevention system, reinforce the management and improve the level of occupational-disease-prevention.

Article 8 Terminations, Discharge of the Contract and the Economic Compensation

17. The Contract may be terminated，renewed and discharged according to the “Labor Contract Law of the People’s Republic of China” and other relevant laws and regulations of the States and Xi’an.

18. Party A should show the certificate to the Party B when discharging and terminating this contract, and go through the transferring procedures about files and social insurance for Party B within 15 days.

19. Party B should transfer the work according to the contract and pay the economic compensation during the work handover.

Article 9 Others agreed by the two parties

20. The two parties agree to add the following content to this contract:

                ∕                                                                                      

Article 10 Labor Disputes and Others

21. Where a labor dispute between the parties takes place during the performance of this Contract, the parties concerned may seek for a settlement through consultation; or either party may apply to the labor dispute mediation committee of their unit for mediation; if the mediation fails and one of the parties requests for arbitration, that party may apply to the labor dispute arbitration committee for arbitration. Either party may also directly apply to the labor dispute arbitration committee for arbitration.

22. The appendix of contract           ∕                                    

23. What is left unmentioned in the contract or any of the terms of this Contract should be inconsistent to the laws, regulations or policies of the States and Xi’an, the laws, regulations or policies of the State and Xi’an shall prevail

24. This contract shall have two originals and each party will have one.

Party A (official stamp) Xi’an Qinba Pharmaceutical Co.,Ltd.

Date: 2006-12-18

Party B (signature) Qiao Yufei

Date: 2006-12-18