Exhibit
10.2
Medicine Research and Development
Agreement
Party A:
Shaanxi Jiali Pharmaceuticals Co., Ltd
Party B:
Shaanxi Research Institution of Chinese Traditional
Medicines
Under this
Agreement, both Party A and Party B have come to terms in
accordance with the relevant regulations of Contracts Law to
research and develop and apply for production approval for five new
“Pediatric cold-curing medicines”: Xiaoer Kechuanling
Granule, Xiaoer Fuxiening Grunules, Xiaoer Digesting Tablet, Xiaoer
Kangganjiedu Grannules, and Xiaoer Jianpibuxue Granules.
Article 1
the Content of Technology Cooperation
The research and
development and the application of the production approval of the
five new “Pediatric cold-curing medicines”: Xiaoer
Kechuanling Granule, Xiaoer Fuxiening Grunules, Xiaoer Digesting
Tablet, Xiaoer Kangganjiedu Grannules, and Xiaoer Jianpibuxue
Granules.
Article 2 Fees of R & D Project
The initial
costs of R&D for five new products is 10 million RMB, and of
each one is 2 million RMB, including the fees of R&D,
laboratory, clinical trial, drafting application documents other
than the related fees caused during medicine approval application
process and plant trial-production material fees.
Article 3.
Technology Service Fees and Payment
Both parties
agree to the total amount of RMB10,000,000 for Technology Service
Fees, which Party A will pay to Party B by way of cash or bank
transfer. Schedule of fee payments Party A will pay to Party B are
as follows: RMB2,000,000 for start-up funds to be paid within five
working days upon execution of this agreement; RMB5,000,000 for
R&D fees to be paid within five working days upon the closing
of lab work and the receiving of the acceptance notice; and, the
balance of RMB3,000,000 for Project fees to be paid within five
working days