Advance Agreement between Wei Li and Kiwa Bio-Tech Products Group Corporation (January 10, 2008)

Contract Categories: Business Finance › Financing Agreements
Summary

Wei Li and Kiwa Bio-Tech Products Group Corporation entered into an agreement regarding advances made by Wei Li to Kiwa's Beijing office totaling approximately US$175,297.91. The advances accrue interest at 6% per year and must be repaid within 180 days from December 31, 2007, as Kiwa's cash flow allows. In addition, Kiwa will issue warrants to Wei Li to purchase up to 876,490 shares of its common stock at $0.12 per share, exercisable within 24 months. Wei Li also receives unlimited piggyback registration rights for these shares.

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EX-10.01 2 v099466_ex10-01.htm
Advance Agreement

Party A : Wei Li
 
Party B : Kiwa Bio-Tech Products Group Corporation
 
The Advance Agreement is signed on January 10, 2008 by both parties, to clarify the following advance transactions:
 
1.
During the fourth quarter of 2007, Party A advanced an aggregate sum of RMB 885,890.31 (i.e. US$121,278.41, based on the exchange rate 7.3046:1 on December 28, 2007) to Party B’s Beijing Representative Office in China.
 
2.
During October 2007, Party A advanced US$54,019.50 to Party B.
 
3.
Both parties agreed the abovementioned advances bear interest at 6% per annum starting from the drawing date. Party A agreed that Party B could repay the advances aperiodically when the Company’s cash flow circumstances permit. At the same time Party B agreed to settle the advances within 180 days since December 31, 2007.
 
4.
Both parties agreed that Party B will issue to Party A warrants that entitle Party A to purchase up to 876,490 shares of common stock based on the exercise price specified in Clause 5. Party A shall have the right to exercise the warrants within next 24 months beginning from December 31, 2007.
 
5.
Exercise: At the option and instruction of Party A, Party A shall at any time make an application to exercise any warrants for the issuance of shares of Party B. Party A shall have the right to exercise the warrants based on a exercise price equal to the closing quote (US$0.12) of the shares of Party B on December 31, 2007. Party A shall have unlimited piggyback registration right.
 
Party A: /s/: Wei Li
 
Name: Wei Li
 
Party B:  Kiwa Bio-Tech Products Group Corporation
 
/s/: Lianjun Luo
 
Name: Lianjun Luo
 
Title: Director and CFO
 
Date:  January 10, 2007