Exhibit 4.1


 


STOCK PURCHASE AGREEMENT


 


AMONG


 


BIMI International
medical Inc., as parent,


 


Chongqing
Guanzan Technology Co., Ltd., AS BUYER,


 


Chongqing
zhuoda pharmaceutical co., ltd., AS THE COMPANy,


 


AND


 


XIAOLIN
LIU, xusen he and dong zhang, AS SELLERS,


 


DATED


 


September [ ], 2021


 




     


     


    

 


TABLE OF CONTENTS


 


	 	 	Page
	1.	DEFINITIONS	1
	 	 	 	 
	2.	SALE AND TRANSFER OF SHARES; CLOSING	7
	 	2.1	Shares	7
	 	2.2	Purchase Price	7
	 	2.3	Payment of Consideration	8
	 	2.4	Closing	8
	 	2.5	Closing Obligations	8
	 	2.6	Payment of Post-Closing Consideration	9
	 	 	 	 
	3.	REPRESENTATIONS AND WARRANTIES OF SELLERS	11
	 	3.1	Title to the Shares	11
	 	3.2	Authority	11
	 	3.3	Consents Required	11
	 	 	 	 
	4.	REPRESENTATIONS AND WARRANTIES OF THE ACQUIRED COMPANIES AND SELLERS	13
	 	4.1	Organization and Good Standing	13
	 	4.2	Authority; No Conflict	13
	 	4.3	Capitalization	14
	 	4.4	Financial Statements	14
	 	4.5	Books and Records	15
	 	4.6	Title to Properties; Encumbrances	15
	 	4.7	Condition and Sufficiency of Assets	15
	 	4.8	Accounts Receivable	16
	 	4.9	Inventory	16
	 	4.10	No Undisclosed Liabilities	16
	 	4.11	Taxes	16
	 	4.12	No Material Adverse Change	17
	 	4.13	Employee Benefits	17
	 	4.14	Compliance With Legal Requirements; Governmental Authorizations	17
	 	4.15	Legal Proceedings; Orders	18
	 	4.16	Absence of Certain Changes and Events	18
	 	4.17	Contracts; No Defaults	19
	 	4.18	Insurance	20
	 	4.19	Environmental Matters	20
	 	4.20	Employees	21
	 	4.21	Labor Relations; Compliance	22
	 	4.22	Intellectual Property	22
	 	4.23	Healthcare Regulatory Matters	23
	 	4.24	Certain Payments	23
	 	4.25	Disclosure	23
	 	4.26	Relationships With Related Persons	23
	 	4.27	Brokers or Finders	23
	 	 	 	 
	5.	REPRESENTATIONS AND WARRANTIES OF BUYER	24
	 	5.1	Organization and Good Standing	24
	 	5.2	Authority; No Conflict	24
	 	5.3	Certain Proceedings	24
	 	5.4	Brokers or Finders	24


 




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	6.	REPRESENTATIONS AND WARRANTIES OF PARENT	24
	 	6.1	Stock Exchange Listing	24
	 	6.2	SEC Filings	24
	 	 	 	 
	7.	COVENANTS OF SELLERS	24
	 	7.1	Access and Investigation	24
	 	7.2	Operation of the Businesses of each Acquired Company	25
	 	7.3	Negative Covenant	25
	 	7.4	Required Approvals	25
	 	7.5	Notification	25
	 	7.6	Payment of Indebtedness by Related Persons	25
	 	7.7	No Negotiation	26
	 	7.8	Proprietary Information	26
	 	7.9	Public Announcements	26
	 	7.10	Stockholder Covenant	26
	 	7.11	Best Efforts	26
	 	7.12	Release	26
	 	7.13	Confidentiality	26
	 	 	 	 
	8.	Tax MAtters	27
	 	8.1	Responsibility for Filing Tax Returns	27
	 	8.2	Cooperation on Tax Matters	27
	 	8.3	Sales and Transfer Taxes	28
	 	 	 	 
	9.	CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE	28
	 	9.1	Accuracy of Representations	28
	 	9.2	Sellers’ Performance	28
	 	9.3	Authorization	28
	 	9.4	Consents and Approvals	28
	 	9.5	Government Consents, Authorizations, Etc	28
	 	9.6	Additional Documents	28
	 	9.7	No Proceedings	29
	 	9.8	No Claim Regarding Stock Ownership or Sale Proceeds	29
	 	9.9	No Prohibition	29
	 	9.10	Absence of Material Adverse Change	29
	 	 	 	 
	10.	CONDITIONS PRECEDENT TO SELLERS’ OBLIGATION TO CLOSE	29
	 	10.1	Accuracy of Representations	29
	 	10.2	Buyer’s Performance	29
	 	10.3	No Injunction	29
	 	 	 	 
	11.	TERMINATION	30
	 	11.1	Termination Events	30
	 	11.2	Effect of Termination	30
	 	 	 	 
	12.	INDEMNIFICATION; REMEDIES	30
	 	12.1	Survival; Right to Indemnification Not Affected By Knowledge	30
	 	12.2	Indemnification and Payment of Damages by Sellers	30
	 	12.3	Indemnification and Payment of Damages by Sellers Environmental Matters	31
	 	12.4	Indemnification and Payment of Damages by Buyer	32
	 	12.5	Right of Set-Off	32
	 	12.6	Procedure for Indemnification Third Party Claims	32
	 	12.7	Procedure For Indemnification for Other Claims	33



 




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	13.	GENERAL PROVISIONS	33
	 	13.1	Expenses	33
	 	13.2	Public Announcements	33
	 	13.3	Confidentiality	33
	 	13.4	Notices	33
	 	13.5	Further Assurances	34
	 	13.6	Waiver	34
	 	13.7	Entire Agreement and Modification	35
	 	13.8	Assignments, Successors, and Third-Party Rights	35
	 	13.9	Severability	35
	 	13.10	Section Headings, Construction	35
	 	13.11	Time of Essence	36
	 	13.12	Governing Law; Waiver of Jury Trial; Jurisdiction	36
	 	13.13	Counterparts; Facsimile and Electronic Signatures	37
	 	13.14	Representation by Counsel	37



 




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STOCK PURCHASE AGREEMENT


 


THIS STOCK PURCHASE AGREEMENT
(this “Agreement”) is made as of [ ], 2021 by and among BIMI International
Medical Inc., a company organized under the laws of the state of Delaware, the U.S.A. (“Parent”), Chongqing
Guanzan Technology Co., Ltd., a company organized under the laws of the PRC (“Buyer”), CHONGQING ZHUODA PHARMACEUTICAL
CO., LTD., a company organized under the laws of the PRC (the “Company”), XIAOLIN LIU, a Chinese citizen residing in the PRC
(“Liu”), XUSEN HE, a Chinese citizen residing in the
PRC (“He”) and DONG ZHANG, a Chinese citizen residing in the PRC (“Zhang”), Liu, He and Zhang may be referred
to herein individually as a “Seller” and collectively as the “Sellers.”


 


RECITALS


 


Whereas,
immediately prior to the Closing, Sellers are the record and beneficial owners of all the equity interests of the Company (the “Shares”).


 


WHEREAS, Buyer desires to
purchase and acquire from Sellers, and Sellers desire to sell and transfer to Buyer, all the Shares for the consideration and on the terms
set forth in this Agreement.


 


NOW, THEREFORE, in consideration
of the mutual representations, warranties, covenants and agreements contained herein and for other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, and upon the terms and subject to the conditions hereinafter set forth, the parties
hereto, intending to be legally bound, hereby agree as follows:


 


AGREEMENT


 


The parties, intending to
be legally bound, agree as follows:


 


		1.	DEFINITIONS.



 


For purposes of this Agreement,
the following terms have the meanings specified or referred to in this Section 1:


 


“2022 Actual Profit”
as defined in Section 2.6(a).


 


“2022 Financial Statements”
as defined in Section 2.6(a).


 


“2022 Profit Statement”
as defined in Section 2.6(a).


 


“2022 Profit Statement Delivery Date”
as defined in Section 2.6(a).


 


“2022 Profit Target”
as defined in Section 2.6(a).


 


“2023 Actual Profit”
as defined in Section 2.6(b).


 


“2023 Financial Statements”
as defined in Section 2.6(b).


 


“2023 Profit Statement”
as defined in Section 2.6(b).


 


“2023 Statement Delivery Date”
as defined in Section 2.6(b).


 


“2023 Profit Target”
as defined in Section 2.6(b).


 




     


     


    

 


“Acquired Companies”
the Company and all Subsidiaries of the Company, collectively.


 


“Affiliate” with respect
to any party, a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, such party.


 


“Applicable Contract”
any Contract (a) under which any Acquired Company has or may acquire any rights, (b) under which any Acquired Company has or
may become subject to any obligation or liability, or (c) by which any Acquired Company or any of the assets owned or used by it
is or may become bound.


 


“Benefit Plan” as defined
in Section 4.13.


 


“Best Efforts” the efforts
that a prudent Person desirous of achieving a result would use in similar circumstances to ensure that such result is achieved as expeditiously
as possible.


 


“Breach” a “Breach”
of a representation, warranty, covenant, obligation, or other provision of this Agreement or any instrument delivered pursuant to this
Agreement will be deemed to have occurred if there is or has been (a) any inaccuracy in or breach of, or any failure to perform or
comply with, such representation, warranty, covenant, obligation, or other provision, or (b) any claim (by any Person) or other
occurrence or circumstance that is or was inconsistent with such representation, warranty, covenant, obligation, or other provision, and
the term “Breach” means any such inaccuracy, breach, failure, claim, occurrence, or circumstance.


 


“Buyer” as defined in
the first paragraph of this Agreement.


 


“Closing” as defined
in Section 2.4.


 


“Closing Date” as defined
in Section 2.4.


 


“Confidential Information”
means all non-public, confidential or proprietary information of the Acquired Companies, including the Intellectual Property Assets.


 


“Consent” any approval,
consent, ratification, waiver, or other authorization (including any Governmental Authorization).


 


“Contemplated Transactions”
means the purchase of the Shares by Buyer and the other transactions contemplated by this Agreement.


 


“Contract” any agreement,
contract, obligation, promise, or undertaking (whether written or oral and whether express or implied) that is legally binding.


 


“Damages” as defined
in Section 11.2.


 


“Distribution Compliance Period”
as defined in Section 4.27(c).


 


“Encumbrance” any charge,
claim, community property interest, condition, equitable interest, lien, option, pledge, security interest, right of first refusal, or
restriction of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other attribute of
ownership.


 


“Environment” soil,
land surface or subsurface strata, surface waters (including navigable waters, ocean waters, streams, ponds, drainage basins, and wetlands),
groundwaters, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life, and any other environmental
medium or natural resource.


 




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“Environmental, Health, and Safety
Liabilities” any cost, damages, expense, liability, obligation, or other responsibility arising from or under Environmental
Law or Occupational Safety and Health Law and consisting of or relating to:


 


(a) any
environmental, health, or safety matters or conditions (including on- site or off-site contamination, occupational safety and health,
and regulation of chemical substances or products);


 


(b) fines,
penalties, judgments, awards, settlements, legal or administrative proceedings, damages, losses, claims, demands and response, investigative,
remedial, or inspection costs and expenses arising under Environmental Law or Occupational Safety and Health Law;


 


(c) financial
responsibility under Environmental Law or Occupational Safety and Health Law for cleanup costs or corrective action, including any investigation,
cleanup, removal, containment, or other remediation or response actions (“Cleanup”) required by applicable Environmental
Law or Occupational Safety and Health Law (whether or not such Cleanup has been required or requested by any Governmental Body or any
other Person) and for any natural resource damages; or


 


(d) any
other compliance, corrective, investigative, or remedial measures required under Environmental Law or Occupational Safety and Health Law.


 


“Environmental Law”
any Legal Requirement that requires or relates to:


 


(a) advising
appropriate authorities, employees, and the public of intended or actual releases of pollutants or hazardous substances or materials,
violations of discharge limits, or other prohibitions and of the commencements of activities, such as resource extraction or construction,
that could have significant impact on the Environment;


 


(e) preventing
or reducing to acceptable levels the release of pollutants or hazardous substances or materials into the Environment;


 


(f) reducing
the quantities, preventing the release, or minimizing the hazardous characteristics of wastes that are generated;


 


(g) assuring
that products are designed, formulated, packaged, and used so that they do not present unreasonable risks to human health or the Environment
when used or disposed of;


 


(h) protecting
resources, species, or ecological amenities;


 


(i) reducing
to acceptable levels the risks inherent in the transportation of hazardous substances, pollutants, oil, or other potentially harmful substances;


 


(j) cleaning
up pollutants that have been released, preventing the threat of release, or paying the costs of such clean up or prevention; or


 


(k) making
responsible parties pay private parties, or groups of them, for damages done to their health or the Environment, or permitting self-appointed
representatives of the public interest to recover for injuries done to public assets.


 


“Facilities” any real
property, leaseholds, or other interests currently or formerly owned or operated by any Acquired Company and any buildings, plants, structures,
or equipment (including motor vehicles, tank cars, and rolling stock) currently or formerly owned or operated by any Acquired Company.


 


“Final 2022 Profit Statement”
as defined in Section 2.6(a).


 




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“Final 2023 Profit Statement”
as defined in Section 2.6(b).


 


“Governmental Authorization”
any approval, consent, license, permit, waiver, or other authorization issued, granted, given, or otherwise made available by or under
the authority of any Governmental Body or pursuant to any Legal Requirement.


 


“Governmental Body”
any:


 


(a) nation,
state, county, city, town, village, district, or other jurisdiction of any nature;


 


(b) federal,
state, local, municipal, foreign, or other government;


 


(c) governmental
or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court
or other tribunal);


 


(d) multi-national
organization or body; or


 


(e) body
exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or
power of any nature.


 


“Hazardous Activity”
the distribution, generation, handling, importing, management, manufacturing, processing, production, refinement, Release, storage, transfer,
transportation, treatment, or use (including any withdrawal or other use of groundwater) of Hazardous Materials in, on, under, about,
or from the Facilities or any part thereof into the Environment, and any other act, business, operation, or thing that increases the danger,
or risk of danger, or poses an unreasonable risk of harm to persons or property on or off the Facilities, or that may affect the value
of the Facilities or the Acquired Companies.


 


“Hazardous Materials”
any waste or other substance that is listed, defined, designated, or classified as, or otherwise determined to be, hazardous, radioactive,
or toxic or a pollutant or a contaminant under or pursuant to any Environmental Law, including any admixture or solution thereof, and
specifically including petroleum and all derivatives thereof or synthetic substitutes therefor and asbestos or asbestos-containing materials.


 


“Intellectual Property Assets”
as defined in Section 4.22.


 


“Knowledge” an individual
will be deemed to have “Knowledge” of a particular fact or other matter if:


 


(a) such
individual is actually aware of such fact or other matter; or


 


(b) a
prudent individual could be expected to discover or otherwise become aware of such fact or other matter in the course of conducting a
reasonably comprehensive investigation concerning the existence of such fact or other matter.


 


A Person (other than an individual) will
be deemed to have “Knowledge” of a particular fact or other matter if any individual who is a key employee or is serving,
or who has at any time served, as a director, officer, partner, executor, or trustee of such Person (or in any similar capacity) has,
or at any time had, Knowledge of such fact or other matter.


 


“Latest Balance Sheet”
as defined in Section 4.4.


 


“Legal Requirement”
any federal, state, local, municipal, foreign, international, multinational, or other administrative order, constitution, law, ordinance,
principle of common law, regulation, statute, or treaty.


 


“NASDAQ” the NASDAQ
Stock Market or any of its successor entities.


 




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“Net Profit” with respect
to any period, the Revenue less the aggregate amount of the costs of goods sold, operating expenses, interests expenses, depreciation,
amortization, taxes and any other expenses of all the Acquired Companies during such period, calculated in accordance with generally accepted
accounting principles in the U.S.A.


 


“Occupational Safety and Health Law”
any Legal Requirement designed to provide safe and healthful working conditions and to reduce occupational safety and health hazards,
and any program, whether governmental or private (including those promulgated or sponsored by industry associations and insurance companies),
designed to provide safe and healthful working conditions.


 


“Order” any award, decision,
injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any court, administrative agency, or other
Governmental Body or by any arbitrator.


 


“Ordinary Course of Business”
an action taken by a Person will be deemed to have been taken in the “Ordinary Course of Business” only if:


 


(a) such
action is consistent with the past practices of such Person and is taken in the ordinary course of the normal day-to-day operations of
such Person;


 


(b) such
action is not required to be authorized by the board of directors of such Person (or by any Person or group of Persons exercising similar
authority) and is not required to be specifically authorized by the parent company (if any) of such Person; and


 


(c) such
action is similar in nature and magnitude to actions customarily taken, without any authorization by the board of directors (or by any
Person or group of Persons exercising similar authority), in the ordinary course of the normal day-to-day operations of other Persons
that are in the same line of business as such Person.


 


“Organizational Documents”
(a) the articles or certificate of incorporation and the bylaws of a corporation; (b) the partnership agreement and any statement
of partnership of a general partnership; (c) the limited partnership agreement and the certificate of limited partnership of a limited
partnership; (d) any charter or similar document adopted or filed in connection with the creation, formation, or organization of
a Person; and (e) any amendment to any of the foregoing.


 


“Parent Shares” newly-issued
shares of common stock, par value $0.001, of Parent.


 


“Person” any individual,
corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint venture, estate,
trust, association, organization, labor union, or other entity or Governmental Body.


 


“PRC” the People’s
Republic of China (excluding, the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan).


 


“Proceeding” any action,
arbitration, audit, hearing, investigation, litigation, or suit (whether civil, criminal, administrative, investigative, or informal) commenced,
brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator.


 


“Related Person” with
respect to a particular individual:


 


(a) each
other member of such individual’s Family;


 




    5


     


    

 


(b) any
Person that is directly or indirectly controlled by such individual or one or more members of such individual’s Family;


 


(c) any
Person in which such individual or members of such individual’s Family hold (individually or in the aggregate) a Material Interest;
and


 


(d) any
Person with respect to which such individual or one or more members of such individual’s Family serves as a director, officer, partner,
executor, or trustee (or in a similar capacity).


 


With respect to a specified
Person other than an individual:


 


(a) any
Person that directly or indirectly controls, is directly or indirectly controlled by, or is directly or indirectly under common control
with such specified Person;


 


(b) any
Person that holds a Material Interest in such specified Person;


 


(c) each
Person that serves as a director, officer, partner, executor, or trustee of such specified Person (or in a similar capacity);


 


(d) any
Person in which such specified Person holds a Material Interest;


 


(e) any
Person with respect to which such specified Person serves as a general partner or a trustee (or in a similar capacity); and


 


(f) any
Related Person of any individual described in clause (b) or (c).


 


For purposes of this definition,
(a) the “Family” of an individual includes (i) the individual, (ii) the individual’s spouse and
former spouses, (iii) any other natural person who is related to the individual or the individual’s spouse within the second
degree, and (iv) any other natural person who resides with such individual, and (b) “Material Interest” means
direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of voting securities
or other voting interests representing at least 5% of the outstanding voting power of a Person or equity securities or other equity interests
representing at least 5% of the outstanding equity securities or equity interests in a Person.


 


“Release” any spilling,
leaking, emitting, discharging, depositing, escaping, leaching, dumping, or other releasing into the Environment, whether intentional
or unintentional.


 


“Representative” with
respect to a particular Person, any director, officer, employee, agent, consultant, advisor, or other representative of such Person, including
legal counsel, accountants, and financial advisors.


 


“Revenue” with respect
to any period, the aggregate payments received during such period (and not refunded during such period) by all the Acquired Companies
from customers and the aggregate payments owed during such period by customers to all the Acquired Companies for products sold and services
provided and not yet received during such period, calculated in accordance with generally accepted accounting principles in the U.S.A.


 


“Second Payment” as
defined in Section 2.6 (a).


 


“Second Payment Date”
as defined in Section 2.6 (a).


 


“Securities Act” the
Securities Act of 1933 or any successor law, and regulations and rules issued pursuant to that Act or any successor law.


 




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“Sellers” as defined
in the first paragraph of this Agreement.


 


“Shares” as defined
in the Recitals of this Agreement.


 


“Subsidiary” with respect
to any Person (the “Owner”), any corporation or other Person of which securities or other interests having the power
to elect a majority of that corporation’s or other Person’s board of directors or similar governing body, or otherwise having
the power to direct the business and policies of that corporation or other Person (other than securities or other interests having such
power only upon the happening of a contingency that has not occurred) are held by the Owner or one or more of its Subsidiaries; when
used without reference to a particular Person, “Subsidiary” means a Subsidiary of the Company.


 


“Tax” any tax (including
any income tax, capital gains tax, value-added tax, sales tax, property tax, gift tax, or estate tax), levy, assessment, tariff, duty
(including any customs duty), deficiency, or other fee, and any related charge or amount (including any fine, penalty, interest, or addition
to tax), imposed, assessed, or collected by or under the authority of any Governmental Body or payable pursuant to any tax-sharing agreement
or any other Contract relating to the sharing or payment of any such tax, levy, assessment, tariff, duty, deficiency, or fee.


 


“Tax Return” any return
(including any information return), report, statement, schedule, notice, form, or other document or information filed with or submitted
to, or required to be filed with or submitted to, any Governmental Body in connection with the determination, assessment, collection,
or payment of any Tax or in connection with the administration, implementation, or enforcement of or compliance with any Legal Requirement
relating to any Tax.


 


“Third Party Auditor”
as defined in Section 2.6(a).


 


“Third Party Beneficiaries”
Ye Zhang and Bo Wang, both Chinese citizens residing in the PRC.


 


“Third Payment” as defined
in Section 2.6(b).


 


“Third Payment Date”
as defined in Section 2.6 (b).


 


“Threat of Release”
a substantial likelihood of a Release that may require action in order to prevent or mitigate damage to the Environment that may result
from such Release.


 


“Threatened” a claim,
Proceeding, dispute, action, or other matter will be deemed to have been “Threatened” if any demand or statement has been
made (orally or in writing) or any notice has been given (orally or in writing), or if any other event has occurred or any other
circumstances exist, that would lead a prudent Person to conclude that such a claim, Proceeding, dispute, action, or other matter is likely
to be asserted, commenced, taken, or otherwise pursued in the future.


 


“U.S.A.” the United
States of America.


 


		2.	SALE AND TRANSFER OF SHARES; CLOSING.



 


2.1 Shares. Upon the
terms and subject to the conditions of this Agreement, at the Closing, Sellers shall sell, convey, assign, transfer and deliver to Buyer,
and Buyer shall purchase, acquire and accept from Sellers, all right, title and interest in and to the Shares, free and clear of all
Encumbrance.


 


2.2 Purchase Price.
The aggregate purchase price (the “Purchase Price”) for the Shares is RMB 75,000,000, payable in the forms and
methods as set forth in Section 2.3 and Section 2.6. The Purchase Price shall be subject to post-Closing adjustment in
accordance with Section 2.6.


 




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2.3 Payment of Consideration.
The Purchase Price, subject to post-Closing adjustment, shall be paid as follows:


 


(a) Upon
the terms and subject to the conditions of this Agreement, in consideration of the aforesaid sale, conveyance, assignment, transfer and
delivery of the Shares, 2,200,000 Parent Shares (the “Closing Stock Payment”), the value of which the parties hereto
agree to be RMB 43,560,000 or US$6,600,000, shall be issued to Sellers or their designees at the Closing.


 


(b) Upon
the terms and subject to the conditions of this Agreement, on the Second Payment Date (as defined below), 800,000 Parent Shares, the value
of which the parties hereto agree to be RMB 15,840,000 or US$2,400,000 (the “Second Payment”) shall be issued to Sellers
or their designees. The Second Payment shall be adjusted pursuant to Section 2.6 (a)(v).


 


(c) Upon
the terms and subject to the conditions of this Agreement, on the Third Payment Date (as defined below), 800,000 Parent Shares, the value
of which the parties hereto agree to be RMB 15,840,000 or US$2,400,000 (the “Third Payment”) shall be issued to Sellers
or their designees. The Third Payment shall be adjusted pursuant to Section 2.6 (b)(v).


 


2.4 Closing.
The purchase and sale (the “Closing”) provided for in this Agreement will take place at such place and on such date
as Buyer and Sellers shall mutually agree (the “Closing Date”), which is no later than two business days after the
date that all closing conditions set forth in Sections 9 and 10 have been satisfied or waived. The Closing may also be
consummated by facsimile, electronically and by other means satisfactory to Buyer, Sellers and their respective counsel. The Closing
shall be deemed to occur as of midnight on the Closing Date.


 


2.5 Closing Obligations.
At the Closing:


 


(a) Sellers
will deliver to Buyer


 


(i) certificates
representing all of the Shares, free and clear of all Encumbrances, duly endorsed in blank or with a fully executed stock power attached,
or duly executed instrument of share transfer with respect to the Shares, all in proper form for transfer and in form and substance satisfactory
to Buyer;


 


(ii) evidence
that the official records of all Governmental Bodies of the PRC with appropriate jurisdiction have been updated to reflect Buyer owns,
beneficially and on the record, all of the Shares; and


 


(iii) all
other agreements, documents, instruments or certificates required to be delivered by Sellers pursuant to Section 9.6, at or prior
to the Closing; and


 


(b) Buyer
will cause the Closing Stock Payment issued to Sellers and the Third Party Beneficiaries per the schedule set forth on Schedule 2.5
and deliver to Sellers and all other agreements, documents, instruments or certificates required to be delivered by Buyer pursuant to
Section 10.1, at or prior to the Closing.


 






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2.6 Payment
of Post-Closing Consideration.


 


(a) The
Second Payment.


 


(i) 2022
Profit Statement


 


Within fifteen (15)
Business Days after the completion of the financial statements for the calendar year of 2022 for the Company (the “2022 Financial
Statements”), Buyer shall provide to Sellers a statement of Buyer’s good faith calculations of Net Profit for the calendar
year of 2022, to be derived from the 2022 Financial Statements (the “2022 Profit Statement”). Buyer shall provide to
Sellers materials as reasonably required to support such 2022 Profit Statement.


 


(ii) Objection
Period


 


Within fifteen (15)
days following delivery of the 2022 Profit Statement, Sellers shall notify Buyer in writing if they have any objections to the 2022 Profit
Statement. The notice of objection must state in reasonable detail the basis of each objection and the approximate amounts in dispute.
Sellers shall be deemed to have accepted the 2022 Profit Statement delivered to them if Sellers do not notify Buyer of any objection within
such period of fifteen (15) days.


 


(iii) Settlement
of Dispute


 


If Sellers dispute the
2022 Profit Statement in accordance with Section 2.6(a)(ii), then Buyer and Sellers will work expeditiously and in good faith in
an attempt to resolve such dispute within a further period of fifteen (15) days after the date of the notification of such dispute, failing
which the dispute may be submitted by Buyer for final determination to one (1) reputable accounting firm jointly chosen by Buyer and Sellers
(with which neither Party or their respective Affiliates, have any relationship) (the “Third Party Auditor”). Buyer
and Sellers shall use commercially reasonable efforts to cause the Third Party Auditor to complete its work within forty-five (45) days
of their engagement. The Third Party Auditor shall allow each of Buyer and Sellers to present their respective positions regarding the
2022 Profit Statement, and each of Buyer and Sellers shall have the right to present additional documents, materials and other information,
and make an oral presentation to the Third Party Auditor regarding the dispute. The Third Party Auditor may not assign a value to any
item greater than the greatest value for such item claimed by Buyer or Sellers, as the case may be, or less than the least value for such
item claimed by Buyer or Sellers, as the case may be.


 


(iv) Final
Determination


 


Promptly following the
time periods referred in Section 2.6(a)(ii) during which no notice of objection was given or any dispute was resolved in accordance
with Section 2.6(a)(iii), as the case may be, Buyer shall deliver to Sellers a final version of the 2022 Profit Statement (the
“Final 2022 Profit Statement”) (the date of such delivery, the “2022 Profit Statement Delivery Date”).
The Final 2022 Profit Statement shall be final and binding upon the parties upon delivery thereof and shall not be subject to appeal,
absent manifest error.


 




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(v) Adjustment
to the Second Payment


 


(A) If
the value of Net Profit as shown in the Final 2022 Statement (the “2022 Actual Profit”) equals or exceeds RMB 5,000,000
(the “2022 Profit Target”), the Second Payment shall be 800,000 Parent Shares.


 


(B) If
the value of the 2022 Actual Profit is less than the 2022 Profit Target, the Second Payment shall be the result of 800,000 Parent Shares
× (2022 Actual Profit /2022 Profit Target).


 


(vi) Payment
of the Second Payment.


 


The Second Payment, as adjusted pursuant
to Section 2.6(a)(v), shall be issued to Sellers and the Third Party Beneficiaries within five (5) days of the 2022 Profit Statement
Delivery Date (the “Second Payment Date”) per a schedule provided by Sellers, unless otherwise agreed upon by the parties.


 


(b) The
Third Payment.


 


(i) 2023
Profit Statement


 


Within fifteen (15) Business Days after
the completion of the financial statements for the calendar year of 2023 for each of the Acquired Companies (collectively, the “2023
Financial Statements”), Buyer shall provide to Sellers a statement of Buyer’s good faith calculations of Net Profit for
the calendar year of 2023, to be derived from the 2023 Financial Statements (the “2023 Profit Statement”). Buyer shall
provide to Sellers materials as reasonably required to support such 2023 Profit Statement.


 


(ii) Objection
Period


 


Within fifteen (15) days following delivery
of the 2023 Profit Statement, Sellers shall notify Buyer in writing if they have any objections to the 2023 Profit Statement. The notice
of objection must state in reasonable detail the basis of each objection and the approximate amounts in dispute. Sellers shall be deemed
to have accepted the 2023 Profit Statement delivered to them if Sellers do not notify Buyer of any objection within such period of fifteen
(15) days.


 


(iii) Settlement
of Dispute


 


If Sellers dispute the 2023 Profit Statement
in accordance with Section 2.6(b)(ii), then Buyer and Sellers will work expeditiously and in good faith in an attempt to resolve
such dispute within a further period of fifteen (15) days after the date of the notification of such dispute, failing which the dispute
may be submitted by Buyer for final determination to the Third Party Auditor. Buyer and Sellers shall use commercially reasonable efforts
to cause the Third Party Auditor to complete its work within forty-five (45) days of their engagement. The Third Party Auditor shall allow
each of Buyer and Sellers to present their respective positions regarding the 2023 Profit Statement, and each of Buyer and Sellers shall
have the right to present additional documents, materials and other information, and make an oral presentation to the Third Party Auditor
regarding the dispute. The Third Party Auditor may not assign a value to any item greater than the greatest value for such item claimed
by Buyer or Sellers, as the case may be, or less than the least value for such item claimed by Buyer or Sellers, as the case may be.


 




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(iv) Final
Determination


 


Promptly following the time periods referred
in Section 2.6 (b)(ii) during which no notice of objection was given or any dispute was resolved in accordance with Section
2.6(b)(iii), as the case may be, Buyer shall deliver to Sellers a final version of the 2023 Profit Statement (the “Final
2023 Profit Statement”) (the date of such delivery, the “2023 Profit Statement Delivery Date”). The Final
2023 Profit Statement shall be final and binding upon the parties upon delivery thereof and shall not be subject to appeal, absent manifest
error.


 


(v) Adjustment
to the Third Payment


 


(A) If
the value of Net Profit as shown in the Final 2023 Profit Statement (the “2023 Actual Profit”) equals or exceeds RMB
5,500,000 (the “2023 Profit Target”), the Third Payment shall be 800,000 Parent Shares.


 


(B) If
the value of the 2023 Actual Profit is less than the 2023 Profit Target, the Third Payment shall be the result of 800,000 Parent Shares
× (2023 Actual Profit /2023 Profit Target).


 


(vi) Payment
of the Third Payment.


 


The Third Payment, as
adjusted pursuant to Section 2.6(b)(v), shall be issued to Sellers and the Third Party Beneficiaries within five (5) days of the
2023 Profit Statement Delivery Date (the “Third Payment Date”) per a schedule provided by Sellers, unless otherwise
agreed upon by the parties.


 


		3.	REPRESENTATIONS AND WARRANTIES OF SELLERS.



 


Sellers jointly and severally
represent and warrant to Buyer as of the date hereof and as of the Closing Date as follows


 


3.1 Title to the Shares.
Sellers are the lawful owners, of record and beneficially of the Shares and have good and marketable title to the Shares, free and
clear of all Encumbrances whatsoever. Schedule 3.1 sets out the name of each current holder of the Shares and the ownership percentage
of that holder. Except for this Agreement, there are no agreements or understandings between either Seller and any other Person with
respect to the acquisition, disposition or voting of or any other matters pertaining to the Shares and no restriction on the voting rights
and other incidents of record or beneficial ownership pertaining thereto. There are no Proceedings or Orders pending or, to the Knowledge
of each Seller, threatened by or against either Seller relating to the Shares.


 


3.2 Authority.
Each Seller has all requisite power and authority to execute, deliver and perform such Seller’s obligations under this Agreement
and to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by each Seller,
and constitutes a valid and binding obligation of such Seller, enforceable against such Seller in accordance with its terms.


 


3.3 Consents Required.
No consent, permit, approval, Order or authorization of or by, registration, declaration or filing with, or notification to any Governmental
Body is required by or with respect to each Seller in connection with the execution and delivery of this Agreement and consummation by
such Seller of the transactions contemplated hereby.


 




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3.4 Investment
Representations. Each Seller represents that he/she is not a U.S. person, and further represents and warrants to Buyer as
follows:


 


(a) At
the time of (a) the offer of Parent Shares by the Buyer and (b) the acceptance of the offer by such Seller, of the Parent Shares, Seller
was outside the United States.


 


(b) Seller
is acquiring the Parent Shares for Seller’s own account, for investment and not for distribution or resale to others and is not
purchasing the Parent Shares for the account or benefit of any U.S. person, or with a view towards distribution to any U.S. person, in
violation of the registration requirements of the Securities Act.


 


(c) Seller
will make all subsequent offers and sales of the Parent Shares either (x) outside of the United States in compliance with Regulation S;
(y) pursuant to a registration under the Securities Act; or (z) pursuant to an available exemption from registration under the Securities
Act. Specifically, such person or entity will not resell the Parent Shares to any U.S. person or within the United States prior to the
expiration of a period commencing on the Closing Date and ending on the date that is one year thereafter (the “Distribution Compliance
Period”), except pursuant to registration under the Securities Act or an exemption from registration under the Securities Act.


 


(d) Seller
has no present intention to sell the Parent Shares in the United States or to a U.S. person at any predetermined time, has made no predetermined
arrangements to sell the Parent Shares and is not acting as a Distributor of such securities.


 


(e) Seller,
its Affiliates nor any Person acting on behalf of such person or entity, has entered into, has the intention of entering into, or will
enter into any put option, short position or other similar instrument or position in the U.S. with respect to the Parent Shares at any
time after the Closing Date through the Distribution Compliance Period.


 


(f) Seller
consents to the placement of a legend on any certificate or other document evidencing the Parent Shares substantially in the form set
forth in Section 6.14 of this Agreement.


 


(g)
Seller is not acquiring the Parent Shares in a transaction (or an element of a series of transactions) that is part of any plan or scheme
to evade the registration provisions of the Securities Act.


 


(h) Seller
has sufficient knowledge and experience in finance, securities, investments and other business matters to be able to protect such person’s
or entity’s interests in connection with the transactions contemplated by this Agreement.


 


(i) Seller
has consulted, to the extent that it has deemed necessary, with its tax, legal, accounting and financial advisors concerning its investment
in the Parent Shares.


 


(j) Seller
understands the various risks of an investment in the Parent Shares and can afford to bear such risks for an indefinite period of time,
including, without limitation, the risk of losing its entire investment in the Parent Shares.


 


(k) Seller
has had access to Buyer’s publicly filed reports with the SEC and has been furnished during the course of the transactions contemplated
by this Agreement with all other public information regarding the Buyer that such person or entity has requested and all such public information
is sufficient for such person or entity to evaluate the risks of investing in the Parent Shares.


 




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(l) Seller
has been afforded the opportunity to ask questions of and receive answers concerning Buyer and the terms and conditions of the issuance
of the Parent Shares.


 


(m) Seller
is not relying on any representations and warranties concerning Buyer made by the Buyer or any officer, employee or agent of Buyer, other
than those contained in this Agreement.


 


(n) Seller
will not sell or otherwise transfer the Parent Shares unless either (A) the transfer of such securities is registered under the Securities
Act or (B) an exemption from registration of such securities is available.


 


(o) Seller
represents that the address furnished on its signature page to this Agreement is the principal residence of Seller.


 


(p) Seller
understands and acknowledges that the Parent Shares have not been recommended by any federal or state securities commission or regulatory
authority, that the foregoing authorities have not confirmed the accuracy or determined the adequacy of any information concerning the
Buyer that has been supplied to such person or entity and that any representation to the contrary is a criminal offense.


 


(q) Seller
is an Accredited Investor as that term is defined in Regulation D of the Securities Exchange Act, and is able to protect its interests
in connection with the acquisition of the Parent Shares and can bear the economic risk of investment in such securities without producing
a material adverse change in respect of Seller’s financial condition. Seller has such knowledge and experience in financial or business
matters that Seller is capable of evaluating the merits and risks of the investment in the Parent Shares


 


		4.	REPRESENTATIONS AND WARRANTIES OF THE ACQUIRED
COMPANIES AND SELLERS



 


The Acquired Companies and
Sellers jointly and severally represent and warrant to Buyer as of the date hereof and as of the Closing Date as follows:


 


4.1 Organization
and Good Standing.


 


(a) Each
Acquired Company is duly organized, validly existing, and in good standing under the laws of its jurisdiction of formation, with full
corporate power and authority to conduct its business as it is now being conducted, to own or use the properties and assets that it purports
to own or use, and to perform all of its obligations in the Ordinary Course of Business and under its contracts. Each Acquired Company
is duly qualified to do business as a foreign company and is in good standing under the laws of each country, territory or other jurisdiction
in which either the ownership or use of the properties owned or used by it, or the nature of the activities conducted by it, requires
such qualification.


 


(b) Sellers
have delivered to Buyer copies of the Organizational Documents of each Acquired Company, as currently in effect.


 


4.2 Authority;
No Conflict.


 


(a) This
Agreement constitutes the legal, valid, and binding obligation of each Acquired Company, enforceable against each Acquired Company in
accordance with its terms. Sellers and the Acquired Companies have the absolute and unrestricted right, power, authority, and capacity
to execute and deliver this Agreement and the other documents required to be delivered hereunder and to perform their obligations under
this Agreement.


 




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(b) Neither
the execution and delivery of this Agreement nor the consummation or performance of any of the Contemplated Transactions will, directly
or indirectly (with or without notice or lapse of time):


 


(i) contravene,
conflict with, or result in a violation of (A) any provision of the Organizational Documents of any Acquired Company, or (B) any
resolution adopted by the board of directors or the stockholders of any Acquired Company;


 


(ii) contravene,
conflict with, or result in a violation of, or give any Governmental Body or other Person the right to challenge any of the Contemplated
Transactions or to exercise any remedy or obtain any relief under, any Legal Requirement or any Order to which any Acquired Company or
Seller, or any of the assets owned or used by any Acquired Company, may be subject;


 


(iii) contravene,
conflict with, or result in a violation of any of the terms or requirements of, or give any Governmental Body the right to revoke, withdraw,
suspend, cancel, terminate, or modify, any Governmental Authorization that is held by any Acquired Company or that otherwise relates to
the business of, or any of the assets owned or used by, any Acquired Company;


 


(iv) cause
Buyer or any Acquired Company to become subject to, or to become liable for the payment of, any Tax;


 


(v) cause
any of the assets owned by any Acquired Company to be reassessed or revalued by any taxing authority or other Governmental Body;


 


(vi) contravene,
conflict with, or result in a violation or breach of any provision of, or give any Person the right to declare a default or exercise any
remedy under, or to accelerate the maturity or performance of, or to cancel, terminate, or modify, any Applicable Contract; or


 


(vii) result
in the imposition or creation of any Encumbrance upon or with respect to any of the assets owned or used by any Acquired Company.


 


None of the Sellers and the
Acquired Companies is or will be required to give any notice to or obtain any consent from any Person in connection with the execution
and delivery of this Agreement or the consummation or performance of any of the Contemplated Transactions.


 


4.3 Capitalization.
Sellers are and will be on the Closing Date the record and beneficial owner and holder of the Shares, free and clear of all Encumbrances.
No legend or other reference to any purported Encumbrance appears upon any certificate representing equity securities of any Acquired
Company. All the outstanding equity securities of each Acquired Company have been duly authorized and validly issued and are fully paid
and nonassessable. There are no Contracts relating to the issuance, sale, or transfer of any equity securities or other securities of
any Acquired Company. None of the outstanding equity securities or other securities of any Acquired Company was issued in violation of
the Securities Act or any other Legal Requirement. None of the Acquired Companies owns, or has any Contract to acquire, any equity securities
or other securities of any Person (other than the Acquired Company) or any direct or indirect equity or ownership interest in any
other business.


 


4.4 Financial Statements.
Sellers have delivered to Buyer the unaudited consolidated balance sheets of each Acquired Company as at June 30, 2021 (the “Latest
Balance Sheet”) and December 31, 2020, and the related consolidated statements of income, changes in stockholders’ equity,
and cash flow for each of the fiscal years then ended, including the notes thereto. Such financial statements and notes fairly present
the financial condition and the results of operations, changes in stockholders’ equity, and cash flow of each Acquired Company
as at the respective dates of and for the periods referred to in such financial statements. The financial statements referred to in this
Section 4.4 reflect the consistent application of such accounting principles throughout the periods involved.


 




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4.5 Books and Records.
The books of account, minute books, stock record books, and other records of each Acquired Company, all of which have been made available
to Buyer, are complete and correct. The minute books of each Acquired Company contain accurate and complete records of all meetings held,
and corporate action taken by, the stockholders, the Boards of Directors, and committees of the Boards of Directors of each Acquired
Company, and no meeting of any such stockholders, Board of Directors, or committee has been held for which minutes have not been prepared
and are not contained in such minute books. At the Closing, all those books and records will be in the possession of each Acquired Company.


 


4.6 Title to Properties;
Encumbrances. Sellers have delivered or made available to Buyer copies of the deeds and
other instruments (as recorded) by which each Acquired Company acquired all real property, leaseholds, or other interests owned by it,
and copies of all title insurance policies, opinions, abstracts, and surveys in the possession of Sellers or each Acquired Company and
relating to such property or interests. Each Acquired Company owns (with good and marketable title in the case of real property, subject
only to the matters permitted by the following sentence) all the properties and assets (whether real, personal, or mixed and whether
tangible or intangible) that they purport to own located in the facilities owned or operated by such Acquired Company or reflected
as owned in the books and records of such Acquired Company, including all of the properties and assets reflected in the Latest Balance
Sheet (except for personal property sold since the date of the Latest Balance Sheet, as the case may be, in the Ordinary Course of Business),
and all of the properties and assets purchased or otherwise acquired by each Acquired Company since the date of the Latest Balance Sheet
(except for personal property acquired and sold since the date of the Balance Sheet in the Ordinary Course of Business and consistent
with past practice). All material properties and assets reflected in the Latest Balance Sheet are free and clear of all Encumbrances
and are not, in the case of real property, subject to any rights of way, building use restrictions, exceptions, variances, reservations,
or limitations of any nature except, with respect to all such properties and assets, (a) mortgages or security interests shown on
the Latest Balance Sheet as securing specified liabilities or obligations, with respect to which no default (or event that, with notice
or lapse of time or both, would constitute a default) exists, (b) mortgages or security interests incurred in connection with
the purchase of property or assets after the date of the Latest Balance Sheet (such mortgages and security interests being limited to
the property or assets so acquired), with respect to which no default (or event that, with notice or lapse of time or both, would constitute
a default) exists, (c) liens for current taxes not yet due, and (d) with respect to real property, (i) minor imperfections
of title, if any, none of which is substantial in amount, materially detracts from the value or impairs the use of the property subject
thereto, or impairs the operations of each Acquired Company, and (ii) zoning laws and other land use restrictions that do not impair
the present or anticipated use of the property subject thereto. All buildings, plants, and structures owned by each Acquired Company
lie wholly within the boundaries of the real property owned by each Acquired Company and do not encroach upon the property of, or otherwise
conflict with the property rights of, any other Person.


 


4.7 Condition and Sufficiency
of Assets. The buildings, plants, structures, and equipment of each Acquired Company are
structurally sound, are in good operating condition and repair, and are adequate for the uses to which they are being put, and none of
such buildings, plants, structures, or equipment is in need of maintenance or repairs except for ordinary, routine maintenance and repairs
that are not material in nature or cost. The building, plants, structures, and equipment of each Acquired Company are sufficient for
the continued conduct of each Acquired Company’s businesses after the Closing in substantially the same manner as conducted prior
to the Closing.


 




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4.8 Accounts Receivable.
All accounts receivable of each Acquired Company that are reflected on the Latest Balance Sheet or on the accounting records of each
Acquired Company as of the Closing Date (collectively, the “Accounts Receivable”) represent or will represent valid
obligations arising from sales actually made or services actually performed in the Ordinary Course of Business. Unless paid prior to
the Closing Date, the Accounts Receivable are or will be as of the Closing Date current and collectible net of the respective reserves
shown on the Latest Balance Sheet or on the accounting records of each Acquired Company as of the Closing Date (which reserves are adequate
and calculated consistent with past practice and, in the case of the reserve as of the Closing Date, will not represent a greater percentage
of the Accounts Receivable as of the Closing Date than the reserve reflected in the Latest Balance Sheet represented of the Accounts
Receivable reflected therein and will not represent a material adverse change in the composition of such Accounts Receivable in terms
of aging). Subject to such reserves, each of the Accounts Receivable either has been or will be collected in full, without any set-off,
within ninety days after the day on which it first becomes due and payable. There is no contest, claim, or right of set-off, other than
returns in the Ordinary Course of Business, under any Contract with any obligor of an Accounts Receivable relating to the amount or validity
of such Accounts Receivable.


 


4.9 Inventory.
All inventory of each Acquired Company, whether or not reflected in the Latest Balance Sheet, consists of a quality and quantity usable
and salable in the Ordinary Course of Business, except for obsolete items and items of below-standard quality, all of which have been
written off or written down to net realizable value in the Latest Balance Sheet or on the accounting records of each Acquired Company
as of the Closing Date, as the case may be. The quantities of each item of inventory (whether raw materials, work-in-process, or finished
goods) are not excessive, but are reasonable in the present circumstances of each Acquired Company.


 


4.10 No Undisclosed Liabilities.
None of the Acquired Companies has any liabilities or obligations of any nature (whether known or unknown and whether absolute, accrued,
contingent, or otherwise) except for liabilities or obligations reflected or reserved against in the Latest Balance Sheet and current
liabilities incurred in the Ordinary Course of Business since the respective dates thereof.


 


4.11 Taxes.


 


(a) Each
Acquired Company has filed or caused to be filed on a timely basis through the date hereof all Tax Returns that are or were required to
be filed by or with respect to any of them, either separately or as a member of a group of corporations, pursuant to applicable Legal
Requirements. Sellers have delivered or made available to Buyer copies of all such Tax Returns filed for its three most recent completed
Tax years. Each Acquired Company has paid, or made provision for the payment of, all Taxes that have or may have become due pursuant to
those Tax Returns or otherwise, or pursuant to any assessment received by Sellers or each Acquired Company.


 


(b) The
charges, accruals, and reserves with respect to Taxes on the respective books of each Acquired Company are adequate and are at least equal
to each Acquired Company’s liability for Taxes. There exists no proposed tax assessment against any Acquired Company except as disclosed
in the Latest Balance Sheet.


 


(c) All
Taxes that the Company is or was required by Legal Requirements to withhold or collect have been duly withheld or collected and, to the
extent required, have been paid to the proper Governmental Body or other Person.


 


(d) All
Tax Returns filed by (or that include on a consolidated basis) each Acquired Company are true, correct, and complete. There is no
tax sharing agreement that will require any payment by each Acquired Company after the date of this Agreement.


 


(e) None
of the Acquired Companies has received any notice that any of its Tax Returns has been examined by any Governmental Body within the past
6 years.


 






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4.12 No Material Adverse
Change. Since the date of the Latest Balance Sheet, there has not been any material adverse
change in the business, operations, properties, prospects, assets, or condition of each Acquired Company, and no event has occurred or
circumstance exists that may result in such a material adverse change.


 


4.13 Employee Benefits.
Sellers have delivered to Buyer a complete list of employee benefit plans (the “Benefit Plan”) of each Acquired
Company. With respect to each Benefit Plan, each Acquired Company has heretofore made available to Buyer correct and complete copies
of each of the following documents: (a) the Benefit Plan and all related documents (including all amendments thereto), (b) the summary
plan description prepared for each such Benefit Plan (including all amendments thereto) and (c) all Contracts with third-party
administrators, actuaries, investment managers, consultants or other independent contractors related to each such Benefit Plan. Each
Benefit Plan has been administered and operated in material compliance with its terms, and the requirements of all applicable Legal Requirements.


 


4.14 Compliance
With Legal Requirements; Governmental Authorizations.


 


(a) Each
of the Acquired Companies has been and is in full compliance with each Legal Requirement that is or was applicable to it or to the conduct
or operation of its business or the ownership or use of any of its assets;


 


(b) No
event has occurred or circumstance exists that (with or without notice or lapse of time) (A) may constitute or result in a violation
by any Acquired Company of, or a failure on the part of any Acquired Company to comply with, any Legal Requirement, or (B) may give
rise to any obligation on the part of any Acquired Company to undertake, or to bear all or any portion of the cost of, any remedial action
of any nature; and


 


(c) None
of the Acquired Companies has received, any notice or other communication (whether oral or written) from any Governmental Body or
any other Person regarding (A) any actual, alleged, possible, or potential violation of, or failure to comply with, any Legal Requirement,
or (B) any actual, alleged, possible, or potential obligation on the part of any Acquired Company to undertake, or to bear all or
any portion of the cost of, any remedial action of any nature.


 


(d) Each
Governmental Authorization held or required to be held by each Acquired Company or that otherwise relates to the business of, or to any
of the assets owned or used by, each Acquired Company is valid and in full force and effect.


 


(e) Each
Acquired Company has been and is in full compliance with all of the terms and requirements of each Governmental Authorization held or
required to be held by it or that otherwise relates to the business of, or to any of the assets owned or used by, it;


 


(f) No
event has occurred or circumstance exists that may (with or without notice or lapse of time) (A) constitute or result directly
or indirectly in a violation of or a failure to comply with any term or requirement of any Governmental Authorization held or required
to be held by any Acquired Company or that otherwise relates to the business of, or to any of the assets owned or used by, it, or (B) result
directly or indirectly in the revocation, withdrawal, suspension, cancellation, or termination of, or any modification to, any Governmental
Authorization held or required to be held by any Acquired Company or that otherwise relates to the business of, or to any of the assets
owned or used by, it;


 


(g) None
of the Acquired Companies has received, any notice or other communication (whether oral or written) from any Governmental Body or
any other Person regarding (A) any actual, alleged, possible, or potential violation of or failure to comply with any term or requirement
of any Governmental Authorization, or (B) any actual, proposed, possible, or potential revocation, withdrawal, suspension, cancellation,
termination of, or modification to any Governmental Authorization; and


 




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(h) All
applications required to have been filed for the renewal of the Governmental Authorizations referred to above have been duly filed on
a timely basis with the appropriate Governmental Bodies, and all other filings required to have been made with respect to such Governmental
Authorizations have been duly made on a timely basis with the appropriate Governmental Bodies.


 


Each Acquired Company has
been granted all of the Governmental Authorizations necessary to permit such Acquired Company to lawfully conduct and operate their businesses
in the manner they currently conduct and operate such businesses and to permit such Acquired Company to own and use their assets in the
manner in which they currently own and use such assets.


 


4.15 Legal
Proceedings; Orders.


 


(a) There
is no pending Proceeding that has been commenced by or against any Acquired Company or that otherwise relates to or may affect the business
of, or any of the assets owned or used by, any Acquired Company; or that challenges, or that may have the effect of preventing, delaying,
making illegal, or otherwise interfering with, any of the Contemplated Transactions. To the Knowledge of each Seller and each Acquired
Company, (1) no such Proceeding has been Threatened, and (2) no event has occurred or circumstance exists that may give rise
to or serve as a basis for the commencement of any such Proceeding.


 


(b) There
is no Order to which any Acquired Company, or any of the assets owned or used by any Acquired Company, is subject. Neither Seller is subject
to any Order that relates to the business of, or any of the assets owned or used by, any Acquired Company. To the Knowledge of each Seller
and each Acquired Company, no officer, director, agent, or employee of any Acquired Company is subject to any Order that prohibits such
officer, director, agent, or employee from engaging in or continuing any conduct, activity, or practice relating to the business of such
Acquired Company.


 


(c) Each
Acquired Company is, in full compliance with of the terms and requirements of each Order to which it, or any of the assets owned or used
by it, is or has been subject. No event has occurred or circumstance exists that may constitute or result in (with or without notice or
lapse of time) a violation of or failure to comply with any term or requirement of any Order to which any Acquired Company, or any
of the assets owned or used by any Acquired Company, is subject. None of the Acquired Companies has received, any notice or other communication
(whether oral or written) from any Governmental Body or any other Person regarding any actual, alleged, possible, or potential violation
of, or failure to comply with, any term or requirement of any Order to which any Acquired Company, or any of the assets owned or used
by any Acquired Company, is or has been subject.


 


4.16 Absence of Certain
Changes and Events. Since the date of the Latest Balance Sheet, each Acquired Company
has conducted their businesses only in the Ordinary Course of Business and there has not been any:


 


(a) change
in any Acquired Company’s authorized or issued capital stock; grant of any stock option or right to purchase shares of capital stock
of any Acquired Company; issuance of any security convertible into such capital stock; grant of any registration rights; purchase, redemption,
retirement, or other acquisition by any Acquired Company of any shares of any such capital stock; or declaration or payment of any dividend
or other distribution or payment in respect of shares of capital stock;


 


(b) amendment
to the Organizational Documents of any Acquired Company;


 




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(c) payment
or increase by any Acquired Company of any bonuses, salaries, or other compensation to any stockholder, director, officer, or (except
in the Ordinary Course of Business) employee or entry into any employment, severance, or similar Contract with any director, officer,
or employee;


 


(d) adoption
of, or increase in the payments to or benefits under, any profit sharing, bonus, deferred compensation, savings, insurance, pension, retirement,
or other employee benefit plan for or with any employees of any Acquired Company;


 


(e) damage
to or destruction or loss of any asset or property of any Acquired Company, whether or not covered by insurance, materially and adversely
affecting the properties, assets, business, financial condition, or prospects of any Acquired Company, taken as a whole;


 


(f) entry
into, termination of, or receipt of notice of termination of (i) any license, distributorship, dealer, sales representative, joint
venture, credit, or similar agreement, or (ii) any Contract or transaction involving a total remaining commitment by or to any Acquired
Company of at least $10,000.00;


 


(g) sale
(other than sales of inventory in the Ordinary Course of Business), lease, or other disposition of any asset or property of any Acquired
Company or mortgage, pledge, or imposition of any lien or other Encumbrance on any material asset or property of any Acquired Company,
including the sale, lease, or other disposition of any of the Intellectual Property Assets;


 


(h) cancellation
or waiver of any claims or rights with a value to any Acquired Company in excess of $10,000.00;


 


(i) material
change in the accounting methods used by any Acquired Company; or


 


(j) agreement,
whether oral or written, by any Acquired Company to do any of the foregoing.


 


4.17 Contracts; No Defaults.
Sellers have delivered to Buyer copies, including all schedules, exhibits and amendments, of all Contracts to which any Acquired
Company is a party or to which the business of any Acquired Company is subject involving either (a) obligations (contingent or otherwise) of,
or the possibility of payments to, any Acquired Company in excess of $10,000.00, (b) actual or purported restrictions on the ability
of any Acquired Company to compete in any line of business or with any Person or in any geographic area during any period of time, or
(c) actual or purported restrictions on the prices any Acquired Company may charge for its products or services. Each Material Contract
is valid and binding on each Applicable Acquired Company in accordance with its terms and is in full force and effect. None of the Acquired
Companies is in material breach or violation of any Material Contract and no event has occurred which, with the giving of notice or the
passage of time, would result in a default or violation thereunder. To each Seller’s and each Applicable Acquired Company’s
Knowledge, no other party to any Material Contract is in material breach or violation of that Contract and no event has occurred which,
with the giving of notice or the passage of time, would result in a default or violation thereunder. Sellers and each Applicable Acquired
Company have no reason to believe that there is a reasonable likelihood that any party to any Material Contract will be unable to or
will choose to not comply with the terms of any Material Contract. None of the Acquired Companies has received from any party to a Material
Contract any notice of any intention to terminate any Material Contract. All Contracts of each Applicable Acquired Company relating to
the sale, design, manufacture, or provision of products or services by each Applicable Acquired Company have been entered into in the
Ordinary Course of Business and have been entered into without the commission of any act alone or in concert with any other Person, or
any consideration having been paid or promised, that is or would be in violation of any Legal Requirement.


 




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4.18 Insurance.


 


(a) Sellers
have delivered to Buyer: true and complete copies of all policies of insurance to which each Acquired Company is a party or under which
such Acquired Company, or any director of such Acquired Company, is or has been covered at any time within the years preceding the date
of this Agreement; insurance; and true and complete copies of all pending applications for policies of any statement by the auditor of
such Acquired Company’s financial statements with regard to the adequacy of such entity’s coverage or of the reserves for
claims.


 


(b) All
policies to which each Acquired Company is a party or that provide coverage to such Acquired Company, or any director or officer of such
Acquired Company: (A) are valid, outstanding, and enforceable; (B) are issued by an insurer that is financially sound and reputable;
(C) taken together, provide adequate insurance coverage for the assets and the operations of such Acquired Company for all risks
to which such Acquired Company is normally exposed; (D) are sufficient for compliance with all Legal Requirements and Contracts to
which such Acquired Company is a party or by which any of them is bound; (E) will continue in full force and effect following the
consummation of the Contemplated Transactions; and (F) do not provide for any retrospective premium adjustment or other experienced-based
liability on the part of such Acquired Company.


 


(c) Neither
Seller nor any Acquired Company has received (A) any refusal of coverage or any notice that a defense will be afforded with reservation
of rights, or (B) any notice of cancellation or any other indication that any insurance policy is no longer in full force or effect
or will not be renewed or that the issuer of any policy is not willing or able to perform its obligations thereunder.


 


(d) Each
Acquired Company has paid all premiums due, and have otherwise performed all their respective obligations, under each policy to which
such Acquired Company is a party or that provides coverage to such Acquired Company or director thereof.


 


(e) Each
Acquired Company has given notice to the insurer of all claims that may be insured thereby.


 


4.19 Environmental
Matters.


 


(a) Each
Acquired Company is, and at all times has been, in full compliance with, and has not been and is not in violation of or liable under,
any Environmental Law. Neither Sellers nor any Acquired Company has any basis to expect, nor has any of them or any other Person for whose
conduct they are or may be held to be responsible received, any actual or Threatened order, notice, or other communication from (i) any
Governmental Body or private citizen acting in the public interest, or (ii) the current or prior owner or operator of any Facilities,
of any actual or potential violation or failure to comply with any Environmental Law, or of any actual or Threatened obligation to undertake
or bear the cost of any Environmental, Health, and Safety Liabilities with respect to any of the Facilities or any other properties or
assets (whether real, personal, or mixed) in which either Seller or any Acquired Company has had an interest, or with respect to
any property or Facility at or to which Hazardous Materials were generated, manufactured, refined, transferred, imported, used, or processed
by either Seller, any Acquired Company, or any other Person for whose conduct they are or may be held responsible, or from which Hazardous
Materials have been transported, treated, stored, handled, transferred, disposed, recycled, or received.


 


(b) There
are no pending or Threatened claims, Encumbrances, or other restrictions of any nature, resulting from any Environmental, Health, and
Safety Liabilities or arising under or pursuant to any Environmental Law, with respect to or affecting any of the Facilities or any other
properties and assets (whether real, personal, or mixed) in which either Seller or any Acquired Company has or had an interest.


 


(c) Neither
Sellers nor any Acquired Company has any basis to expect, nor has any of them or any other Person for whose conduct they are or may be
held responsible, received, any citation, directive, inquiry, notice, Order, summons, warning, or other communication that relates to
Hazardous Activity, Hazardous Materials, or any alleged, actual, or potential violation or failure to comply with any Environmental Law,
or of any alleged, actual, or potential obligation to undertake or bear the cost of any Environmental, Health, and Safety Liabilities
with respect to any of the Facilities or any other properties or assets (whether real, personal, or mixed) in which either Seller
or any Acquired Company had an interest, or with respect to any property or facility to which Hazardous Materials generated, manufactured,
refined, transferred, imported, used, or processed by either Seller, any Acquired Company, or any other Person for whose conduct they
are or may be held responsible, have been transported, treated, stored, handled, transferred, disposed, recycled, or received.


 






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(d) Neither
Sellers nor any Acquired Company, or any other Person for whose conduct they are or may be held responsible, has any Environmental, Health,
and Safety Liabilities with respect to the Facilities or , to the Knowledge of each Seller and Acquired Company, with respect to any other
properties and assets (whether real, personal, or mixed) in which either Seller or any Acquired Company (or any predecessor), has
or had an interest, or at any property geologically or hydrologically adjoining the Facilities or any such other property or assets.


 


(e) There
are no Hazardous Materials present on or in the Environment at the Facilities or at any geologically or hydrologically adjoining property,
including any Hazardous Materials contained in barrels, above or underground storage tanks, landfills, land deposits, dumps, equipment
(whether moveable or fixed) or other containers, either temporary or permanent, and deposited or located in land, water, sumps, or
any other part of the Facilities or such adjoining property, or incorporated into any structure therein or thereon. No Seller, any Acquired
Company, any other Person for whose conduct they are or may be held responsible, or any other Person, has permitted or conducted, or is
aware of, any Hazardous Activity conducted with respect to the Facilities or any other properties or assets (whether real, personal, or
mixed) in which either Seller or any Acquired Company has or had an interest.


 


(f) There
has been no Release or, to the Knowledge of each Seller and Acquired Company, Threat of Release, of any Hazardous Materials at or from
the Facilities or at any other locations where any Hazardous Materials were generated, manufactured, refined, transferred, produced, imported,
used, or processed from or by the Facilities, or from or by any other properties and assets (whether real, personal, or mixed) in
which either Seller or any Acquired Company has or had an interest, or any geologically or hydrologically adjoining property, whether
by either Seller, any Acquired Company, or any other Person.


 


(g) Sellers
have delivered to Buyer true and complete copies and results of any reports, studies, analyses, tests, or monitoring possessed or initiated
by Sellers or any Acquired Company pertaining to Hazardous Materials or Hazardous Activities in, on, or under the Facilities, or concerning
compliance by Sellers, each Acquired Company, or any other Person for whose conduct they are or may be held responsible, with Environmental
Laws.


 


4.20 Employees.


 


(a) Sellers
have provided to Buyer a complete and accurate list of the following information for each employee, officer or director of each Acquired
Company, including each employee on leave of absence or layoff status: employer; name; job title; current compensation paid or payable
and any change in compensation since January 1, 2018; vacation accrued; and service credited for purposes of vesting and eligibility to
participate under each Acquired Company’s pension, retirement, profit-sharing, thrift-savings, deferred compensation, stock bonus,
stock option, cash bonus, employee stock ownership (including investment credit or payroll stock ownership), severance pay, insurance,
medical, welfare, or vacation plan or any other employee benefit plan).


 






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(b) No
employee or director of any Acquired Company is a party to, or is otherwise bound by, any agreement or arrangement, including any confidentiality,
noncompetition, or proprietary rights agreement, between such employee or director and any other Person (the “Proprietary Rights
Agreement”) that in any way adversely affects or will affect (i) the performance of his duties as an employee or director
of any Acquired Company, or (ii) the ability of any Acquired Company to conduct its business, including any Proprietary Rights Agreement
with Sellers or any Acquired Company by any such employee or director. To each Seller’s Knowledge, no director, officer, or other
key employee of any Acquired Company intends to terminate his employment with such Acquired Company.


 


4.21 Labor Relations;
Compliance. None of the Acquired Companies is a party to any collective bargaining or other labor Contract. There is not presently
pending or existing, and there is not Threatened, (a) any strike, slowdown, picketing, work stoppage, or employee grievance process,
(b) any Proceeding against or affecting any Acquired Company relating to the alleged violation of any Legal Requirement pertaining
to labor relations or employment matters, including any charge or complaint filed by an employee or union with any relevant Governmental
Body, organizational activity, or other labor or employment dispute against or affecting any Acquired Company or its premises, or (c) any
application for certification of a collective bargaining agent. No event has occurred or circumstance exists that could provide the basis
for any work stoppage or other labor dispute. There is no lockout of any employees by any Acquired Company, and no such action is contemplated
by any Acquired Company. Each Acquired Company has complied in all respects with all Legal Requirements relating to employment, equal
employment opportunity, nondiscrimination, immigration, wages, hours, benefits, collective bargaining, the payment of social security
and similar taxes, occupational safety and health, and plant closing. None of the Acquired Companies is liable for the payment of any
compensation, damages, taxes, fines, penalties, or other amounts, however designated, for failure to comply with any of the foregoing
Legal Requirements.


 


4.22 Intellectual
Property.


 


(a) Intellectual
Property Assets. The term “Intellectual Property Assets” includes: (i) fictional business names, trading names,
registered and unregistered trademarks, service marks, and applications; (ii) all patents, patent applications, and inventions and
discoveries that may be patentable; (iii) all copyrights in both published works and unpublished works; (iv) all rights in mask
works; and (v) all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process
technology, plans, drawings, and blue prints; owned, used, or licensed by any Acquired Company as licensee or licensor.


 


(b) Agreements.
Sellers have provided to Buyer copies of all Contracts relating to the Intellectual Property Assets to which each Acquired Company is
a party or by which each Acquired Company is bound, except for any license implied by the sale of a product and perpetual, paid-up licenses
for commonly available software programs with a value of less than $10,000.00 under which each Acquired Company is the licensee. There
are no outstanding and no Threatened disputes or disagreements with respect to any such agreement.


 


(c) Necessary
for the Business. The Intellectual Property Assets are all those necessary for the operation of each Acquired Company’s businesses
as they are currently conducted. Each Acquired Company is the owner of all right, title, and interest in and to each of the Intellectual
Property Assets, free and clear of all liens, security interests, charges, encumbrances, equities, and other adverse claims, and has the
right to use without payment to a third party all of the Intellectual Property Assets. All former and current employees of each Acquired
Company have executed written Contracts with such Acquired Company that assign to such Acquired Company all rights to any inventions,
improvements, discoveries, or information relating to the business of such Acquired Company. No employee of any Acquired Company has entered
into any Contract that restricts or limits in any way the scope or type of work in which the employee may be engaged or requires the employee
to transfer, assign, or disclose information concerning his work to anyone other than such Acquired Company.


 






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4.23 Healthcare
Regulatory Matters.


 


Each Acquired Company, is,
and since January 1, 2016 has been, in compliance with all Legal Requirement of any Governmental Entity to which it is subject with respect
to health care regulatory matters.


 


4.24 Certain
Payments.


 


Neither any Acquired Company
or director, officer, agent, or employee of such Acquired Company, or to each Seller’s or each Acquired Company’s Knowledge
any other Person associated with or acting for or on behalf of such Acquired Company, has directly or indirectly (a) made any contribution,
gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any Person, private or public, regardless of form, whether
in money, property, or services (i) to obtain favorable treatment in securing business, (ii) to pay for favorable treatment
for business secured, (iii) to obtain special concessions or for special concessions already obtained, for or in respect of such
Acquired Company or any Affiliate of such Acquired Company, or (iv) in violation of any Legal Requirement, (b) established or
maintained any fund or asset that has not been recorded in the books and records of such Acquired Company


 


4.25 Disclosure.


 


(a) No
representation or warranty of Sellers or Acquired Companies in this Agreement omits to state a material fact necessary to make the statements
herein or therein, in light of the circumstances in which they were made, not misleading.


 


(b) There
is no fact known to Sellers or Acquired Companies that has specific application to Sellers or any Acquired Company (other than general
economic or industry conditions) and that materially adversely affects or, as far as Sellers can reasonably foresee, materially threatens,
the assets, business, prospects, financial condition, or results of operations of any Acquired Company (on a consolidated basis) that
has not been set forth in this Agreement.


 


4.26 Relationships With
Related Persons. Neither Seller, Acquired Company or any Related Person of each Seller or of either Acquired Company has, or since
the first day of the next to last completed fiscal year of any Acquired Company has had, any interest in any property (whether real,
personal, or mixed and whether tangible or intangible), used in or pertaining to any Acquired Company’s business. Neither Seller,
Acquired Company or any Related Person of each Seller or of any Acquired Company is, or since the first day of the next to last completed
fiscal year of any Acquired Company has owned (of record or as a beneficial owner) an equity interest or any other financial or
profit interest in, a Person that has (i) had business dealings or a material financial interest in any transaction with any Acquired
Company other than business dealings or transactions conducted in the Ordinary Course of Business with any Acquired Company at substantially
prevailing market prices and on substantially prevailing market terms, or (ii) engaged in competition with any Acquired Company
with respect to any line of the products or services of any Acquired Company (a “Competing Business”) in any market
presently served by any Acquired Company except for less than one percent of the outstanding capital stock of any Competing Business
that is publicly traded on any recognized exchange or in the over-the-counter market. Neither Seller or any Related Person of each Seller
or of any Acquired Company is a party to any Contract with, or has any claim or right against, any Acquired Company.


 


4.27 Brokers or Finders.
Sellers and their agents have incurred no obligation or liability, contingent or otherwise, for brokerage or finders’ fees or agents’
commissions or other similar payment in connection with this Agreement.


 






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		5.	REPRESENTATIONS AND WARRANTIES OF BUYER.





 


Buyer represents and warrants
to Sellers as of the date hereof and as of the Closing Date as follows:


 


5.1 Organization and Good
Standing. Buyer is a corporation organized, validly existing, and in good standing under the laws of PRC.


 


5.2 Authority;
No Conflict.


 


(a) This
Agreement constitutes the legal, valid, and binding obligation of Buyer, enforceable against Buyer in accordance with its terms. Buyer
has the absolute and unrestricted right, power, and authority to execute and deliver this Agreement and to perform its obligations under
this Agreement.


 


(b) Neither
the execution and delivery of this Agreement by Buyer nor the consummation or performance of any of the Contemplated Transactions by Buyer
will give any Person the right to prevent, delay, or otherwise interfere with any of the Contemplated Transactions pursuant to: (i) any
provision of Buyer’s Organizational Documents; (ii) any resolution adopted by the board of directors or the stockholders of
Buyer; (iii) any Legal Requirement or Order to which Buyer may be subject or bound.


 


(c) No
consent, permit, approval, Order or authorization of or by, registration, declaration or filing with, or notification to any Governmental
Body is required by or with respect to Buyer in connection with the execution and delivery of this Agreement and consummation by Buyer
of the transactions contemplated hereby, except for such filings as may be required to be made to NASDAQ.


 


5.3 Certain Proceedings.
There is no pending Proceeding that has been commenced against Buyer and that challenges, or may have the effect of preventing, delaying,
making illegal, or otherwise interfering with, any of the Contemplated Transactions. To Buyer’s Knowledge, no such Proceeding has
been Threatened.


 


5.4 Brokers or Finders.
Buyer and its officers and agents have incurred no obligation or liability, contingent or otherwise, for brokerage or finders’
fees or agents’ commissions or other similar payment in connection with this Agreement.


 


		6.	REPRESENTATIONS AND WARRANTIES OF PARENT





 


Parent represents and warrants
to Sellers as follows:


 


6.1 Stock Exchange Listing.
The Parent Shares, upon the issuance thereof to Sellers under this Agreement, will be duly authorized for listing on NASDAQ, subject
to all necessary regulatory approvals. Parent is not in default in any material respect of any of the listing or other requirements of
NASDAQ.


 


6.2 SEC Filings. Parent
has filed with or furnished to, as applicable, the SEC all registration statements, prospectuses, reports, schedules, forms, statements
and other documents (including exhibits and all other information incorporated by reference) required to be filed or furnished by it
with the SEC since January 1, 2019, not necessarily on a timely basis.


 


		7.	COVENANTS OF SELLERS



 


7.1 Access and Investigation.
Between the date of this Agreement and the Closing Date, Sellers will, and will cause each Acquired Company and its Representatives to,
(a) afford Buyer and its Representatives (collectively, “Buyer’s Advisors”) full and free access to each
Acquired Company’s personnel, properties (including subsurface testing), contracts, books and records, and other documents and
data, (b) furnish Buyer and Buyer’s Advisors with copies of all such contracts, books and records, and other existing documents
and data as Buyer may reasonably request, and (c) furnish Buyer and Buyer’s Advisors with such additional financial, operating,
and other data and information as Buyer may reasonably request.


 






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7.2 Operation of the Businesses
of each Acquired Company. Between the date of this Agreement and the Closing Date, Sellers will, and will cause each Acquired Company
to:


 


(a) conduct
the business of each Acquired Company only in the Ordinary Course of Business;


 


(b) not
enter into (i) any transaction other than in the Ordinary Course of Business, (ii) any transaction which is not at arms-length
with unaffiliated third Persons or (iii) any transaction with any Affiliate;


 


(c) use
their Best Efforts to preserve intact the current business organization of each Acquired Company, keep available the services of the current
officers, employees, and agents of each Acquired Company, and maintain the relations and good will with suppliers, customers, landlords,
creditors, employees, agents, and others having business relationships with each Acquired Company;


 


(d) confer
with Buyer concerning operational matters of a material nature; and


 


(e) otherwise
report periodically to Buyer concerning the status of the business, operations, and finances of each Acquired Company.


 


7.3 Negative Covenant.
Except as otherwise expressly permitted by this Agreement, between the date of this Agreement and the Closing Date, Sellers will not,
and will cause each Acquired Company not to, without the prior consent of Buyer, take any affirmative action, or fail to take any reasonable
action within their or its control, as a result of which any of the changes or events listed in Section 4.16 is likely to occur.


 


7.4 Required Approvals.
As promptly as practicable after the date of this Agreement, Sellers will, and will cause each Acquired Company to, obtain any consents
and approvals of, or effect the notification of or filing with, each Person, whether private or governmental, whose consent or approval
is required in order to permit the consummation of the Contemplated Transactions, to obtain any consent that may be required from a party
to an agreement with each Acquired Company that may give such party a right to cancel such agreement as a result of the Contemplated
Transactions. Between the date of this Agreement and the Closing Date, Sellers will, and will cause each Acquired Company to, cooperate
with Buyer with respect to all consents, approvals or filings that Buyer elects to make or obtain or is required by Legal Requirements
to make or obtain in connection with the Contemplated Transactions.


 


7.5 Notification.
Between the date of this Agreement and the Closing Date, Sellers will promptly notify Buyer in writing if Sellers or any Acquired Company
becomes aware of any fact or condition that causes or constitutes a Breach of any of Sellers’ or Acquired Companies’ representations
and warranties as of the date of this Agreement, or if Sellers or each Acquired Company becomes aware of the occurrence after the date
of this Agreement of any fact or condition that would (except as expressly contemplated by this Agreement) cause or constitute a
Breach of any such representation or warranty had such representation or warranty been made as of the time of occurrence or discovery
of such fact or condition.


 


7.6 Payment of Indebtedness
by Related Persons. Except as expressly provided in this Agreement, Sellers will cause all indebtedness owed to any Acquired Company
by Sellers or any Related Person of Sellers to be paid in full prior to Closing.


 






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7.7 No Negotiation.
Until such time, if any, as this Agreement is terminated pursuant to Section 11, Sellers will not, and will cause each Acquired
Company and each of their Representatives not to, directly or indirectly solicit, initiate, or encourage any inquiries or proposals from,
discuss or negotiate with, provide any non-public information to, or consider the merits of any unsolicited inquiries or proposals from,
any Person (other than Buyer) relating to any transaction involving the sale of the business or assets (other than in the Ordinary
Course of Business) of any Acquired Company, or any of the capital stock of any Acquired Company, or any merger, consolidation,
business combination, or similar transaction involving any Acquired Company.


 


7.8 Proprietary Information.
All confidential or proprietary information or work product relating to each Acquired Company or business of each Acquired Company that
is known to Sellers as of the Closing Date shall be the sole property of Buyer and each Acquired Company. Sellers shall not use or disclose
such information or work product except for the benefit of Buyer or each Acquired Company and their respective successors and assigns,
and Sellers shall take reasonable steps to protect such information and work product from misuse, loss, theft or accidental disclosure.


 


7.9 Public Announcements.
Sellers shall not issue any such press release or make any such public statement without the prior consent of Buyer, except as may be
required by applicable law.


 


7.10 Stockholder Covenant.
Sellers shall not (i) sell, transfer, assign, tender, create an Encumbrance upon or otherwise dispose of, or enter into any contract,
option or other arrangement with respect to the sale, transfer, assignment, tender, Encumbrance or other disposition of any of the Shares
or (ii) grant any proxies with respect to any of the Shares, deposit any of the Shares into a voting trust or enter into a voting
or option agreement with respect to any of the Shares.


 


7.11 Best Efforts.
Between the date of this Agreement and the Closing Date, Sellers will use his Best Efforts to cause the conditions in Section 9
to be satisfied.


 


7.12 Release. After
the Closing Date, (a) none of Buyer, any Related Party of Buyer nor any Acquired Company will have any debt, obligation or liability
to either Seller, and (b) each Seller on behalf of itself and all of its Related Parties, hereby unconditionally releases and discharges
Buyer, all of Buyer’s Related Parties and each Acquired Company from any and all claims, debts, obligations and liabilities, whether
known or unknown, contingent or non-contingent, at law or in equity, in each case arising from or in connection with such Seller’s
ownership of the Applicable Acquired Company or resulting from such Seller or any of its Related Parties having been a director, officer
or employee of such Acquired Company; provided, however, that nothing in this Section 7.12 shall terminate or release
Buyer’s obligations to Sellers under this Agreement.


 


7.13 Confidentiality.
From and after the Closing Date, Sellers will, and will cause each of its Related Parties to (a) protect and safeguard the confidentiality
of all of the Confidential Information with at least the same degree of care as a reasonably prudent person would exercise to protect
its own Confidential Information, (b) not use Confidential Information, or permit it to be accessed or used, for any purpose, and
(c) not disclose any Confidential Information to any Person except as required by applicable law or legal process. Sellers hereby
assume full responsibility and liability for the compliance of all of Sellers’ Related Parties with the terms of this Section
7.13. Prior to making any disclosure of any Confidential Information required by applicable law or legal process, a Seller shall
provide Buyer with (i) if and to the extent legally permitted, prompt written notice of such requirement so that Buyer may seek
a protective order or other remedy; and (ii) reasonable assistance in opposing such disclosure or seeking a protective order or
other remedy.


 






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1.2 Securities
Laws; Restrictions on Transfers. Sellers acknowledge and understand that until such time as the same is no longer required under the
requirements of the Securities Act or applicable state securities laws, the certificates representing the Parent Shares, and all certificates
representing any securities issued in exchange thereof or in substitution therefor, will bear the following legend:


 


“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR ANY STATE SECURITIES
LAWS.  THE HOLDER HEREOF, BY PURCHASING THESE SECURITIES, AGREES FOR THE BENEFIT OF BIMI
international Medical inc. (THE “CORPORATION”) THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY: (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES
ACT (“REGULATION S”), (C) IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT OR (2) RULE 144 UNDER
THE U.S. SECURITIES ACT, IF AVAILABLE, OR (D) PURSUANT TO ANOTHER EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES
ACT, AND IN EACH CASE, IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS, AFTER, IN THE CASE OF TRANSFERS PURSUANT TO CLAUSE (C)(2)
OR (D) (OR IF REQUIRED BY THE CORPORATION, OR ITS TRANSFER AGENT, CLAUSE (B)) ABOVE, THE HOLDER HAS PROVIDED TO THE CORPORATION A LEGAL
OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE CORPORATION, TO THE EFFECT THAT THE SALE OF
SUCH SECURITIES IS NOT REQUIRED TO BE REGISTERED UNDER THE U.S. SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.”


 


		8.	Tax MAtters





 


8.1 Responsibility
for Filing Tax Returns.


 


(a) Sellers
shall prepare, or cause to be prepared, in a timely manner, all income Tax Returns of each Acquired Company that are due after the Closing
with respect to any taxable period ending prior to or ending on and including the Closing Date; provided, however, that
any such Tax Return shall be prepared by treating items on that Tax Return in a manner consistent with the prior Tax Returns of each Acquired
Company. Sellers shall deliver to Buyer draft copies of each such Tax Return prior to the date for filing that Tax Return. Sellers shall
make all changes in each such Tax Return reasonably requested by Buyer. Buyer shall cause each such Tax Return to be appropriately signed
and filed, and Sellers shall pay to each Acquired Company any Taxes due from such Acquired Company on that Tax Return.


 


(b) Buyer
shall after the Closing prepare and file, or cause to be prepared and filed, Tax Returns of each Acquired Company for any period beginning
prior to the Closing Date and ending after the Closing Date (a “Straddle Period”). Any such Tax Return shall be prepared
by treating items on that Tax Return in a manner consistent with the prior Tax Returns of each Acquired Company. Buyer shall deliver to
Sellers draft copies of each such Tax Return at least thirty (30) days prior to the date for filing that Tax Return. Buyer shall
make all changes in each such Tax Return reasonably requested by Sellers. Sellers shall pay to each Acquired Company the Taxes due for
the period prior to and including the Closing Date from such Acquired Company on that Tax Return.


 


8.2 Cooperation on Tax
Matters. Commencing on the Closing Date, Buyer, on the one hand, and Sellers, on the other hand, shall cooperate fully, as and to
the extent reasonably requested by the other party, in connection with the filing and execution of Tax Returns and any audit, litigation
or other proceeding with respect to Taxes, in each case, in respect of any period ending prior to or on the Closing Date or any Straddle
Period.


 






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8.3 Sales and Transfer
Taxes. All sales, transfer and other Taxes (including all stock transfer Taxes, if any) incurred in connection with this Agreement
and the transactions contemplated hereby will be borne by Sellers, and Sellers shall, at Sellers’ own expense, file all necessary
Tax Returns and other documentation with respect to all such sales and transfer Taxes.


 


		9.	CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE.





 


Buyer’s obligation to
purchase the Shares and to take the other actions required to be taken by Buyer at the Closing is subject to the satisfaction, at or prior
to the Closing, of each of the following conditions (any of which may be waived by Buyer, in whole or in part):


 


9.1 Accuracy
of Representations.


 


(a) All
of Sellers’ representations and warranties in this Agreement (considered collectively), and each of those representations and warranties
(considered individually)(without giving effect to any qualification contained therein as to materiality, including the phrases “material”,
“in all material respects” and “material adverse change”), must have been accurate in all material respects as
of the date of this Agreement, and must be accurate in all material respects as of the Closing Date as if made on the Closing Date.


 


(b) Each
of Sellers’ representations and warranties in Sections 3, 4.3, 4.4, 4.12, and 4.24 must
have been accurate in all respects as of the date of this Agreement, and must be accurate in all respects as of the Closing Date as if
made on the Closing Date.


 


9.2 Sellers’ Performance.
All of the covenants and obligations that Sellers are required to perform or to comply with pursuant to this Agreement at or prior to
the Closing (considered collectively), and each of these covenants and obligations (considered individually), must have been duly performed
and complied with in all material respects.


 


9.3 Authorization.
All action necessary to authorize the execution, delivery and performance of this Agreement by Sellers and the consummation of the transactions
contemplated hereby, shall have been duly and validly taken by each of them, and Sellers shall have full power and authority or capacity
to enter into this Agreement and to consummate the transactions contemplated hereby on the terms provided herein.


 


9.4 Consents and Approvals.
Buyer shall have received duly executed copies of all consents and approvals required for or in connection with the execution and delivery
by Sellers of this Agreement, for the consummation of the transactions contemplated hereby, and the continued conduct of the business
of each Acquired Company as previously conducted, each in form and substance satisfactory to Buyer.


 


9.5 Government Consents,
Authorizations, Etc. All consents, authorizations, orders and approvals of, filings or registrations with and the expiration of all
waiting periods imposed by, any third Person, including any Governmental Body, which are required for or in connection with the execution
and delivery by the parties of this Agreement and the consummation by the parties of the transactions contemplated hereby and in order
to permit or enable each Acquired Company to conduct its business after the Closing in substantially the same manner as previously conducted
shall have been obtained or made, in form and substance reasonably satisfactory to Buyer, and shall be in full force and effect.


 


9.6 Additional Documents.
Each of the following documents must have been delivered to Buyer:


 


(a) such
documents as Buyer may reasonably request for the purpose of (i) evidencing the accuracy of any of Seller’s representations
and warranties, (ii) evidencing the performance by Sellers of, or the compliance by Sellers with, any covenant or obligation required
to be performed or complied with by Sellers, (iii) evidencing the satisfaction of any condition referred to in this Section 9,
or (iv) otherwise facilitating the consummation or performance of any of the Contemplated Transactions.


 






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9.7 No Proceedings.
Since the date of this Agreement, there must not have been commenced or Threatened against Buyer, or against any Person affiliated with
Buyer, any Proceeding (a) involving any challenge to, or seeking damages or other relief in connection with, any of the Contemplated
Transactions, or (b) that may have the effect of preventing, delaying, making illegal, or otherwise interfering with any of the
Contemplated Transactions.


 


9.8 No Claim Regarding
Stock Ownership or Sale Proceeds. There must not have been made or Threatened by any Person any claim asserting that such Person
(a) is the holder or the beneficial owner of, or has the right to acquire or to obtain beneficial ownership of, any stock of, or
any other voting, equity, or ownership interest in any Acquired Company, or (b) is entitled to all or any portion of the Purchase
Price payable for the Shares.


 


9.9 No Prohibition.
Neither the consummation nor the performance of any of the Contemplated Transactions will, directly or indirectly (with or without notice
or lapse of time), materially contravene, or conflict with, or result in a material violation of, or cause Buyer or any Person affiliated
with Buyer to suffer any material adverse consequence under, (a) any applicable Legal Requirement or Order, or (b) any Legal
Requirement or Order that has been published, introduced, or otherwise proposed by or before any Governmental Body.


 


9.10 Absence of Material
Adverse Change. Since the date of this Agreement, in the reasonable judgment of Buyer, there shall have been no material adverse
change in the assets, financial condition, operating results, customer, supplier or employee relations or liabilities of any Acquired
Company including any material casualty loss or damage to the assets of any Acquired Company, whether or not covered by insurance.


 


		10.	CONDITIONS PRECEDENT TO SELLERS’ OBLIGATION TO CLOSE.





 


Sellers’ obligation
to sell the Shares and to take the other actions required to be taken by Sellers at the Closing is subject to the satisfaction, at or
prior to the Closing, of each of the following conditions (any of which may be waived by Sellers, in whole or in part):


 


10.1 Accuracy of Representations.
All of Buyer’s representations and warranties in this Agreement (considered collectively), and each of these representations and
warranties (considered individually), must have been accurate in all material respects as of the date of this Agreement and must be accurate
in all material respects as of the Closing Date as if made on the Closing Date.


 


10.2 Buyer’s Performance.
All the covenants and obligations that Buyer is required to perform or to comply with pursuant to this Agreement at or prior to the Closing
(considered collectively), and each of these covenants and obligations (considered individually), must have been performed and complied
with in all material respects.


 


10.3 No Injunction.
There must not be in effect any Legal Requirement or any injunction or other Order that (a) prohibits the sale of the Shares by
Sellers to Buyer, and (b) has been adopted or issued, or has otherwise become effective, since the date of this Agreement.


 






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		11.	TERMINATION.





 


11.1 Termination Events.
This Agreement may, by notice given prior to or at the Closing, be terminated:


 


(a) by
either Buyer or Sellers if a material Breach of any provision of this Agreement has been committed by the other party and such Breach
has not been waived;


 


(b) (i)
by Buyer if any of the conditions in Section 9 has not been satisfied as of the Closing Date or if satisfaction of such a condition
is or becomes impossible (other than through the failure of Buyer to comply with its obligations under this Agreement) and Buyer
has not waived such condition on or before the Closing Date; or (ii) by Sellers, if any of the conditions in Section 10 has not
been satisfied of the Closing Date or if satisfaction of such a condition is or becomes impossible (other than through the failure of
Sellers to comply with his obligations under this Agreement) and Sellers have not waived such condition on or before the Closing
Date;


 


(c) by
mutual consent of Buyer and Sellers; or


 


(d) either
by Buyer or by all Sellers if the Closing has not occurred (other than through the failure of any party seeking to terminate this Agreement
to comply fully with its obligations under this Agreement) on or before December 31, 2021 or such later date as the parties may agree
upon.


 


11.2 Effect of Termination.
Each party’s right of termination under Section 11.1 is in addition to any other rights it may have under this Agreement
or otherwise, and the exercise of a right of termination will not be an election of remedies. If this Agreement is terminated pursuant
to Section 11.1, all further obligations of the parties under this Agreement will terminate, except that the obligations in Sections
13.1 and 13.3 will survive; provided, however, that if this Agreement is terminated by a party because of the
Breach of the Agreement by the other party or because one or more of the conditions to the terminating party’s obligations under
this Agreement is not satisfied as a result of the other party’s failure to comply with its obligations under this Agreement, the
terminating party’s right to pursue all legal remedies will survive such termination unimpaired.


 


		12.	INDEMNIFICATION; REMEDIES.





 


12.1 Survival; Right to
Indemnification Not Affected By Knowledge. All representations, warranties, covenants, and obligations in this Agreement and any
other certificate or document delivered pursuant to this Agreement will survive the Closing. The right to indemnification, payment of
Damages or other remedy based on such representations, warranties, covenants, and obligations will not be affected by any investigation
conducted with respect to, or any Knowledge acquired (or capable of being acquired) at any time, whether before or after the execution
and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant, or obligation. The waiver of any condition based on the accuracy of any representation or warranty, or on the performance
of or compliance with any covenant or obligation, will not affect the right to indemnification, payment of Damages, or other remedy based
on such representations, warranties, covenants, and obligations.


 


12.2 Indemnification and
Payment of Damages by Sellers. Sellers will, jointly and severely, indemnify and hold harmless Buyer, each Acquired Company, and
their respective Representatives, stockholders, controlling persons, and affiliates (collectively, the “Indemnified Persons”)
for, and will pay to the Indemnified Persons the amount of, any loss, liability, claim, damage (including incidental and consequential
damages), expense (including costs of investigation and defense and reasonable attorneys’ fees) or diminution of value, whether
or not involving a third-party claim (collectively, “Damages”), arising, directly or indirectly, from or in connection
with:


 


(a) any
Breach of any representation or warranty made by Sellers or the Acquired Companies in this Agreement or any other certificate or document
delivered by Sellers or the Acquired Companies pursuant to this Agreement;


 






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(b) any
Breach by Sellers of any covenant or obligation of Sellers in this Agreement;


 


(c) any
Taxes owed by any Acquired Company relating to any period prior to the Closing Date; and


 


(d) any
claim by any Person for brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding
alleged to have been made by any such Person with Sellers or any Acquired Company (or any Person acting on their behalf) in connection
with any of the Contemplated Transactions.


 


The remedies provided in this
Section 12.2 will not be exclusive of or limit any other remedies that may be available to Buyer or the other Indemnified Persons.


 


12.3 Indemnification and
Payment of Damages by Sellers Environmental Matters. In addition to the provisions of Section 12.2, Sellers, jointly and severally,
will indemnify and hold harmless Buyer, each Acquired Company, and the other Indemnified Persons for, and will pay to Buyer, each Acquired
Company, and the other Indemnified Persons the amount of, any Damages (including costs of cleanup, containment, or other remediation)
arising, directly or indirectly, from or in connection with:


 


(a) any
Environmental, Health, and Safety Liabilities arising out of or relating to: (i) (A) the ownership, operation, or condition
at any time on or prior to the Closing Date of the Facilities or any other properties and assets (whether real, personal, or mixed and
whether tangible or intangible) in which Sellers or any Acquired Company has or had an interest, or (B) any Hazardous Materials
or other contaminants that were present on the Facilities or such other properties and assets at any time on or prior to the Closing Date;
or (ii) (A) any Hazardous Materials or other contaminants, wherever located, that were, or were allegedly, generated, transported,
stored, treated, Released, or otherwise handled by Sellers or any Acquired Company or by any other Person for whose conduct they are or
may be held responsible at any time on or prior to the Closing Date, or (B) any Hazardous Activities that were, or were allegedly,
conducted by Sellers or any Acquired Company or by any other Person for whose conduct they are or may be held responsible; or


 


(b) any
bodily injury (including illness, disability, and death, and regardless of when any such bodily injury occurred, was incurred, or manifested
itself), personal injury, property damage (including trespass, nuisance, wrongful eviction, and deprivation of the use of real property),
or other damage of or to any Person, including any employee or former employee of Sellers or any Acquired Company or any other Person
for whose conduct they are or may be held responsible, in any way arising from or allegedly arising from any Hazardous Activity conducted
or allegedly conducted with respect to the Facilities or the operation of any Acquired Company prior to the Closing Date, or from Hazardous
Material that was (i) present or suspected to be present on or before the Closing Date on or at the Facilities (or present or suspected
to be present on any other property, if such Hazardous Material emanated or allegedly emanated from any of the Facilities and was present
or suspected to be present on any of the Facilities on or prior to the Closing Date) or (ii) Released or allegedly Released
by Sellers or any Acquired Company or any other Person for whose conduct they are or may be held responsible, at any time on or prior
to the Closing Date.


 


Buyer will be entitled to
control any Cleanup, any related Proceeding, and, except as provided in the following sentence, any other Proceeding with respect to which
indemnity may be sought under this Section 12.3. The procedure described in Section 12.6 will apply to any claim solely
for monetary damages relating to a matter covered by this Section 12.3.


 






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12.4 Indemnification and
Payment of Damages by Buyer. Buyer will indemnify and hold harmless Sellers, and will pay to Sellers the amount of any Damages arising,
directly or indirectly, from or in connection with (a) any Breach of any representation or warranty made by Buyer in this Agreement
or in any certificate delivered by Buyer pursuant to this Agreement, (b) any Breach by Buyer of any covenant or obligation of Buyer
in this Agreement, or (c) any claim by any Person for brokerage or finder’s fees or commissions or similar payments based
upon any agreement or understanding alleged to have been made by such Person with Buyer (or any Person acting on its behalf) in
connection with any of the Contemplated Transactions.


 


12.5 Right of Set-Off.
Upon notice to Sellers specifying in reasonable detail the basis for such set-off, Buyer may set off any amount to which it may be entitled
under this Section 12 against amounts otherwise payable by it under this Agreement. Neither the exercise of nor the failure to
exercise such right of set-off will constitute an election of remedies or limit Buyer in any manner in the enforcement of any other remedies
that may be available to it.


 


12.6 Procedure
for Indemnification Third Party Claims.


 


(a) Promptly
after receipt by an indemnified party under Section 12.2, 12.3, or 12.4 of notice of the commencement of any Proceeding
against it, such indemnified party will, if a claim is to be made against an indemnifying party under such Section, give notice to the
indemnifying party of the commencement of such claim, but the failure to notify the indemnifying party will not relieve the indemnifying
party of any liability that it may have to any indemnified party, except to the extent that the indemnifying party demonstrates that the
defense of such action is prejudiced by the indemnifying party’s failure to give such notice.


 


(b) If
any Proceeding referred to in Section 12.6(a) is brought against an indemnified party and it gives notice to the indemnifying party
of the commencement of such Proceeding, the indemnifying party will, unless the claim involves Taxes, be entitled to participate in such
Proceeding and, to the extent that it wishes (unless (i) the indemnifying party is also a party to such Proceeding and the indemnified
party determines in good faith that joint representation would be inappropriate, or (ii) the indemnifying party fails to provide
reasonable assurance to the indemnified party of its financial capacity to defend such Proceeding and provide indemnification with respect
to such Proceeding), to assume the defense of such Proceeding with counsel satisfactory to the indemnified party and, after notice from
the indemnifying party to the indemnified party of its election to assume the defense of such Proceeding, the indemnifying party will
not, as long as it diligently conducts such defense, be liable to the indemnified party under this Section 12 for any fees of other
counsel or any other expenses with respect to the defense of such Proceeding, in each case subsequently incurred by the indemnified party
in connection with the defense of such Proceeding, other than reasonable costs of investigation. If the indemnifying party assumes the
defense of a Proceeding, (i) it will be conclusively established for purposes of this Agreement that the claims made in that Proceeding
are within the scope of and subject to indemnification; (ii) no compromise or settlement of such claims may be effected by the indemnifying
party without the indemnified party’s consent unless (A) there is no finding or admission of any violation of Legal Requirements
or any violation of the rights of any Person and no effect on any other claims that may be made against the indemnified party, and (B) the
sole relief provided is monetary damages that are paid in full by the indemnifying party; and (iii) the indemnified party will have
no liability with respect to any compromise or settlement of such claims effected without its consent. If notice is given to an indemnifying
party of the commencement of any Proceeding and the indemnifying party does not, within ten days after the indemnified party’s notice
is given, give notice to the indemnified party of its election to assume the defense of such Proceeding, the indemnifying party will be
bound by any determination made in such Proceeding or any compromise or settlement effected by the indemnified party.


 


(c) Notwithstanding
the foregoing, if an indemnified party determines in good faith that there is a reasonable probability that a Proceeding may adversely
affect it or its affiliates other than as a result of monetary damages for which it would be entitled to indemnification under this Agreement,
the indemnified party may, by notice to the indemnifying party, assume the exclusive right to defend, compromise, or settle such Proceeding,
but the indemnifying party will not be bound by any determination of a Proceeding so defended or any compromise or settlement effected
without its consent (which may not be unreasonably withheld).


 






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(d) Sellers
hereby consent to the non-exclusive jurisdiction of any court in which a Proceeding is brought against any Indemnified Person for purposes
of any claim that an Indemnified Person may have under this Agreement with respect to such Proceeding or the matters alleged therein,
and agree that process may be served on Sellers with respect to such a claim anywhere in the world.


 


12.7 Procedure For Indemnification
for Other Claims. A claim for indemnification for any matter not involving a third-party claim may be asserted by notice to the party
from whom indemnification is sought.


 


		13.	GENERAL PROVISIONS.





 


13.1 Expenses. Except
as otherwise expressly provided in this Agreement, each party to this Agreement will bear its respective expenses incurred in connection
with the preparation, execution, and performance of this Agreement and the Contemplated Transactions, including all fees and expenses
of agents, representatives, counsel, and accountants. In the event of termination of this Agreement, the obligation of each party to
pay its own expenses will be subject to any rights of such party arising from a breach of this Agreement by another party.


 


13.2 Public Announcements.
Any public announcement or similar publicity with respect to this Agreement or the Contemplated Transactions will be issued at such time
and in such manner as Buyer determines. Sellers and Buyer will consult with each other concerning the means by which any Acquired Company’s
employees, customers, and suppliers and others having dealings with any Acquired Company will be informed of the Contemplated Transactions,
and Buyer will have the right to be present for any such communication.


 


13.3 Confidentiality.
If the Contemplated Transactions are not consummated, each party will return or destroy as much of written information obtained in confidence
from another party or any Acquired Company in connection with this Agreement or the Contemplated Transactions as the other party may
reasonably request. Whether or not the Closing takes place, Sellers waive, and will upon Buyer’s request cause any Acquired Company
to waive, any cause of action, right, or claim arising out of the access of Buyer or its representatives to any trade secrets or other
confidential information of any Acquired Company except for the intentional competitive misuse by Buyer of such trade secrets or confidential
information.


 


13.4 Notices. All
notices, amendments, waivers, or other communications under this Agreement shall be in writing and shall be deemed to be sufficient if
delivered personally, sent electronically, sent by nationally-recognized overnight or second day delivery courier or mailed by registered
or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address for
a party as shall be specified by like notice):


 


If to any Acquired Company prior to Closing or Seller, to:


 


	Name:	CHONGQING ZHUODA PHARMACEUTICAL CO., LTD.
	Address:	No. 175-2, 2nd Floor, Guoruitianjie, No. 11-13 Beibin Avenue, Third Section, Wanzhou District, Chongqing, PRC
	Attention:	Mr. Dong Zhang
	Telephone:	(0086)19115595533
	Email:	09818065@qq.com



 






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	with a copy to:	 
	 	 
	Name:	Kingmoon & Kingyang Jiulongpo Law Firm
	Address:	No. 26, Yangjiaping Zhengjie, Yulong Tower, Fl. 34, Jiulongpo District, Chongqing City, PRC
	Attention:	Mr. Yang, Tao
	Telephone:	(0086)13512342782
	Email:	378132751@qq.com
	 	 
	If to any Acquired Company following the Closing or Buyer, to:
	 	 
	Name:	CHONGQING GUANZAN TECHNOLOGY CO., LTD
	Address:	12th floor, Block A, Shenjisuofeite business Building, No.137
	 	Keyuan 2nd Road, Jiulongpo District, Chongqing City, PRC
	Attention:	Mr. XiaoPing Wang
	Telephone:	(0086)13883563188
	Facsimile:	(0086)23-68690934
	Email:	7910595@qq.com
	 	 
	with a copy to:	 
	 	 
	Name:	Carter Ledyard & Milburn LLP
	Address:	2 Wall Street New York, New York, USA, 10005-2072
	Attention:	Pang Zhang-Whitaker, Esq.
	Telephone:	+1 212 238 8844
	Facsimile:	+1 212 732 3232
	Email:	zhang@clm.com



 


All such notices and other communications shall
be deemed to have been delivered and received (i) in the case of personal delivery or delivery electronically, on the date of that
delivery if delivered during business hours on a Business Day or, if not delivered during business hours on a Business Day, the first
Business Day thereafter, (ii) in the case of delivery by nationally-recognized overnight or second day delivery courier, on the Business
Day delivered, and (iii) in the case of mailing, on the sixth Business Day following that mailing. A copy of any notice or other
communication sent electronically shall also be sent on the same day by registered or certified mail (return receipt requested) or
by nationally recognized overnight or second day delivery courier.


 


13.5 Further Assurances.
The parties agree (a) to furnish upon request to each other such further information, (b) to execute and deliver to each other
such other documents, and (c) to do such other acts and things, all as the other party may reasonably request for the purpose of
carrying out the intent of this Agreement and the documents referred to in this Agreement.


 


13.6 Waiver. The rights
and remedies of the parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay by any party in exercising
any right, power, or privilege under this Agreement or the documents referred to in this Agreement will operate as a waiver of such right,
power, or privilege, and no single or partial exercise of any such right, power, or privilege will preclude any other or further exercise
of such right, power, or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable
law, (a) no claim or right arising out of this Agreement or the documents referred to in this Agreement can be discharged by one
party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other party; (b) no
waiver that may be given by a party will be applicable except in the specific instance for which it is given; and (c) no notice
to or demand on one party will be deemed to be a waiver of any obligation of such party or of the right of the party giving such notice
or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in this Agreement.


 






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13.7 Entire Agreement
and Modification. This Agreement supersedes all prior agreements between the parties with respect to its subject matter and constitutes
(along with the documents referred to in this Agreement) a complete and exclusive statement of the terms of the agreement between
the parties with respect to its subject matter. This Agreement may not be amended except by a written agreement executed by the party
to be charged with the amendment.


 


13.8 Assignments, Successors,
and Third-Party Rights.


 


(a) None
of the parties may assign any of its rights under this Agreement without the prior consent of the other parties, except that Buyer may
assign any of its rights under this Agreement to any Affiliate of Buyer. Subject to the preceding sentence, this Agreement will apply
to, be binding in all respects upon, and inure to the benefit of the successors and permitted assigns of the parties. This Agreement and
all of its provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement and their successors and
assigns.


 


(b) Notwithstanding
any provision herein to the contrary, the parties to this Agreement agree that each Third Party Beneficiary shall receive the benefit
of the provisions of this Agreement as an intended third party beneficiary of this Agreement to the extent of such provisions with respect
to the Closing Stock Payment, the Second Payment and the Third Payment (collectively, the “Third Party Beneficiary Provisions”)
and shall have the right to enforce the Third Party Beneficiary Provisions. No other persons or parties are intended as beneficiaries
of this Agreement and none shall have rights to enforce or benefit from the provisions of this Agreement.


 


13.9 Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this
Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree
will remain in full force and effect to the extent not held invalid or unenforceable.


 


13.10 Section
Headings, Construction.


 


(a) All
words used in this Agreement will be construed to be of such gender or number as the circumstances require. Unless otherwise expressly
provided, the word “including” does not limit the preceding words or terms. The words “herein”, “hereof”,
“hereunder”, “hereby”, “hereto”, “hereinafter”, and other words of similar import refer
to this Agreement as a whole, including any schedules and exhibits, as the same may from time to time be amended, modified, supplemented
or restated, and not to any particular article, section, subsection, paragraph, subparagraph or clause contained in this Agreement. All
references to articles, sections, subsections, clauses, paragraphs, schedules and exhibits mean such provisions of this Agreement and
the schedules and exhibits attached to this Agreement, except where otherwise stated. The title of and the article, section and paragraph
headings in this Agreement are for convenience of reference only and shall not govern or affect the interpretation of any of the terms
or provisions of this Agreement.


 


(b) Where
specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify,
limit or restrict in any manner the construction of the general statement to which it relates. The language used in this Agreement has
been chosen by the parties to express their mutual intent, each party has been represented by legal counsel with respect to, and has had
substantial input in, the drafting of this Agreement, and no rule of strict construction shall be applied against any party. Unless expressly
provided otherwise, the measure of a period of one month or year for purposes of this Agreement shall be that date of the following month
or year corresponding to the starting date, provided that if no corresponding date exists, the measure shall be that date of the following
month or year corresponding to the next day following the starting date. For example, one month following February 18 is March 18, and
one month following March 31 is May 1.


 






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(c) References
to “dollars” or “$” mean United States Dollars. References to “RMB” mean Chinese Renminbi.


 


(d) Each
and every reference to share prices, numbers of shares and any other numbers in this Agreement that relate to the Parent Shares shall
be automatically adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions that
occur with respect to the Parent Shares after the date of this Agreement.


 


13.11 Time of Essence.
With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.


 


13.12 Governing
Law; Waiver of Jury Trial; Jurisdiction.


 


(a) All
questions concerning the construction, interpretation and validity of this Agreement shall be governed by and construed and enforced in
accordance with the domestic laws of the State of New York, without giving effect to any choice or conflict of law provision or rule (whether
in the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the
State of New York. In furtherance of the foregoing, the internal law of the State of New York shall control the interpretation and construction
of this Agreement, even if under the State of New York’s choice of law or conflict of law analysis, the substantive law of some
other jurisdiction would ordinarily or necessarily apply.


 


(b) BECAUSE
DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT
PERSON AND THE PARTIES WISH APPLICABLE LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED
BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM, EACH PARTY
HERETO IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BASED UPON OR ARISING OUT OF THIS AGREEMENT OR
THE RELATED DOCUMENTS OR ANY DEALINGS BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER
IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
AGREEMENT OR THE RELATED DOCUMENTS, INCLUDING, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED
THIS WAIVER WITH ITS RESPECTIVE LEGAL COUNSEL, AND KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH
SUCH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.


 


(c) EACH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS FOR HIMSELF OR ITSELF AND HIS OR ITS PROPERTY, TO THE JURISDICTION OF ANY NEW YORK
STATE COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW YORK COUNTY IN THE STATE OF NEW YORK, AND, EFFECTIVE AS OF
THE CLOSING, TO THE JURISDICTION OF ANY OTHER COURT IN ANY OTHER JURISDICTION IN WHICH AN ACTION IS BROUGHT AGAINST A PARTY TO THIS AGREEMENT
BY A THIRD PARTY ASSERTING A CLAIM AGAINST WHICH THE DEFENDANT IS ENTITLED UNDER THIS AGREEMENT TO BE INDEMNIFIED, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE RELATED DOCUMENTS OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT. EACH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY
SUCH NEW YORK STATE OR FEDERAL COURT. EACH PARTY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.


 






    36


     


    

 


(d) EACH
PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT SUCH PARTY MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION THAT SUCH
PARTY MAY HAVE OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE RELATED DOCUMENTS IN ANY NEW YORK STATE OR FEDERAL COURT SITTING IN NEW YORK COUNTY IN THE STATE OF NEW YORK OR SUCH OTHER COURT
AS IS PROVIDED FOR IN THE PRECEDING PARAGRAPH. EACH PARTY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.


 


13.13 Counterparts; Facsimile
and Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument. Facsimile and electronic counterpart signatures to this Agreement
shall be acceptable and binding.


 


13.14 Representation by
Counsel. Each of the parties hereto has been represented or has had the opportunity to be represented by legal counsel of their own
choice.


 


[Signature Pages Follow]


 




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IN WITNESS WHEREOF,
the parties have executed and delivered this Agreement as of the date first written above.


 


	BUYER:	 
	 	 
	Chongqing Guanzan Technology
    Co., Ltd.	 
	 	 
	By: 	/s/ Xiaoping Wang	 
	Name:	Xiaoping Wang	 
	Title:	CEO	 
	 	 
	PARENT:	 
	 	 
	BIMI INTERNATIONAL MEDICAL INC.	 
	 	 
	By: 	/s/ Tiewei Song	 
	Name:	Tiewei Song	 
	Title:  	CEO	 
	 	 
	SELLERS:	 
	 	 
	XIAOLIN LIU	 
	 	 
	By:	/s/ Xiaolin Liu	 
	Name:  	Xiaolin Liu	 
	Address: 14-2, Unit 1, No. 110 Qing Yang Gong, Wanzhou District, Chongqing, PRC	 
	 	 
	XUSEN HE	 
	 	 
	By:	/s/ Xusen He	 
	Name:  	Xusen He	 
	Address: 27-5, Tower B, Xin Shui An, Fengshou Community, Beibin Road, Wanzhou District,
    Chongqing, PRC	 
	 	 
	DONG ZHANG	 
	 	 
	By:	/s/ Dong Zhang	 
	Name:	Dong Zhang	 
	Address: 27-5, Tower B, Xin Shui An, Fengshou Community, Beibin Road, Wanzhou District,
    Chongqing, PRC	 



 






     


     


    

 


	COMPANY:	 
	 	 
	Chongqing zhuoda pharmaceutical co., ltd.	 
	 	 
	By:	/s/Xiaolin Liu	 
	Name:  	Xiaolin Liu	 
	Title:	Chairman of the Board	 
	 	 
	Third party beneficiaries:	 
	 	 
	Ye Zhang	 
	Only as to the Third Party Beneficiary Provisions	 
	 	 
	By:	/s/ Ye Zhang	 
	Name:  	Ye Zhang	 
	Address:  No. 1 Gao Wang Road, Re Gao Le City, Building No. 15, Wang Hua District,
    Fu Shun City, Liaoning Province, PRC	 
	 	 
	Bo Wang	 
	Only as to the Third Party Beneficiary Provisions	 
	 	 
	By:	/s/ Bo Wang	 
	Name:	Bo Wang	 
	Address:  No. 1 Gao Wang Road, Re Gao Le City, Building No. 15, Wang Hua District,
    Fu Shun City, Liaoning Province, PRC	 



 



     


     


    

 


Schedule 2.5 Closing Stock Payment


 


The Closing Stock Payment Shall be issued as follows:


	 
Name
of Recipient 
	 	Number of Parent Shares	 
	Xiaolin Liu	 	 	400,000	 
	Ye Zhang	 	 	1,000,000	 
	Bo Wang	 	 	800,000	 



 




     


     


    

 


Schedule 3.1 Ownership Interests


 


	Name of Seller	 	Ownership Percentage in the Company	 
	Xiaolin Liu	 	 	55	%
	Xusen He	 	 	25	%
	Dong Zhang	 	 	20	%