Party A(pound)(0)Mr. Wei, Li
Party B(pound)(0)Kiwa Bio-Tech Products Group Corporation
The Advance Agreement is signed on May 23, 2005 by both parties, to clarify the following advance
1. On April 11, 2005, Party A lent US$50,000 to Party B through Party A's bank account in HSBC Causeway
Bay branch (account no. 593-339120-833). The amount has been transmitted to the Party B's designated bank
2. During April 2005, Party A paid the following amounts to a third party for the repayment of Party B's
convertible loan entered on September 23, 2004, on behalf of Party B. The aggregate amount of US$81,684.50
has been transmitted from Party A's bank account in HSBC Causeway Bay branch (account no. 593-339120-
(1) On April 11, 2005 Party A paid US$11,428 to Mr. Song N. Bang on behalf of Party B;
(2) On April 20, 2005 Party A paid US$1,684.50 to Mr. Song N. Bang on behalf of Party B; and
(3) On April 11, 2005(pound)<172>Party A paid US$68,572 to Mr. Young San Kim on behalf of Party B.
3. On April 20, 2005, Party A paid the consulting fee of US$25,000 to Fisher Capital LLC on behalf of Party B.
The amount has been transmitted from Party A's bank account in HSBC Causeway Bay branch (account no.
4. Both parties agreed the abovementioned advances ($156,684.50 in total) bear interest at 12% per annum
starting from April 21, 2005. Party B agreed to settle the advances within 180 days since the date of draw down.
It is agreed that Party B has the option to repay or settle the advances on or before the expiry.
5. Both parties agreed that Party B will issue to Party A warrants that entitle Party A to purchase up to 783,423
of common stock based on the conversion price specified in Clause 6. Party A shall have the right to exercise the
warrants within next 24 months.
6. Conversion: At the option and instruction of Party A, Party A shall at any time make an application to exercise
any warrants for the issuance o