Exhibit 10.20


 


STOCK PURCHASE AGREEMENT


 


by and among


 


Civil Hospital (Mengzhou City) Co., Ltd.
(“TARGET”),


 


Etao International Group (“PARENT”),


 


Etao International Healthcare Technology Co., Ltd.
(“BUYER”)


 


And


 


Selling Shareholder of the Target (“SELLER”)


 


March [], 2021


 






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STOCK PURCHASE AGREEMENT


 


This STOCK PURCHASE AGREEMENT
(this "Agreement") is dated as of March [ ], 2021, by and among Civil Hospital (Mengzhou City) Co., Ltd.,
(together with its wholly-owned and majority-owned Subsidiaries, the “Target”), a company formed under the laws of
China, Etao International Group, an exempted company formed under the laws of the Cayman Islands (the "Parent"),
Etao International Healthcare Technology Co. (the “Buyer”), a Chinese company and wholly-owned subsidiary of the Parent
(collectively, the Parent and Buyer referred to herein as the "Buying Parties"), and the shareholder of the Target as
listed on Annex A (the “Seller”). The Parent, Buyer, Target and Seller are sometimes hereinafter collectively
referred to as the “Parties” and each individually as a “Party.”


 


RECITAL


 


WHEREAS, Target, with
the headquarters in the city of Mengzhou, Henan, China, primarily focuses on providing integrated medical services in China, through its
facility which has over 400 patient beds, approximately 39,000 square meters of medical service areas and is equipped with over 500 Target’s
employees;


 


WHEREAS, the Parent
and Buyer are a New York based healthcare group with focuses on telemedicine and application of artificial intelligence technologies to
healthcare services;


 


WHEREAS, as of the
date of this Agreement, Buyer is registered in China and qualifies as a wholly foreign owned entity (“WFOE”) of the
Parent, held through certain wholly-owned Subsidiaries of the Parent;


 


WHEREAS, the Seller
desires to sell, and Buying Parties desire to purchase a total of [ ] ordinary shares of the Target out of the [] shares owned by the
Seller (“Sale Shares”), constituting 51.00% of the issued and outstanding ordinary shares of the Target, for
the consideration and subject to the terms and conditions set forth in this Agreement.


 


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


 


ARTICLE I


 


DEFINITIONS


 


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


 


"Accounts Receivable"
means all of the Company's trade accounts receivable, notes receivable, employee advances, and other miscellaneous receivables.


 


"Acquisition Proposal"
has the meaning set forth in Section 6.5(b).


 


"Affiliate"
shall mean, with respect to any Person, any other Person which directly or indirectly controls, is controlled by, or is under common control
with such Person. For the purposes of this definition, "control" (including the terms "controlled by" and "under
common control with"), with respect to the relationship between or among two or more Persons, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of
voting securities, by agreement or otherwise.


 






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"Affiliated Group"
means any affiliated group within the meaning of IRC §1504(a) or any similar group defined under a similar provision of state,
local or foreign law.


 


"Agreement"
has the meaning set forth in the first paragraph of this Agreement.


 


"Basket"
has the meaning set forth in Section 12.3.


 


"Business Day"
means any day other than a Saturday, Sunday, or public holiday under the laws of the State of New York.


 


"Buyer's Accountants"
means Buyer's independent, nationally recognized, certified public accountants.


 


"Cap" has
the meaning set forth in Section 12.3.


 


"Closing"
has the meaning set forth in Section 2.2.


 


"Closing Date"
has the meaning set forth in Section 2.2.


 


"Target’s Intellectual
Property Assets" means the Intellectual Property Assets owned or used by the Target.


 


“Confidential Information”
shall mean the information concerning a party’s current, future or proposed proprietary products and services, intellectual properties,
financial performance and projections, customers, employees, contracts, strategic relationships, marketing plans and business plans and
other information. All documents, disclosures and written or oral statements disclosed by a party (the “Disclosing Party”)
to the other party (the “Receiving Party”) in connection with this Agreement or the transactions contemplated herein shall
be deemed "Confidential Information" unless clearly marked otherwise. Any of the following information shall not be deemed confidential
for the purposes of this Agreement, if:


 


		a)	it was in the public domain at the time of communication to the Receiving Party or is later placed in
the public domain by the Disclosing Party;



 


		b)	it entered the public domain through no fault of the Receiving Party subsequent to the time of disclosure
hereunder to the Receiving Party;



 


		c)	it was in the Receiving Party's possession free of any obligation of confidence prior to disclosure hereunder;
or



 


		d)	it was developed by employees or agents of the Receiving Party independently of and without reference
to any Confidential Information.



 


"Consent"
means any approval, consent, ratification, waiver, or other authorization (including any Governmental Authorization), including the satisfaction
of any requirement to pay any fees or other amounts under any Contract or instrument, arising in connection with the transactions contemplated
hereby.


 






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"Consent Fees"
means all fees and other amounts payable to contractual counter-parties, Governmental Bodies (except for any transfer taxes) and other
third parties in connection with obtaining the Consents.


 


"Contract"
means any written or oral agreement, contract, license, sublicense, lease, sublease or binding commitment or arrangement.


 


“Currency Exchange
Rates” are deemed as follows, solely for the purposes of this Agreement, 1 USD= 6.60 RMB. USD shall mean the lawful currency
of the United States, RMB the lawful currency of China.


 


"Damages"
means any and all losses, damages, liabilities, obligations, costs and expenses, including without limitation, reasonable fees and disbursements,
sustained or incurred by the applicable Person.


 


“DeSPAC Merger”
means that the Parent shall conduct a business combination transaction with a special purpose acquisition company the securities of which
are listed on a U.S. national stock exchange market.


 


"Disclosure Schedules"
means, collectively, those schedules delivered by Selling Parties and attached to this Agreement that set forth the facts and circumstances
that qualify the representations and warranties of the Selling Parties in Articles III of this Agreement, and "Schedule"
means any individual schedule comprising part of the Disclosure Schedules.


 


"Encumbrance"
means any mortgage, easement, right of way, charge, claim, 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.


 


"Equipment"
means all equipment used by the Target in its operations or otherwise held by the Target, whether owned, leased or licensed, and whether
located at any facility or not, including, without limitation, all medical appliances and apparatus, cash registers, computers, telephones,
printers and other related equipment.


 


"GAAP" means
United States generally accepted accounting principles as in effect at the relevant time.


 


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


 


"Governmental Body"
means any:


 


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



 


		b)	federal, state, local, county, 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); or



 






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



 


"Indebtedness"
means at any particular time, without duplication,


 


		a)	any indebtedness for borrowed money or issued in substitution for or exchange of indebtedness for borrowed
money,



 


		b)	any indebtedness evidenced by any note, bond, debenture or other debt security,



 


		c)	any indebtedness for the deferred purchase price of property or services with respect to which a Person
is liable, contingently or otherwise, as obligor or otherwise (other than trade payables and other current liabilities incurred in the
ordinary course of business which are not more than three months past due),



 


		d)	any banker's acceptances that are not used to purchase Inventory,



 


		e)	any indebtedness guaranteed in any manner by a Person (including, without limitation, guarantees in the
form of an agreement to repurchase or reimburse),



 


		f)	any obligations under capitalized leases with respect to which a Person is liable, contingently or otherwise,
as obligor, guarantor or otherwise, or with respect to which obligations a Person assures a creditor against loss,



 


		g)	any indebtedness secured by an Encumbrance on a Person's assets, and



 


		h)	accrued interest in respect of any of the obligations described in the foregoing clauses (i) through
(vii) of this definition and all premiums, penalties, charges, fees, expenses and other amounts which would become due in com1ection
with the payment and satisfaction in full of such obligations on the Closing Date.



 


"Intellectual Property
Assets" means all: (A) patents, patent applications and patent disclosures; (B) trademarks, service marks, trade dress,
trade names, logos and slogans (and all translations, adaptations, derivations and combinations of the foregoing) and Internet domain
names, together with all goodwill associated with each of the foregoing; (C) copyrightable works and copyrights; (D) registrations
and applications related to any of the foregoing; (E) trade secrets, know-how, confidential information and inventions; (F) computer
software (including but not limited to source code, executable code, data, databases and documentation); (G) rights of publicity
and privacy relating to the use of the names, likenesses, voices, signatures and biographical information of real persons; and (H) other
intellectual property.


 


"Inventory" means
all inventory owned, used or held for sale by the Target, including, without limitation, personal preventative products, drugs, dietary
supplements, disposable medical devices, surgical equipment, and any other instruments used in operating the facility, and all shipments
in transit, and related items owned, used or held for use by the Target.


 


"IRC" means
the Internal Revenue Code of 1986, as amended, or any successor law, and regulations issued by the IRS pursuant to the Internal Revenue
Code or any successor law.


 






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"IRS" means
the United States Internal Revenue Service or any successor agency, and, to the extent relevant, the United States Department of the Treasury.


 


"Knowledge" with
respect to the Company, means knowledge of any member of Management, in each case, assuming a reasonable inquiry.


 


"Legal Requirement"
means any federal, state, local, municipal, foreign, international, multinational, or other administrative order, constitution, law,
ordinance, principle of common law, court order, consent, decree, regulation, license, permit, statute, or treaty.


 


"Material Adverse
Effect (or Change)" means, with respect to a particular Person, any event, fact, circumstances or condition that, individually
or in the aggregate with any other such events, facts, circumstances or conditions, has had or would be reasonably expected to have (a) a
material adverse effect on the business, results of operations, assets or financial condition of such Person and its subsidiaries (if
any), taken as a whole, or (b) a material impairment of such Person's ability to consummate the transactions contemplated hereby;
provided, however, that the term "Material Adverse Effect or (Change)" shall not include any event, fact, circumstances or condition
to the extent resulting from an action affirmatively taken by Buyer or its Affiliates after the date hereof and prior to the Closing Date;
general economic changes or changes in the general industry of the Company; acts of terrorism or war; or political or civil instability,
disturbance or unrest.


 


"Material Contracts"
has the meaning set forth in Section 3.15(a).


 


"Organizational Documents"
means: (a) the articles or certificate of incorporation (memorandum and articles of association) or any formation documents 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) the certificate of organization
or formation and limited liability company agreement of a limited liability company, including, without limitation, an operating agreement;
(e) any charter or similar document adopted or filed in connection with the creation, formation, or organization of a Person; and
(f) any amendment to any of the foregoing.


 


"Person" means
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.


 


"Proceeding"
means any action, arbitration, audit, claim, grievance, 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.


 


"Representative"
means 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.


 


"Subsidiary"
means each Person listed on Schedule 3.1(b).


 






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"Tax" and
"Taxes" means (a) all income, gross receipts, franchise, estimated, excise, transfer, severance, value added, ad
valorem, fuel, sales, use, wage, payroll, workmen's compensation, employment, withholding, social security, alternative minimum, add-on
minimum, occupation, and real and personal property taxes; taxes measured by or imposed on capital; levies, imposts, duties, (license
and legislation fees); other taxes imposed by any Governmental Body, including assessments in the nature of taxes; interest, penalties,
fines, assessments and deficiencies relating to any tax or taxes; (b) liability for the payment of any amounts of the type described
in clause (a) arising as a result of being (or ceasing to be) a member of any Affiliated Group (or being included (or required to
be included) in any Tax Return relating thereto); and (c) liability for the payment of any amounts of the type described in clause
(a) as a result of any express or implied obligation to indemnify or otherwise assume or succeed to the liability of any other person.


 


"Tax Claim" means
any claim based upon, arising out of or otherwise in respect of, any inaccuracy in or any breach of any representation or warranty of
any Selling Party contained in this Agreement related to Taxes, including, without limitation, Section 3.10, and any claim for Damages
pursuant to Section 13.1.


 


"Tax Liability"
means any liability (whether known or unknown, whether asse1ied or unasse1ied, whether absolute or contingent, whether accrued or
unaccrued, whether liquidated or unliquidated, and whether due or to become due) for Taxes.


 


"Tax Return"
means any return (including any information or amended 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 (including any schedule attached thereto)
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.


 


"Taxing Authority"
means any Governmental Body (whether federal, state, local, municipal, foreign or otherwise) responsible for the imposition, collection
or administration of any Tax.


 


ARTICLE II


 


SALE AND TRANSFER OF SALE SHARES; CLOSING


 


2.1          Sale
Shares. Subject to the terms and conditions of this Agreement, at the Closing, the Seller will sell and transfer the Sale Shares in
the Target in the amount as set forth in Annex A to the Buyer, the Parent will purchase the Sale Shares for the purchase price (the “Purchase
Price”) as set forth in Article 2.2 and then the Parent will attribute the Sale Shares to the Buyer through a variable
interest structure as set forth in the VIE Agreements. Pursuant to this Agreement, Seller and the Target shall sign a series of variable
interest entity agreements (the “VIE Agreements”), as applicable, with the Buyer and/or its Affiliates to in effect
transfer the Sale Shares to the Buyer.


 


2.2          Purchase
Price.


 


(a)          The
total Purchase Price for the aggregate Sale Shares shall be 120,309,000.00 RMB, 40% of which shall be payable in two promissory notes
of equal principal amounts (each, a “Promissory Note” and collectively, the “Promissory Notes”),
substantially in the form attached hereto as Exhibit A, to be issued by the Parent upon Closing to the Seller, in the sum
of 48,123,600.00 RMB, and 60% which shall be payable in Class A ordinary shares of the Parent (the “Parent Ordinary Shares”),
par value $0.01 per share, in the total amount of 1,093,800 Parent Ordinary Shares (the “Stock Consideration”), to
the Seller, subject to the increase of the number of authorized Parent Ordinary Shares by amending the memorandum of association of the
Parent. Subject to the terms and conditions of the Promissory Notes, one Note shall have a term of three (3) years from the Closing
Date and the other Note a term of two (2) years from the Closing Date, and both bear an interest of 2% per annum and be unsecured.


 






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(b)          The
purchase and sale of the Sale Shares (the "Closing") provided for in this Agreement will take place in New York, New
York at the offices of Sichenzia Ross Ference LLP, at 10:00 a.m. (local time) on the later of (the "Closing Date"):
(a) July 31, 2021 or (b) the date that is five (5) Business Days following the satisfaction of the closing conditions
set forth in Articles VIII and IX (other than those conditions which by their nature are to be satisfied at the Closing, but subject to
the satisfaction or waiver thereof), or at such other date, time and place as the parties may agree. Subject to the provisions of Article X,
failure to consummate the purchase and sale provided for in this Agreement on the date and time and at the place determined pursuant to
this Section 2.2 will not result in the termination of this Agreement and will not relieve any party of any obligation under this
Agreement.


 


2.3          Closing
Deliveries. At the Closing:


 


(a)          Seller
and the Target (collectively the “Selling Parties”), as the case may be, will deliver or arrange to be delivered to
Buying Parties:


 


		(i)	The set of VIE Agreements, substantially in the form attached herein as Exhibit B, duly and
fully executed by Seller and the Target to in effect transfer control of the Sale Shares and interest therein to the Buyer;



 


		(ii)	An officer’s certificate executed by the Target, certifying as to the satisfaction of the Closing
conditions set forth in Sections 8.1 and 8.2 hereof with respect to such Company;



 


		(iii)	A secretary certificate executed by the Target certifying as to the authority of each authorized officer
executing this Agreement, and the signature authentication of each authorized officer;



 


		(iv)	Written consents from the board of directors of the Target and Seller approving the Transactions set forth
herein; written resignations of each of the members of the board of directors of the Target; and



 


		(v)	All other agreements, certifications, and other documents required to be executed and delivered by the
Selling Parties hereunder at the Closing.



 


(b)          Buyer
or Parent, as the case may be, will deliver the following upon Closing:


 


		(i)	To Seller, the Stock Consideration issued by Parent in the amount as set forth in Annex A;



 


		(ii)	To Seller, the Promissory Notes in the amount as set forth in the Annex A in accordance with Section 2.2
hereof;



 


		(iii)	To the Seller, the fully executed VIE Agreements by the authorized officer of the Buyer;



 


		(iv)	To the Seller’s Representative, the Secretary’s certificates of each Buying Party certifying
as to the authority of each authorized officer of Buying Parties executing this Agreement, and the signature authentication of each such
authorized officer;



 






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		(v)	To the Seller’s Representative, an officer’s certificate executed by each Buying Party certifying
as to the satisfaction of the Closing conditions set forth in Sections 9.1 and 9.2 hereof;



 


		(vi)	To the Seller’s Representative, written consent from the board of directors of each Buying Party
approving the Transaction set forth in this Agreement; and



 


		(vii)	To the Seller’s Representative, all other agreements, certifications, and other documents required
to be executed and delivered by Buyer or Parent hereunder at the Closing.



 


ARTICLE III


 


REPRESENTATIONS AND WARRANTIES REGARDING SELLING
PARTIES


 


Each of Seller and the Target, jointly and severally,
represents and warrants to Buying Parties as follows:


 


3.1          Organization
and Good Standing.


 


(a)          If
the Selling Party is an entity, each Selling Party is a corporation duly organized, validly existing, and in good standing in the respective
jurisdictions where each Selling Party was incorporated, with full corporate power and authority to conduct its business as it is now
being conducted and to own or use the properties and assets that it purports to own or use. Schedule 3.l (a) sets forth the current
directors and executive officers of the Target. The Target is duly qualified and authorized to transact business as a foreign corporation
and is in good standing in every jurisdiction where required except as disclosed on Schedule 3.1(a) hereto, such exceptions not giving
rise, either individually or in the aggregate, to a Material Adverse Effect.


 


(b)          Schedule
3.1(b) sets forth, as of the date hereof, the Target’s direct or indirect ownership interest in any subsidiary companies or
any other Person, its percentage ownership interest therein (and the ownership interest of any other Person therein) and the jurisdiction
in which each Subsidiary was organized. Each of the Subsidiaries is a corporation or other entity duly organized, validly existing and
in good standing under the laws of the jurisdiction of its incorporation or formation. The Subsidiaries have all necessary corporate power
and authority to own or lease their respective properties and assets, as applicable, and to carry on their respective businesses as now
conducted and are duly qualified or licensed to do business as foreign corporations or other entities in good standing in all jurisdictions
in which the ownership of their property or the conduct of their business requires such qualification. Schedule 3.l (b) sets forth
the board of directors, if applicable, and executive officers of each Subsidiary.


 


(c)          The
Target has made available to Buying Parties prior to the execution of this Agreement, timely and complete copies of the Organizational
Documents of the Target and its Subsidiaries, as currently in effect.


 


3.2          Authority;
No Conflict.


 


This Agreement constitutes
the legal, valid, and binding obligation of the Selling Parties, enforceable against each Selling Party in accordance with its terms.
Each Selling Party has all corporate right, power and authority to execute and deliver this Agreement and to perform its obligations under
this Agreement. The execution, delivery and performance of this Agreement will not, directly or indirectly contravene, conflict with,
or result in a violation of (A) any provisions of the Organizational Documents of each Selling Party (B) 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 each Selling Party, or (C) 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 Material Contract to which
the Selling Party is a party.


 






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3.3          Capitalization.


 


(a)          The
total authorized capital stock of the Target consists of [ ] ordinary shares, [ ] par value per share, of which [ ] shares are issued
and outstanding. Target’s capital shares have been duly authorized and are validly issued and are fully paid and non-assessable
and, except as set forth on Schedule 3.3(a) hereto, are not subject to preemptive rights or any rights of first refusal or rights
of rescission. Except as referenced on Schedule 3.3(a), there are no Contracts for the issuance, sale or transfer of any equity securities
or other securities or interests of Seller.


 


(b)          Seller
is as of the date of this Agreement and will be on the Closing Date the record and beneficial owner and holder of the respective amount
of Sale Shares as set forth in Annex A. Seller represents that its Shares will be in effect transferred to Buyer on the Closing
Date via the execution of the VIE Agreements, free and clear of all Encumbrances except for restrictions imposed under any United States
or Chinese federal or state securities law, as applicable.


 


3.4          Financial
Statements.


 


Attached hereto as Schedule
3.4 are the unaudited balance sheet of the Target at December 31 in each of the years 2019 and 2020, and the related unaudited statements
of income, changes in stockholders’ equity, and cash flow for each of the fiscal years then ended, together with the notes thereto
(collectively as the "Year End Financial Statements"). Such Year End Financial Statements fairly present in all material
respects the financial condition and the results of operations of the Target, at the dates of and for the periods referred to in such
financial statements, all of which have been prepared in accordance with GAAP (except as set forth on Schedule 3.4) and are auditable
as required under Section 6.3 and 8.9 of this Agreement.


 


3.5          Books
and Records. The books of account, minute books, shareholder registry, and other records of the Target, all of which have been made
available to Buying Parties prior to the execution of this Agreement, are complete and correct in all material respects.


 


3.6          Title
to Assets; Encumbrances. (a) Schedule 3.6(a) contains a complete and accurate list of all (x) land, buildings and real
property owned by the Target (the "Owned Real Property") and (y) all leases and other agreements (including all
guaranties, assignments, amendments, extensions and renewals of such leases and other agreements) (the "Leases") under
which the Target holds any leasehold estates and other similar rights to use or occupy any land, buildings or other similar interest in
real property (the "Leased Real Property"). The Target has delivered or made available to Buying Parties copies of the
deeds and other instruments (as recorded) by which the Target acquired its interest in the Owned Real Property, and copies of all title
insurance policies, opinions, abstracts, and surveys in the possession of the Target and relating to such property or interest. Except
as set forth on Schedule 3.6(a), the Target has not leased, subleased or granted the right to use or occupy any portion of the Owned Real
Property or Leased Real Prope1iy to any Person. Except as set forth on Schedule 3.6(a), the Target owns or holds a valid and enforceable
(i) title, in the case of Owned Real Property, an (ii) leasehold interest under the Leases, in the case of Leased Real Property.
Schedule 3.6(a) lists all of the mortgages, security interests and other types of encumbrances on the Owned Real Property other than
(A) liens for real estate Taxes assessed with respect to the Owned Real Property for the current fiscal tax year but not yet due
and payable; (B) mortgage or security interests incurred in connection with the purchase of property or assets and shown on the balance
sheet portions of the Year End Financial Statements and (C) other defects in title or Encumbrances that do not materially restrict
or impair the Target’s use of the Owned Real Property in the ordinary course of business.


 






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(b)          Except
as set forth on Schedule 3.6(b), Target has good and marketable title to, or, in the case of leased properties and assets, a valid leasehold
interest in, all its material properties and assets (whether real, personal, or mixed and whether tangible or intangible) used by the
Target, located on any of the premises of Target or reflected in the books and records of the Target. To the Knowledge of the Target,
the buildings, plants, structures, and other material assets owned, leased or licensed by the Target are in reasonably good operating
condition and repair, in all material respects, ordinary wear and tear excepted, and are reasonably fit for the purposes for which they
are used by the Target, except for such conditions as would not have a materially adverse impact upon the use thereof.


 


(c)          Schedule
3.6(c) contains a complete and accurate list of all Equipment items owned, leased or licensed by the Target, grouped by category
of Equipment and the nature of the Target’s interest (owned, leased or licensed) with respect thereto. To the Knowledge of the Target,
each Equipment item is in reasonably good operating condition and repair, in all material respects, ordinary wear, tear, breakage and
malfunctions excepted, and is reasonably fit for the purpose for which it is used by the Target in its ordinary course of business, except
for such conditions as would not have a materially adverse impact upon the use thereof.


 


3.7          Intellectual
Property Matters. Schedule 3.7 attached hereto sets forth a complete and correct list of all of the intellectual property rights that
are owned by the Target: patents; patent applications; trademark applications; trademark registrations; Internet domain names; service
mark applications; service mark registrations; copyright registrations and material unregistered trademarks, service marks and copyrights.
In addition, Schedule 3.7 also sets forth all agreements relating to the licensing of Intellectual Property Assets by the Target to a
third party or by a third party to the Target, and all other agreements affecting the Target's ability to use or disclose any Intellectual
Property Assets, except for licenses for commercially available off-the-shelf computer software programs, applications or products purchased
or licensed for less than a total cost of $25,000.


 


3.8          Reserved.


 


3.9          No
Undisclosed Liabilities. To the Knowledge of the Target, and except as set forth on Schedule 3.9, the Target has no material liabilities
or obligations of any nature (whether absolute, accrued, contingent, known or otherwise) not disclosed on the Target’s Year End
Financial Statements, except for liabilities that do not or would not reasonably be expected to have a Material Adverse Effect.


 


3.10          Taxes.


 


(a)          Target
has filed or caused to be filed all Tax Returns required to have been filed by it pursuant to applicable Legal Requirements. All such
Tax Returns are true, correct and complete in all material respects. Except as set forth in the Disclosure Schedules, the Target has paid
all Taxes shown on all Tax Returns it has filed, except such Taxes, if any, as are listed on Schedule 3. 10(a) and are being contested
in good faith and as to which adequate reserves (determined in accordance with GAAP) have been provided on the face of the balance sheet
portion of the Year End Financial Statements.


 


(b)          Except
as set forth on Schedule 3.10(b) there is no dispute or claim concerning any Tax Liability of the Target either (A) claimed
or raised by any Taxing Authority in writing that has been received by the Target or (B) as to which Target has Knowledge based upon
personal contact with any agent of such Taxing Authority. Schedule 3.10 lists all federal, state, local, and foreign income Tax Returns
filed with respect to Target for taxable periods commencing January 1, 2015 and ended on or before December 31, 2020.


 






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3.11        Employee
Benefits.


 


Schedule 3.11 contains a complete
and accurate list of all plans and material benefit obligations (the “Employee Benefit Plan”) sponsored, maintained
or contributed to by the Target on behalf of or for the benefit of its current or former employees, directors or independent contractors.
The Target has delivered or made available to Buying Parties a true and correct copy of the governing plan document for each Employee
Benefit Plan (including all amendments thereto).


 


3.12        Compliance
with Legal Requirements; Governmental Authorizations.


 


(a)          Except
as set forth on Schedule 3.12 or Schedule 3.17 or except where any failure to comply or any violation would not have a Material Adverse
Effect on the Target:


 


		(i)	Target is in material 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;



 


		(ii)	no event has occurred or circumstance exists that (with or without notice or lapse of time) may constitute
or result in a material violation by Target of, or a material failure on the part of the Target to comply with, any Legal Requirement;
and



 


		(iii)	to the Target’s Knowledge, the Target has not received any written notice or communication from
any Governmental Body regarding: (A) any actual or alleged violation of, or failure to comply with, any Legal Requirement, or (B) any
actual or alleged obligation on the part of the Target to undertake, or to bear all or any part of the cost of, any remedial action of
any nature.



 


(b)          To
the Knowledge of the Target, Schedule 3.12 and Schedule 3.17, taken together, contain all material franchises, grants, authorizations,
licenses, permits, easements, variances, exceptions, consents, certificates, approvals and orders of any Governmental Authority necessary
for the Target and its Subsidiaries to own, lease and operate its properties and carry on their respective businesses, as they are now
being conducted or contemplated to be conducted in near future in all material respects (the “Target Permits”). As of the
date hereof, all of the Target Permits are in full force and effect and no material violation, suspension or cancellation of any of the
Target Permits is pending or, to the knowledge of the Target, threatened. Except as disclosed in Section 3.25 of the Company Disclosure
Schedule, none of the Target Permits will be terminated or impaired in any material respect or become terminable, in whole or in part,
as a result of this Agreement. To the Knowledge of the Target, each Governmental Authorization listed on Schedule 3.12 or Schedule 3.17
is valid and in full force and effect.


 


(c)          To
the Knowledge of the Target, its doctors, other medical professionals and any subcontractors they utilize, meet applicable government
license, certification and registration requirements. Except as disclosed on Schedule 3.12, none of the personnel is or has been, for
the past five (5) years from the date of this Agreement, a party to any malpractice claim, disciplinary investigation, criminal or
civil proceeding, or allegation for the breach of professional ethics or standards. Current credentialing documentation and verification
shall be maintained at each facility, consistent with accreditation standards and made available for inspection by the Buying Parties
upon request. The Target shall require and approve procedures for the immediate notification to the Buying Parties of any restrictions
placed on a health care professional’s license by a licensing board prior or subsequent to the Closing.


 






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3.13        Legal
Proceedings. Except as set forth on Schedule 3.13, there is no pending Proceeding:


 


(a)          that
has been commenced by or against the Target or any of the material assets owned or used by the Target;


 


(b)          that
has been commenced by or against the doctors or other medical professionals employed by the Target; or


 


(c)          that
challenges, or that may have the effect of preventing, delaying, making illegal, or otherwise interfering with, any of the transactions
contemplated by this Agreement.


 


Except as set forth on Schedule
3.13, to the Knowledge of the Target, no such Proceeding has been threatened. Except as set forth on Schedule 3.13, there is no judgment,
decree, injunction, rule or order of any Governmental Body or arbitrator outstanding against the Target.


 


3.14        Absence
of Certain Changes and Events. Except as set forth on Schedule 3.14, since the date of the Year End Financial Statements, Target has
conducted its business only in the ordinary course of business consistent with past practices, and there has not been any:


 


(a)          acquisition
of any stock or business of, or merger or consolidation with, another Person, or any action with respect to liquidating, dissolving, recapitalizing,
reorganizing or otherwise winding up Target’s business;


 


(b)          payment
or increase by the Target of any bonuses, salaries, or other compensation to any stockholder, director, officer, or employee (except,
with respect to non-executive employees, in the ordinary course of business consistent with past practice) or entry into any new, or material
amendment of any existing, employment, consulting, independent contractor, severance, change of control or similar Contract;


 


(c)          adoption
of any profit sharing, bonus, deferred compensation, savings, insurance, pension, retirement, or other employee benefit plan;


 


(d)          damage
to or destruction or loss of any asset or property of the Target, whether or not covered by insurance, which has had, or would reasonably
be expected to have, a Material Adverse Effect on the Target;


 


(e)          sale
(other than sales of Inventory in the ordinary course of business), lease, license, distribution or other disposition of any material
asset(s) or property of the Target, or any waiver, release, transfer or assignment of any right of material value, or any mortgage,
pledge, or imposition of any lien or other Encumbrance on any material asset(s) or property of the Target except as noted on Schedule
3.6 or except as explicitly permitted under Section 6.2 or required under any other provision of this Agreement;


 


(f)          entry
into any Contract or other agreement providing for payments by Target in an aggregate amount exceeding $100,000 that is not terminable
by Target, without penalty, upon sixty (60) days notice, with the exception of agreements in the ordinary course of its business and consistent
with past practice;


 






    13 


     


    

 


(g)          any
modification, termination or amendment to a Material Contract or waiver of any right or claim thereunder;


 


(h)          any
suspension or cancellation of any of the Target Permits;


 


(i)           loss
of use of any Target’s Intellectual Property Assets; or


 


(j)           any
events that will result in any other Material Adverse Changes to Target.


 


3.15        Material
Contracts; No Defaults. To the Knowledge of Target, after having made inquiry of all the Target employees authorized to enter into
Material Contracts on behalf of Target:


 


(a)          Schedule
3.15(a) contains a complete and accurate list, and the Target has delivered or made available to Buying Parties prior to the execution
of this Agreement true and complete copies, of the following Contracts (together with the Leases listed on Schedule 3.6 and the Contracts
listed on Schedule 3.7(b), the "Material Contracts"):


 


		(i)	each Contract that involves the performance of services or delivery of goods or materials by Target of
an amount or value in excess of $100,000 either (A) during fiscal 2020 or (B) reasonably expected for the fiscal year 2021 or
any fiscal year thereafter, except for purchase orders for finished goods in the ordinary course of business, consistent with past practices
and Contracts that are terminable by the Target without penalty or notice;



 


		(ii)	each Contract entered into by the Target outside the ordinary course of business involving, or reasonably
expected to involve, expenditures or receipts of the Target in excess of $25,000;



 


		(iii)	each Lease, rental or occupancy agreement, license, installment or conditional sale agreement, or other
Contract affecting the ownership of, leasing of, title to, use of, or any leasehold or other interest in, any real or personal property
(except personal prope1iy leases and installment and/or conditional sales agreements involving aggregate payments of less than $25,000);



 


		(iv)	each joint venture, partnership, and other similar Contract (however named) involving (or reasonably expected
to involve) a sharing of profits, losses, costs, or liabilities by the Target with any other Person;



 


		(v)	each Contract containing covenants that restrict the business activity of Target or limit the freedom
of the Company to engage in any line of business or to compete with any Person;



 


		(vi)	each Contract for capital expenditures in excess of $25,000;



 


		(vii)	each indenture, mortgage, trust, deed, promissory note, loan agreement, security agreement, guarantee
or other material agreement or material commitment for Indebtedness;



 


		(viii)	any indemnification agreements or other similar arrangements under which the Target is obligated to indemnify
any Person;



 


		(ix)	any settlement, conciliation or similar agreement pursuant to which Target is required to pay consideration
in excess of $100,000 after the date hereof;



 






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		(x)	each Contract with any executive officers, directors, medical professionals, consultants or independent
contractors of the Target detailing their compensation, term, and any other material conditions therein; and



 


		(xi)	each amendment, supplement, and modification (whether oral or written) in respect of any of the foregoing.



 


(b)          Each
Material Contract identified or required to be identified on Schedule 3.15(a) is in full force and effect and is valid and enforceable
in accordance with its terms.


 


(c)          Except
as set forth on Schedule 3.15(c):


 


		(i)	Target is in material compliance with all applicable terms and requirements of each Material Contract;



 


		(ii)	to the Knowledge of the Target, each other Person that has any obligation or liability under any Material
Contract is in material compliance with all applicable terms and requirements of such Material Contract;



 


		(iii)	to the Knowledge of the Target, no event has occurred or circumstance exists that (with or without notice
or lapse of time) may contravene, conflict with, or result in a violation or breach of, or give the Target or other 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
Material Contract; and



 


		(iv)	to the Knowledge of the Target, Target has not given to or received from any other Person, at any time
since the date of the Year End Financial Statements, any written notice or communication regarding any actual, alleged, possible, or potential
violation or breach of, or default under, any Material Contract.



 


3.16        Insurance.


 


(a)          Target
has delivered or made available to Buying Parties:


 


		(i)	true and complete copies or coverage abstracts or summaries of all policies of insurance, including medical
malpractice insurance, to which Target is a party or under which the Target, or any officer or director of the Target, is or has been
covered at any time within the two (2) years preceding the date of this Agreement (a list of material policies is set forth on Schedule
3.16(a)); and



 


		(ii)	true and complete copies of all pending applications for policies of insurance (a list of which applications
is set forth on Schedule 3.16(a)).



 


The policies referred to in
clause (i) above provide the coverage required by any Material Contract to which the Target
is a party to.


 


(b)          Except
as set forth on Schedule 3.16(b):


 


		(i)	To the Knowledge of the Target, Target has not 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 material
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.



 






    15 


     


    

 


		(ii)	To the Knowledge of the Target, Target has paid all premiums due (or has accrued for such on its financial
statements), and has otherwise performed all of its obligations, under each policy to which the Target is a party or that provides coverage
to the Target or any director thereof.



 


3.17        Environmental
Matters. To the Knowledge of the Target:


 


(a)          Except
as set forth on Schedule 3.17(a) and except to the extent that the inaccuracy of any of the following, individually or in the aggregate,
would not have a Material Adverse Effect the Target:


 


		(i)	The Target holds and is in compliance with all Environmental Permits, and is and has otherwise been in
compliance with all applicable local and federal Environmental Laws and there is no condition that is reasonably likely to prevent or
materially interfere with compliance by the Target with Environmental Laws;



 


		(ii)	no modification, revocation, re-issuance, alteration, transfer or amendment of any Environmental Permit,
or review by, or approval of, any third party, including, without limitation, any Governmental Body, of any Environmental Permit or of
the environmental condition any real property owned by the Target or any of its Subsidiaries is required in connection with the execution
or delivery of this Agreement or the consummation by the Target of the transactions contemplated hereby or the operation of the business
of the Target on the date of the Closing; and



 


		(iii)	The Target has not received any Environmental Claim, nor, to the Knowledge of the Target, has any Environmental
Claim been threatened against the Target.



 


(b)          Set
forth on Schedule 3.17(b) are all of the parcels of real property that are now, or have heretofore been, owned or leased by the Target
or its Subsidiaries, or otherwise used by the Target or its Subsidiaries for the conduct of the Target’s, or to which any
Hazardous Materials generated by the Target or its Subsidiaries have been delivered during the last ten years by a third party.


 


(c)          Except
as set forth on Schedule 3.l7(c), no Hazardous Material which was generated, discarded, transported, or Released by any Target or its
Subsidiaries prior to the Closing Date is present, in a concentration or amount exceeding legally allowable limits applicable to the use
of the property in question or in a mam1er which violates any applicable Environmental Law or that is reasonably likely to require any
investigation, removal or response activity under any applicable Environmental Law, on any other real prope1iy, including, without limitation
any disposal site to which Hazardous Materials generated or transported by the Target have been delivered.


 


(d)          The
Target has delivered to Buying Parties (or made available for Buyer's inspection) all reports, records, tests, evaluations, Governmental
Body and third party correspondence, and other documents relating to the storage, use, Release, manufacture, remediation, investigation,
or removal of Hazardous Materials by the Target or any of its Subsidiaries or the presence of any Hazardous Material on or about any Target’s
facility.


 






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(e)          Except
as set forth on Schedule 3.l 7(e), no person has been exposed to any Hazardous Material stored, used, Released, generated, or transported
by or for any Target or any of its Subsidiaries in a manner which has caused, or is reasonably likely to cause, an adverse health effect.


 


For purposes of this Agreement,
the terms below shall have the following meanings:


 


"Environmental Claim"
means any written complaint, notice, claim, demand, action, suit or judicial, administrative or arbitral proceeding by any Person
to Target asserting liability or potential liability (including without limitation, liability or potential liability for investigatory
costs, cleanup costs, governmental response costs, natural resource damages, property damage, personal injury, fines or penalties) arising
out of, relating to, based on or resulting from: (i) the presence, Release or threatened Release of any Hazardous Materials at any
location, (ii) circumstances forming the basis of any violation or alleged violation of any Environmental Laws or Environmental Permits,
or (iii) otherwise relating to obligations or liabilities under any Environmental Law.


 


"Environmental Laws"
means all applicable federal, state, county, and local statutes, rules, regulations, ordinances, orders and decrees, and all common
law, in each case relating in any mam1er to pollution, protection of human health and the environment, the exposure of Persons, property
or the environment to any Hazardous Materials, or the Release or threatened Release of any Hazardous Materials, to the extent and in the
form that such exist at the date hereof.


 


"Environmental Permits"
means all permits, licenses, registrations, exemptions and other governmental authorizations required under Environmental Laws for
the Target to conduct its operations as presently conducted.


 


"Hazardous Materials"
means all hazardous or toxic substances, wastes, materials or chemicals, petroleum and petroleum products, asbestos and asbestos-containing
materials, pollutants, contaminants and all other materials and substances, including but not limited to radiologically-contaminated materials
regulated pursuant to any Environmental Laws or that could result in liability under any Environmental Laws.


 


"Release" means
any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the
environment (including but not limited to any ventilated or indoor air) or into any building or other man-made structure.


 


"Released" means
spilled, leaked, pumped, poured, emitted, emptied, discharged, injected, allowed to escape, allowed to leach, dumped, or disposed of into
the environment (including but not limited to any ventilated or indoor air) or into any building or other man-made structure.


 


3.18          Brokers
or Finders. Each Selling Party has 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 or the transactions contemplated hereby.


 


3.19        Accounts
Receivable. Except as set forth on Schedule 3.19, all Accounts Receivable of the Target are reflected properly on its books and records,
are valid receivables and, to the Knowledge of the Target, are collectible in accordance with their terms at their recorded amounts, subject
only to the reserve for doubtful accounts set forth in the balance sheet portion of the Year End Financial Statements (rather than in
any notes thereto) as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of the
Target.


 


3.20        Inventory.
Except as set forth on Schedule 3.20, all Inventory is useable and saleable in the ordinary course of business, except for obsolete
items of below-standard quality, all of which have been written off or written down to estimated net realizable value (or reserves have
been established for such Inventory) in the books and records of the Target in accordance with GAAP. Except as set forth in Schedule 3.20,
the Inventory is reflected on the balance sheet portion of the Year End Financial Statements in accordance with GAAP.


 






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3.21        Relationships
with Customers, Sales Agents, and Suppliers.


 


(a)          Attached
hereto as Schedule 3.21(a) is a true and accurate list of (i) the names of the Target’s top ten customers or sales agents
(by dollar volume of sales to such customers or from the sales agents) and (ii) the names of the top ten suppliers of the Target
(by dollar volume of purchases from such carriers), for the 2018, 2019 and 2020 fiscal years and, for each such customer or sales agent,
as applicable, the volume of purchases by such customer or sold by the sales agent, as applicable, for each such fiscal year. The Target
has not received any written notice from any material customer or key sales agent (except as listed on Schedule 3.21(a)) to the effect
that, and the Target, to its Knowledge, has no reason to believe that, any material customer or key sales agent will stop, materially
decrease the rate of, or materially change the terms (whether related to payment, volume, price or otherwise) with respect to, buying
the products or services from the Target (whether as a result of the consummation of the transactions contemplated hereby or otherwise).
The Target has not received any written notice from any of its material supplier (except as listed on Schedule 3.21(a)) to the effect
that, and the Target, to its Knowledge, has no reason to believe that, such supplier will stop, materially decrease the rate of, or materially
change the terms (whether related to payment, volume, price or otherwise) with respect to, supplying medical products or services to the
Target (whether as a result of the consummation of the transactions contemplated hereby or otherwise).


 


3.22        Related
Party Transactions. Except as set forth on Schedule 3.22, no director, officer, partner, employee, or Affiliate (as such term is defined
in Rule 12b-2 under the Securities Exchange Act of 1934, as amended) of the Target or its Subsidiaries (i) has borrowed any
monies from or has outstanding any indebtedness or other similar obligations to the Target or its Subsidiaries; (ii) owns any direct
or indirect interest of any kind in, or is a director, officer, employee, partner, Affiliate of, or consultant or lender to, or borrower
from, or has the right to participate in the management, operations or profits of, any person or entity which is (x) a competitor,
supplier, customer, distributor, lessor, tenant, creditor or debtor of the Target or its Subsidiaries, (y) engaged in a business
related to the Target’s business or (z) participating in any transaction to which the Target or its Subsidiaries is a party;
or (iii) otherwise is or has been a party to any contract, arrangement, understanding or transaction with the Target or its Subsidiaries.
Except as set forth on Schedule 3.22, each of such agreements, obligations and arrangements shall have been paid in full or, in the case
of executory obligations, terminated prior to the Closing Date.


 


3.23        Employees
and Labor Relations.


 


(a)          Schedule
3.23(a) hereto correctly sets forth the name and current annual salary of the Target’s full-time employees receiving more than
$120,000 in annual compensation and whether any employees are absent from active employment, including, but not limited to, leave of absence
or disability.


 


(b)          Except
as set forth on Schedule 3.24(c), the Target is not a party to any collective bargaining agreement or relationship; to the Target’s
Knowledge, no key employee or group of employees of the Target have any plans to terminate employment therewith; and to the Target’s
Knowledge, it does not have any material labor relations problems (including any union organization or decertification activities, threatened
or actual strikes or work stoppages or material employee grievances).


 


3.24        Closing
Date. Each of the representations and warranties of each Selling Party contained in this Article III, in the Schedules attached
hereto or in any certificate delivered by or on behalf of each Selling Party to Buying Parties pursuant hereto shall be true and correct
as of the Closing Date as though then made and as though the Closing Date was substituted for the date hereof (or any other reference
to the date hereof or the date of this Agreement) throughout such representations and warranties; provided, however, that each
Selling Party shall update the Schedules hereto at or prior to the Closing Date to reflect changed conditions or circumstances after the
date hereof. Buying Parties shall have the right to terminate this Agreement as a result of any such update to the Schedules that reflects
a Material Adverse Change.


 






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3.25        Disclosures.
Neither this Agreement nor any of the Disclosure Schedules annexed hereto, nor any certificate or instrument furnished by each Selling
Party in writing to Buying Parties or its counsel in connection with the transactions contemplated by this Agreement, when read together,
contains or will contain any material misstatement of fact or omits or will omit to state a material fact necessary to make the statements
contained herein or therein not misleading in any material respect. Each Selling Party has not, after due inquiry, knowingly withheld
from Buying Parties any information or fact which has, or would reasonably be expected to have, a Material Adverse Effect on any Selling
Party.


 


ARTICLE IV


 


REPRESENTATIONS AND WARRANTIES OF BUYING PARTIES


 


Each Buying Party, jointly,
represents and warrants to the Selling Parties as follows:


 


4.1          Organization
and Good Standing. Each Buying Party is a corporation duly organized, validly existing, and in good standing under the laws of the
jurisdictions of its incorporation.


 


4.2          Authority;
No Conflict.


 


(a)          This
Agreement constitutes the legal, valid, and binding obligation of each Buying Party, enforceable against both Buying Parties in accordance
with its terms. Each Buying Party has the absolute and unrestricted right, power, and authority to execute and deliver this Agreement
and the other documents to be executed in com1ection herewith and to perform its obligations under this Agreement and the documents to
be executed in connection herewith.


 


(b)          Except
as set forth in Schedule 4.2, neither Buying Party is not and will not be required to 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 transactions contemplated in this Agreement.


 


(c)          Except
as expressly set forth in this Agreement or in the attachments hereto, each Buying Party is not a party to any other agreement or understanding
with any of the Selling Parties, or any of the Selling Parties’ employees.


 


4.3          Investment
Intent. Buyer is acquiring the de facto control over the Sale Shares for its own account and not with a view to their distribution
within the meaning of Section 2(a)(l1) of the Securities Act of 1933, as amended.


 






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4.4          Capitalization
of Parent. As of March 6, 2021, the authorized capital stock of the Parent consisted of 5,000,000 ordinary shares, par value
$0.001 per share, 60,001 shares of which were issued and outstanding. As of the date of this Agreement, the Parent together with its Subsidiaries
are conducting a series of acquisition transactions (the “First Round Roll-ups”) within the traditional healthcare,
artificial intelligent medical technologies and telemedicine industries. Upon completion of the First Round Roll-ups, the Parent expects
to have approximately 1,140,000 Class A ordinary shares and 210,000 Class B ordinary shares, issued and outstanding, where each
Class A ordinary share shall entitle its holder one (1) vote and each Class B ordinary share shall entitle its holder twenty
(20) votes. In addition, the Parent has the current intention to reserve an aggregate of 1,650,000 Class A ordinary shares for future
potential roll-up acquisitions and employee stock incentive plans.


 


4.5          Certain
Proceedings. There is no pending Proceeding that has been commenced against either Buying Party and that challenges, or may have the
effect of preventing, delaying, making illegal, or otherwise interfering with the performance of this Agreement or the transactions contemplated
herein. To each Buying Party’s Knowledge, no such Proceeding has been threatened.


 


4.6          Buyer’s
Investigation. Buyer hereby acknowledges that to its knowledge, Buyer and its Representatives have been (a) given access to the
premises, properties, books, contracts and records of the Targets and (b) furnished with all additional financial and operational
data and other information concerning the assets of the Target as Buyer and its Representatives have requested in connection with Buyer’s
determination to enter into this Agreement.


 


4.7          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 com1ection with this Agreement and will indemnify and hold Seller harmless
from any such payment alleged to be due from Seller by or through Buyer as a result of the action of Buyer or its officers or agents.


 


ARTICLE V


 


OTHER AGREEMENTS


 


5.1          Seller’s
Leak-Out.


 


Except as set forth below
in Section 5.1 and subject to Section 5.6, as an inducement for the Buying Parties to enter into this Agreement, Seller hereby
severally agrees not to, without the Parent’s written consent, (1) offer, pledge, sell, contract to sell, grant, lend, or otherwise
transfer or dispose of, directly or indirectly, any Parent Ordinary Shares, any securities convertible into or exercisable or exchangeable
for Parent Ordinary Shares or any securities exchanged from or convertible from the Parent Ordinary Shares, whether now owned or hereafter
acquired by the Seller or with respect to which the Seller has or hereafter acquires the power of disposition (collectively, the “Lock-Up
Securities”); (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of the Lock-Up Securities, whether any such transaction described in clause (1) or (2) above is to
be settled by delivery of Lock-Up Securities, in cash or otherwise; (3) make any demand for or exercise any right with respect to
the registration of any Lock-Up Securities; or (4) publicly disclose the intention to make any offer, sale, pledge or disposition,
or to enter into any transaction, swap, hedge or other arrangement relating to any Lock-Up Securities. Notwithstanding the foregoing,
Seller agrees that the Seller may sell to the public market no more than what is provided for in the following schedule the Ordinary Shares
of the Stock Consideration during each of the four calendar years following the six months anniversary from the closing of the DeSPAC
Merger or when the Parent becomes a publicly traded company with its Ordinary Shares listed on a U.S. national stock exchange market (the
 “IPO”).


 






    20 


     


    

 


	Periods	 	Leak-Out
    Percentage  of
 SPAC Shares held by the 
 Participating Seller 
 Shareholders	 
	Within the first year of the six month anniversary from the closing of DeSPAC Merger or IPO	 	 	25	%
	Within the second year of the six month anniversary from the closing of DeSPAC Merger or IPO	 	 	25	%
	Within the third year of the six month anniversary from the closing of DeSPAC Merger or IPO	 	 	25	%
	Within the fourth year of the six month anniversary from the closing of DeSPAC Merger or IPO	 	 	25	%






 


5.2          Buying
Parties’ Management Post-Closing.


 


(a)          The
Buying Parties hereby agree to reserve a seat on the Parent’s operation management committee (the “Management Committee”)
consisting of experts and such other professionals overlooking the management of Parent and reporting directly to the Parent Board. Buying
Parties shall help the Target expand its business.


 


(b)          Upon
Closing, the Buyer or Parent shall appoint certain individuals at its sole discretion to the board of directors of the Target, resulting
in at least two thirds of the members of the Target’s board of directors being nominated by the Buyer or Parent.


 


(c)          The
Buying Parties hereby agree to refrain from removing or replace any executive officers of the Target for a period of one year from Closing
Date unless i) the executive officer’s performance does not meet the expectation of the board of directors of the Target; or ii)
the executive office is accused of or convicted of any felony or being investigated by any local or federal healthcare or securities related
regulatory agency in the jurisdiction where he or she resides or works.


 


5.3          Right
to First Refusal. Upon the Closing, the Buying Parties shall have the right of first refusal to purchase the Seller’s next offer
to sell equity securities of the Target in either the form of VIE Agreements or another manner. If the Buying Parties fail to accept in
writing any such proposal for such sale within ten (10) calendar days after receipt of a written notice from the Seller containing
such proposal, then the Buying Parties shall have no claim or right with respect to any such sale contained in any such notice. If, thereafter,
such proposal is modified in any material respect, the Seller will adopt the same procedure as with respect to the originally proposed
sale, and the Buying Parties shall have the right of first negotiation with respect to such revised proposal in accordance with the terms
of this Section 5.3.


 






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5.4          Covenants
post-Closing.


 


From the date of this Agreement
to Closing, none of the Parties shall encumber in any manner, such as imposing or creating any liens, mortgages, pledges or any other
encumbrances, any of the assets owned by the Target, except in the ordinary course of the Target’s business.


 


5.5.         Liabilities
prior to Closing.


 


Both the Selling Parties and
the Buying Parties agree that the Seller and Target shall be jointly and severally liable for any liabilities, debts and obligations incurred
by the Target prior to the Closing, and the Buying Parties shall not be required to provide funding or services to pay off any liabilities
and debts or fulfill any obligations incurred by the Target prior to the Closing.


 


5.6           Allowed
Pledges.


 


Notwithstanding Section 5.1,
upon one year anniversary from the closing of the DeSPAC Merger or the completion of the Parent’s IPO, as the case may be, the Seller
may pledge any or all of its shares in the combined public company or the Parent, as applicable, with a local commercial bank to finance
the establishment of a private hospital within the geographical area of Target’s business subject to a thirty (30)-day written notice
to the Parent.


 


5.7           Target’s
Expansion.


 


Upon the Closing of this transaction,
the Buyer shall oversee and manage the Target’s business and introduce the Target to the healthcare providers in the United States
that work for the Parent and the Parent’s Affiliates. Upon Closing, the Buying Parties shall use its commercially reasonable efforts
to integrate the Target into its management system and provide the Target with:


 


		i.	Access to Parent’s artificial intelligence data and smart healthcare system;



 


		ii.	Expand Etao Plus marketing system to other hospitals and clinics under the Parent;



 


		iii.	Training for Target’s healthcare service providers;



 


		iv.	Access to the Parent’s wholesale channels of certain medical equipment and drugs;



 


		v.	Coordinating with doctors regarding joint diagnosis at the hospitals and clinics under the Parent;



 


		vi.	Access to the Buyer’s future medical image center and heavy-duty medical diagnosis equipment;



 


		vii.	Joint therapy services combining western and Chinese therapies; and



 


		viii.	Other services that Buying Parties believes beneficial for the Target’s business operations.



 






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5.8          Break-up
fee.


 


Target shall pay to the Buying
Parties 1% of the Purchase Price in cash upon the termination of this Agreement in the event that the Target terminates this Agreement
prior to Closing without any fault of the Buying Parties. The Buying Parties shall jointly pay to the Target 1% of the Purchase Price
in cash upon the termination of this Agreement if the Buying Parties do not have sufficient funds to fulfill their obligations under this
Agreement within three months from the date of this Agreement.


 


ARTICLE VI


 


COVENANTS OF SELLING PARTIES PRIOR TO CLOSING
DATE


 


6.1          Access
and Investigations.


 


Between the date of this Agreement
and the Closing Date, the Target and its Representatives will, during normal business hours: (i) afford Buying Parties and their
Representatives reasonable access to the Target’s properties, contracts, books and records, and other documents and data, (ii) afford
Buying Parties and its Representatives reasonable access to the Target’s personnel, customers, suppliers and licensors, provided
that the Buying Parties notify the Target in advance of the personnel, customers, suppliers and licensors to which they want access, and
will allow the Target to participate in any contacts with such personnel, customers, suppliers and licensors, (iii) furnish or make
available to Buying Parties and Buying Parties’ Representatives copies of all such contracts, books and records, and other existing
documents and data as Buying Parties may reasonably request, and (iv) furnish or make available to Buying Parties and Buying Parties’
Representatives such additional financial, operating, and other data and information as Buying Parties may reasonably request so long
as such request does not unreasonably interfere with the operation of the Target’s business in the ordinary course.


 


6.2          Operation
of the Target.


 


Between the date of this Agreement
and the Closing Date, the Target shall:


 


(a)          except
as set forth on Schedule 6.2(a), conduct the business of the Target only in the ordinary course of business consistent with past practice;


 


(b)          not
pay dividends or make any cash or stock distributions to the Selling Parties, except for payment of customary year-end bonuses in an amount
consistent with prior years’ practices;


 


(c)          not
withdraw cash or liquidate marketable securities for the payment of amounts outside of the ordinary course of business, except as approved
by the Buyer in writing;


 


(d)          not
amend any of the Target’s Organization Documents;


 


(e)          not
issue any shares of its capital stock or rights to acquire shares of its stock;


 


(f)          not
employ any doctor and other health care professional without proper professional credentials;


 


(g)          use
commercially reasonable efforts to maintain the goodwill of the Target’s suppliers, customers, distributors, licensors and employees;
and


 


(h)          not
create, incur, assume or suffer to exist any Indebtedness not in existence on the date of this Agreement except as approved by the Buyer
in writing.


 






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6.3          Negative
Covenant. Except as otherwise expressly permitted by this Agreement or as set forth on Schedule 6.3, between the date of this Agreement
and the Closing Date, the Target will not, without the prior consent of Buyer, take any affirmative action, or fail to take any reasonable
action within its control, as a result of which any of the changes or events listed in Section 3.14 would reasonably be expected
to occur.


 


6.4          Cooperation
Regarding Financial Statement Audit. Between the date of this Agreement and the Closing Date, the Selling Parties shall cooperate
with Buyer and Buyer's Accountants in their timely preparation of audited consolidated financial statements of the Target in compliance
with the United States Generally Accepted Accounting Principles (the “U.S. GAAP”) for the periods required by Rule 3-05(b) of
Regulation S-X promulgated by the United States Securities and Exchange Commission.


 


6.5          Non-Solicitation.


 


(a)          From
and after the date of this Agreement until the earlier to occur of the Closing or termination of this Agreement pursuant to Article IX,
the Selling Parties will not, and will not permit their respective Representatives to, directly or indirectly enter into any agreement
or understanding with, any Person (other than Buyer and its Affiliates) for the purpose of making, or otherwise facilitate the making
of, an "Acquisition Proposal" (as defined below). In furtherance of the foregoing, the Selling Parties will promptly notify
Buyer if it receives any proposal, inquiry or request for information in connection with an Acquisition Proposal or potential Acquisition
Proposal.


 


For the purposes of this Agreement,
"Acquisition Proposal" shall mean any one of the following (other than the transactions contemplated herein): (i) a
proposal for any transaction pursuant to which any Person or group of Persons (other than Seller) (a "Third Party") proposes
to acquire beneficial ownership of any equity securities of Target, whether from a Target or pursuant to a tender offer, exchange offer,
recapitalization, reorganization or otherwise, (ii) a proposal for any merger, consolidation or other business combination involving
the Target pursuant to which any Third Party proposes to acquire beneficial ownership of any equity securities of the Target or of the
entity surviving such merger, consolidation or other business combination, (iii) a proposal for any other transaction or series of
related transactions (including any license) pursuant to which any Third Party proposes to acquire control of any assets of the Target
(other than a proposal to acquire inventory in the ordinary course of business consistent with past practices), or (iv) any public
announcement of a proposal, plan or intention to do any of the foregoing or any agreement to engage in any of the foregoing.


 


(b)          Notwithstanding
the foregoing, no provision of this Section 6.5 shall be construed (i) to prohibit any of a Seller or its respective Representatives
from responding to any proposal, inquiry or request for information in connection with an Acquisition Proposal or potential Acquisition
Proposal for the purpose of advising the Person making such proposal, inquiry or request of the Seller’s obligations under this
Section 6.5 or (ii) to require any of the Seller or their respective Representatives to disclose to Buyer any terms and conditions
of any such proposal, inquiry or request, including the identity of the party making an Acquisition Proposal.


 


6.6          Notice
of Developments. Any of the Selling Parties shall give prompt written notice to Buyer of any development causing, or which would
reasonably be expected to cause, a breach of any of the Target’s representations and warranties set forth in Article III above.
No disclosure by any Selling Party pursuant to this Section 6.6, however, shall be deemed to amend or supplement the Disclosure
Schedules or to prevent or cure any misrepresentation or breach of warranty by such Selling Party.


 






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6.7          Consents.
The Selling Parties shall use their reasonable best efforts to obtain as soon as practicable all third-party Consents (including
those identified on Schedule 4.2), and give, as soon as practicable after the date hereof, all third-party notices, in each case which
may be required under any instruments, Contracts, commitments, or arrangements in connection with the consummation of the transactions
contemplated hereby, and Buyer will cooperate with the Selling Parties in assisting them to obtain such third-party Consents and to deliver
such third-party notices; provided that nothing herein shall be deemed to require Buying Parties to incur any costs or expenses in connection
with such cooperation. The Selling Parties shall pay all Consent Fees required in connection with obtaining such third-party consents,
approvals or the giving of such notices, including, without limitation, any fees or other amounts payable under any Contract in connection
with the transactions contemplated hereby.


 


6.8          Reserved.


 


6.9          Assignments.
Between the date of this agreement and the Closing Date, the Selling Parties (or their Affiliates, as applicable) shall execute and
have executed necessary and proper assignment documents evidencing the assignment, for no additional consideration (beyond the entry
into this Agreement), of all Company Intellectual Property Assets or other assets used in or necessary for the conduct of the Target’s
business as conducted the ownership of which is currently vested in employees, consultants or Affiliates of the Target, or Seller(s).
For the sake of clarification, the foregoing sentence shall not require the assignment to the Target of any real property that is currently
leased to the Target pursuant to a valid, written lease agreement.


 


ARTICLE VII


 


COVENANTS OF BUYING PARTIES


 


Notice of Developments-Buyer.
Each Buying Party shall give prompt written notice to the other parties hereto of any Material Adverse Change (but in no event later
than five (5) Business Days after a Buying Party becomes aware of any such Material Adverse Change) causing, or which would reasonably
be expected to cause, a breach of any of Buying Party’s representations and warranties set forth in Article IV above, or which
would prevent or adversely impact, in a material way, the Buying Party’s ability to consummate the Transaction contemplated herein.
No disclosure by a Buying Party pursuant to this Section 7.1, however, shall be deemed to amend or supplement any Schedule annexed
hereto or to prevent or cure any misrepresentation or breach of warranty by the Buying Party.


 


ARTICLE VIII


 


CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO
CLOSE


 


Buyer Parties’ obligation
to purchase the Sale Shares and to take the other actions required to be taken by Buying Parties 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 in writing by either Buying Party, in whole
or in part):


 


8.1          Accuracy
of Representations. Each of the representations and warranties of the Selling Parties contained in this Agreement, including any updated
Schedules as contemplated by Section 3.25 hereof, or in any certificate delivered to Buyer in connection herewith shall be true and
correct (but determined in each case without giving effect to any qualifications therein referencing the terms "material" or
 "Material Adverse Effect" or other terms of similar import or effect) when made and as of the Closing (with the same force and
effect as if made as of the Closing), except where all failures of such representations and warranties to be so true and correct have
not had, and would not reasonably be expected to have, in the aggregate, a Material Adverse Effect on the Target or the Buying Parties.


 






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8.2          Covenants.
Each of the covenants and other agreements contained in this Agreement to be complied with by the Selling Parties on or before the
Closing Date shall have been complied with in all material respects.


 


8.3          Third
Party Consents. Each of the Consents identified on Schedule 8.3 hereto shall have been obtained by the Target or Seller on
terms and conditions reasonably acceptable to Buying Parties and shall be in full force and effect.


 


8.4          No
Proceedings. Since the date of this Agreement, there must not have been commenced against Buyer, or against any Person affiliated
with Buyer, any Proceeding that, in the reasonable good faith judgment of Buyer, based on the advice of outside counsel, would have a
reasonable prospect of surviving a motion for summary judgment by Buyer before any Governmental Body of competent jurisdiction which (a) seeks
to enjoin, restrain or otherwise prohibit the consummation of the transactions contemplated hereby; (b) seeks to impose criminal
penalties in connection with the consummation of the transactions contemplated hereby; or (c) would reasonably be expected to have
a Material Adverse Effect on the Target or Buyer, including, without limitation, preventing, delaying, making illegal, or otherwise interfering
with the consummation of any of the transactions contemplated hereby.


 


8.5          Management
Employment Agreements. Certain members shall have entered into an employment agreement with the Target, and on terms and conditions
reasonably satisfactory to Buyer, which arrangements shall be in full force and effect and shall constitute the legal, valid and binding
obligations of such member of the management of the Target.


 


8.6          Closing
Deliveries. Buyer shall have received each of the deliveries set forth in Section 2.3(a) hereto.


 


8.7          Certificates.
The Target and Seller shall have delivered to Buyer: (i) a copy of the Organizational Documents of the Target; (ii) a certificate
of good standing or equivalent for the Target from the respective states of incorporation; (iii) certificates of good standing or
qualification for each other jurisdiction in which the Target is qualified or admitted to do business, with respect to each of (i)-(iii) above,
such certificates to be dated no more than ten Business Days prior to the Closing Date; and (iv) a certificate, dated as of the Closing
Date and executed by the Secretary of the Target, certifying to (A) the incumbency of all officers executing this Agreement and/or
any document contemplated hereby on behalf of the Target, (B) the accuracy and completeness of attached copies of the Target’s
Organizational Documents, (C) the resolutions of each Selling Party’s Board, if the Selling Party is an entity, and requisite
shareholders of the Target authorizing and approving the execution and delivery of this Agreement, the performance of its obligations
hereunder, and the consummation of the transactions contemplated hereby.


 


8.8          Reserved.


 


8.9          Financial
Statements; Audit.


 


(a)          The
Buying Parties shall have prepared audited consolidated financial statements of the Target that are in compliance with the U.S. GAAP for
the last two completed fiscal years.


 






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(b)          The
Buyer (together with Buyer’s Accountants) shall have conducted an on-site audit of the Target’s Accountants work in reviewing
the Target’s financial statements for the two years ended December 31, 2020 and 2019, the results of which shall be reasonably
satisfactory to Buyer and shall have evidenced whether (i) there are no material changes to the corresponding information contained
in the financial statements prepared by the Target.


 


8.10        Affiliate
Leases. The Buyer shall have been granted access to and reviewed all real property leases entered into by and between the Target (and/or
its Subsidiaries) and any officer, director, stockholder, employee or Affiliate of such Target (or an Affiliate of any of the foregoing),
and the terms of each such lease shall have been satisfactory to Buyer in its sole and absolute discretion.


 


8.11        Satisfaction
of Legal and Financial Due Diligence. Buyer and its counsel shall have completed their legal and financial due diligence concerning
the Target, the results of which shall have been satisfactory to Buyer in its sole discretion.


 


ARTICLE IX


 


CONDITIONS PRECEDENT TO SELLING PARTIES' OBLIGATION
TO CLOSE


 


The Selling Parties’
obligation to sell the Sale Shares and to take the other actions required to be taken by each Selling Party 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 in writing on behalf
of a Selling Party, as applicable, by Selling Parties’ Representatives, in whole or in part):


 


9.1          Accuracy
of Representations. Each of the representations and warranties of Buying Parties contained in this Agreement or in any certificate
delivered to the Selling Parties in connection herewith shall be true and correct (but determined in each case without giving effect to
any qualifications therein referencing the terms "material" or "Material Adverse Effect" or other terms of similar
import or effect) when made and as of the Closing (with the same force and effect as if made as of the Closing), except where all failures
of such representations and warranties to be so true and correct have not had, and would not reasonably be expected to have, in the aggregate,
a Material Adverse Effect on any of the Selling Parties.


 


9.2          Covenants.
Each of the covenants and other agreements contained in this Agreement to be complied with by each Buying Party on or before the Closing
Date shall have been complied with in all respects, except where all failures to so comply with such covenants in the aggregate have not
resulted, and would not reasonably be expected to result, in a material adverse effect on any Selling Party or the ability of the Buying
Parties to consummate the transactions contemplated in this Agreement.


 


9.3          No
Proceedings. Since the date of this Agreement, there must not have been commenced against any Selling Party, or against any Person
affiliated with a Selling Party, any Proceeding that, in the reasonable good faith judgment of the Selling Party, based on the advice
of outside counsel, would have a reasonable prospect of surviving a motion for summary judgment by the Selling Party before any Governmental
Body of competent jurisdiction which (a) seeks to enjoin, restrain or otherwise prohibit the consummation of the transactions contemplated
hereby; (b) seeks to impose criminal penalties in connection with the consummation of the transactions contemplated hereby; or (c) would
reasonably be expected to have a Material Adverse Effect on a Selling Party, including, without limitation, preventing, delaying, making
illegal, or otherwise interfering with the consummation of any of the transactions contemplated hereby.


 






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9.4          Certificates.
The Buying Parties shall have delivered to each Selling Party: (i) a copy of the memorandum and articles of association of each
Buying Party; (ii) a certificate of good standing for each Buying Party from the jurisdiction of its incorporation; with respect
to each of (i)-(ii) above, such certificates to be dated no more than ten Business Days prior to the Closing Date; and (iv) a
certificate or certificates, dated as of the Closing Date and executed by the Secretary of each Buying Party, certifying to (A) the
incumbency of all officers executing this Agreement and/or any document contemplated hereby on behalf of the Buying Party, (B) the
accuracy and completeness of attached copies of the Buying Party’s Organizational Documents, (C) the resolutions of the Board
of Directors of the Buying Party authorizing and approving the execution and delivery of this Agreement hereby, the performance of its
obligations hereunder, and the consummation of the transactions contemplated hereby.


 


ARTICLE X


 


TERMINATION


 


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


 


(a)          by
either Buying Parties or Selling Parties if a material breach of any provision of this Agreement has been committed by a Selling Party
(in the case of a termination by Buying Parties) or a Buying Party (in the case of a termination by the Selling Parties’ Representative)
and such breach has not been waived, provided that written notice has been given to such other parties of the intention to terminate under
this Section 10.l(a) due to such breach and such other parties have not cured such breach within fifteen (15) days of receipt
of such notice;


 


		(b)	(i) by Buying Parties if any of the conditions in Article VIII have 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 Buying Parties to
comply with their obligations under this Agreement) and Buying Parties have not waived such condition on or before the Closing Date; or



 


		(ii)	by the Selling Parties’ Representative, if any of the conditions in Article IX have 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 any
Selling Party to comply with their obligations under this Agreement) and the Selling Parties’ Representatives have not waived such
condition on or before the Closing Date;



 


(c)          by
mutual written consent of all of the parties; or


 


(d)          by
any Party if the Closing has not occurred (other than through the failure of any party seeking to terminate this Agreement to comply with
its obligations under this Agreement) on or before June 30, 2021, or such later date that the parties may agree upon in writing.


 


10.2        Effect
of Termination. Each Party’s right of termination under Section 10.1 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 10.1, all further obligations of the Parties under this Agreement will terminate, except that the provisions
of Article XIV will survive after such termination; provided 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 for a period of six (6) months after such termination.


 






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ARTICLE XI


 


SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS
AND AGREEMENTS


 


11.1        Covenants.
Claims with respect to any breach of a covenant or obligation in this Agreement must be brought within twenty-four (24) months of
such breach coming to the attention of the other party; provided that claims with respect to any covenant or obligation to be performed
and complied with by any party prior to the Closing Date must be brought within twenty-four (24) months after the Closing Date.


 


11.2        Other
Agreements. Claims with respect to any breach of an obligation under Article V in this Agreement must be brought within eighteen
(18) months of such breach coming to the attention of the other party; except that the claims with respect to an obligation having a specific
period to be fulfilled may be brought within eighteen (18) months after such specific period.


 


11.3        Representations
and Warranties. All representations and warranties in this Agreement and the certificates delivered pursuant to Article II hereof
shall expire on the date which is twenty-four (24) months after the Closing Date.


 


ARTICLE XII


 


INDEMNIFICATION


 


12.1        Indemnification
and Payment of Damages by Selling Parties.


 


(a)          Representations,
Warranties and Covenants. Except as limited by Article XI hereof, and subject to the further provisions of this Article XII
and Section 13.1 hereof, each Selling Party shall, jointly and severally, protect, defend, indemnify, and hold Buyer and Parent harmless
from and against any and all Damages sustained, incurred or suffered by or asserted against any of them, directly or indirectly, as a
result of or relating to or arising out of: (i)     any breach of any representation or warranty made by
a Selling Party in this Agreement or in any certificate delivered to Buying Party in connection herewith (in each case, other than with
respect to Section 3.8, determined without giving effect to any qualifications therein referencing the terms "material"
or "Material Adverse Effect" or other terms of similar import or effect) or (ii) any breach by any Selling Party of any
covenant, other agreements set forth in Article V, or obligation of any Selling Party in this Agreement or any breach by the Selling
Party of any pre-Closing covenant or pre Closing obligation thereof.


 


(b)          Supplemental
Tax Indemnification. Notwithstanding and in addition to the provisions of Section 12.l(a), the Selling Parties shall be obligated
to indemnify Buying Parties with respect to Taxes as set forth in Section 13.1 hereof. All such indemnification obligations shall
not be subject to the Basket and Cap (each, as defined hereinafter in Section 12.3) limitations.


 


(c)          Indemnification
and Payment of Damages by Buying Parties. Each Buying Party will jointly and severally indemnify and hold harmless the Selling Parties,
and will pay to them the amount of any Damages arising, directly or indirectly, from or in connection with (a) any breach of any
representation or warranty made by a Buying Party in this Agreement or in any certificate delivered to the Selling Parties’ Representatives
in connection herewith (in each case, determined without giving effect to any qualifications therein referencing the terms "material"
or "Material Adverse Effect" or other terms of similar import or effect), or (b) any breach by a Buying Party of any covenant
or obligation of a Buying Party in this Agreement or any breach by a Buying Party of any post-Closing covenant or post-Closing obligation
under this Agreement.


 






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12.2        Indemnitee's
Tax Benefits. Indemnification payments under this Article XII and Section 13.1 hereof shall be paid by the indemnifying
party without reduction for any tax benefits available to the indemnified party.


 


12.3        Limitations.
No claims for breaches of representations, warranties, covenants or obligations may be brought after the time limitations set forth
in Article XI. Notwithstanding anything herein to the contrary, other than with respect to a claim arising out of fraud or willful
misconduct, no party shall have any obligation to indemnify the other hereunder, unless (i) the amount of Damages sustained or incurred
with respect to a particular claim (together with all related claims) exceeds $20,000 USD and (ii) (except with respect to a breach
of any covenant or obligation, or with respect to a Tax Claim) the aggregate amount of Damages sustained or incurred with respect to all
claims by such party pursuant to this Agreement exceeds $150,000 USD (the "Basket"), and then (except with respect to
a breach of any covenant or obligation, or with respect to a Tax Claim) only to the extent of the excess of the aggregate amount of Damages
sustained or incurred by such party with respect to all claims by such party pursuant to this Agreement above the Basket amount up to
(but not in excess of) a maximum aggregate indemnity for such Damages of an amount (the "Cap") equal to $750,000 USD.


 


12.4        Procedures
for Indemnification -- Third Party Claims.


 


(a)          Promptly
after receipt by an indemnified party under Section 12.1 or 12.2 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, and only to the extent that, the indemnifying Party demonstrates that the defense of
such action is materially prejudiced by the indemnifying Party's failure to give such notice.


 


(b)          If
any Proceeding referred to in Section 12.5(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 be entitled to participate in such Proceeding and, to the extent
that it wishes (unless the indemnifying party is also a Party to such Proceeding or the indemnified Party determines in good faith that
joint representation would be inappropriate), to assume the defense of such Proceeding with counsel reasonably satisfactory to the indemnified
Party; provided that the indemnifying Party provides written notice of its election to assume the defense of such Proceeding to the indemnified
Party within ten (10) days of receipt by the indemnifying Party of the notice of claim by the indemnified Party, and, after delivery
of such written notice from the indemnifying Party to the indemnified Party, the indemnifying Party will not, as long as it diligently
conducts such defense, be liable to the indemnified Party under this Article XII 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



 






    30 


     


    

 


		(iii)	the indemnified Party will have no liability with respect to any compromise or settlement of such claims
effected without its consent, other than reasonable, documented costs of investigation.



 


(c)          Notwithstanding
the foregoing, if (i) the indemnifying Party does not, within ten (10) days after the indemnified Party 's notice is given pursuant
to this Section 12.5, give written notice to the indemnified Party of its election to assume the defense of such Proceeding, or (ii) the
indemnified Party determines in good faith that there is a reasonable probability that a Proceeding may adversely affect it or its Affiliates
other thai1 as a result of monetary damages for which it would be entitled to indemnification under this Agreement, then in either case
the indemnified Party may, by notice to the indemnifying Party, assume the exclusive right to defend, compromise, or settle such Proceeding,
but, in such case the indemnifying Party will not be bound by any compromise or settlement effected without its consent (which consent
will not be unreasonably withheld) unless such compromise or settlement: (A) results in no finding or admission of any violation
of Legal Requirements or any violation of the rights of any Person and (B) does not obligate the indemnifying Party to pay monetary
damages.


 


12.5        Procedure
for Indemnification -- 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.


 


12.6        Tax
Treatment. All indemnification payments shall constitute adjustments to the Purchase Price for all Tax purposes, and no Party hereto
shall take any position inconsistent with such characterization, unless a final determination by any Governmental Body causes any such
amount not to constitute an adjustment to the Purchase Price for Tax purposes.


 


12.7        Manner
of Payment; Right of Set-Off. Except as otherwise provided herein, any indemnification of a Party hereunder shall be effected by wire
transfer of immediately available funds from the indemnifying Party to an account(s) designated by the indemnified Party, within
ten (10) days after the determination thereof.


 


ARTICLE XIII


 


TAX MATTERS


 


The following provisions shall
govern the allocation of responsibility for, and the rights and remedies of the Buying Parties and Selling Parties with respect to, certain
Tax matters:


 


13.1        Tax
Indemnification. Subject to Article 12 hereof, each Selling Party shall, jointly and severally, protect, defend, indemnify, and
hold Buying Parties and their Affiliates harmless from and against (i) all Taxes (or the non-payment thereof) of the Target for all
taxable periods ending on or before the Closing Date, (ii) all Taxes of any Person (other than the Target) imposed on the Target
as a transferee or successor, by contract or pursuant to any law, rule or regulation, which Taxes relate to an event or transaction
occurring before the Closing, (iii) all Taxes of any member of an Affiliated Group of which the Target (or any predecessor of the
foregoing) is or was a member for taxable periods ending on or before the Closing Date, including pursuant to Treasury Regulation §1.1502-6
(or any analogous or similar state, local, or foreign law or regulation), and (iv) any Taxes imposed under IRC §1374 (and any
corresponding provision of state or local law). Notwithstanding anything herein to the contrary, the Selling Parties shall have no obligation
to protect, defend, indemnify or hold Buyer and its Affiliates harmless from and against any Taxes to the extent such Taxes may be offset
by deposits, installments, other payments, credits, reserves or net operating losses paid or arising on or before the Closing Date. Each
Selling Party shall reimburse Buying Parties for any taxes of the Target or any of its Subsidiaries which are the responsibility of Selling
Parties pursuant to this Section 13.1 at least five (5) days prior to payment of such Taxes by the Selling Parties.


 






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13.2        Tax
Periods Ending On or Before the Closing Date. The Target shall prepare or cause to be prepared and shall file or cause to be filed
(in a manner consistent with past custom and practice of the Target) all Tax Returns thereof for all Tax periods ending on or before the
Closing Date.


 


13.3        Cooperation
on Tax Matters. The Selling Parties and Buying Parties shall cooperate fully, as and to the extent reasonably requested by the other
parties, in connection with the filing of Tax Returns and any audit, litigation or other proceedings with respect to Taxes. Such cooperation
shall include the retention and (upon the other parties’ request) the provision of records and information reasonably relevant to
any such audit, litigation or other proceedings and making employees available on a mutually convenient basis to provide additional information
and explanation of any material provided hereunder. The Selling Parties and Buying Parties agree (i) to retain all books and records
with respect to Tax matters pertinent to the Target relating to any taxable period beginning before the Closing Date until the expiration
of the applicable statutes of limitations (and, to the extent notified by the Selling Parties or Buying Parties, any extensions thereof)
of the respective taxable periods, and to abide by all record retention agreements entered into with any Taxing Authority, and (ii) to
give the other parties reasonable written notice prior to transferring any such books or records and, if the other parties so requests,
the Target shall allow the Buying Parties to take possession of such books and records.


 


13.4        Transfer
Taxes. Notwithstanding Section 12.l(b) and any other provision of this Article XIII, the parties agree that all transfer,
documentary, sales, use, stamp, registration and other such taxes and fees (including any penalties and interest thereon, "Transfer
Taxes") incurred by each Selling Party in connection with this Agreement shall be borne by the Selling Party. The Buyer shall
prepare at its own expense any Tax Returns relating to Transfer Taxes required to be filed by Buyer, and, if required by applicable law,
any other party hereto will, and will cause its Affiliates to, join in the execution of any such Tax Returns and other documentation required
to be filed by Buyer.


 


ARTICLE XIV


 


GENERAL PROVISIONS


 


14.1        Expenses.
Each Party shall bear its expenses incurred in connection with the preparation, execution, and performance under this Agreement and
of the transactions contemplated herein, including all fees and expenses of each Party's agents, Representatives, counsel, and accountants
and auditors, except that the Selling Parties shall pay for the expenses but not service fees for the Buying Parties’ auditors and
accountants when such auditors and accountants perform their audit, review or related services on the site of any Selling Party’s.


 


14.2        Public
Announcements. Prior to the Closing, any public announcement or similar publicity with respect to this Agreement or the transactions
contemplated herein will be issued, if at all, at such time and in such manner as the Buying Parties and Targets shall reasonably determine.
The Target and Buying Parties will consult with each other concerning the means by which the public and the Target’s employees,
distributors, customers, and suppliers will be informed of the transactions contemplated herein and, prior to the Closing, no announcement
shall be made by any party without the prior written consent of the other parties.


 


14.3        Confidentiality.
Each Party shall keep the Confidential Information received from other parties confidential and exercise commercially reasonable care
to safeguard the Confidential Information as if it was the Receiving Party’s own Confidential Information. However, upon the termination
of this Agreement pursuant to Article X, the Receiving Party(ies) shall return to the Disclosing Party(ies) any and all of the Confidential
Information or, if physical return is not practical, permanently delete any and all of the Confidential Information received from any
and all of the Receiving Party(ies)’s electronic devices.


 






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14.4        Notices.
All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly
given when: (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written confirmation of
receipt), provided that a copy is mailed by registered mail, return receipt requested, or (c) when received by the addressee,
if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and facsimile
numbers set forth below (or to such other addresses and facsimile numbers as a party may designate by notice to the other parties):


 


	Buying Parties:	 
	 	 
	With a copy to (not constituting as Notice):	 
	 	 
	Selling Parties:	 
	 	 
	With a copy to (not constituting as Notice): 	 



 


Or at such other address as Buyer may designate by advance written
notice to the other parties hereto.


 


14.5        Jurisdiction;
Service of Process. Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement
may be brought against any of the Parties of (a) the State of New York, County of New York, the United States, or (b) if it
has or can acquire jurisdiction, in the United States District Court for the Southern District of New York. Each of the Parties consents
to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection
to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on any Party anywhere in
the world.


 






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14.6        Further
Assurances. The Parties agree before and after Closing: (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.


 


14.7        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.


 


14.8        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 all
of the Parties herein.


 


14.9        Disclosure
Schedules. If and to the extent any information required to be furnished in any Schedule is contained in another Schedule, such information
will be deemed to be included in all Schedules in which such information is required to be included, to the extent the relevance of such
disclosure to such other Schedules is reasonably apparent on its face.


 


14.10      Assignments,
Successors, and No Third-Party Rights. No Party may assign any of its rights under this Agreement without the prior consent of the
other Parties hereto; provided that Buyer may, without the consent of any other Party, assign all or any portion of its rights hereunder
to any of its Affiliates. 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. Nothing expressed or referred to in this Agreement will be construed
to give any Person other than the Parties to this Agreement any legal or equitable right, remedy, or claim under or with respect to this
Agreement or any provision of this Agreement. 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.


 


14.11     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.


 






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14.12     Article and
Section Headings, Construction. The headings of Sections in this Agreement are provided for convenience only and will not affect
its construction or interpretation. All references to "Article", "Articles", "Section" or "Sections"
refer to the corresponding Article, Articles, Section or Sections of this Agreement. 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.


 


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


 


14.14     Governing
Law. This Agreement will be governed by the laws of the State of New York, the United States without regard to conflicts of laws principles.


 


14.15      Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement
and all of which, when taken together, will be deemed to constitute one and the same agreement.


 


14.16      Reserved.


 


[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]


 






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[SIGNATURE PAGE TO THE SECURITIES PURCHASE AGREEMENT]


 


IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.


 


		 	Etao International Group (Parent)
	 	 	 	 
	 	 	By	/s/ Wensheng Liu
	 	 	Name:	Wensheng Liu
	 	 	Title: 	CEO
	 	 	 	 
	 	 	Etao International Healthcare Technology Co., Ltd. (Buyer)
	 	 	 	 
	 	 	By	/s/ Wensheng Liu
	 	 	Name:	Wensheng Liu
	 	 	Title: 	CEO
	 	 	 	 
	 	 	Target Shareholder
	 	 	 	 
	 	 	Yongcheng Dietary Supplements and Foods (Mengzhou City) Trading Co., Ltd.
	 	 	 	 
	 	 	By	/s/ Zhiqiang Li
	 	 	Name:	Zhiqiang Li
	 	 	Title: 	 



 






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		 	Civil Hospital (Mengzhou City) Co., Ltd. (the Target)
	 	 	 
	 	 	By	/s/ Zhiqiang Li
	 	 	Name:	Zhiqiang Li
	 	 	Title:	Chairman of the Board of Directors



 






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ANNEX A


 


TARGET SHAREHOLDER


 


 


 


	Shareholder	 	Shareholding


    Percentage in

 the Target

 prior to Closing	 	 	Shares
    

Owned in 

the Target

 prior to 

Closing	 	 	Shares
    being 

Sold or 

Encumbered 

by VIE 

Agreements 

upon Closing	 	 	Parent

 Ordinary

 Shares
    to be

 Received by

 Seller Upon

 Closing	 	Share

 Percentage 

in
    the 

Target

 Encumbered

 after 

Closing	 
	Yongcheng Dietary Supplements and Foods (Mengzhou
    City) Trading Co., Ltd.	 	 	100	%	 	 		 	 	 			 	1,093,800	 	51.00	%
	Total	 	 	100	%	 	 		 	 	 			 	1,093,800	 	51.00	%





 






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EXHIBIT A


 


FORM OF PROMISSORY NOTE


 






    39 


     


    

 


EXHIBIT B


 


FORM OF VIE AGREEMENTS


 






    40