----

**Exhibit      (10)-gg**

**Execution      Copy**

**DATED      July 2, 2005**

**(1)      SINO BIOPHARMACEUTICAL LIMITED**

**AND**

**(2)      BAUSCH & LOMB INCORPORATED**

**AGREEMENT      FOR THE**

**SALE      AND PURCHASE OF **

**THE      ENTIRE ISSUED CAPITAL OF **

**SINO      CONCEPT TECHNOLOGY LIMITED **
**中外科技有榰公司**

**Baker      & **

**14th      Floor Hutchison House**

**Hong      Kong**

**Telephone:      (852) 2846-1888**

**Fax:      (852) 2845-0476**

----

| Number                     | Clause                Headings                                             | Page   |
|----------------------------|----------------------------------------------------------------------------|--------|
| 1.                         | Definitions                and Interpretation                              | 5      |
| 2.                         | Sale                of Sale Shares                                         | 17     |
| 3.                         | Consideration                                                              | 17     |
| 4.                         | Conditions                                                                 | 17     |
| 5.                         | Completion                                                                 | 21     |
| 6.                         | Post-Completion                                                            | 29     |
| 7.                         | Restriction                of Vendor and Undertaking of Purchaser          | 30     |
| 8.                         | Warranties                                                                 | 33     |
| 9.                         | Pre-Completion                                                             | 34     |
| 10.                        | Confidentiality                and Restriction on Announcements            | 38     |
| 11.                        | Costs                                                                      | 39     |
| 12.                        | General                                                                    | 39     |
| 13.                        | Notices                                                                    | 41     |
| 14.                        | Governing                Law and Arbitration                               | 42     |
| 15.                        | English                and Chinese Versions                                | 42     |
|                       |                                                                       |   |
| SCHEDULE                1  | Details                of the Company                                      | 44     |
| SCHEDULE                2  | Details                of the Subsidiaries                                 | 45     |
| SCHEDULE                3  | The                Properties                                              | 49     |
| SCHEDULE                4  | Deed                of Indemnity                                           | 50     |
| SCHEDULE                5  | Warranties                                                                 | 61     |
| SCHEDULE                6  | Intellectual                Property                                       | 98     |
| SCHEDULE                7  | Hong                Kong Legal Opinion                                     | 99     |
| SCHEDULE                8  | Patents                                                                    | 103    |
| SCHEDULE                9  | Patent                License Contract                                     | 106    |
| SCHEDULE                10 | Deed                of Undertaking                                         | 107    |
| SCHEDULE                11 | List                of Key Employees                                       | 111    |
| SCHEDULE                12 | Principal                Terms of Key Management Retention Agreement       | 112    |
| SCHEDULE                13 | Resignation                Letter                                          | 113    |
| SCHEDULE                14 | Irrevocable                Power of Attorney                               | 114    |
| SCHEDULE                15 | Confirmation                and Declaration of Shandong Research Institute | 117    |
|                       |                                                                       |   |
| Annex                I     | Accounts                                                                   | 118    |
| Annex                II    | Management                Accounts                                         | 119    |
| Annex                III   | Subsidiary                Accounts                                         | 120    |
| Annex                IV    | Subsidiary                Management Accounts                              | 121    |
| Annex                V     | Approved                Extraordinary Expenditures                         | 122    |
|                       |                                                                       |   |
| **Execution**              |                                                                       | 122    |

----

**DATE:      **

**PARTIES:**

| (1) | **SINO                BIOPHARMACEUTICAL LIMITED**,                a                company incorporated in the Cayman Islands, whose registered office                is at                Century Yard, Cricket Square, Hutchins Drive, P.O. Box 2681 GT, George                Town, Grand Cayman, British West Indies and whose principal place                of                business in Hong Kong is Unit 09, 41st Floor, Office Tower, Convention                Plaza, 1 Harbour Road, Wanchai, Hong Kong (the **“Vendor”**). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | **BAUSCH                & LOMB INCORPORATED**,                a                company incorporated in the State of New York, United States of America,                whose principal place of business is at One Bausch & Lomb Place,                Rochester, New York 14604-2701, United States of America (the **“Purchaser”**). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**RECITALS:**

| (A) | The                Company (as defined below) is a limited liability company incorporated                in                Hong Kong with registered number 300326 and as at the date of this                Agreement has an authorised share capital of HK$10,100 divided into                10,100                ordinary shares of HK$1.00 each, all of which have been issued and                are                fully paid up and are beneficially owned by the Vendor. Further                particulars of the Company are set out in Schedule                1. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | The                Vendor wishes to sell and the Purchaser wishes to purchase the Sale                Shares                (as defined below) on the terms and conditions set out in this                Agreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**TERMS      AGREED:**

| **1.  ** | **Definitions              and Interpretation** |
|--------------------|-------------------------------------------------|

| 1.1 | In                this Agreement where the context so admits the following words and                expressions shall have the following                meanings: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **“Accounting                Date”**                     | December                31, 2004;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **“Accounts”**                                           | the                audited consolidated financial statements of the Company for the                accounting period which ended on the Accounting Date (each such financial                statement comprising the consolidated profit and loss account,                consolidated balance sheet, consolidated summary statement of changes                in                equity, consolidated cash flow statement, a balance sheet for the                Company,                directors’ and auditors’ reports, and notes to the financial statements as                at and for the period ended on the Accounting Date), copies of which                are                annexed hereto as Annex I and initialled for the purposes of                identification by the Parties;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **“Approved                Extraordinary Expenditures”** | the                expected extraordinary expenditures for the Subsidiaries for the                three (3)                months immediately after the date of this Agreement which have been                approved by the Purchaser, a list of which is annexed hereto as Annex                V                and initialled for the purposes of identification by the                Parties;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **“Auditors”**                                           | Ernst                & Young;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **“Board”**                                              | the                board of directors of the Company for the time being;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **“Business                Day”**                        | a                day on which banks are generally open for business in Hong Kong and                which                is not a Saturday, a Sunday, a public holiday or a day on which typhoon                signal no. 8 or a “black” rainstorm warning is hoisted in Hong                Kong;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **“Company”**                                            | Sino                Concept Technology Limited 中外科技有榰公司,                details of which are set out in Schedule 1;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **“company”**                                            | any                company or body corporate wherever incorporated;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **“Companies                Ordinance”**                 | Companies                Ordinance (Chapter 32 of the Laws of Hong Kong);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **“Completion”**                                         | completion                of the sale and purchase of the Sale Shares as specified in Clause                5;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **“Completion                Date”**                     | the                date of Completion, being the fifth Business Day after the fulfilment                or                waiver (as the case may be) of all of the Conditions specified in                Clause                4.1 (save for the Conditions set out in Clauses 4.1.2, 4.1.3, 4.1.4                and                4.1.7) (or such later date as the Parties may agree in                writing);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **“Conditions”**                                         | the                conditions specified in Clause 4.1;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **“Consideration”**                                      | the                amount of US$200,000,000 (United States Dollars Two Hundred                Million);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **“Control”**                                            | a                person or persons (each a “controller”) shall be taken to have Control of                another person (“the controlled person”) if one or more of the                controllers, whether by law or in fact has, or is entitled to acquire,                the                right or the power to secure whether directly or indirectly, that                the                controlled person’s affairs are conducted in accordance with the wishes of                the controller and in particular, but without prejudice to the generality                of the foregoing, if one or more of the controllers holds: (i)    the                greater part of the share capital of the controlled person or of                the                voting rights attaching to the controlled person’s shares; or (ii)    the                power to control the composition of any board of directors or governing                body of the controlled person; For                the purposes of the foregoing and without limitation there shall                be                attributed to any controller: (i)     any                rights or powers which another person possesses on his behalf or                is or may                be required to exercise on his direction or behalf; and (ii)     all                rights and powers of any body corporate of which any controller alone                or                together with another or other controllers has control or of any                two or                more such bodies corporate; |
| **“CTF”**                                                | 山东正大福瑞灂制粑有榰公司                (Shandong Chia Tai Freda Pharmaceutical Co. Ltd.), details of which                are                set out in Part A of Schedule 2;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **“CTFP”**                                               | 山东正大福瑞灂包眻新材料有榰公司                (Shandong Chia Tai Freda New Packaging Resources Co. Ltd.), details                of                which are set out in Part B of Schedule 2;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **“Deed                of Indemnity”**                   | the                deed of indemnity to be entered into between the Vendor, the Company                and                the Purchaser in the form set out in Schedule 4;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **“Dermatitis                Products”**                 | cremes,                emollients and other topical medicines sold and administered principally                for therapeutic purposes, and distinguished from products sold and                administered principally for cosmetic purposes, which are not the                subject                of a restrictive covenant;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **“Directors”**                                          | the                persons listed as directors of the Company in Schedule                1;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **“Disclosure                Letter”**                   | the                letter of today’s date from the Vendor to the Purchaser in the approved                terms;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **“Environment”**                                        | all                or any of the following media, namely, the air, water and land; and                the                medium of air includes the air within buildings and the air within                other                natural or man-made structures above or below ground;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **“Environmental                Law”**                   | all                and any laws, directives, regulations, notices, standards having                force of                law, codes of practice, guidance notes, by-laws, judgments, decrees                or                orders of and within the PRC, relating to pollution, contamination                or                protection of the Environment or to the storage, labelling, handling,                release, treatment, manufacture, processing, deposit, transportation                or                disposal of Hazardous Substances;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **“Environmental                Licence”**               | any                permit, licence, authorisation, consent or other approval, that may                be                required by any Environmental Law;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **“Equity                Interests”**                    | the                55% equity interests held by the Company in each of CTF and                CTFP;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **“Formulation                Information”**             | the                written statement of ingredients, concentrations and manufacturing                instructions, specifications and procedures for each of the following                products of the Subsidiaries: (i) Moisten                Eye Drops,(ii) Mioclear                Eye Drops,(iii) Renown                Eye Drops,(iv) Levsaxin                Eye Drops,(v) Mioclear                Eye Cleaning Solution, and(vi) Sodium                Hyaluronate Injection;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **“Group”**                                              | the                group of companies comprising the Company and the Subsidiaries; the                expression “**member                of the Group**”                shall mean any or a specific one of them;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **“HA”**                                                 | hyaluronic                acid or hyaluronate, a polysaccharide made up of two repeating                monosaccharide units (N-acetylglucosamine and Naglucuronate) present                in                the intercellular matrix of nearly all connective                tissues;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **“Hazardous                Substances”**                | all                substances of whatever description which may cause or have a harmful                effect on the Environment, including, without limitation, all poisonous,                toxic, noxious, dangerous and offensive substances;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **“HK$”**                                                | Hong                Kong dollars, the lawful currency of Hong Kong;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **“HKIAC”**                                              | has                the meaning ascribed to it in Clause 14.2;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **“Hong                Kong”**                           | the                Hong Kong Special Administrative Region of the People’s Republic of                China;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **“Intellectual                Property”**               | includes                patents, knowhow, trade secrets and other confidential information,                registered designs, copyrights, Internet domain names of any level,                design                rights, rights in circuit layouts, moral rights, trade marks, service                marks, trade dress, business names, registrations of, applications                to                register and rights to apply for registration of any of the aforesaid                items, rights in the nature of any of the aforesaid items in any                country,                rights in the nature of unfair competition rights and rights to sue                for                passing off;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| “**Key                Employees”**                       | those                individuals whose names are set out in Schedule 11;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| “**Key                Management Retention Agreements”** | the                services retention agreements to be entered into between the relevant                member of the Group and the Key Employees which will incorporate                the                principal terms set out in Schedule 12;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **“Leases”**                                             | all                the leases, sub-leases, tenancy agreements, sub-tenancy agreements,                licences or other documents (including any options for extension                relating                thereto) granted or agreed to be granted to any member of the Group                or                pursuant to which any member of the Group holds or occupies any property,                details of which are set out in Schedule 3;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **“Leased                Properties”**                   | the                properties short particulars of which are set out in Part 2 of Schedule                3;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **“Listing                Rules”**                       | the                Rules Governing the Listing of Securities on The Stock Exchange of                Hong                Kong Limited;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **“Management                Accounts”**                 | the                unaudited consolidated balance sheet of the Company as at May 31,                2005 and                the unaudited consolidated profit and loss account of the Company                for the                period commencing from January 1, 2005 and ending on May 31, 2005,                copies                of which are annexed hereto as Annex II and initialled for the purpose                of                identification by the Parties;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **“Material                Adverse Effect”**             | a                material adverse effect on the assets, business, liabilities, operations,                property or financial condition of the Group taken as a                whole;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **“Owned                Properties”**                    | the                properties, short particulars of which are set out in Part 1 of Schedule                3;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **“Parties”**                                            | the                named parties to this Agreement and their respective successors and                assigns and “**Party**”                means each or any specific one of them;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **“Patents”**                                            | the                patents and patent applications listed in Schedule 8 and such unpatented                products and technology (including unfiled, abandoned or not yet                filed                patents and patent applications on inventions) as are used by the                Subsidiaries in the production, use or sale of its products (including                pipeline products) at the date hereof and where applicable, patents                and                patent applications filed by the Subsidiaries even if they are not                used in                any of the products of the Subsidiaries;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **“PRC”**                                                | the                People’s Republic of China and for the purposes of this Agreement, shall                exclude Hong Kong, the Macau Special Administrative Region and                Taiwan;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **“Properties”**                                         | the                Owned Properties and the Leased Properties;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **“Purchaser’s                Patent Review”**     | the                review to be conducted by the Purchaser’s Solicitors as described in                Clause 4.1.9;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **“Purchaser’s                Solicitors”**        | Baker                & McKenzie of 14th Floor Hutchison House, 10 Harcourt Road, Central,                Hong Kong;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **“Relevant                Scheme”**                     | has                the meaning ascribed to it in Clause 9.1.9;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **“Restricted                Businesses”**               | the                manufacturing and sale of (i) ophthalmic chemical products regardless                of                whether they incorporate HA as the key compound or agent (the “Restricted                Ophthalmic Business”) and (ii) osteoarthritis products or Dermatitis                Products for external applications incorporating HA as the key compound                or                agent (the “Restricted Other Businesses”);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **“RMB”**                                                | Renminbi,                the lawful currency of the PRC;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **“Sale                Shares”**                         | the                10,100 ordinary shares of HK$1.00 each in the share capital of the                Company, being the entire issued share capital of the                Company;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **“Shandong                Research Institute”**         | Shandong                Biopharmaceutical Research Institute, a biopharmaceutical research                laboratory in Shandong Province, PRC;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **“Subsidiaries”**                                       | CTF                and CTFP;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **“Subsidiary                Accounts”**                 | the                audited financial statements of each Subsidiary for the accounting                period                which ended on the Accounting Date (each such financial statement                comprising a balance sheet, profit and loss account, statement of                cash                flow, auditors’ report, and any notes, reports or statements included                therein or annexed thereto), copies of which are annexed hereto as                Annex                III and initialled for the purposes of identification by the                Parties;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **“Subsidiary                Management Accounts”**      | the                unaudited balance sheet of each Subsidiary as at May 31, 2005, and                the                unaudited profit and loss account of each Subsidiary for the period                commencing from January 1, 2005 and ending on May 31, 2005, copies                of                which are annexed hereto as Annex IV and initialled for the purpose                of                identification by the Parties;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **“Tax”**                                                | all                forms of taxation, estate duties, deductions, withholdings, duties,                imposts, levies, fees, charges, social security contributions and                rates                imposed, levied, collected, withheld or assessed by any local, municipal,                regional, urban, governmental, state, federal or other body in Hong                Kong,                the PRC, or elsewhere and any interest, additional taxation, penalty,                surcharge or fine in connection therewith;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **“US$”**                                                | United                States dollars, the lawful currency of the United States of                America;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **“Vendor’s                Solicitors”**           | Morrison                & Foerster of 21st Floor, Entertainment Building, 30 Queen’s Road                Central, Hong Kong; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **“Warranties”**                                         | the                representations, warranties and undertakings contained or referred                to in                Clause 8 and set out in Schedule 5; “**Warranty**”                means any or a specific one of                them.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

| 1.2 | Save                where the context otherwise requires words and phrases the definitions                of                which are contained or referred to in the Companies Ordinance shall                be                construed as having the meaning thereby attributed to                them. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | Any                references, express or implied, to statutes or statutory provisions                shall                be construed as references to those statutes or provisions as respectively                amended or re-enacted or as their application is modified from time                to                time by other provisions (whether before or after the date hereof)                and                shall include any statutes or provisions of which they are re-enactments                (whether with or without modification) and any orders, regulations,                instruments or other subordinate legislation under the relevant statute                or                statutory provision. References to Sections of consolidating legislation                shall, wherever necessary or appropriate in the context, be construed                as                including references to the Sections of the previous legislation                from                which the consolidating legislation has been                prepared. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | References                in this Agreement to Clauses and Schedules are to clauses in and                schedules                to this Agreement (unless the context otherwise requires). The Recitals                and Schedules to this Agreement shall be deemed to form part of this                Agreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | Headings                are inserted for convenience only and shall not affect the construction                of                this Agreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6 | The                expressions **“the                Vendor”**                and **“the                Purchaser”**                include their respective successors and                assigns. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7 | References                to **“persons”**                shall include individuals, bodies corporate, unincorporated associations                and partnerships (whether or not having separate legal                personality). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.8 | References                to writing shall include any methods of producing or reproducing                words in                a legible and non-transitory form. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9 | The                masculine gender shall include the feminine and neuter and the singular                number shall include the plural and vice                versa. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.10 | A                document expressed to be **“in                the approved terms”**                means a document the terms of which have been approved by or on behalf                of                the Parties in writing. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.11.1 | the                rule known as the ejusdem generis rule shall not apply and, accordingly,                general words introduced by the word “other” shall not be given a                restrictive meaning by reason of the fact that they are preceded                by words                indicating a particular class of acts, matters or things;                and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.11.2 | general                words shall not be given a restrictive meaning by reason of the fact                that                they are followed by particular examples intended to be embraced                by the                general words. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.                       ** | **Sale              of Sale Shares** |
|--------------------------------------------------------------------------------------|--------------------------------------|

| 2.1 | Subject                to the terms of this Agreement, the Vendor shall sell as legal and                beneficial owner and the Purchaser shall purchase, the Sale Shares,                free                from all liens, charges and encumbrances and together with all rights                now                or hereafter attaching to them, including all rights to any dividend                or                other distribution declared, made or paid after the date of this                Agreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | The                Vendor hereby waives and agrees to procure the waiver of any restrictions                on transfer (including pre-emption rights), if any, which may exist                in                relation to the Sale Shares, whether under the articles of association                of                the Company or otherwise. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.                       ** | **Consideration** |
|--------------------------------------------------------------------------------------|-------------------|

| 3.1 | The                total consideration payable for the Sale Shares shall be the                Consideration. |
|-----|---------------------------------------------------------------------------------------------------------------|

| 3.2 | The                Consideration shall be payable on Completion in accordance with Clause                5.2.1. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| **4.                       ** | **Conditions** |
|--------------------------------------------------------------------------------------|----------------|

|   | 4.1.1 | no                notice having been received from the PRC Ministry of Commerce                (**“MOFCOM”**)                and/or the PRC State Administration of Industry and Commerce (**“SAIC”**)                pursuant to the *Provisional                Rules on Mergers with and Acquisitions of Domestic Enterprises by                Foreign                Investors*,                promulgated by the Ministry of Foreign Trade and Economic Cooperation                (the                predecessor of MOFCOM), State Administration of Taxation, SAIC and                State                Administration of Foreign Exchange on 7 March 2003 and effective                as of 12                April 2003, ordering an anti-trust filing to be made in respect of                the                sale and purchase of the Sale Shares pursuant to this Agreement;                in the                event such order to file is received, this condition shall be satisfied                after the Vendor and the Purchaser have jointly made the necessary                anti-trust filing and MOFCOM and SAIC having consented to the sale                and                purchase of the Sale Shares pursuant to this                Agreement; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1.2 | the                Warranties not being untrue or inaccurate or misleading at Completion                which results in a Material Adverse                Effect; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1.3 | the                Vendor having complied fully with the obligations specified in Clause                9.1                and otherwise having performed all of the covenants and agreements                required to be performed by it under this                Agreement; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1.4 | no                statute, regulation or decision which would prohibit, restrict or                materially delay the sale and purchase of the Sale Shares or the                operation                of any member of the Group after Completion having been proposed,                enacted                or taken by any governmental or official authority; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1.5 | (i)                Mr. Ling Peixue having entered into a license contract with CTF,                acknowledged by the Shandong Research Institute, substantially in                the form                set out in Schedule 9 (the “**Patent                License Contract**”);                (ii) Mr. Hu Hongjie having executed a license contract with CTF,                acknowledged by Shandong Research Institute, substantially similar                in form                to the Technology License Contract; (iii) Mr. Ling, Mr. Hu and, if                necessary, the Shandong Research Institute having executed the relevant                governmental license recordal forms requested by Purchaser in respect                of                the Technology License Contracts referred to in sub-clauses (i) and                (ii)                above; and (iv) the Shandong Research Institute having executed a                Confirmation and Declaration substantially in the form set out in                Schedule                15; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1.6 | the                approval of the shareholders of the Vendor (or, if required under                the                Listing Rules, the approval of the independent shareholders of the                Vendor), being obtained in respect of the sale and purchase of the                Sale                Shares pursuant to this Agreement; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1.7 | there                being no change in the business or operations of the Group which                has a                Material Adverse Effect any time between the date of this Agreement                and                Completion; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1.8 | each                of the Key Employees having entered into a Key Management Retention                Agreement; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------|

|   | 4.1.9 | the                Purchaser’s Solicitors (through Chiang Ling Li) shall have been provided                with the Formulation Information and shall not have within a period                of                fifteen (15) Business Days (counted, for the sake of clarity, beginning                with the first Business Day after                Formulation Information is actually delivered) determined based on                a                review of the Formulation Information so provided, that one or more                claim                of a published patent in the PRC or patent application in the PRC                is                infringed by one or more of the products which are the subject of                the                Formulation Information. The foregoing condition shall be deemed                satisfied                unless the Purchaser’s Solicitors’ conclusion that there is such                infringement, with detailed findings, is provided to the Vendor’s                Solicitors in writing on or before the end of such fifteen (15) Business                Day period. For purposes of the foregoing, the Vendor shall not be                required to provide the Formulation Information to the Purchaser’s                Solicitors as stated above unless and until the Conditions set out                in                Clauses 4.1.5 and 4.1.8 shall have been fulfilled or waived in                writing.(pursuant to Clause 4.2);                and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1.10 | a                contract to terminate the existing license granted by Mr. Ling Peixue                and                any other licensor(s) thereto (if any) to Shandong Freda Biotechnology                Engineering Co. Ltd. in respect of eye wash solutions containing                hyaluronic acid and salts and their preparation methods and technology                which are the subject of patent application number 200410035712.3                at an                aggregate termination costs not exceeding RMB150,000 and and such                termination contract must contain a provision obliging and requiring                Shandong Freda Biotechnology Engineering Co. Ltd. to cease production,                use                and sale of all products containing the foregoing Intellectual Property                by                December 31, 2005. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Save                for the Conditions set out in Clauses 4.1.1, 4.1.4 and 4.1.6, the                Purchaser may waive in whole or in part all or any of the Conditions                at                any time by notice in writing to the                Vendor. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | The                Vendor shall in good faith use his best efforts and proceed diligently                to                procure the fulfilment of the Conditions set out in Clauses 4.1.3,                4.1.5,                4.1.6, 4.1.7, 4.1.8 and 4.1.10 on or before the date specified in                Clause                4.5 below, provided that best efforts shall not require the payment                of                amounts which are not ordinarily required to be paid to ensure the                performance by a third party of actions necessary to ensure the fulfilment                of the relevant Condition. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | The                Vendor shall give the Purchaser notice in writing and provide relevant                evidence reasonably satisfactory to the Purchaser of the satisfaction                of                each relevant Condition (save for the Conditions set out in Clauses                4.1.1,                4.1.2, 4.1.3, 4.1.4 and 4.1.7) within three (3) Business Days of                becoming                aware of the same. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | In                the event that any of the Conditions (other than the Conditions set                out in                Clause 4.1.2) shall not have been fulfilled (or waived pursuant to                Clause                4.2) by September 30, 2005 (the “Drop Dead Date”), then neither the                Purchaser nor the Vendor shall be bound to proceed with the sale                and                purchase of the Sale Shares and this Agreement shall cease to be                of any                effect except Clauses 1, 10, 11, 12, 13, 14 and 15 which shall remain                in                force and save in respect of claims arising out of any antecedent                breach                of this Agreement, provided                that (i) if the Condition(s) which has (have) not been fulfilled                by the                Drop Dead Date is (are) any of the Conditions set out in any of Clauses                4.1.3, 4.1.5, 4.1.6, 4.1.7, 4.1.8 or 4.1.10 and such non-fulfilment                is the                result of the Vendor’s breach of its obligations under Clause 4.3 in                relation to such Condition(s), then the Purchaser shall have the                right                upon notice in writing to the Vendor, to extend the last date for                the                fulfilment of the said Condition(s) past the Drop Dead Date and this                Agreement                shall remain in full force and effect in all respects; and (ii) if                the                fifteen (15) Business Day period referred to in Clause 4.1.9 is not                completed prior to the Drop Dead Date, then the Drop Dead Date shall                be                automatically extended to allow for the end of such fifteen (15)                Business                Day period and all references in this Agreement to the Drop Dead                Date                shall be construed accordingly. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | In                the event that the Purchaser shall waive any of the Conditions (save                for                the Conditions set out in Clauses 4.1.1, 4.1.4 and 4.1.6), such waiver                shall not, except to the limited extent set forth below, imply that                the                Purchaser is not relying on the Warranties but rather only that it                is                prepared, in reliance upon the Warranties and such comfort, if any,                as it                has taken from its investigations, to proceed with the transaction.                Without limiting the requirement of Clause 5.3.1.7, each Party agrees                to                promptly notify the other Party in writing upon becoming aware of                any                breach of any of the Warranties by the Vendor after the date of this                Agreement and before Completion. In the event the Purchaser elects                to                proceed to Completion after being notified by the Vendor in writing                that                the Vendor is aware of a breach of a Warranty which cannot be cured,                notwithstanding the best efforts of the Vendor, the Purchaser will,                in                such case, no longer be entitled to make a claim in respect of such                breach                of Warranty after the Completion                Date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.                       ** | **Completion** |
|--------------------------------------------------------------------------------------|----------------|

| 5.1 | Subject                to the provisions of Clause 4, Completion shall take place on the                Completion Date at the offices of the Purchaser’s Solicitors (or such                other place as the Parties may agree in writing) when all of the                events                described in this Clause 5 shall                occur. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.2.1 | pay                an amount equal to the Consideration to the Vendor by telegraphic                bank                transfer to the following bank account (and/or such other account(s)                as                may be designated in writing by the Vendor at least five (5) Business                Days                prior to the Completion Date); |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.2.2 | deliver                to the Vendor an original counterpart of the Deed of Indemnity duly                executed by the Purchaser; and |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.2.3 | deliver                to the Vendor a certified copy of the minutes of a duly held meeting                of                the board of directors of the Purchaser approving and authorising                the                execution of this Agreement, the performance of this Agreement and                all                transactions contemplated herein. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.1 | duly                executed transfers and sold notes in respect of all of the Sale Shares                in                favour of the Purchaser or its nominee together with the relative                share                certificates; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.2 | a                cheque for an amount equal to 0.1% of the HK$ equivalent of the                Consideration as at the Completion Date in respect of the Vendor’s share                of stamp duty drawn in favour of the Government of the Hong Kong                Special                Administrative Region; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.3 | an                original counterpart of the Deed of Indemnity duly executed by the                Vendor                and the Company; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.4 | duly                executed letter of resignation of the Auditors, resigning as the                auditors                of the Company, such letter to comply with the requirements of Section                140A of the Companies Ordinance, and duly executed letter from Shandong                Sincere Certified Public Accountants Co., Ltd. confirming that it                has no                claim against the Subsidiaries, whether for any outstanding fees                or                otherwise; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.5 | (if                any) the title deeds, Leases and all other relevant deeds, documents                and                correspondence relating to the Properties, the land use rights                certificates and building ownership certificates relating to the                Owned                Properties, and leases in respect of the Leased Properties of the                Subsidiaries, which are in the possession or under the control of                the                Vendor or the Company; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.6 | all                the statutory and other books and records (including financial records)                duly written up to date of the Company and the certificate of                incorporation, current business registration certificate, common                seal and                chop of the Company and any other papers and documents of the Company                in                its possession or under its control; and (if any) the Certificates                of                Approval, business licences, chops, capital contribution reports,                tax                registration certificates, and foreign exchange registration certificates                for each of the Subsidiaries, all the statutory and other books and                records (including financial records) duly written up to date of                the                Subsidiaries and any other papers and documents of the Subsidiaries                which                are in the possession or under the control of the Vendor or the                Company; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.7 | a                completion certificate duly executed by the Vendor pursuant to which                it                confirms that (1) the Warranties remain true and accurate and not                misleading as given as of the Completion Date, save for any breach                of the                Warranties which the Vendor has notified the Purchaser in writing                at least                five (5) Business Days prior to the Completion Date and matters fairly                and                specifically disclosed in the Disclosure Letter; and (2) the Vendor                has                complied fully with its obligations, covenants, undertakings and                agreements under this Agreement on or prior to the Completion Date; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.8 | unconditional                letters of release from the bankers to each member of the Group (if                any)                evidencing the release and discharge of all guarantees, debentures                and                charges (if any) granted by any member of the Group in favour of                the                Vendor and/or any subsidiaries of the Vendor, or in favour of third                parties in respect of the performance of the obligations of the Vendor                and/or any subsidiaries of the Vendor or any other person not being                a                member of the Group; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.9 | a                certified copy of the minutes of a duly held meeting of the board                of                directors of the Vendor approving and authorising the execution of                this                Agreement and the performance of this Agreement and all transactions                contemplated herein; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.10 | duly                executed letters of resignation dated as of the Completion Date in                the                form set out in Schedule 13 (or the Chinese equivalent) from the                Directors                and the secretary of the Company and the directors of each of the                Subsidiaries who are nominated or appointed by the Vendor (and in                case of                the Subsidiaries, through the                Company); |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.11 | a                duly executed confirmation or release from the Vendor (for itself                and on                behalf of its subsidiaries) and from Mr. Tse Ping (for himself and                on                behalf of entities Controlled by him) (as applicable) under seal,                in the                approved terms, releasing the Company and the Subsidiaries from any                liability whatsoever (whether actual or contingent) (other than trade                debts) which may be owing to the Vendor or any of its subsidiaries                or to                Mr. Tse Ping or to any persons Controlled by any of them, by the                Company                or any of the Subsidiaries at                Completion; |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.12 | irrevocable                powers of attorney (in the form set out in Schedule 14) executed                under                seal by each of the holders of the Sale Shares in favour of the Purchaser                or such person(s) as may be nominated by the                Purchaser; |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.13 | a                legal opinion issued by the Vendor’s Solicitors, in the form set out in                Schedule 7; |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.14 | a                legal opinion issued by a firm of lawyers qualified to advise on                PRC law                and is satisfactory to the Purchaser, in the form and substance                satisfactory to the Purchaser, to state that each Subsidiary has                been duly                established and registered as a PRC legal person with limited liability,                and is validly existing under PRC law, and 55% of the equity interests                of                each of the Subsidiaries is legally owned by the Company; |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.15 | all                documents evidencing registration or filing (as applicable) of all                registrable Intellectual Property owned by the Group, including,                without                limitation, registration certificates and applications, in the possession                or under the control of the Vendor or the Company (if                any); |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.16 | a                deed of undertaking by Mr. Tse Ping in favour of the Purchaser in                the form                set out in Schedule 10 duly executed by Mr. Tse Ping; |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.17 | true                and correct copies of the Key Management Retention Agreements entered                into                between the Key Employees and the relevant members of the                Group; |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.18 | a                true and correct copy of a new HA Compound supply agreement duly                executed                by CTF and the existing supplier of HA compound to CTF; |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.19 | true                and correct copies of the approval of the shareholders of the Vendor                (or,                if required under the Listing Rules, the approval of the independent                shareholders of the Vendor), in respect of the sale and purchase                of the                Sale Shares pursuant to this                Agreement; |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.20 | a                true and correct copy of the Patent Licence Contract duly executed                by                Shandong Research Institute and Mr. Ling Peixue;                and |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.1.21 | a                true and correct copy of the Property Title Certificate in respect                of                CTF’s ownership of the property located at Guanhai Building, northwest                corner, Madian Qiao, Bei Sanhuan Zhong Lu, Haidian District,                Beijing; |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.2 | make                available to the Purchaser in the PRC for inspection                purposes: |
|--------|-------|---------------------------------------------------------------------------------------------------|

|   | 5.3.2.1 | the                title deeds, Leases and all other relevant deeds, documents and                correspondences relating to the Properties, the land use rights                certificates and building ownership certificates relating to the                Owned                Properties, and leases in respect of the Leased Properties of the                Subsidiaries; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.2.2 | the                Certificates of Approval, business licences, chops, capital contribution                reports, tax registration certificates, and foreign exchange registration                certificates for each of the Subsidiaries, all the Statutory and                other                books and records (including financial records) duly written up to                date of                the Subsidiaries and all other papers and documents of the Subsidiaries;                and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.2.3 | all                documents evidencing registration or filing (as applicable) of all                registrable Intellectual Property owned by the Group, including,                without                limitation, registration certificates and                applications; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.3 | cause                the Directors to hold a meeting of the Board at which the Directors                shall                pass resolutions to: |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.3.1 | approve                the transfer of the Sale Shares pursuant to this Agreement and the                registration of the Purchaser or its nominees as members of the Company                subject only to the production of duly stamped and completed transfers                in                respect of the Sale Shares; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.3.2 | approve                and authorise the execution by the Company of the Deed of                Indemnity; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | 5.3.3.3 | accept                the resignation of the Auditors, Directors and secretary of the Company                referred to in Clauses 5.3.1.4 and                5.3.1.10; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.3.4 | appoint                the directors and secretary of the Company nominated by the Purchaser;                and |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | 5.3.3.5 | (if                any bank account of the Company remains on the Completion Date) revoke                all                of the authorities to the bankers of the Company relating to bank                accounts                and authorise such persons as the Purchaser may nominate to operate                the                same; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.4 | cause                such persons as the Purchaser may nominate (at least three (3) Business                Days prior to the Completion Date) to be validly appointed as directors                and secretary of the Company and upon such appointment forthwith                cause the                Directors and the secretary of the Company to resign from their respective                offices and as employees, each delivering to the Purchaser a resignation                letter under seal in the form set out in Schedule                13; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.5 | cause                the Legal Representative of each of the Subsidiaries to arrange for                the                filing with the relevant authorities in the PRC in relation to the                new                directors of the Subsidiaries nominated or appointed by the Purchaser                through the Company, subject to the new directors having signed the                appointment forms; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.6 | cause                such persons as the Purchaser may nominate (at least three (3) Business                Days prior to the Completion Date) to be validly appointed as directors                of                each of the Subsidiaries nominated or appointed by the Vendor through                the                Company in accordance with the Joint Venture Contract and Articles                of                Association of the relevant Subsidiary and upon such appointment                forthwith                cause the directors of each of the Subsidiaries nominated or appointed                by                the Vendor through the Company to resign from their respective offices                and                as employees, each delivering to the Purchaser a letter acknowledging                that                the person so retiring has no claim outstanding for compensation                or                otherwise; and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3.7 | (i)                procure revocation of all authorities to the bankers of the Company                relating to bank accounts and use best efforts to procure the giving                of                authority to such persons as the Purchaser may nominate to operate                the                same, or if no bank account of the Company remains on the Completion                Date,                deliver a bank cashier order made payable to the Company for all                credit                balances therein prior to their closure in excess of HK$10,000; and                (ii)                procure the delivery to a representative of the Purchaser of the                chops                held by the Chief Financial Officer of the Subsidiaries which are                required                in order to operate the bank accounts of the Subsidiaries in the                PRC. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Without                prejudice to any other remedies available to the relevant Party,                if in any                respect the provisions of Clause 5 (other than Clause 5.3.1.21) are                not                complied with by the relevant Party on the Completion Date, the Party                not                in default may: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.4.1 | defer                Completion to a date not more than 28 days after the Completion Date                (and                so that the provisions of this Clause 5.4 shall apply to Completion                as so                deferred); |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.4.2 | proceed                to Completion so far as practicable (without prejudice to its rights                under                this Agreement); or |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.4.3 | terminate                this Agreement. |
|--------|-------|------------------------------------------|

| **6.                       ** | **Post-Completion** |
|--------------------------------------------------------------------------------------|---------------------|

| 6.1 | The                Vendor shall use all reasonable endeavours to procure Ms. Zhao Yanping                will, during the period from the Completion Date to the date falling                six                (6) months thereafter, provide services to any member of the Group                for the                purpose of and as is reasonably necessary for post-Completion                transition. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | The                Vendor shall fully indemnify and hold harmless the Purchaser and                the                members of the Group and their directors, officers and employees                for a                period of ten years after the date hereof against any and all liability,                loss, damage, claim or expense, including attorney’s fees and costs                arising out of failure to obtain state asset valuation with respect                to the                Patents which were alleged to have been developed by the Shandong                Research                Institute. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | In                the event the Vendor does not deliver to the Purchaser the Property                Title                Certificate on the Completion Date pursuant to Clause 5.3.1.21, the                Vendor                shall fully indemnify and hold harmless the Purchaser against any                and all                liability, loss, damage, claim or expense, including attorney’s fees and                costs incurred by the Purchaser and 55% of any and all liability,                loss,                damage, claim or expense, including attorney’s fees and costs incurred by                CTF arising out of the failure of CTF to obtain the necessary Property                Title Certificate in respect of CTF’s ownership of the property located at                Guanhai Building, northwest corner, Madian Qiao, Bei Sanhuan Zhong                Lu,                Haidian District, Beijing. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.                       ** | **Restriction              of Vendor and Undertaking of              Purchaser** |
|--------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|

| 7.1 | Subject                to Completion, the Vendor undertakes with the Purchaser (for itself                and as                trustee for the Company and each of the Subsidiaries) that, except                with                the consent in writing of the Purchaser and subject to the provisions                of                Clause 7.3: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.1.1 | for                the period of five years after the Completion Date in respect of                the                Restricted Ophthalmic Business and a period of three years in respect                of                the Restricted Other Businesses, it will not within any country or                place                in which any member of the Group has carried on business during the                year                preceding the Completion Date, either on its own account or in conjunction                with or on behalf of any person, firm or company carry on or be engaged,                concerned or interested, directly or indirectly, whether as shareholder,                director, employee, partner, agent or otherwise in carrying on the                relevant Restricted Businesses (other than as a holder of not more                than 5                per cent of the issued shares or debentures of any company listed                on a                recognised stock exchange); |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.1.2 | for                the period of five years after the Completion Date, it will not either                on                its own account or in conjunction with or on behalf of any other                person,                firm or company solicit or entice away or attempt to solicit or entice                away from any member of the Group the custom of any person, firm,                company                or organisation who shall at any time within the year preceding the                date                hereof have been a customer or identified prospective customer of                any                member of the Group in respect of any Restricted                Businesses; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.1.3 | for                the period of three years after the Completion Date, it will not                either on                its own account or in conjunction with or on behalf of any other                person,                firm or company solicit, entice away or attempt to solicit or entice                away                from any member of the Group (which for the avoidance of doubt, shall                exclude any advertisement or solicitation targeted at or made available                to                the general public) any person who at the time of such solicitation,                enticement or attempt is an officer, manager, consultant or employee                of                any member of the Group whether or not such person would commit a                breach                of contract by reason of leaving such                employment; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.1.4 | it                will not at any time hereafter make use of or disclose or divulge                to any                person (other than to officers or employees of the Vendor, the Company                or                any of the Subsidiaries whose province it is to know the same) any                information (other than any information properly available to the                public                or disclosed or divulged pursuant to an order of a court of competent                jurisdiction or the requirements of The Stock Exchange of Hong Kong                Limited or of the Securities and Futures Commission in Hong Kong,                or                disclosed or divulged to the auditors of the Vendor solely for the                purpose                of performing an audit in respect of the Vendor (provided always                that the                Vendor shall procure its auditors will observe the provisions of                this                Clause 7.1.4), or disclosed or divulged to professional advisers                or                designated employees of the Vendor strictly on a need-to-know basis                (provided always that the Vendor shall procure such professional                advisers                and employees will observe the provisions of this Clause 7.1.4))                relating                to any member of the Group, the identity of its customers and suppliers,                its products, finance, contractual arrangements, business or methods                of                business; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.1.5 | if,                in connection with the business or affairs of any member of the Group,                it                shall have obtained trade secrets or other confidential information                belonging to any third party under an agreement purporting to bind                any                member of the Group which contained restrictions on disclosure it                will not                without the previous written consent of the Purchaser at any time                infringe                or take any action which would or might result in an infringement                of such                restrictions; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.1.6 | it                will not at any time hereafter in relation to any trade, business                or                company use or register a name, trade mark, service mark, trade dress                or                business name including the words or symbol “Chia Tai Freda”, “CT Freda”,                “CP Freda”, “CTF Freda”, “CPF Freda” and/or “Freda”, or their Chinese                equivalents or any word or symbol confusingly similar thereto in                such a                way as to be capable of or likely to be confused with the name, any                trade                mark, service mark, trade dress or business name of any member of                the                Group and shall use his best endeavours to procure that no such name,                trade mark, service mark, trade dress or business name shall be used                by                any person, firm or company with which is under its Control, and                it will                not take any action contrary to the Intellectual Property of any                member of                the Group, including, without limitation, challenging the ownership                of                such right, title or interest or contesting any registration or                application for any Intellectual Property of any member of the Group.                For                the avoidance of doubt, the foregoing restriction does not apply                to the                words “Chia Tai”, “CTF”, “CPF”, “CT” or “CP” individually or their Chinese                equivalents. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | The                Vendor shall procure that all entities Controlled by the Vendor will                observe the restrictions contained in the foregoing provisions of                this                Clause 7 and shall use all reasonable endeavours to procure that                the                respective employees of itself, its subsidiaries and its Controlled                entities will observe the confidentiality restrictions contained                in Clause                7.1.4. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | While                the restrictions contained in this Clause 7 are considered by the                Parties                to be reasonable in all the circumstances, it is recognised that                restrictions of the nature in question may fail for technical reasons                and                accordingly it is hereby agreed and declared that if any of such                restrictions shall be adjudged to be void as going beyond what is                reasonable in all the circumstances for the protection of the interests                of                the Purchaser but would be valid if part of the wording thereof were                deleted or the periods thereof reduced or the range of activities                or area                dealt with thereby reduced in scope the said restriction shall apply                with                such modifications as may be necessary to make it valid and                effective. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.4.1 | it                shall not, and shall procure that its Controlled entities (including                without limitation the Group) shall not, in relation to any new product                of                the Group with effect from the Completion Date use the words “正大”                or “Chia Tai” or “CP” (save as part of “Chia Tai Freda”, “CP Freda” or                their Chinese equivalent), as part of its name, trade mark, service                mark,                trade dress or business name, or any word or symbol confusingly similar                thereto in such a way as to be capable of or likely to be confused                with                such word or symbol; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.4.2 | it                shall not, and shall procure that its Controlled entities in the                PRC                (including without limitation the Group) shall not, directly or                indirectly, with effect from the date falling five (5) years from                the                Completion Date, in relation to any product, trade, business or company                use or register a name, trade mark, service mark, trade dress or                business                name including the words or symbol “正大”                or “Chia Tai” or “CP” or “CT” (including as part of “Chia Tai Freda”, “CP                Freda”, “CT Freda”, “CTF”, “CPF” or their Chinese equivalents), or any                word or symbol confusingly similar thereto in such a way as to be                capable                of or likely to be confused with such word or                symbol; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.                       ** | **Warranties** |
|--------------------------------------------------------------------------------------|----------------|

| 8.1 | The                Vendor represents, warrants and undertakes to and with the Purchaser                that                each of the statements set out in Schedule 5 is now and will at Completion                (with all references in any such statement to “the date of this                Agreement”, or “the date hereof”, or any other comparable references being                changed to “the Completion Date”) be true and                accurate. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | The                Warranties (other than Warranties in respect of title and ownership                of the                Sale Shares, the equity interests of the Subsidiaries held by the                Company,                and approvals and authorizations of the Vendor necessary for the                Vendor to                enter into this Agreement and perform its obligations under this                Agreement                (the **“Fundamental                Warranties”**),                in respect of which no qualification is accepted) are given subject                to                matters fairly and specifically disclosed in the Disclosure Letter                but no                other information relating to the Company or the Subsidiaries of                which the                Purchaser has knowledge (actual or constructive) and no investigation                by                or on behalf of the Purchaser shall prejudice any claim made by the                Purchaser under the Warranties or operate to reduce any amount                recoverable, and liability in respect thereof shall not be confined                to                breaches discovered before Completion. No letter, document or other                communication shall be deemed to constitute a disclosure for the                purposes                of this Agreement unless the same is expressly referred to in the                Disclosure Letter. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | The                Vendor acknowledges that the Purchaser has entered into this Agreement                in                reliance upon the Warranties. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Subject                to Completion, in the event that any of the Warranties is breached                or (as                the case may be) proves to be untrue or misleading and without prejudice                to any other equitable relief a court of competent jurisdiction may                see                fit to award, the Vendor shall, on demand, pay to the                Purchaser: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.4.1 | the                amount necessary to put the Purchaser and the Company, and 55% of                the                amount necessary to put the relevant Subsidiary (or Subsidiaries),                into                the position which would have existed if the Warranties had not been                breached or (as the case may be) had been true and not misleading;                and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.4.2 | all                costs and expenses incurred by the Purchaser and the Company, and                55% of                all costs and expenses incurred by the relevant Subsidiary (or                Subsidiaries), in connection with or as a result of such breach and                any                costs (including legal costs on a solicitor and own client basis),                expenses or other liabilities which the Purchaser and the Company,                and 55%                of any such costs, expenses or other liabilities which any of the                Subsidiaries may incur either before or after the commencement of                any                action in connection with (i) any legal proceedings in which the                Purchaser                claims that any of the Warranties has been breached or is untrue                or                misleading and in which judgement or an arbitral award is given for                the                Purchaser or (ii) the enforcement of any settlement of, or judgement                or an                arbitral award in respect of, such                claim. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | Each                of the Warranties shall be separate and independent and, save as                expressly                provided to the contrary, shall not be limited by inference from                or                non-specific reference to any other Warranty or any other term of                this                Agreement, nor by anything in the Disclosure Letter which is not                expressly                referenced to the Warranty concerned, notwithstanding any contrary                or                conflicting provision in the Disclosure                Letter. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.6 | The                Vendor hereby agrees with the Purchaser (for itself and as trustee                for the                Company and each of the Subsidiaries) to waive any rights which it                may                have in respect of any misrepresentation or inaccuracy in, or omission                from, any information or advice supplied or given by the Company                or its                Subsidiaries or their officers, employees or advisers in connection                with                the giving of the Warranties and the preparation of the Disclosure                Letter. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.7 | The                Vendor shall procure that (save only as may be necessary to give                effect to                this Agreement) neither it nor any member of the Group shall do,                allow or                procure any act or omission before Completion which would constitute                a                breach of any of the Warranties if they were given at Completion                or which                would make any of the Warranties inaccurate or misleading if they                were so                given. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.8 | The                Vendor hereby agrees to disclose promptly to the Purchaser in writing                immediately upon becoming aware of the same, any matter, event or                circumstance (including any omission to act) which may arise or become                known to it after the date of this Agreement and before Completion                which                constitutes a breach of or is inconsistent with any of the                Warranties. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.9 | The                benefit of the Warranties may be assigned to other members of the                Bausch                & Lomb group in whole or in part and without restriction by the person                for the time being entitled                thereto. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.10 | If                any sum payable by the Vendor under this Clause 8 shall be subject                to Tax                (whether by way of deduction or withholding or direct assessment                of the                person entitled thereto) such payment shall be increased by such                an amount                as shall ensure that after deduction, withholding or payment of such                Tax                the recipient shall have received a net amount equal to the payment                otherwise required hereby to be made. If the Vendor pays any sum                to the                Purchaser under this Clause 8, the Consideration shall be deemed                to be                reduced by the amount of such                payment. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.11 | Where                any statement in the Warranties is qualified by the expression “to the                best of the Vendor’s knowledge and belief” or any similar expression, that                statement shall be deemed to include an additional statement that                it has                been made after reasonable and careful enquiry and shall be deemed                to                include the knowledge of the senior management of the Vendor (including,                without limitation, Mr. Tse Ping, Ms. Zhao Yanping, the directors,                officers and senior managers of the Vendor, and the officers and                senior                managers and factory managers of the                Subsidiaries). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.12 | The                liabilities of the Vendor under the                Warranties: |
|------|-----------------------------------------------------------------------------------|

|   | 8.12.1 | together                with the liabilities of the Vendor under the Deed of Indemnity, shall,                except for the Fundamental Warranties, be limited to a maximum aggregate                amount equal to 50% of the                Consideration; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.12.2 | shall                in relation to those Warranties in respect of Tax (**“Tax                Warranties”**)                cease seven years after the Completion Date, except in respect of                matters                which have been the subject of a written claim made before such date                by                the Purchaser to the Vendor; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.12.3 | shall,                except for the Fundamental Warranties, cease two years after the                Completion Date, except in respect of matters which have been the                subject                of a written claim made before such date by the Purchaser to the                Vendor; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.12.4 | shall                be exempted in respect of any breach of Warranties which arises as                a                result of any PRC                tax laws, including an increase in the rate of Tax, not in force                as at the                date                of this Agreement and which is retrospective in effect;                and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.12.5 | shall                be exempted in respect of a claim for breach of Warranty to the extent                that provision or reserve in respect of the matter or thing giving                rise to                such claim has been specifically provided for in the Accounts or                the                Management Accounts, or has been specifically disclosed in this Agreement                or the Disclosure Letter; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.13 | The                Vendor shall not be liable for a claim under the Warranties if a                claim in                respect of the same event or circumstance has already been made under                the                Deed of Indemnity. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.14 | The                Parties agree that no liability shall attach to the Vendor in relation                to                any Warranty claim to the extent that such claim would not have arisen                but                for an omission or a voluntary act (other than an omission or act                carried                out pursuant to a legally binding obligation created on or before                Completion) of the Purchaser or any member of the Group occurring                after                Completion which constitutes fraud or wilful                misconduct. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.15 | The                Parties agree that no liability shall attach to the Vendor in relation                to                any Warranty claim until the aggregate amount of all claims, each                of which                (including on an aggregated basis where the individual claim is associated                with or forms part of a series of related claims arising from or                with                respect to the same facts or circumstances) is of an amount (for                the sake                of clarify, prior to reduction in respect of the Subsidiaries as                may be                required by Clause 8.4) of US$30,000 or higher, exceeds US$4,500,000                and                in such event, the Vendor shall be liable only for the excess of                the                aggregate amount of all claims over the said US$4,500,000, subject,                as the                case may be, to limitation in respect of the Subsidiaries as may                be                required by Clause 8.4. For the sake of clarity, the limitations                under                this Clause 8.15 shall not apply to the obligations under the Deed                of                Indemnity or under Clause 6.2                hereof. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.16 | If                the Purchaser shall become aware of any material breach of Warranty                in                respect of which a claim could be made under this Agreement, it shall                give                reasonable written notice thereof to the Vendor and provide the Vendor                with the opportunity to cure such breach (only if such breach is                curable)                within ten Business Days of its receipt of such notice from the Purchaser.                In addition, the Purchaser shall (provided that the Vendor shall                indemnify                and hold harmless the Purchaser and the Company and the Subsidiaries,                as                applicable, to the Purchaser’s reasonable satisfaction, against any and                all liabilities, costs, damages and/or expenses which may be incurred                thereby) take such action and procure that the Company take such                action as                may reasonably be necessary to mitigate the loss or damage incurred                relating to the Warranty claim; provided that neither the Company                nor the                relevant Subsidiary nor the Purchaser shall in any event be required                to                take any steps which would require any admission of guilt or liability                relating to matters connected with the claim in question or which                would                affect the conduct of the business of the Purchaser or the Company                or any                of the Subsidiaries. For the avoidance of doubt, under no circumstances                shall the failure by the Purchaser to provide prior reasonable written                notice to the Vendor or the opportunity of the Vendor to cure such                breach                reduce or limit the liability of the Vendor in respect of such breach,                unless and to the extent the Vendor is actually and materially prejudiced                by such failure by the Purchaser. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.                       ** | **Pre-Completion** |
|--------------------------------------------------------------------------------------|--------------------|

| 9.1 | The                Vendor shall procure that, during the period from the date of this                Agreement to the Completion Date or the termination of this Agreement                pursuant to the terms hereof, each member of the Group shall carry                on                business in the same manner as it was operated prior hereto and in                the                normal and usual course and in furtherance of the foregoing, no member                of                the Group shall undertake any of the matters listed below without                the                prior written consent of the Purchaser: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.1 | enter                into any contract, make any material change to the terms of the existing                contracts or assume any liability which will result in any long term,                unusual or onerous liability or commitment of any member of the                Group; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.2 | save                for the Approved Extraordinary Expenditures, enter into any capital                commitment with an individual contract value of more than HK$500,000                (whether by way of purchase, lease, hire purchase or                otherwise); |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.3 | make                any change in the nature, scope or organisation of its business or                dispose                of the whole of its undertaking or property or a substantial part                thereof; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.4 | acquire                or form any subsidiary or acquire any shares in any company or acquire                the                whole or any substantial part of the undertaking, assets or business                of                any other company or any firm or person or enter into any joint venture                or                partnership with any other person; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.5 | make                any loans or grant any credit (other than credit given in the normal                course of trading and advances made to employees against expenses                incurred                by them on its behalf); |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.6 | borrow                any money or make any payments out of or drawings on its bank accounts                (except routine payments in the ordinary course of business); |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.7 | enter                into any guarantee, indemnity or                surety; |
|--------|-------|------------------------------------------------------------------------------|

|   | 9.1.8 | save                as required by any applicable laws or regulations and as contemplated                under Condition 4.1.8, make any changes to the terms of employment                or of                any profit sharing, share option, profit related, bonus or incentive                scheme of any of its employees or in any arrangements with its                consultants, or make any special or extraordinary payments to any                of its                employees or consultants; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.9 | save                as required by any applicable laws or regulations, change (or announce                to                employees any proposal to change) the terms of any retirement scheme                or                pension plan in which that member of the Group participates (“**Relevant                Scheme**”),                or exercise any discretionary power under the Relevant Scheme, or                cause                the Relevant Scheme to be terminated or wound up (or otherwise fail                to                maintain the Relevant Scheme in full force and effect) or fail to                make any                required contribution (or other payment) to the Relevant Scheme,                or fail                to meet any obligation of any kind whatsoever to the Relevant                Scheme; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.10 | acquire                or dispose of or grant any option or right of pre-emption in respect                of                any material asset (including, without limitation, any of its Intellectual                Property) or any interest nor give nor receive any service otherwise                than                at market value; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.11 | acquire                or dispose of any freehold or leasehold property or grant any lease                or                third party right in respect of any of the                Properties; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.12 | enter                into any leasing, hire purchase agreement or any agreement or arrangements                for payment on deferred terms; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.13 | grant                or enter into any assignment, licence, franchise or other agreement                or                arrangement concerning any part of its name, trading names, know-how,                patents, trademarks, service marks, trade dress, copyright, inventions                or                any other of its Intellectual                Property; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.14 | declare,                authorize, make or pay any dividend or other distribution (whether                in cash                or in specie) or reduce its paid-up                capital; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.15 | incur                or pay any management charges; |
|--------|--------|-----------------------------------------------------|

|   | 9.1.16 | permit                any of its insurances to lapse or do anything which would make any                policy                of insurance void or voidable; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.17 | make                any payments to either the Vendor or any of its subsidiaries or to                Mr. Tse                Ping or to any persons (other than members of the Group) affiliated                with                any of the foregoing (for the purpose of this Clause, a person shall                be                considered to be “affiliated” with another person if that person either                Controls, is Controlled by or under the common Control with such                person); |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.18 | other                than in the ordinary course of business, apply for, surrender or                agree any                variations to any Environmental                Licences; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.19 | agree,                conditionally or otherwise, to do any of the                foregoing; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | 9.1.20 | commence                the prosecution or defence of, or settle, any legal or arbitration                proceedings (other than in connection with the collection of ordinary                trade debts); |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.21 | make                any changes in the pricing of any products of any member of the Group,                other than in the ordinary course of business or as required by applicable                laws or regulations; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.22 | make                any changes to any of its constitutional                documents; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | 9.1.23 | amend                the accounting policies or practices or reporting practices existing                as of                the date of this Agreement; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.1.24 | terminate,                enter into or amend any supply or distribution agreement or arrangement;                or |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | 9.1.25 | create,                allot or issue or agree to create, allot or issue any share or loan                capital or other security, or equity interests, or grant any option                over                or other right to subscribe for any share or loan capital or other                security, or equity interests. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | The                Vendor undertakes and covenants with the Purchaser that during the                period                from the date hereof until the Completion Date or the termination                of this                Agreement pursuant to the terms hereof, it will                not: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.2.1 | sell,                mortgage, grant an option over or otherwise dispose of or encumber                to any                person the whole or any part of the shares or equity interests of                any                member of the Group owned by the Vendor or the Company or the business                or                assets of any member of the Group, or indicate a willingness to consider                any offer to do any of the                foregoing; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.2.2 | engage                in discussions or negotiations with any person in relation to the                sale,                mortgage or other disposition of, or grant of an option or other                encumbrance in respect of, the whole or any part of the shares or                equity                interests of any member of the Group owned by the Vendor or the Company                or                the business or assets of any member of the Group;                or |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.2.3 | provide                to any prospective purchaser of the whole or any part of the business,                assets or shares or equity interests of any member of the Group any                non-public information concerning any member of the                Group; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | The                Vendor undertakes that it will after the signing of this Agreement                and                before Completion make available to the Purchaser upon its request                personnel with knowledge of the history and development of the Group’s                products for the purpose of providing information thereon to the                Purchaser. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.                     ** | **Confidentiality              and Restriction on              Announcements** |
|---------------------------------------------------------------------------|--------------------------------------------------------------------------------|

| 10.1 | Subject                to Clause 10.2, each Party shall treat as confidential all information                received or obtained by it or its directors, employees, agents or                advisers                as a result of entering into or performing this Agreement including                (i)                information relating to the provisions of this Agreement; (ii) the                negotiations leading up to this Agreement;(iii) the subject matter                of this                Agreement; or (iv) the business or affairs of the other Party, and                shall                not at any time make use of, disclose or divulge to any person any                such                information or make any announcement on any such information without                the                prior written consent of the other                Party. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | The                restrictions contained in Clause 10.1 shall not apply so as to prevent                a                Party from disclosing or making any announcement of any information                which                would otherwise be confidential if and to the extent: (i) required                by law                of any relevant jurisdiction; (ii) required by any securities exchange,                supervisory, regulatory or governmental body to which such Party                is                subject (including but not limited to The Stock Exchange of Hong                Kong                limited and the Securities and Futures Commission in Hong Kong) whether                or                not the requirement for information has the force of law; (iii) disclosed                to any professional advisers of such Party (provided always that                such                Party shall procure such professional advisers will observe the provision                of this Clause 10); (iv) disclosed in a press announcement in a form                agreed by both Parties or consistent with a mutually agreed set of                questions and answers; or (v) any information which comes into the                public                domain through no fault of such Party. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11.                     ** | **Costs** |
|---------------------------------------------------------------------------|-----------|

| 11.1 | Each                Party shall pay its own costs of and incidental to this Agreement                and the                sale and purchase hereby agreed to be                made. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | The                Vendor and the Purchaser shall each equally bear any stamp duty payable                as                a result of the sale and purchase of the Sale Shares pursuant to                this                Agreement. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | The                Vendor confirms that no costs or expenses of whatever nature relating                to                the sale of the Sale Shares has been or is to be borne by any member                of                the Group and if any such costs or expenses have been or are to be                borne                by any member of the Group, the Vendor shall forthwith reimburse                any and                all such costs and expenses to the relevant member of the                Group. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.                     ** | **General** |
|---------------------------------------------------------------------------|-------------|

| 12.1 | This                Agreement shall be binding upon and enure for the benefit of the                estates,                personal representatives or successors of the Parties. Save for an                assignment of this Agreement by the Purchaser to a subsidiary of                the                Purchaser, no Party may assign or transfer its rights or obligations                under                this Agreement without the prior written consent of the other                Party. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | This                Agreement (together with any documents referred to herein or executed                contemporaneously by the Parties in connection herewith) constitutes                the                whole agreement between the Parties and supersedes any previous agreements                or arrangements between them relating to the subject matter hereof;                it is                expressly declared that no variations hereof shall be effective unless                made in writing signed by duly authorised representatives of the                Parties.                Notwithstanding the foregoing, the Confidentiality Agreement entered                into                between the Vendor and the Purchaser dated November 21, 2004, as                amended                on July 2, 2005, survives the signing of the Agreement, but shall                terminate upon Completion. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | All                of the provisions of this Agreement shall remain in full force and                effect                notwithstanding Completion (except insofar as they set out obligations                which have been fully performed at                Completion). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4 | If                any provision or part of a provision of this Agreement shall be,                or be                found by any authority or court of competent jurisdiction to be,                invalid                or unenforceable, such invalidity or unenforceability shall not affect                the                other provisions or parts of such provisions of this Agreement, all                of                which shall remain in full force and                effect. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5 | Any                right of rescission conferred upon any Party hereby shall be in addition                to and without prejudice to all other rights and remedies available                to it                (and, without prejudice to the generality of the foregoing, shall                not                extinguish any right to damages to which that Party may be entitled                in                respect of the breach of this Agreement) and no exercise or failure                to                exercise such a right of rescission shall constitute a waiver by                that                Party of any such other right or                remedy. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.6 | No                failure of any Party to exercise, and no delay or forbearance in                exercising, any right or remedy in respect of any provision of this                Agreement shall operate as a waiver of such right or                remedy. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7 | Upon                and after Completion the Vendor shall do and execute or procure to                be done                and executed all such further acts, deeds, documents and things as                may be                     reasonably necessary to give effect to the terms of this Agreement                and to                place control of the Company and the Subsidiaries in the hands of                the                Purchaser and to deliver and make available to the Purchaser all                documents                and records (if any) of the Company and the Subsidiaries, and all                documents (if any) evidencing registration or filing (as applicable)                of                all registrable Intellectual Property owned by the Group, which are                in the                possession or under the control of the Vendor, and pending the doing                of                such acts, deeds, documents and things, the Vendor shall as from                Completion hold the legal estate in the Sale Shares in trust for                the                Purchaser. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.8 | This                Agreement may be executed in one or more counterparts (including                by                facsimile signature), but shall not be effective until each Party                has                executed at least one counterpart and each such counterpart shall                constitute an original of this Agreement but all the counterparts                shall                together constitute one and the same                instrument. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.                     ** | **Notices** |
|---------------------------------------------------------------------------|-------------|

| **14.                     ** | **Governing              Law and Arbitration** |
|---------------------------------------------------------------------------|------------------------------------------------|

| 14.1 | This                Agreement shall be governed by and construed in accordance with the                laws                of Hong Kong. |
|------|------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Any                dispute, controversy or claim arising out or relating to this Agreement,                or the breach, termination or invalidity thereof, shall be settled                by                final and binding arbitration in accordance with the UNCITRAL Arbitration                Rules as at present in force and as may be amended by the rest of                this                Clause. The appointing body shall be the Hong Kong International                Arbitration Centre (**“HKIAC”**).                The place of arbitration shall be in Hong Kong at HKIAC. The tribunal                for                any arbitration shall consist of three (3) arbitrators with each                of the                Purchaser and the Vendor having the right to appoint one arbitrator                and                the third arbitrator shall be appointed by the Secretary General                of HKIAC.                The language to be used in the arbitral proceedings shall be                English. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15.                     ** | **English              and Chinese Versions** |
|---------------------------------------------------------------------------|-----------------------------------------------|

**IN      WITNESS WHEREOF**

**SINO      BIOPHARMACEUTICAL LIMITED    **

**BAUSCH      & LOMB INCORPORATED    **