Warehouse Lease Contract

1.

Locations: No. 7 Warehouse, No. 3399 Zhuangjian Road, Kuiwen District, Weifang City

2.

Area: Party A leases the warehouse of Party B with the area of 10,602 square meters (attached with the warehouse plan), and the warehouse is used for logistics operation.

1.

Charging standard: RMB 1.26 million for the first year, and increasing 5% for each year thereafter.

2.

Settlement method: Settle in half year; pay half of the rent by Party B to Party A before July 1 of each year; pay the rest rent by Party B to Party A before Jan. 1 of each year.

3.

After Party A receiving the rent, it shall issue the invoice approved by the taxation institute.

1.

Party A’s warehouse shall comply with the standards like rain protection, damp protection and firmness; Party A shall provide the necessary firefighting and water & electricity facilities, to guarantee the normal use of Party B.

2.

Party A shall provide the maintenance and keeping of the warehouse, to guarantee that the warehouse complies with the using standard of Party B during the lease term.

3.

Party B shall arrange the personnel on duty to guarantee the safety of the warehouse.

4.

If Party B causes that the warehouse has the accidents (such as fire, flood and pilferage), Party A will be exempted from the responsibilities, and if Party A causes the above damages, it shall pay the compensation to Party B according to the standard amount of market selling price; as for the losses caused by other reasons, Party B shall investigate the responsibilities in accordance with the relevant state laws and regulations.

5.

During the lease term, if Party A takes back the warehouse and makes it for other purpose, it shall notify Party B in advance of three months, and Party A shall assume the fees increased from warehousing transfer and pay the liquidated damages of RMB 50,000 to Party B; if Party B doesn’t need the warehouse, it shall notify Party A in advance of three years, and Party B shall assume the rent of Party A caused by this, and Party B shall pay the liquidated damages of RMB 50,000 to Party B.

6.

The right of Party B’s goods and equipment stored in Party A’s warehouse belongs to Party B. If Party A has the dispute with other creditor, Party A shall show the contract and state that it does not possess the ownership of the goods and equipment.

7.

The actual using area of the warehouse provided by Party A shall be confirmed by both parties and it shall attach the building plan of the warehouse. If the actual area is less than the area listed in the Agreement, the rent shall be charged according to the actual area confirmed by both parties.

8.

Without permission of Party B, Party A shall not enter the warehouse arbitrarily.

9.

During the lease term, Party B shall not change the internal structure of the warehouse. The ground of Party A’s warehouse is made of quartz and the price is higher, so Party B shall notify its employees and people entering the warehouse not to damage the ground and wall intentionally or unwittingly; if it is damaged, Party B shall compensate for all losses. The normal aging and abrasion of the ground is not within the compensation range. Party B’s employees shall not damage all facilities within the warehouse intentionally or unwittingly; if it is damaged, Party B shall compensate for all losses and repair. The operation fee like water, electricity, heating and communication cost shall be assumed by Party B.

1.

If Party B fails to pay rent timely, it shall pay overdue rent, and pay the late fee according to the ratio of 2/1,000 every day.

1.

If the contract expires, both parties shall negotiate matters on agreement renewal or change one month in advance. Under the same conditions, Party B has the priority to continue to lease.

2.

Matters unmentioned here shall be signed the supplementary agreement by both parties additionally through negotiation in accordance with the state relevant laws and administrative regulations. The supplementary agreement has equal effect with the Agreement after being signed and sealed. Dispute aroused shall be solved by both parties through negotiation; if the negotiation fails, it shall be solved by the People’s Court of the jurisdiction of Party A.

3.

The Agreement has two copies, with Party A and Party B holding one respectively; it shall take effect after being signed and sealed by both parties.

1.

Copy of Party A’s certificate of house property right (affix with official seal)

2.

Copy of certificate of land ownership (affix with official seal)

3.

Building plan of the leased warehouse.

Land use right owner

Weifang Lishengyuan Pharmaceutical Franchises Co., Ltd.

Location

West of Zhuangjian Road and south of Fenghuang Street

Parcel No.

0711013

Drawing No.

Land type (purpose)

Industry

Price

Category of use right

Transfer

Termination date

Area of use right

20,900m2

Including

/

Drawing date: July 2009

1:1200

Drew by: Du Xia

Shandong Fangyuan Geographical Information Engineering Co., Ltd.

Checked by: Li Cun

Weifang Lishengyuan Pharmaceutical Franchises Co., Ltd.

No. 7 Pharmaceutical Storing Project Warehouse, South Industrial Park, Kuiwen District

West of Zhuangjian Road and south of Fenghuang Street

Total building area of 10602.52 m2

Attached drawing and attachment name

1.

This certificate is legally certified by the responsible organ of urban and rural planning, and the project complies with the legal certificate of urban and rural planning requirements.

2.

If it doesn’t obtain the certificate or construct with the regulations, which will be deemed as illegal construction.

3.

Without the permission of the issuing organ, the regulations of this certificate shall not be changed.

4.

The responsible organ of urban and rural planning has right to check this certificate legally, and the construction unit has the responsibility to submit for check.

5.

The attached drawing and attachments are affirmed by the issuing organ, with the same legal effect of this certificate.