1 DEBRA WONG YANG 2 United States Attorney STEVEN D

1 DEBRA WONG YANG 2 United States Attorney STEVEN D. CLYMER 3 Special Assistant United States Attorney Chief, Criminal Division 4 1800 United States Courthouse 312 North Spring Street . 5 Los Angeles, California 90012 Telephone: (213) 894-5010 6 Facsimile: (213) 894-6436 JOSHUA R. HOCHBERG I • Grt 7 Chief, Fraud Section . MARK F. MENDELSOHN s- " • 8 Deputy Chief, Fraud Section ADRIAN D.D. MEBANE 1 . cn 9 Trial Attorney • "."0

Criminal Division • I 10 United States Department of Justice Washington, D.C. 20530 7 P 11 Attorneys for Plaintiff • i 12 UNITED STATES OF AMERICA 13 --UNITED STATES DISTRICT COURT • 14 FOR THE CENTRAL DISTRICT OF CALIFORNIA

15 UNITED STATES OF AMERICA, ) No. CR Cc ) 16 ) PLEA AGREEMENT ) FOR bk (TIANJIN) CO. LTD. 17 .v. ) ) • 18 DPC (TIANJIN) CO. LTD., ) ) 19 Defendant. ) ) 20 -) 21 1. This constitutes the plea agreement ("Agreement") 22 between DPC (TIANJIN) CO. LTD formerly Tianjin Depu (DEC) 23 Biotechnological and Medical Products, Inc.("DPC TIANJIN" or 24 "defendant") and the United States Attorney's Office for the 25 - • Central District of California ("the USAO") and the United States 26 • Department of Justice, Criminal Division, Fraud Section ("the 27 Fraud Section"), in United States v. DPC TIANJIN, a prosecution 28 resulting from an investigation of illegal payments by defendant.

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• 1 DPC TIANJIN to doctors and laboratory personnel employed by 2 government-owned hospitals in the People's Republic of China to 3 obtain or retain business in violation of the Foreign Corrupt 4 Practices Act of 1977, as amended, 15 U.S.C. 78dd-1, et Aga.

5 2. This Agreement is limited to the USA° and the Fraud 6 Section, and cannot bind any other federal, state or local 7 prosecuting, administrative, or regulatory authorities. This 8 Agreement does not bind any other component of the Department of

9 Justice, including the Tax Division. However, the USA° and the 10 Fraud Section will bring this Agreement and the cooperation of

11 both DPC TIANJIN and its parent Diagnostic Products Corporation 12 ("DPC") to the attention of other prosecuting authorities or

13 other agencies, if requested. • . 14 3. This Agreement contemplates the resolution of the •

15 criminal investigation now pending in the USA° and the Fraud 16 Section against DPC TIANJIN, its present or past subsidiaries, 17 divisions, parent, and affiliates for any foreign payments or the 18 accounting thereof disclosed to the USA° or the Fraud Section as 19 of the date of this Agreement, but specifically excluding any 20 such conduct not disclosed to the USA° or the Fraud Section as of 21 that date or any conduct occurring after that date. This 22 Agreement will not close or preclude the investigation or 23 prosecution of any natural persons, including any officers, 24 directors, employees, stockholders, or agents of DC TIANJIN or 25 any such natural persons within any divisions, subsidiaries, or . 26 affiliates of DPC . TIANJIN who may have been involved in any of 27 the matters set forth in the Information or in any other matters.

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• 1 4. This Agreement is entered pursuant to Rule 11(c)(1)(c) 2 of the Federal Rules of Criminal Procedure. 3 PLEA 4 5. Defendant gives up the right to indictment by a grand 5 jury and agrees to plead guilty to a one-count Information in the 6 form attached to this agreement as Exhibit 1, or a substantially 7 similar form, charging DPC TIANJIN with violating the Foreign 8 Corrupt Practices Act of 1977, as amended, 15 U.S.C. § 78dd-1. 9 6. Defendant agrees that this Agreement will be executed 10 by an authorized corporate representative. Defendant further 11 agrees that a Resolution duly adopted by the Board of Directors

12 of LTC TIANJIN, in the form attached to this agreement as Exhibit

. 13 3, or in a substantially similar form, represents that the —• • 14 signatures on this Agreement by UPC TIANJIN and its counsel are

15 authorized by DPC TIANJIN's Board of Directors. 16 7. Defendant agrees that the statute of limitations with 17 respect to the criminal conduct described in this Agreement and 18 the Information will be tolled during the time period from the 19 execution of this Agreement until ninety. (90) days after the 20 sentencing of defendant.

21 8. If the Court does not accept this Agreement pursuant to 22 Federal Rule of Criminal Procedure 11(c)(1)(c), then neither 23 party will be bound by this Agreement and it will be deemed null 24 and void. As a result, among other things, the USAO and the 25 Fraud Section will be free to pursue a grand jury investigation 26 and whatever prosecution they deem appropriate against defendant, 27 any successors, and any of its present or past subsidiaries, 28 divisions, its parent, or affiliates for any foreign payments or

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1 the accounting thereof. In addition, defendant, its 2 subsidiaries, its parent, and any divisions, or affiliates will

3 ' be free to assert any and all substantive and procedural defenses 4 to any grand jury investigation or prosecution. 5 NATURE OF THE OFFENSE 6 9. In order for defendant to be guilty of violating Title 7 15, United States Code, Section 78dd-1, as charged in the 8 Information, the following must be true: 9 One: That the defendant is a corporation organized 10 under the laws of a foreign country, or a 11 director, officer, director, employee, or agent 12 thereof, or a stockholder acting on a domestic

• .13 • concern's-behalf; - •. . , 14 Two That the defendant acted corruptly; • 15 Three: That the defendant, while in the United States. 16 made use of the mails or any means or 17 instrumentality of interstate commerce or took any • 18 other act in furtherance of an unlawful act under 19 this statute; 20 Four: That the defendant offered, paid, promised to pay, 21 or authorized the payment of any money or of 22 anything of value; 23 Five: That the payment was to a foreign public official; 24 Six: That the payment was for one of four purposes: 25 to influence any act or decision of the foreign 26 public official; 27 28

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1 to induce the foreign public official to do or 2 omit to do any act in violation of that official's 3 lawful duty; 4 to obtain an improper advantage; or to induce that foreign public official to use his 6 or her influence with a foreign government or , • 7 instrumentality thereof to affect or influence any 8 act or decision of such government or 9 instrumentality; and 10 Seven: That the payment was made to assist the defendant 11 in obtaining or retaining business for or with, or 12 directing business to, any person.

13 Defendant admits that it is, in fact, guilty of this offense as . . 14 described in the Information.

15 PENALTIES 16 10. The statutory maximum sentence that the Court can 17 impose for a violation of Title 15, United States Code, Section 18 78dd-1 is: a fine of $2,000,000 or twice the gross gain or gross

19 loss resulting from the offense, whichever is greatest, 15 U.S.C. 20 §§ 78dd-3(e), 18 U.S.C. § 35714d); five years probation, 18 21 U.S.C. § 3561(c)(1); and a mandatory special assessment of $400, 22 18 U.S.C. § 3013(a)(2)(3). 23 FACTUAL BASIS 24 11. Defendant agrees and stipulates that the factual 25 allegations set forth in the Information are true and correct and 26 accurately reflect defendant's criminal conduct. The parties 27 further stipulate and agree to the Statement of Facts attached 28 hereto and incorporated herein as Exhibit 2.

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1 WAIVER OF CONSTITUTIONAL RIGHTS 2 12. By pleading guilty, defendant gives up the following 3 rights: 4 a) The right to persist in a plea of not guilty. 5 b) The right to a speedy and public trial by jury. 6 c) The right to the assistance of counsel at trial. - 7 d) The right to be presumed innocent and to have the 8 burden of proof placed on the government to prove defendant 9 guilty beyond a reasonable doubt. 10 e) The right to confront and cross-examine witnesses 11 against defendant. 12 f) The right, if defendant wished, to testify on • 13 defendant's own behalf and present evidence in . opposition to the • 14 charges, including the right to call witnesses and to subpoena

15 those witnesses to testify. 16 13. By pleading guilty, defendant also gives up any and all 17 rights to pursue any affirmative defenses, Fourth Amendment or . 18 Fifth Amendment claims, and other pretrial motions that have been 19 filed or could be filed. 20 SENTENCING RECOMMENDATION 21 14. Fine: Subject to the Court's approval of this 22 Agreement, the parties agree, pursuant to Federal Rule of 23 Criminal Procedure 11(c) (1) (c), that defendant's parent in the 24 United States shall pay $2,000,000 within ten (10) business days 25 of the time of sentencing. Payment shall be made in the form of 26 a cashier's check made payable to the Clerk, U.S. District Court. .27 The parti6s request that defendant's judgment and commitment 28 order reflect the following: •

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, 1 The defendant shall cause payment of a criminal fine of $2,000,000 to be made to the 2 Clerk, U.S. District Court. Interest on said fine is waived provided the fine is paid 3 within ten (10) business days of the time of sentencing. 4 15. The parties agree not to seek any adjustments to, or 5 departures. from, the agreed upon payment of $2,000,000 as set 6 forth herein. • 7 16. Organizational Probation: The parties agree that 8 organizational probation need not be ordered in this case, in 9 view of DPC TIANJIN's agreement to retain an independent 10 compliance monitor for a period of 36 months as discussed below 11 in the "FCPA Compliance Program and Monitor" section. 12 17. Community Service: The parties agree that community - 13 service need not be ordered in this case. 14 18. Forfeiture: The parties agree that forfeiture need not 15 be ordered in this case. 16. 19. Special Assessment: Defendant agrees to pay the Clerk 17 of the Court for the United States District Court for the Central 18 District of California within ten (10) business days of the time 19 of sentencing the mandatory special assessment of $400. 20 20. Waiver of Presentence Report: DPC TIANJIN intends, with 21 the permission of the Court, to waive the requirement for a 22 presentence report pursuant to Federal Rule of Criminal Procedure 23 32(b)(1)(A), based on a finding by the Court that the record 24 contains information sufficient to enable the Court to 25 meaningfully exercise its sentencing power. The USAO and the 26 Fraud Section intend to take no position with respect to this • 27 issue. However, the parties agree that in the event the Court 28

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1 orders the preparation of a presentence report prior to 2 sentencing, suah order will not affect the agreements set forth 3 herein. 4 21. Entry of Guilty Pleas and Sentencing: The defendant 5 intends to ask the Court's permission to combine the entry of the 6 pleas and sentencing into one hearing, and the USA() and the Fraud 7 Section intend to take no position with respect to this request. 8 However, the parties agree that in the event the Court orders 9 that the entry of the guilty pleas and sentencing hearing occur 10 at separate hearings, such an order will not affect the 11 agreements set forth herein. 12 CALCULATION OF FINE 22. The agreement by the USA° and the Fraud Section to . the- - 14 $2,000,000 fine is based upon the following factors: 15 a. By entering and fulfilling the obligations under 16 this Agreement, defendant DPC TIANJIN demonstrates recognition 17 and affirmative acceptance of responsibility for its criminal 18 conduct. The plea underlying this Agreement reflects the 19 voluntary disclosure of the relevant conduct made by DPC, DPC 20 TIANJIN's parent company, to the Fraud Section; DPC's agreement 21 to disgorgement and prejudgment interest in the amount of 22 $2,788,622 in connection with a Cease and Desist Order to be 23 entered between the United States Securities and Exchange 24 Commission and DPC; and its commitment to adopt, maintain, and 25 independently review the remedial measures set forth herein. At 26 the time of the disclosure, the conduct was unknown to the Fraud 27 SectiOn and the USAO. 28

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1 b. DPC voluntarily implemented certain additional 2 compliance policies and procedures following its discovery of the 3 facts contained in the Information. By implementing an effective 4 compliance program under this Agreement and in connection with

5 the Cease and Desist Order to be entered between the United

6 States Securities and Exchange Commission and DPC, the company 7 will implement additional policies and remedy past procedures in 8 order to detect and prevent any further similar illegal conduct.

9 c. $2,000,000 is the statutory maximum fine for a 10 single-count violation of Title 15, United States Code, Section

11 78dd-1. 12 CONSIDERATION BY THE OFFrCE 13 23. In exchange for the corporate guilty plea of defendant 14 DPC TIANJIN and the complete fulfillment of all its obligations 15 under this Agreement, the USAO and the Fraud Section agree not to 16 file additional criminal charges against DPC TIANJIN, any

17 successors, or any of its present and former subsidiaries, 18 divisions, parent, or affiliates, for any foreign payments or the

19 accounting thereof discldsed to the USA() or the Fraud Section as 20 of the date of this Agreement. 21 DEFENDANT'S OBLIGATIONS 22 . 24. Defendant.agrees: 23 a) To plead guilty as set forth in this Agreement. 24 b) To not knowingly and willfully fail to abide by 25 all sentencing stipulations contained in this Agreement.

26 c) To not knowingly and willfully fail to (i) appear 27 as ordered for all:court-appearances, and (ii) obey any other

28 ongoing court order in this matter.

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1 d) To not commit any crime. . 2 e) To not knowingly and willfully fail to be truthful 3 at all times with the Court. 4 f) To pay the applicable fine and special assessment-

5 g) To retain and arrange for payment by itself or its 6 parent company in the United States for an independent compliance 7 expert, as described more fully in the FCPA Compliance Program 8 and Monitor section below. 9 . 25. Defendant further agrees to cooperate fully with the 10. USA() and the Fraud Section, and; as directed by the USA° and the 11 Fraud Section, with any other federal, state, local or foreign 12 law enforcement agency in connection with the matters described

• -13 in the Information. This cooperation requires defendant . tol— - 14 a) Provide full disclosure of all information known

15 to defendant or its outside counsel as of the ' date of this 16 Agreement of payments to foreign officials and the accounting 17 thereof. 18 b) Produce voluntarily all documents, records, or 19 other tangible evidence relating to such payments about which the 20 USAO or the Fraud Section, or their designee, inquires. 21 c) Recommend orally and in writing that all DPC 22 TIANJIN officers, directors, employees, and agents cooperate 23 fully with any investigation or prosecution conducted by the USA() 24 or the Fraud Section relating to such payments, including 25 appearing for interviews and testimony in the United States.

26 d) Provide access to copies of original documents and 27 records relating to such payments. 28

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L d 'ON SDIAUS AMOIA X3dV SOE 'LE 'AM 1 e) Provide access to defendant's outside accounting 2 consultants as well as the records, reports, and documents of 3 those outside accounting consultants relating to such payments 4 disclosed to the USA() or the Fraud Section as of the date of this 5 Agreement. 6 f) Provide all memoranda of interviews compiled and 7 prepared by DPC's and DPC TIANJIN's counsel, outside counsel, 8 consultants, accountants or other agents of interviews with 9 individuals relating to such payments disclosed to the USAO or 10 the Fraud Section as of the date of this Agreement. 11 g) Provide full disclosure to appropriate law 12 enforcement agencies in the People's Republic of China and to 13 cooperate fully with those agencies with• respect to the .conduct 14 in the People's Republic of China disclosed to the USA() or the 15 Fraud Section as of the date of this Agreement, as directed by 16 the Department. DPC TIANJIN will disclose to the Fraud Section 17 the extent to which it has already disclosed these facts and 18 remediated violations of Chinese law with the Government of the 19 People's Republic of China so the Fraud Section can determine 20 whether it's disclosure is adequate.

21 FCPA COMPLIANCE PROGRAM AND MONITOR

22 26. The obligation of DPC TIANJIN referenced in paragraph 23 24(g) above to retain and arrange for payment for a Monitor means 24 that DPC TIANJIN shall undertake all of the duties imposed upon 25 it in this section. 26 27. DPC TIANJIN agrees for a period of at least 36 months

' 27 from May 19, 2005 0 it will retain and pay for an outside, 28 independent compliance expert (the "Monitor")(who may be an

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el 'd 17M 0111 S301n3S AJlO11V X3dV VLU 101 06 'LE 'AVIN 1 individual, partnership or other entity, including outside 2 counsel), selected and paid for by DPC TIANJIN and acceptable to 3 the Fraud Section. It shall be a condition of the Monitor's 4 retention that the Monitor is independent of DPC TIANJIN and that 5 no attorney-client relationship shall be formed between them. If 6 DPC TIANJIN, the Monitor, or any other party or tribunal asserts 7 or determines that communications between the Monitor and DPC 8 TIANJIN are protected by the attOrney-client privilege or that 9 documents created or reviewed by DPC TIANJIN or the Monitor in 10 connection with the Monitor's work are protected by the work • 11 product doctrine, then DPC TIANJIN shall waive only as to the 12 U.S. Department of Justice ("DOJ"), the USAO, and the U.S.

13 Securities and . Exchange Commission ('SEC") any protections- . • • . 14 afforded to such communications and documents concerning the 15 Monitor's work. Any revocation of these waivers shall constitute 16 a breach of this Agreement. The sharing of such communications 17 by the Monitor with the DOJ and the SEC is not intended to 18 constitute a waiver of any privilege under any federal or state 19 law that would shield from disclosure to any other third party 20 any such communications. 21 28. The Monitor shall: 22 (a) monitor DPC TIANJIN's compliance with this 23 Agreement; 24 (b) monitor DPC TIANJIN's implementation of and 25 adherence to policies and procedures relating to 26 FCPA compliance;

27 (c) ensure - that the policies and procedures are 28 appropriately designed to accomplish their goals;

6l 17SLO 0N SIAM AMINIV X3c1V INVLO : l[ L AM 1 (d) report to the Department, in coordination with the 2 SEC, on at least a semi-annual basis and between 3 thirty (30) and forty-five (45) calendar days 4 before the end of the Monitor's term, as to DPC

5 TIANJINfs compliance with this Agreement; and 6 (e) coordinate with the SEC and provide information 7 about DPC TIANJIN as requested by that agency. 8 29. DPC TIANJIN agrees that the Monitor may disclose its 9 reports to the SEt and, as directed by the Fraud Section, to any 10 other federal, state or foreign law enforcement or regulatory 11 agency in furtherance of an investigation of any matters related 12 to payments to foreign officials and any matters relating to any 13 other transaction that has been or is discovered by/ or brought- - • 14 to the attention of, the Fraud Section or the SEC in connection 15 with the Fraud Section's investigation of DPC TIANJIN. During 16 the Monitor's term, no amendments or change's will be made to the 17 policies and procedures relating to FCPA compliance policies 18 without the prior approval of the Monitor. 19 30. DPC TIANJIN agrees that it hereafter will maintain an 20 effective compliance and ethics program designed to detect and 21 prevent violations of the Foreign Corrupt Practices Act and of 22 other applicable foreign bribery laws. DPC TIANJIN's program

23 shall include, at a minimum, the following components:

24 a) A clearly articulated corporate policy against 25 violations of the Foreign Corrupt Practices Act and 26 other applicable anti-bribery laws and the 27 establishment of compliance standards and procedures to 28 be followed by its officers, directors, employees,

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1 agents, consultants, joint ventures, distributors, and 2 sub-contractors that are reasonably capable of reducing 3 the prospect of violative conduct;

4 b) The assignment to one or more senior DPC TIANJIN • 5 corporate officials of responsibility for oversight of 6 compliance with policies, standards, and procedures 7 established pursuant to the Agreement between the Fraud 8 Section, the USA() and DPC TIANJIN, dated May 19, 2005. 9 Such officials shall have the authority and 10 responsibility to implement and utilize monitoring and 11 auditing systems reasonably designed to detect criminal 12 conduct by the company's employees and other agents, • 13 .including, where appropriate,.the retention of outside - - - 14 counsel and independent auditors to conduct

15 investigations and audits. In addition, such officials 16 shall be charged with proposing any necessary 17 modifications to the compliance program to respond to 18 detected violations and to prevent further similar 19 violations, subject to approval by the Monitor, as 20 • otherwise required herein; 21 c) Clearly articulated corporate procedures to ensure that 22 DPC TIANJIN exercises due care to assure that 23 substantial discretionary authority is not delegated to 24 individuals whom the defendant knows, or should know 25 through the exercise of due diligence, have a 26 propensity to engage in illegal activities; 27 d) Clearly articulated corporate-procedures to assure that 28 all necessary and prudent precautions are taken to

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1 ensure that DC TIANJIN has formed business 2 relationships with reputable and qualified agents, 3 consultants and other representatives for purposes of 4 business development and lobbying in foreign 5 jurisdictions and with reputable and qualified sub- 6 contractors for projects in which foreign governments 7 or public international organizations, or 8 instrumentalities thereof, are thG ultimate customers 9 or beneficiaries. Such policy shall require that 10 evidence of such a "due diligence" inquiry be

11 maintained in DPC TIANJIN 1 s files;

12 e) The implementation of appropriate disciplinary •

. 13 • mechanisms, including as appropriate, discipline of . . . 14 individuals responsible for the failure to detect a 15 violation of the law or of compliance with DPC 16 TIANJIN's policies, standards, and procedures; 17 f) The establishment of a reporting system by which 18 officers, employees, agents, consultants, and other 19 representatives, as well as sub-contractors, may report

20 suspected criminal conduct without fear of retribution 21 or going through the chain of command or reporting the 22 same to the employee's, agent's, representative's, or 23 sub-contractor's immediate managers; 24 g) DPC TIANJIN will, using objective measures, determine 25 the regions or countries in which it operates that pose 26 higher risks of corruption. It will, on a periodic 27 basis, conduct rigorous FCPA audits of its operations 28

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1 in such regions or countries, which audits shall 2 include: 3 1. detailed audits of the operating unit's books and 4 records, with specific attention to payments and

5 commissions to agents, consultants, and sub- . 6 contractors and contributions to joint ventures; 7 ii. audits of selected agents, consultants, sub- . 8 contractors, and joint ventures, where authorized • 9 by the . governing contract or retention agreement; 10 iii. interviews with relevant employees, consultant, 11 agents, sub-contractors, and joint venture 12 partners. . - 13 • ' " MERGER OR SALE OF DPC TIANJIN -

• 14 31. DPC TIANJIN agrees that in the event it, or its parent 15 DPC, sells or merges all of DPC TIANJIN's business operations as 16 they exist as of the date of this Agreement to a single 17 transferee or related group of transferees, whether such sale is

18 structured as a stock or asset sale, DPC TIANJIN shall include in 19 any contract for sale or merger a provision binding the purchaser 20 or successor fully to the obligations described in this Agreement 21 but solely with respect to the business operations of DPC

22 TIANJIN, including ' the provisions set forth in the FCPA 23 Compliance Program and Monitor Section and this section.

24 a. In the event of any such sale or merger of DPC 25 TIANJIN, the purchaser or successor agrees that the Monitor shall 26 continue his or her duties as described in the provisions set • 27 forth in the FCPA Compliance and Monitor Section above. In the 28 event DPC TIANJIN has not selected a Monitor by the effective

E6 tiSal ON SDIAHS ANO11V X3c1V AVLO:ll SW 'LEVIN 1 date of any sale or merger, the Monitor shall be selected by the 2 Fraud Section. The Monitor shall be subject to the same 3 restrictions as set forth in paragraph 27 above. Subject to 4 Fraud Section approval, the Monitor shal1 be allowed to hire 5 others to assist with it's duties. Within one hundred eighty 6 (180) days of being retained the Monitor shall conduct an 7 appropriate review of the effectiveness of the purchaser's or 8 successor's program for compliance with applicable FCPA and other

9 anti-bribery . laws and report its findings to the Fraud Section. 10 b. If after reviewing the preliminary report the 11 Fraud Section in its sole discretion determines that the 12 purchaser or successor has an effective "CPA/anti-bribery 13 compliance program, then the . Monitor shall within one hundred - -- 14 eighty days (180) of issuing its preliminary assessment to the 15 Fraud Section report back to the Fraud Section regarding the 16 efficacy of the integration by the purchaser or successor of DPC 17 TIANJIN into the purchaser's or successor's existing FCPA/anti- 18 bribery compliance program, including but not limited to the 19 implementation of FCPA training for appropriate DPC TIANJIN 20 employees (the "integration report"). If after reviewing the 21 integration report the Fraud Section in its sole discretion 22 determines that the purchaser or successor has effectively 23 integrat6d DPC TIANJIN into its existing FCPA/anti-bribery 24 compliance program, the purChaser or successor will no longer be 25 bound by the FCPA Compliance and Monitor provisions of this 26 Agreement. 27 c. If after reviewing the preliminary report the 28 Fraud Section in its sole discretion determines that the

i76 d LID'ON SDIAHS A3NWI1V X3cIV 11480:11 SO06I.E AVIN 1 purchaser or successor does not have an effective FCPA/anti- 2 bribery compliance program, then the purchaser or successor 3 shall, as noted above, remain bound by the terms of this 4 Agreement but solely with respect to the business operations of

5 DPC TIANJIN. In addition, the purchaser or successor shall 6 retain the Monitor for three years, less any time that the

7 Monitor may have consulted with DPC TIANJIN before any purchase 8 or sale of DPC TIANJIN. Within one-hundred and eighty days (180) 9 of issuing its preliminary assessment to the Fraud Section, the 10 Monitor shall report to the Department regarding the purchaser's 11 or successor's efforts to comply with the provisions in the FCPA

12 I Compliance Program and Monitor Section of this Agreement and with 1 , 13 the condition's 'specified in this paragraph.- - d. If, as part of or . in connection with any sale or

15 merger of DPC TIANJIN, all of DPC T1ANJIN's business operations 16 in the People's Republic of China are . terminated, the 17 requirements of this section 31 shall not apply.

18 OBLIGATIONS OF THE USA° AND THE FRAUD SECTION 19 32. If defendant DPC TIANJIN complies fully with all 20 defendant's obligations under this Agreement, the USA() and the 21 Fraud Section agree: 22 a) To abide by all sentencing stipulations contained 23 in this Agreement. 24 b) Not to further prosecute defendant, any 25 Successors, and any of its past or present subsidiaries, 26 divisions, parent, or affiliates for violations of the Foreign 27 Corrupt Practices Act of 1977, as amended, 15 U.S.C. § 78dd-1, et .

28 2eg., disclosed to the Fraud Section as of the date of this

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1 Agreement. Defendant understands that the °SAO and the Fraud 2 Section are free to prosecute defendant, any successors, and any

3 of .its present or past subsidiaries, divisions, parent, or 4 affiliates for any other unlawful past conduct or any unlawful

5 conduct that occurs after that date. 6 c) In connection with defendant's sentencing, to 7 bring to the Court's attention the nature and extent of

8 defendant's cooperation. •

9 d) To bring this Agreement and both DPC TIANJIN's and 10 its parent company's cooperation to the attention of other 11 prosecuting authorities or other agencies, if requested, 12 including but not limited to other components of the Department 13 of Justice, the U.S. Department of. Health and Human Services, the 14 U.S. Department of Defense, and the U.S. Food and Drug

15 Administration. 16 BREACH OF AGREEMENT 17 33. If defendant, at any time between the execution of this 18 Agreement and the completion of defendant's cooperation pursuant 19 to this Agreement, knowingly and willfully violates or fails to 20 perform any of defendant's obligations under this Agreement ("a 21 breach"), the USAO or the Fraud Section may declare this 22 Agreement breached. If the USAO or the Fraud Section declares 23 the Agreement breached, and the Court finds such a breach to have

24 occurred, defendant will not be able to withdraw defendant's 25 guilty plea, and the USAO and the Fraud Section will be relieved 26 of all its obligations under this Agreement. In particular:

27 a) The USAO and the Fraud Section will no longer be 28 bound by any agreements concerning sentencing and will be free to

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1 si6ek any sentence up to the statutory maximum for the crime to 2 which defendant has pleaded guilty. 3 b) The USA() and the Fraud Section will no longer be 4 bound by any agreements regarding criminal prosecution, and will

5 be free to prosecute defendant for any charges that the USAO or 6 the Fraud Section would otherwise have been obligated not to 7 prosecute pursuant to this Agreement. 8 c) The USAO and the Fraud Section will be free to 9 prosecute defendant for making false statements, obstruction of

10 justice, and perjury based on any knowingly false or misleading 11 statement by defendant. 12 d) The USA() and the Fraud Section will no longer be • 13 bound by any agreement . regarding the use of statements,-tangible -. • 14 evidence, or information provided by defendant, and will be free 15 to use any of those in any way in any investigation, prosecution, 16 or civil or administrative action. Defendant will not be able to 17 assert either (1) that those statements, tangible evidence, or 18 information were obtained in violation of the Fifth Amendment 19 privilege against compelled self-incrimination, or (2) any claim 20 under the United States Constitution, any statute, Rule 11(f)of 21 the Federal Rules of Criminal Procedure, Rule 410 of the Federal 22 Rules of Evidence, or any other federal rule, that statements,

23 tangible evidence, or information provided by defendant before or 24 after the signing of this Agreement, or any leads derived 25 therefrom, should be inadmissible. 26 34. Following a knowing and willful breach of this 27 Agreement by defendant, should the USAO or the Fraud Section 28 elect to pursue any criminal charge or any civil or

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1 administrative action that was not filed as a result of this 2 Agreement, then:

3 a) Defendant agrees that any applicable statute 01 4 limitations is tolled between the date of defendant's signing of 5 this Agreement and the discovery by the USA() or the Fraud Section 6 of any knowing and willful breach by defendant. 7 b) Defendant gives up all defenses based on the 8 statute of limitations, any claim of preindictment delay, or any 9 speedy trial claim with respect to any such prosecution or 10 action, except to the extent that such defenses existed as of the 11 date of defendant's signing of this Agreement.

12 LIMITED MUTUAL WAIVER OF APPEAL AND COLLATERAL ATTACK

- 11 35. Defendant DPC TIANJIN understands-that-the law-gives • . 14 defendants the right to appeal sentences imposed. Defendant DPC • 15 TIANJIN, however, gives up the right to appeal any sentence 16 imposed by the Court, and the manner in which the sentence is

17 determined, provided that defendant DPC TIANJIN is sentenced to 18 not more than a $2,000,000 fine and a $400 special assessment.

19 Defendant also gives up any right to bring a post-conviction 20 collateral attack on the sentence, except a post-conviction 21 collateral attack based on a claim of ineffective assistance of

22 counsel. •

23 36. The USAO and the Fraud Section give up their rights to

24 appeal the sentence imposed by the Court and the manner in which

25 the sentence is determined, provided that the Court sentences 26 defendant DPC TIANJIN to pay a total of $2,000,000 in fines and.a.

27 $400 special assessment. • 28

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8Z 'd 'vLO '0N S30IM3S A3P1011V X3dV WV80:ll SOOZ1E'AVIN 1 37. Defendant DPC TIANJIN agrees that if, at or before the

2 time of sentencing, defendant DPC TIANJIN believes that the USAO 3 or the Fraud Section has acted in violation of this Agreement in

4 any way, defendant DPC TIANJIN will make that claim at or before 5 the time of sentencing. If defendant does not object at or 6 before the time of sentencing, defendant DPC TIANJIN gives up any 7 right to later make that claim in challenging the conviction or 8 sentence on appeal or collateral attack, except in a collateral 9 attack raising a claim of ineffective assistance of counsel.

10 .upPE OF AGREEMENT 11 38. The Court is not a party to this Agreement and need not 12 accept it. However, this Agreement will be presented to the

13 Court under Federaa. Rule of . Criminal-Procedure 11-(c)(1),(c),-and,, . 14 pursuant to that Rule, the Court may either accept or reject the 15 Agreement or may defer its decision as to the acceptance or 16 rejection until there has been an opportunity to consider the 17 presentence report. The rights of defendant and of the USAO and 18 the Fraud Section should the Court reject this Agreement are set . 19 forth in paragraph 8 supra. 20 39. This Agrebment applies only to crimes relating to the 21 payments to foreign officials committed by defendant and any

22 subsidiaries, divisions, parent, or affiliates of defendant, has

23 no affect on any proceedings against any defendant not expressly 24 mentioned herein, and shall not preclude any past, present, or 25 future forfeiture actions except as expressly set forth above.

26 /// 27 28

66 17SLO 'ON SDIAHS A3N0IIV X3dV NV80 : 1[ S006 .[E NO ADDITIONAL AGREEMENTS

2 40. Except as set forth herein, there are no promises, 3 understandings or agreements between the USA° or the Fraud 4 Section and defendant or defendant's counsel with respect to the 5 subject matter hereof. Nor may any additional agreement,

6 understanding or condition be entered into unless in . a writing 7 signed by all parties or on the record in court. 8/7/ 9 10 11 12 13 . . - . . • 14 15 16 17

18 • 19 20 21 22 23 24 • 25 26 27 28

•

OE d /.0 ON SDIAUS AMOLLV X3c1V NV80:ll SOH 'LE WM _

. _ .

1 2 This agreement is effective upon signature by defendant and 3 an Assistant United States Attorney. 4 'AGREED AND ACCEPTED 5 XTED STATES ATTORNEY'S OFFICE FOR THE CENTRAL DISTRICT OF CALIFORNIA 6 . DEBRA WONG YANG . . 7 United States Attorney

a . . 9 STEVEN D. CLYMER Date Special Assistant United Sates Attorney 10 Chief, Criminal Division

12 1JOSHUA R. HOCHBERG - Chief,.Fraud Section • • '• ' • • • — ' 13 Criminal Division 14 ArdriGtafikk______, 64/2035- Is Mk P. MENM-ILSOHN — Date Deputy Chief, Fraud Section 16 Criminal Division 17 Clitejazt,,, 18 AD AN D. MEBANE Date Trial Attorney, Fraud Section 19 Criminal Division iced Staces Deparcentm of Justice 20 Un 21 .

26 _ 27 . 28

'cl LU ON SDIAUS A3P1011V X3dV WV60:[[ 101 061C 'AVIN

MAY. 31. 2005 11:09AM APEX ATTORNEY SERVICES NO. 0754 P. 32

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• • an ft AM's TVA DT gar:4/817Si 4' CERTIFICATE OF COUNSEL Along with other members of my firm, I am counsel for DPC. (TIANJIN) CO. LTD. In connection with such representation, we have examined relevant DPC (TIANJIN) CO. LTD. documents, and have discuaaed this Agreement with the authorized representative of DPC (TIANJIN) CO. LTD. Based on our review of the foregoing materials and discussions, we are of the opinion that 1. Michael Ziering, Chairman of DPC (TIANJIN) CO. LTD., is duly authorized to enter into this Agreement on behalf of DPC (TIANJIN) CO. LTD. 2. This Agreement haa been duly and validly authorized, • , executed and delivered on behalf of DPC (TIANJIN) CO. LTD., and • is a valid and binding obligation of DPC (TIANJIN) CO. LTD. Further, we have carefully reviewed every part of this

. Agreement with the chairman of DPC (TIANJIN) CO. LTD. We have fully advised the chairman of DPC (TIANJIN) CO. LTD.'s right's, of possible defenses, of the Sentencing Guidelines' proVisions; and of the consequences of entering into this Agreement. To my knowledge, DPC. (TIANJIN) CO. LTD.'s decision to enter into this Agreement is an informed and voluntary one.

Date .symilic Ira H. Raphaelson CoMelveny & Myers. L.L.P.

• 26 . _

EE d LO a S331n3S AMOIA X30 1860:li SOH • CHAIRMAN'S CERTIFICATE .

I have read this agreement and carefully reviewed every part of it with counsel for DPC (TIANJIN) CO. LTD. I understand the terms of this Agreement and vo/untarily agree, on behalf of DEC (TIANJIN) CO. LTD., to each of the terns. Before signing this Agreement, I consulted with the counsel for bec (TIANJIN) • CO. LTD. Counsel fully advised me of . DPC (TIANJIN) CO. LTD.'s rights, of possible defenses, of the Sentencing Guidelines' provisions, and of the consequences of entering into this • Agreement. No promises or inducements have been made other than those contained in this Agreement. Furthermore, no one has threatened or forced me, or to my knowledge any • authorizing this Agreement on behalf of DPC (TIANJIN) CO. LTD., •in any way to enter into this Agreement. 1 am also satisfied with counsel's representation in this matter. I certify that I am a director and chairman of DPC (TIANJIN) CO. LTD:, and that I ' have been duly authorized by DPC (TIANJIN) CO. LTD. to execute this plea agreement on behalf of DPC (TIANJ/N) CO. LTD..

urc—rmanTrucr=5:----- •

BY: E2144146----IRMAN

• _

fLO'ON SDIAHS A3P1011V X3dV I/100:k lE MIN Acriora BY WRrITEN CONSENT OF THE SOLE SHAREHOLDER OF DPC (TIANJIN) CO. LTD. The undersigned, being the sole shareholder (referred to as "Invetztor") of DFC (TIANI179- CO. LTD., acting pursuant to the Company's Amended and Restated Articles of Association. dated September 30, 1997 (the "Articles of Association"), does hereby take the following action and approves the following resolutians by written consent: RESOLVED, that pursuant to Article 17 of the Articles 0/Association, the Investor hereby removes an inetunbott directors of Ow Company from office and hereby elects the following persons to serve es directors of the Company: Michael Lining, Ira Zering and Bill Kozel; RESOLVED FURTHER, that the incumbent Chairman. and Vice Cbainian oldie Company are hereby removed from office and thar1Yllehael Merin is hereby appointed Chairman and Ira Zing is hereby appointed Vice Chairman in accordance with Article 19 0/the .Articles of Association and, in accordance with Article 20 of the Articles of Association, Michael nering, Chairman, or Ira Ziering, Vice Chairmen (if the Chairman is unable to perform his duties) shall bo tbe legal repecsentative of the CoMpanr, and

RESOLVED FURTHER, that the efficera of the Cm:41=Y shell give ell required • plaices of the removal and election of directory and ofdcera pursuant hezeto in accordance with Articles IS and 19 of the Articles of Association. IN WITNESS WHEREOF, the undersigned has =mewed this written consent as of this 17th day of May, 2005. DL4,ONOSTIC PRODUCTS CORPORATION-

. By chilej‘Kil . - Mi enng, Chie/Executive Of5ccr and legal representative of Investor

• • •

E d tLU ON S30IM3S A3P1011V X3dV NV60:lt ICI H 1.E 'AVIN MAY. 31. 2005 11:09AM APEX ATTORNEY SERVICES O. 0754 P. 36

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ACTION BY "(NAND/IOUS WRITTEN CONSENT OF THE BOARD OF DIRECTORS OF • • DPC (TIANJIN) CO. LTD.

The undersigned, being all of the directors of DPC (TIA.N.11N) CO. LTD.. acting pursuant to Article 30 of the Company's Amended and Restated Articles of Association (the "Articles of Association") do hereby take the following action and approve the following resolutions by unanimous written consent:

WHEREAS, Chapter 5 of the Company's Amended and Restated Articles of Association requires the Company to have a general manager and such other officers as the Board may from time to time determine; and • • . WFIEREAS, it is deemed advisable to appoint such officers;

NOW, THEREFORE, BE IT RESOLVED, that the current general manager and offi.cers of the Company are hereby removed from office and that the following persons are elected to the offices set forth opposite their respective names:

General Manager - Bill Kozel President - Ira Ziering Secretary Fritz. Backus

WHEREAS, the Company's sole shareholder, Diagnostic Products Corporation, has negotiated a plea agreement with the Department of Justice ("DOJ") to settle the DOrs investigation of the Company; and

WHEREAS, the directors have had the opportunity to review the proposed plea agreement and to consult with counsel regarding such agreement and the Special Committee of the Board of Directors of Diagnostic Products Corporation has approved the execution of the plea agreement; be it

• RESOLVED, that DPC (TIANJIN) CO. LTD., which has been the subject of an - investigation by the United States Department of Justice in connection with commission payments made to physicians and laboratory personnel employed by government-owned hospitals in the People's Republic of China, consents to a'settlement of the investigation . and will, in the Central District of California, enter a plea of guilty to a one count Information charging DPC (TIANJIN) CO. LTD., with violating the Foreign Corrupt Practices Act, Title 15, United States Code, Section 78dd-1; and

RESOLVED FURTHER, that the Chairman or Vice Chairman of this Corporation be, and each hereby is, authorized to waive indictment and enter a plea of guilty to the Information substantially in such form as reviewed by -this Board of Directors; and - •

•

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LC 17SLO ON S3IPI3S A3V10111/ X3cIV INV6O: 1 SOH 'AVA

MAY. 31. 2005 11:09AM APEX ATTORNEY SERVICES NO. 0754 P. 38

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RESOLVED FURTHER, that the Chairman Or Vice Chairman of this Corporation be, and each hereby is, authorized to execute the Plea Agreement on behalf of the Corporation substantially in such form as reviewed by this Board of Directors.

IN WITNESS WHEREOF, the undersigned have executed this Unanimous Written Consent as of this 151 141 day of May, 2005. •

Michael Ziering, Chairman and Director

• g, Vic Chairman and Director

•

Bill Kozel, Director

•

• 32 •

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6E 'd 17 SLO 'ON SDIAES A3K1011V X3dV POHL ()H 1.E 'AVIN MAY. 31. 2005 11:10AM APEX ATTORNEY SERVICES NO. 0754 P. 40

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46199 1

7 UNITED STATES DISTRICT COURT 8 FOR THE CENTRAL DISTRICT OF CALIFORNIA

10 NITED STATES OF AMERICA, ) CR 05- ) 11 ) INFORMATIO N ) . 12 v. ' ) [15 U.S.C. § 78dd-1: Foreig ) Corrupt Practices Act] 13 'PC (TIAN jIN) CO. LTD., ) ) 14 Defendant. ) ) 15 ) _ ) 16 • •

17 The United States Attorney charges:

18[15 U.S.C.• § 78dd-1J 19 At all times relevant to this Information:

20 .. INTRODUCTION

21 • 1. Diagnostic Products Corporation ("DPC") was a U.S.

22 orporation engaged in providing immunodiagnostic systems and

23 'mmunochemistry kits throughout the world and maintained its

24 principal place of business in Los Angeles, California. DPC was

25 -n "issuer" within the meaning of the Foreign Corrupt Practices .

26 Act7-T5-U.S.C. 78dd-1. As an issuer, DPC regularly filed its

27 financial statements with the U.S. Securities and Exchange •

28 ommission. Defendant DPC (TIANJIN) CO., LTD., formez . Iy Tianjin

• cl 'bSLO ON S30In3S A3N011V X3dV AVOI:l[ g)OZ 'AVIN 1 lepu (DPC) Biotechnological and Medical Products, Inc. rDPC 2 IANJIN"/ was a wholly-owned subsidiary of DPC that had its 3 mrincipal place of business in Tianjin, China. Defendant DPQ 4 IANJIN acted as an agent of DPC within the meaning of the

5 oreign Corrupt Practices Act, 15 U.S.C. § 78dd-1. Defendant DPC 6 LANJIN's financial reSults were a component of the consolidated

7 financial statements included in DPC's filings with the U.S.

8 Securities and Exchange Commission.

9 2. Defendant DPC TIANJIN's main business operations were 10 o produce and sell DPC TIANJIN's immunodiagnostic systems, 11 immunochemistry kits, and other medical equipment. The main •

12 source of revenue of defendant DPC TIANJIN was from sales of its 13 immunoassays (test kits), which were utilized to identify and

14 easure medically significant chemical substances. The clinical .15 -pplications of these immunoassays related to the diagnosis and 16 anagement of thyroid, reproductive, and cardiac disorders; 17 infectious diseases; anemia; diabetes; and certain types of

18 ancer.

19 3. The Foreign Corrupt Practices Act of 1977("FCPA"), as 20 -mended, 15 U.S.C. §§ 78dd-1, et Aga., prohibited payments to

21 °reign government officials to obtain or retain business:

23 11. PAYMENTS TO FOREIGN GOVERNMENT OFFICIALS

24 , ommissi*n .P.a ants

25 4. At least as early as late 1991 and continuing through 26 *n or about December 12, 2002, defendant DPC TIANJIN made cash

28 -2-

E SLO'ON SDIAHS AMOIA X3dV POLlt üU E 1 omission payments to laboratory personnel and doctors employed

2 my hospitals owned by the government of the People's Republic of

3 ' hina (the "hospitals") to obtain and retain certain business 4 involving the sale of immunodiagnostic systems, immunochemistry

5 kits, and other medical equipment. The hospitals were

6 'nstrumentalities of the government of the People's Republic of

7 hina, and the laboratory personnel and doctors were "foreign 8 efficials" as that term is defined in the FCPA, 15 U.S.C. § 78dd-

9 1(f)(1)(A). JO 5. Defendant DPC TIANJIN entered into sales agzeements and

11 murchase orders with certain of these hospitals in the People's

12 1P epub1ic of China for immunodiagnostic systems, immunochemistry

13 kits, and other medical equipment. The practice of entering into

14 uch agreements was authorized by the General Manager of 15 mefendant DPC TIANJIN, on behalf of the defendant.

16 6. Although defendant DPC TIANJIN was a major provider in 17 the People's Republic of China of immunodiagnostic systems,

18 immunochemistry kits, and other medical equipment, there were

19 other manufacturers and suppliers in the People's Republic of

20 China with whom defendant DC TIANJIN competed. In order to 21 obtain and retain business with these hospitals for the sales of

22 - mmunodiagnostic -systems, immunochemistry kits, and other medical

23 -quipment, defendant DPC TIANJIN,.acting through its officers and

24 agents, entered into sales agreements with people employed by the 25 hospitals -- usually the laboratory heads or assistants --

26 hereby. these employees would receive commissions on defendant

28 -3-

•

IJ LO ON SDIAHS A3N21011V X3c1V POHL C1106 . [E MIN 1 DPC TIANJIN's sales of immunodiagnostic systems, immunochemistry

2 kits, and other medical equipment (hereinafter referred to as the

3 `commission payments"). The commission payments were generally

4 3-5%, but sometimes as high as 20%, of the gross sales generated

5 4 y the contracts. The responsible officers of defendant DPC 6 IANJIN understood that the hospitals would not have entered into

7 •r maintained their business with the .defendant if such 8 ommission payments had not been made.

9 7. The General Manager of defendant DPC TIANJIN authorized

10 l and deliveries of the commission payments, in cash, as well as

11 1 4.11 mail and wire transfers.

12 8. From in or about late 1991, through on or about

• 13 December 12, 2002, defendant*DPC TIANJIN made commission payments

. 14 otaling approximately $1,623,326 to laboratory department heads

15 -nd assistants in several hospitals in China, as follows;

16 Date Amount of Commission_gaymenta

17 1991 , $6,349

18 1992 $33,159 19 1993 $42,340

20 1994 $37,724

21 1995 $88,433

22 1996 $97,058

23 1997 $121,446 24 . 1998 $140,934 25 1999 $180,940

26 2000 $262,487 _ 27

St7 d L0 O S33WAS AJIO11V XhIV POHL SOOZ1EWVIN _

• 1 2001 $301,305

2 2002 $311,151 3 Authorization and Recordina of the Payments

4 9. Defendant DPC TIANJIN recorded the commission payments 5 on its books and records as "selling expenses." DPC regularly 6 incorporated defendant DPC TIANJIN's selling expenses amount into 7 its consolidated financial statements which then were included in 8 filings to the U.S. Securities and Exchange Commission. The

9 General Manager and Deputy General Manager of defendant DPC 10 TIANJIN regularly prepared and submitted to DPC reports

11 containing defendant DPC TIANJIN's financial statements.

12 Defendant DPC TIANJIN routinely sent these reports by electronic

13 mail message and facsimile to DPC's principal . place of business 14 in Los Angeles, California.

15 10. The General Manager of defendant DPC TIANJIN authorized

16 the practice of paying the commission payments to the employees 17 of the hospitals. The General Manager of defendant DPC TIANJIN

18 also approved and caused to be approved the budgets for sales

19 expenses of DPC TIANJIN, which included the commission payments 20 that DPC TIANJIN intended to pay to the employees of the 21 hospitals in the following quarter or year. Defendant DPC,

22 TIANJIN caused approval of the proposed budgets to be sent by 23 telephone, facsimile, and electronic mail from Los Angeles, 24 :::alifornia, to Tianjin, China. 25 ///

26 •

27 28 5 _

'd i7SLO 'ON S301n3S ABINIA XdVWVOl : ll SW 'LE 'AVVI 1 . FOREIGN CORRUPT PRACTICES ACT VIOLATION

2 11. In or about November 2002, in the Central District of

3 alifornia and elsewhere, defendant, DPC TIANJIN used electronic

4 all and other means and instrumentalities of interstate commerce 5 orruptly in furtherance of an offer, promise to pay, and

6 -uthorization of the payment of money to officials of the 7 .overnment of the People's Republic of China, for the purpose of

8 "nfluencing the acts and decisions of said foreign officials in 9 heir official capacities; inducing said foreign officials to do

10 .nd omit to do acts in violation of their lawful duty; securing

11 cn improper advantage; and Inducing said foreign officials to use 12 heir influence with instrumentalities of a foreign government .to

13 .ffect and influence acts and decisions of said instrumentalities

14 .f a foreign government in order to assist defendant DPC TIANJIN

15 in obtaining and retaining business for and with, and directing

16 4 usiness to, defendant, to wit, DPC TIANJIN made payments to 17 °reign government officials, that is, doctors and laboratory

18 .ersonnel employed by hospitals owned by the government of the 19 -eople's Republic of China, in order to secure and maintain

20 -greements for the sale of immunodiagnostic systems,

21 "mMunochemistry kits, and other medical equipment, and . caused to

22 4e sent an electronic mail message from Tianjin, China to Los

23 //

28 -6-

L tiSLO 'ON SDIAHS AMOLLV X3cIV WV[ 1 : k lE ,

1 Angeles, California containing a monthly report concerning the

2 allowance of said payments.

5 DEBRA WONG YANG United States Attorney 6

7 • 8 STEVEN D. CLYMER Special Assistant United States 9 Attorney . Chief, Criminal Division 10 JOSHUA R. HOCHBERG 11 Chief, Fraud Section • Criminal Division 12

13 • MARK F. MENDELSOHN Deputy Chief, Fraud Section 14 Criminal Division

15 ADRIAN D. MEBANE 16 Trial Attorney Criminal Division 17 United State_Department of Justice

25 • • 26 • • 27

28 -7-

17/.0 ON SDIAES AANIIV X3c1V IANWIL 18106'lE'AVIAI MAY. 31. 2005 11:11AM • APEX ATTORNEY SERVICES NO. 0754 P. 49

kixiimxa

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7 - 1 ENTKOTT 2

2 STATEMENT OF FACTS 3 Should this matter have proceeded to trial, the United 4 States would have proven, by admissible evidence, the following 5 facts beyond a reasonable doubt: • 6

7 L Diagnostic Products Corporation ("DPC") was a U.S. 8 corporation established in 1971 with its principal place of 9 business in Los Angeles, California. Defendant DPC (TIANJIN) CO. 10 LTD., formerly Tianjin Depu (DPC) Biotechnological and•Medical 11 Products, Inc. ("DEC TIANJIN") was a wholly-owned subsidiary of 12 DPC. DPC TIANJIN had its principal place of business in Tianjin, 13 China and has been doing business in the People's Republic of • 14 China since 1991. 15 2. Among other things, DPC TIANJIN sold immunodiagnostic 16 • systems, immunodiagnostic kits and other medical equipment to 17 hospitals owned by the government of the People's Republic of 18 China. 19 3. Sine at least late 1991 through December 12, 2002, DPC . 20 TIANJIN paid improper commissions to doctors and laboratory 21 personnel who controlled the purchasing decisions for the 22 internal medicine and nuclear medicine . departments of certain 23 hospitals, including . hospitals owned by the government of the 24 People's Republic of China ("the subject hospitals"), for the 25 purpose of obtaining or retaining business with the subject 26 hospitals. These improper commissions, typically between 3% arid 27 10% of sales, totaled approximately $1,623,326 from late 1991 28

OS d LO 'ON S33In3S A3P1011J X3c1V SOH lE ,

1 through December 12, 2002. During most . of this period, the 2 payments of these commissions were authorized by the General 3 Manager of DPC TIANJIN. In most cases, the commissions were paid

4 in cash and hand-delivered by DPC TIANJIN salespersons to the

5 person who controlled purchasing decisions for the particular

6 hospital department.

7 4. DPC TIANJIN recorded the commission payments on its 8 books and records as "selling expenses." The General Manager and

9 Deputy General Manager of DPC TIANJIN regularly prepared and

10 submitted to DPC financial statements which contained DEC

11 TIANJIN's sales expenses. DPC TIANJIN routinely Sent these

12 statements by electronic mail message to DPC's principal place of • 13 business in Los Angeles, California. 14 5. The General Manager of defendant DPC TIANJIN authorized 15 the practice of paying the commission payments to the employees 16 of the hospitals. The General Manager of defendant DPC TIANJIN

17 also approved and caused to be approved the budgets for sales

18 expenses of DPC TIANJIN, which included the amounts DPC TIANJIN

19 intended to pay to the employees of the hospitals in the

20 following quarter or Year. Defendant DPC TIANJIN caused to be 21 sent approval of the proposed budgets by telephone, facsimile,

22 and electronic mail from Los Angeles, California, to Tianjin, 23 China.

24 6. In or about November 2002, DPC TIANJIN caused to be

25 sent an electronic email message from Tianjin, China, to Los 26 Angeles, Califorraa containing a monthly report concerning the 27

28 2 • •

ON SDIAUS ADIMLIV XhIV INVH:LL M 'LE TAN

1 allowance of payments to doctors and laboratory personnel

2 employed by hospitals owned by the Chinese government to assist

3 DPC TIANJIN in obtaining or retaining agreements for the sale of 4 immunodiaghostic systems, immunochemistry kits and other medical

5 supplies.

6 ///

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23 .

25 26

28 3

17/0 'ON S30IM3S A3NallV X3c1V 181H1E

NO .0754 P. 53 APEX ATTORNEY SERVICES MAY.31.2005 11:11AM ...L . v.2. k..0 . ci )01U1 • . , _ _ I • .

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11110/1111fIffie • • •• • ,. .

. 1 _RTIFICRILE_QF SERVICE

2 I, KAREN MANZ, declare: 3 That I am a citizen of the United States and resident or

4 employed in Los Angeles County, California; that my business

address is the Office of United States Attorney, United States • 6 Courthouse, 312 North Spring Street, Los Angeles, California

7 90012; that I an over the age of eighteen years, and am not a

party to the above-entitled action;

9 That I am employed by the United States Attorney for the

10 Central District of California who is a member of the Bar of the

11 United States District Court for the Central District of

12 r California, at whose direction I served a copy of: PLEA AGREEMENT FOR DPC OrT.Abunafl CO. LTD. 13 service was: 14, H Placed in a closed [XX] Placed in a sealed 15 envelope, for collection envelope for collection and and interoffice delivery mailing via United States Mail, 16 addressed as follows: addressed as follows: 17 [] By hand delivery [] By facsAiKe as followsL, addressed as follows: 18 [] By messenger as follows: [] By federal express as follows: 19 James R. Asperger 20 OiMelveny and Myers, LLP 400 South Hope Street 211 Los Angeles, CA 90071

22, This Certificate is executed on May 20, 2005, at Los

23f Angeles, California.

24 I certify under penalty of perjury that the foregoing is 25; , true. and correct. 26 • °P)LAJ $11 karo--. 27, KAREN GLANZ 28:

i • d17M 'ON SDIAM AMOIIV XhIV qlON MIN . • •

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CASE SUMMARY

I q- c.305 t/S/v 1 USA v. D .PC CTIAN i IV ) C° - LTD , Case 9y zo ? A I-- Deft. No. Fogiv4.10.1-sy Avallerck 'bap %') Ctie* IS L ) g ) 0 fc Ckr...; iagisesdaw.1 wt.ditt4 frageidid I - NOTE; All items are to be completed. Information napp icable& unknown shailte inditatedt as "N/A," „ .... . 9- Fursuanuo-Section_ . 10.1 of General Order 224, criminal 1. Alias Names: Al 4 - , 2. 0 Indicnnent v formation ._ ., - • tales may be related if a previously filed Information or a. Investigative agency (i.e., FBI, DEA, IRS, Indictment and the present case: Customs, etc.) F 8 r- a. arise out of the same conspiracy, common Saletne, transaction, Series of transactions or events; or 3. Offense charged as a: 131-reSily a. 0 Misdemeanor 0 Minor Offense °Petty Offense b. involve one or more defendants in common, and would ...) entail substantial duplication of labor in pretrial, trial or b. Date of offense Alove4441$6ev u 4- sentencing proceedings if heard by different judges. Related case(s), if any, (Must attach Notice of Related c. County in which first offense Case): _ occurred: L 5 A " ta-12.4 . . . . Al/ d. The crimes charged are alleged to have been 10. 4. This defendant is designated as "High Risk" per 18 cKdz in: (Check ALL that apply) 1.1.S.C. § 3164(a)(2) by the U.S. Attorney. s Angeles 0 Ventura . - 0Orange 0 SSanta BbBarbara 11. isr2E This is designated a "Special Case" per 18 U.S.C. 0 Riverside 0 San Luis Obispo § 3166(b)(7). 0 San Bernardino 0 Other - San Diego AJ/A 12, Date of Birth - 4, Citation of Offense: IS ti SC 5.0 91 CIO& i 0 Male 0 Female 0 U.S. Citizen 0 Alien 5. This defendant is charged in; 171.-A11awits 13. Is defendant a juvenile? 0Yes ag-0 . 0 Only Count _ If yes, should the matter 0Yes 0 No 6. Ma A complaint was previously filed be sealed? - on . case no. 14. Will sixteen (16) days or more be required to present charging . / government's evidence in the case in chief? The complaint; 0 Is still pending 0 Was dismissed on 0 Yes 121.‘

7. Has an Information or Indictment involving this defendant 15. Is an interpreter required? U-140"--- and the same transaction or series of transactions previously 0 Yes (list language and/or dialect) filed and dismissed before trial? 0 No • -- o Yes (Case No, ) 16. The area of substantive law that will be involved in this case 8. This is the superseding charge (i.e., includes: first, second). The superseded ease was previously filed on . 0 financial institution fraud 0 public corruption case no. . °government fraud 0 tax offenses The superseded case: 0 Is still pending before Judge/Magistrate Judge °environmental issues 0 mail/wire fraud

Ci Was previously dismissed on d; P - Cad ‘'' v I-

- OVER - -Frew& 'f-ite A eh -- CR 72(5/98) CASE SUMMARY Page 1

'cl 17SO 'ON SDIAES ADINIIV XhIV Itkitll:ll SW .[E'AVIA1 , ,.,...‘ Memorandum cyL b s,- ,6( k--2...71i-it.---'s vev, Subj: pat= 5-/q-ios— int 5::,3 I - vlASI'll\\ 1).. v 05P0 g ioTociiivicAi- 4:44W ...... ,. • rielebicAL. Pg000 cTs i Lavc. , ....------_ ..,--- •

n•n•••••n11mn '..MM.M.111mn f..17171..11da•MY .1.11.nn To: SHERRI R. CARTER Roux ‘„, ill ritile.t1 . Clerk, United States District Court Assistant United States Attorney Central District of Cal. .

The above pleading seeking authority for an investigative action and being filed on. ci• 7/0 (6S---- _.7,,,,lates to . , does not relatet , . a matter in which Patrick J. W h was personally involved or on which he was personal. ly consulted while employed in the United states Attorney's Office. _,. 17 ates to . . . does not relate to • (1)a matter pending in the Major Frauds Section of the United States Attorney's Office before June 30, 2001, the date on which .Idnnifea. T. Lunt resigned her appointment in that office; or (2) a matter in which Jennifer T. Lum was personally involved or on which she was personally . consulted while en.iployeri in the United States Attorney's Office. - rg,ates to ' - • . . 1----- does not relate to . , (1) a matter pending in the Organized Crime Section ofthe United States Attorney's Office before . September 29, 2000, the date on which Stephen G. Larson resigned his appointment in that office; - or (2) a matter in which Stephen G. Larson was personally involved or on which he was personally consulted while employed in the United States Attorney's Office; - _, _ rela_....os to L.---ffoes not relate to •

(1) a matter pending in the Narcotics Section of the United States Attorney's Office before April 20, . 1999; the date on which Jeffrey W. Johnson resigned his appointment in that office; or • (2) a matter in which Jeffrey W. Johnson was personally involved or on which he was personally consulted while employed in the United States Attome 's Office. - ' . 4)--- .

be4,A.ts- l'h ; ki-4W 7-.1 ri - 1 r ,..,its Assistant United St4te§ Ateorney i . , . MAY 2 yOOS 1 ; • . . ____1 • • lef;-..---V ' 4 4- 1 'd i7SLO ON SDIMAS 0001A X3c1V INVO : H q0E1.E.AVIN

NO. 1018 P. 10 JUN. 23. 2005 4:19PM APEX ATTORNEY SERVICES , • Memorandum Mos-- .(1k.--a...---4-1‘,-°) ;

4•3•• Subj: Date: 5- - int 53 14 ..t. 7,1,1W ?list • N.) •goroci-ovkAi_ • •s metalcAL.. PRoucTs,

• _ — To: SHERRI R. CARTER • FMMI bef-i -S /VI rte-31C t( Clerk, United States District Court Assistant United States Attorney Central District of Cal.

The above pleading seeking authority for an investigative action and being filed on- 0 0 kb-

--.L7Flatesdoes not relate to

a matter in which Patrick 1. Walsh was personally involved• or on which he was personally consulted while employed in the United States Attorney's Office. ates to • (------does not relate to (1.) a matter pending in the ivlajor Frauds Se 'on of the United States Attorney's Office before June 30, 2001, the date on which Jebnifer T. tJin resigned her appointment in that office; or (2) a matter in which Jennifer T. Lum was personally involved or on which she was personally consulted while employed in the United States Attorney's Office. rs44w-,. to . L-""—does not relate to

(1) a matter pending in the Organized Crime Section of the United States Attorney's Office before September 29, 2000, the date on which Stephen G. Larson resigned his appointment in that office; or (2) a matter in which Stephen G. Larson was personally involved or on which he was personally consulted while employed in the United States Attorney's Office; re to _ . oes not relate to

(1) a matter pending in the Narcotics Section ofthe United States Attorney's Office before April 20, 1999; the date on which Jeffrey W. Johnson resigned his appointment in that office; or • (2) a matter in which Jeffrey W. Johnson was personally involved or on which be was personally consulted while employed in the United States Attorne 's Office.

/N.-N Ile LI Assistant United States_Att r"

•

• ViNSI Zf'1; • CD u . . - O. 1078 P. 9 JUN. 23. 2005 4:19PM APEX ATTORNEY SERVICES Memorandum Cyy 0 s-- fj) --.• - •- Subj; Date: 5-- I or' tv5,3

95 1l°k 2.t) ?‘" .40 r • U ' C Y 016 g 19 rOCI4A) ILA L. alAi#

in ea I M41) CTS 1

• ..•••••••n • ,rnVeln•• - •

To: SHERRI R. CARTER • ROW *Ai Clerk, United States District Court Assistant United States Attorney Central District of Cal.

The above pleading seeking authority for an investigative action and being filed on. 3-lates to t...,--cloes not relate to

a matter in which Patrick J. Walsh was personally involved or on which he was personally consulted while employed in the United States Attorney's Office. __Oates to (--.."-does not relate to • (1)a matter pending in the Major Frauds Section of the United States Attorney's Office before June 30, 2001, the date on which Jehnifeir T. Lum resigned her appointment in that office; or (2)a matter in which Jennifer T. Lum was persoruilly involved or on which she was personally consulted while employed in the United States Attorney's Office. stem-. to . does not relate to

(1) a matter pending in the Organized Criue ection ofthe United States Attorney's Office before • September 29, 2000, the date on which S en G. Larson resigned his appointment in that office; or (2) a matter in which Stephen G. Larson was personally involved or on which he was personally consulted while employed in the United States Attorney's Office; relga to _oesnotrelateto

(1) a matter pending in the Narcotics Section of the United States Attorney's Office before April 20, 1999; the date on which Jeffrey W. Johnson resigned his appointment in that office; or • (2) a matter in which Jeffrey W. Johnson was personally involved or on which he was personally consulted while employed in the United States Attom 's Office.

• lz.11c.L Assistant United States Attorn If‘•AliS . 1•=,

• - MAY 0 TA

JUN. 23. 2005 4:19PM APEX ATTORNEY SERVICES NO. 1078 P. 8 . •

• • Memorandum 11111 04C 'q k V-."-"11

Subj: Date: c- - Or. MI 5:3

11‘‘. v Dfrt.) gioraci-iMitAL. Prve-bicAL. Peonocrs,

• •

• To: SHERRI R. CARTER FnEa; be+, d Clerk, United States District Court Assistant United States Attorney Central District of Cal.

The above pleading seeking authority for an investigative action and being filed on. _Oates to . 1-----does not relate to

a matter in which Patrick J. Walsh was personally involved or on which he was personally consulted while employed in the United States Attorney's Office.

te • • does not relate to

(1)a matter pending in the Major Frauds Section of the United States Attorney's Office before June 30, 2001, the date on which Jennifer T. Lunt resigned her appointment in that office; or (2)a matter in which Jennifer T. Lum was personally involved or on which she was personally consulted while en:played in the United States Attorney's Office. rje.tes to ' • . (-----does not relate to

(1) a matter pending in the Organized Crime Section ofthe United States Attorney's Office before September 29, 2000, the date on which Stephen G. Larson resigned his appointment in that office; or (2) a matter in which Stephen G. Larson was personally involved or on which he was personally consulted while employed in the United States Attorney's Office; re to oes not relate to

(1) a matter pending in the Narcotics S — +on ofthe United States Attorney's Office before April 20, 1999; the date on which Jeffrey W. J • 6, on resigned his appointment in that office; or • (2) a matter in which Jeffrey W. Jo ".n was personally involved or on which he was personally consulted while employed in the United States Attorn 's Office.

• ilerienrt±S ; 1-6 het Assistant United States Attorney_ _ r_ • • )

MAY rl_ rs 216 i - !i c \J JUN. 23. 2005 4:18PM APEX ATTORNEY SERVICES NO. 1078 P. 7

Memorandum - --"s tLEO 1111V.

1.111t1/

Salk Date 6-0 4 14.,,1 70 pti Va:

United States v. DE. RI o Taci-fiVoLo !CAL 44419 4460/cAL Pgawc-TS ,

To: Frimt be+i rt* *lie 41 SHERRI R. CARTER District Court Executive Assistant United States Attorney United States Distict Court Criminal Division Central. District of California

p g l o racHJUICA L.. 444a The matter relating to the referenced criminalinal action, United States v. 4401 gonoas being filed on

— was [ 1 was not [ II-pdng in the United States Attories Office before December 22, 1998, the date on which U.S. District Judge Nora M. M a began receiving criminal matters;

— was [ 1 was not ( 1/41-petffing in the United States Attorney's Office before November 2, 1992, the date on which U.S. District Judge Lourdes G. Baird began receiving criminal matters.

Assistant United States Attorney Criminal Division

t.S

• MAY 2.1

APEX ATTORNEY SERVICES JUN. 23. 2005 4:18PM NO. 1078 P...,,.... 6 Memorandum z4--z. • rILED '\J...5::;.,?/

— — )L ` .I 4 dl/ —, - —. „ 3 Subj: A- /.49. , 05 V( ZO 1-7 Date: — United taD,_NF?1( -ZctiMoi,ile./4i..• & - .- c. TVD,OUGTS , . ' - • 444 P1/16DiCiii i, -riVC .

— - . . *- I : ,-- •- • - To t — be P1 rl k t i Itt•hi Ca ' Film s l i a SHERRI R. CARTER District Court Executive Assistant United States Attorney United States District Court Criminal Division Central District of California

. • - , Dak, glorcogieLAL 0.146 . The matter relating to the referenced criminal action,.tzl.3 Mai. tess.14EML04 PIZabLILTS 4-A4 being filed on _S-100-of . . . . , - was [ 1 was not [ gleirding in the United States Attorney's Office before December 22, . 1998, the date on which U.S. District Judge Nora M. Manella began receiving criminal matters; .

-- was [ ] was not [ kip/It-ding in the United States Attorticir e s Office before November 2, 1992, the date on which U.S. District Judge Lourdes G. d began receiving criminal matters.

Assistant United States Attorney - Criminal Division • .

' , •" . . , , - ) I, • , : MAY ?. r'; 21105.

. • ViVI---4 (#1) n-,

JUN. 23. 2005 4:18PM APEX ATTORNEY SERVICES NO. 1078 P. 5

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA P-Send

CRIMINAL MINUTES - ARRAIGNMENT

Case Number 2:01c13.482. Recorder: CS 6/20/05 Date: 06/20/2005

Present The Honorable RQsalyn M. Chapman, U.S. Magistrate Judge

Court Clerk: Majii. co-= Assistant U.S. Attorney: Adrian D. Mebane - AUSA

United States of America v. Attorney Present for Defendant Language Interpreter

DPC (TIANJIN) CO. LTD. Steven J. Olson Summons - Present RETAINED - Present

PROCEEDINGS: ARRAIGNMENT OF DEFENDANT(S) AND ASSIGNMENT OF CASE.

Defendant is arraigned and states true name is

Defendant is given a copy of the Information, acknowledges receipt of a copy and waives reading thereof.

Court orders this case assigned to the calendar of US- District Judge Dale S. Fischer for/and plea of gnilty,. further mcpedings June 27. 2001 gilLawa. Defendant and his/her counsel are ordered to appear before said judge at the date and time indicated.

Other:Waiver of Indictment submitted, accepted and filed. Defendant was not arraigned.

Initials of Deputy Clerk: mc cc: PSA, Statistics Clerk, USM LA

F .% , S

JUN 2 L 2005 • iD 23. 2005 4:18PM • APEX ATTORNEY SERVICES NO. 1078_ ,P. 4

• • • • FLED eLERK. U.S. OISTRIcT COURT' . •r: . • • 'fit . jum 0 2CO1 . .• OF cAuFoRNIA UNITED STATES DISTRICT COUR tallirrTrMm''' CENTRAL DISTRICT OF CALIFORNIA

• CAM MOM united states of America, P1aindff0) CZ.. CZ) -- 2- .v. STATEMENT OF DEFENDANT'S DC)C. ( ituni G.A) L+8+ CONSTITUTIONAL RIGHTS Defendant(s)

You are here for arraigrunent and plea upon an indictment or information filed against you, a copy of which will be given to you.

You are entitled to a speedy and public trial by jury. If you.wish to waive a jury trial, you must be tried by the Court sitting without a jury

You_ are entitled to be represtuted by an attorney at all stages of the proceedings against you. If you do not have the funds or the means to hire a lawyer, tell the Magistrate Judge and he/she will appoint an attorney from the Indigent Defense Panel or the ofnee of the Federal Public Defender to represent you without cost to you.

You are entitled to see and hear the evidence and cross-examine the witnesses agaiast you. You are entitled to the processes of the Court to subpoena witnesses on your behalf without cost to you if you are indigent. It is not necessary to prove your innocence. It is the burden of the government to prove, by competent evidence, your guilt beyond a reasonable doubt.

If you desire to plead guilty, you will be further questioned by a Court to ascertain whether or not your plea is voluntary. In the event your plea is accepted, the Court will sentence you after referral to the Probation Officer for a presentence report. This procedure usually takes about ten (10) weeks_ Before accepting a plea of guilty, the Judge expects that you have discussed your case fully with your lawyer and have been fully advised of all the defenses you may have. You will be expected to know the maximum and minimum sentence you can receive On yourplea of guilty.

Do notplead guilty imless you are, in fact, guilty of die charges made againstyou in the indictment or information. Do not plead guilty if there have beem any threats made against you or any member of your family by anyone. Do not plead guilty if there have been any promises of leniency or a particular sentence made to you by anyone, including your own Lawyer. No one has the authority to make any promises to you concerning sentence. • Your case will be referred to one of the Judges of this Court for all other proceedings. The name of tb.e Judge will be drawn after your arraignment and all further proceedings will be before that Judge.

ENTER OA 1CMS (ctntirnted ort Page 2)

sTATEM1NT OF DEFENDANT'S CONSTITUTIONAL RIGHTS •

CR-44 (09/97) JUN 22 2005 PAGE 1 1

0113 23. 2005 4:18PM APEX ATTORNEY SERVICES.... . - „. J,JU. 1078. . P. 3 2; . • • ", • .,=-• • - ,.•• • - • ; : "4 ,;.,&•:.,AFI •• •••• _ , • FILED- - CLERK, U.S. ras-rRicicOuRT • •• JUN 2 0 20(6 • rTRAL I TRICT OF CALItatilry UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

CALIZNUMBEU united States of America, CR t) qs Plaintiff v. DESIGNATION AND APPEARANCE b C C-FictAA L-ta OF COUNSEL Defendano)

DESIGNATION OF COUNSEL I, the undersigned defendant in the above-numbered case, hereby designate and appoint Esquire, as my attorney to appear for me throughout all proceedings in this case.

Dated: ‘//2-°(65. 6•-, 6,1414 Deenclont: Signature Oec) taul 62, •

Shrst Addn:Ly Ctr)

CIN State, Zip Code

- _ - APPEARANCE OF COUNSEL • cksis-NA 1, SKI-ivi-% , Attorney at law duly admitted to practice before the Untied States District Court for the Central District of California, hereby consent to my designation and appointment as counsel for the above-named defendant_ The Clerk is therefore requested to enter my appearance as defendant's counsel.

Receipt is hereby acknowledged of a copy of the Indictment or Information in this case. (3). Dated: Ccatab/CIS Attorney': Sigisahor California State Bar No. L 7 2.. 5co• 1. Sited A 13-6 41/4 Cos State. Zip Cods E : 4 i itriCMS i0 ) 3 ?2« 24 ) ca -6 ctiz, ; Tulepheese Number Familr Nunsber JUN 2 2 2005 afkl. j 10.siun A177141IND AITEARANCE OF COUNSEL

CR-14 (D5/90

;JUN. 23. 2005 4:18PM APEX ATTORNEY SERVICES..„- NO. 1078 P. 2 • • - -• : • "- Priority . Send .104 FILED Enter ' CLERK, U S DISTRICT COUFIT Closed /LI jrs-5/JS-6 juN 20 21,k, JS-2/JS-3 Scan Only—. CENT DISTRICT. OF %COM

UNITED STATES DISTRICT COURT CENTRAL DLS'TRICT OF CALIFORNIA

CASE NUMBER UNITED STATES OF AMERICA, PIAINITEP V. S g ?-

DP C (7- ZoAn"i n C4. L+T-9 - WAIVER OF I:merman DEYENDANT(S).

\ CO - I-11) • 5t-eAreN_ (N>e•— La..1,taPbC Di) (7C1 , the above-named defendant, who is accused of v' (6-41Z (N- ( 5 U -5 .C., 4 71 —) • SPL ifv-kt • fi rkt...{1-;a2._(

. _

being advised of the nature of the charge(s), the proposed inforraation, and of my rights, hereby waive in open court on 63/2.- 0/65 prosecution by indictment and consent that the proceedings may be by information rather than by indictment.

kljeta ck(j.a.A.s.(6.5?" 7S1j1— Defendant Counsel far Defendant

Before Al- Judicial Officer !CMS 1

JUN 22 2005 1

WAIVER OF NDICTIVLINT — C1657 (0100) [AO 455 Rev. 5/85] Page! of 1

127