Document:

Stock Pledge Contract

Share Pledge Contract

This Share Pledge Contract (Hereinafter referred to as “the Contract”) is made and entered into in Dalian as of    9   (month)   1   (day), 2006 by the parties listed as below:

Pledgee: 

 

Party A: Dalian Vitup Management Holding Co., Ltd 

Address: NO.108-1, Nanshan Road, Zhongshan District, Talian, China.

Pledgor:

Party B: 

Shubin Wang 

ID No.: [220622196506270630]

Feng Gu 

ID No.: [220602196409190940] 

Party C: Dalian Vitup Healthcare Management Co., Ltd

Address: NO.108-1, Nanshan Road, Zhongshan District, Talian, China.

Whereas:

1.

Party A is a foreign owned limited corporation registered under the laws of PRC;

2.

 

Party B constitutes Chinese citizens, holding all the Shares of Dalian Vitup Healthcare Management Co. Ltd. Which is a limited corporation registered in Dalian, PRC;

3.

Pursuant to the Loan Agreement signed in       (month)      (day), 2006 by Party A and Party B, Party A lends a free loan of RMB 8,000,000 (hereinafter referred to as “the Loan”) to Party B and Party B proposes to provide Party A with the Shares of Party C held by it as the pledges for the loan as stipulated in the Loan Agreement.

Now therefore, through friendly negotiation, Party A (hereinafter referred to as “Pledgee”), Party B (hereinafter referred to as “Pledgor”) and Party C (hereinafter referred to as “Domestic Company”) hereby agree it as follows:

1.

Definition

Unless otherwise specified herein, the following expressions have the following meanings:

 “Pledge”: as defined in article 2 herein.

 “Shares”: shall refer to all the Shares of Domestic Company legally held by the Pledgor.

 “Event of Default”: as defined in article 7.1 of the clauses herein.

 “Notice of Default”: refers to a notice issued by Pledgee in accordance with this Contract declaring an Event of Default.

2.

Pledge

Pledgor hereby pledges to Pledgee all his Shares of Domestic Company as a guarantee for the repayment of all the liability as prescribed in Loan Agreement. “The Pledge” shall refer to the right of Pledgee to be compensated on a preferential basis with the conversion, auction or sale price of the Shares held by Pledgor and to collect the bonus incurring from the pledged Shares. 

3.

Registration of Pledge

Pledgor should cause the Domestic Company to record the pledge of the Pledgee in the Shareholder’s List and shall submit to Pledgee’s custody the capital contribution certificate for the shares and the shareholder’s list stamped with the seal of Domestic Company Within seven days from the date of the execution of this Contract.

 Both Parties agree to use their best efforts to complete the filing procedures of the pledge with industry and commerce administration authorities with which Domestic Company was registered. Unless otherwise required forcibly by the laws, rules and regulations of PRC, the validity of this Contract shall not be affected, whether filed with the abovementioned authorities or not.

 Domestic Company hereby warrants, [1] to record the pledge of the Pledgee in the Shareholder’s List, submit to Pledgee’s custody the sole shareholder’s list, and not to set up any other shareholder’s list [2] not to renew or change the capital contribution certificate which shall be void if, in any chance, renewed or changed [3] not to modify or revoke the registration of the Pledge without the written consent of Party A, [4] not to make any new registration for pledge of the Shares for Pledgor without the written consent by Pledgee,.

4.

Rights of Pledgee

If Pledgor is in default of the performance of liability obligation, Pledgee is entitled to be compensated on a preferential basis with the conversion, auction or sale price of the Shares held by Pledgor.

Pledgee has the right to collect the bonus incurring from the pledged Shares.

5.

Representation and Warranties By Pledgor

Pledgor is the lawful owner of the Shares.

Pledgor has not placed any other pledge rights on the Shares except for the interests of Pledgee.

Both members of the Pledgor agree to give up the preferential option upon the actual exercise of the pledge by the Pledgor.

The representation and warranties made hereinabove in the clauses of 5.1、5.2、5.3 are authentic and shall not be altered or cancelled by any means or procedures for any reason.

.

6.

Covenants of the Pledgor

Pledgor hereby promises to the Pledgee for the interest of the Pledgee, that during the term of this contract, Pledgor shall:

Not transfer, place or permit the existence of any pledge that is likely to affect the rights and interests of Pledgee in shares, without the prior written consent by Pledgee;

Comply with the provisions of all laws, rules, regulations applicable to the pledge of rights, within 5 days after the receipt of any notice, order, or recommendation issued or prepared by relevant competent authorities regarding the Pledge, shall present the abovementioned notice, order, or recommendation or submit objections and representations with respect to the abovementioned matters upon Pledgee’s reasonable request or upon consent of Pledge; 

Promptly notify the Pledgee of any event or notice received by Pledgee which is likely to affect Pledgor’s rights to the Shares or any portion thereof, as well as promptly notify Pledgee of any event or notice received by Pledgee which may have an impact on any guarantees and other obligations of Pledgor arising in connection with this contract. 

Pledgor agrees that Pledgee the rights acquired by Pledgee  in accordance with this contract with respect to Pledge shall not be interrupted or harmed by Pledgor or any heir or assigns of Pledgor or any other person through any legal proceedings.

Pledgor hereby warrants to Pledgee that to protect or perfect the guarantee provided by this contract for the payment of the loan under the Loan Agreement, Pledgor hereby execute in good faith and shall cause other parties privy to this pledge to sign all rights certificates and covenants as required by Pledgee, and/or shall perform and cause other parties who have a stake in the Pledge to perform actions required by Pledgee, and shall provide to Pledgee convenience for the exercise of the rights and authorizations as prescribed in this contract.

Pledgor warrants to execute all relevant documents to modify stock certificates with Pledgee or any other person appointed by pledgee (natural person or corporate entity) and shall provide to Pledgee within a reasonable time all notice, order, decision or resolution concerning the pledge that are required by Pledge.

Pledgor hereby warrants to Pledgee, for the interest of Pledgee, Pledgor shall comply with and perform the obligations of all the guarantees, promises, presentation and conditions under this contract. In case the default of any of abovementioned matters, Pledgor shall indemnify Pledgee for all the losses and damages thus incurred.

7.

Event of Default

The following circumstances shall be deemed Event of Default:

Pledgor fails to perform the obligation under the Loan Agreement;

Any representation or warranty made by Pledgor in the clause 5 thereof is materially false or misleading, and /or Pledgor is in violation of any warranty as prescribed in clause 5 herein;

Pledgor breaches any of the covenants as prescribed in the clause 6 herein;

Pledgor breaches any of provisions of this contract;

Pledgor give up the Shares pledged or assigns the Shares Pledged without obtaining the written consent of Pledgee.

Any of Pledgor’s own loans, guarantees, indemnification, promises or other debt liabilities to 

any third party or parties [1] have been subject to a demand of early repayment or performance; or  [2] have become due but are not capable of being repaid or performed in a timely manner, thus leading Pledgee to believe that Pledgor’s ability to perform its obligations under this Contract.

Domestic Company is unable to repay general debts and other debts;

Any reasons except for force majeure have rendered this contract illegal or have rendered it impossible for Pledgor to continue to perform its obligation hereinunder.

Adverse changes in properties owned by Pledgor, which lead Pledgee is of the opinion that Pledgor’s ability to perform the obligation hereinunder has been affect;

Breach of this contract resulting from breach of the other provisions of this contract by Plegor’s action or omission:

 Upon information or discovery of the occurrence of any circumstances or event that may lead to the aforementioned circumstances described in clause 7.1, Pledgor shall immediately notify Pledgee in writing.

Unless an Event of Default set forth in clause 7.1 has been successfully resolved to Pledgee’s satisfaction, Pledgee may issue a Notice of Default to Pledgor in writing upon the occurrence of the Event of Default or at any time thereafter and demand that Pledgor immediately pay all outstanding payments due under Loan Agreement and all other payments due to Pledgee, or dispose of the Pledge in accordance with the provisions of clause 8 of this contract.

Unless Pledgee is satisfied with the settlement or remedies made for the breach of contract as set forth in clause 7.1, Pledgee may, upon the breach is happening or at any time after the breach, issue a notice for the breach in writing to request Pledgor immediately to pay the loan under Loan Agreement and other items payable or dispose of the pledge in accordance with the clause 8.

8.

Exercise of Pledge

Prior to the full implementation of the obligation set forth by Loan Agreement, without the written consent of Pledgee, pledgor shall not assign the pledge.

Pledgee shall issue a Notice of Default when exercising the pledge.

Subject to the provisions of clause 7.3, Pledgee may exercise the right to dispose of the pledge concurrently with the issuance of the Notice of Default in accordance with clause 7.3 or at any time after the issuance of the Notice of Default

Pledgee has the right to be compensated with the conversion price of the Shares under this agreement in part or in whole, in accordance with legally mandated procedures, or with the auction or sale price of such shares on a preferential basis, until all liabilities and all other outstanding payments under the Loan Agreement have been paid off.

When Pledgee disposes of the Pledge in accordance with this contract, Pledgor and Domestic Company shall not erect any impediment and shall provide necessary assistance to enable Pledgee to realize its Pledge.

9. Assignment

9.1 Unless Pledgee consents in advance, Pledgor is not entitled to assign or delegate its rights and obligations hereinunder.

9.2 This contract shall be binding on Pledgor, the heirs and the successors thereof and shall be valid with respect to Pledgee and each of the successors and assigns thereof.

9.3 At any time, Pledgee may assign any and all of its rights and obligations under Loan Agreement to its designees (natural person /corporate entity) , in which case the assigns shall have the rights and obligations of Pledge under this contract, as if it were a party to this contract. When the Pledgee assigns the rights and obligations under the Loan Agreement, upon Pledgee’s request, Pledgor shall execute relevant agreements and / or documents relating to such an assignment.

9.4 In the event of a change in Pledgee due to an assignment, the new parties to the Pledge shall execute a new pledge contract and modify the information recorded in the shareholder’s list and issue new investment certificate.

10.

Validity 

This contract is conclude on the date set forth on the first page thereof and shall take effect as of the date when the Pledge is recorded on the shareholders list of Domestic Company.

11.

Termination

This contract terminates when the repayment for the loan under Loan Agreement is completed and after Pledgor is not under any obligation described in the Loan Agreement. Pledgee shall provide proper assistance to go through the necessary procedure to dispose of the pledge within a reasonable time.

12.

Handling Fees and Other Expenses

All the fees and out of pocket expenses relating to this contract, including but not limited legal cost, cost of production, stamp tax and any other taxes and fees shall be borne by Pledgee. In the event that the law requires Pledgor to pay relevant taxes and expenses, Pledgee shall provide full reimbursement for all taxes and fees already paid by Pledgor.

13. Force Majeure

13.1

“Force Majeure” is defined as an unpredictable event or occurrence out with the control of the contracting parties, and which is not attributable to any act or failure to take preventive action by the party concerned, which includes but not limited to, government actions, natural calamities, fires, explosions, storms, floods, earth quakes, tides, lightning or war. However, a lack of credit, funds or financing shall be also deemed as a circumstance of Force Majeure since they are beyond reasonable control of either party. Should either party herein be affected by a “force majeure event” shall notify the other party of such relief from liability as soon as possible.

13.2

In case that the performance of this contract is delayed or impeded by the abovementioned Force Majeure, the party that influenced by such Force Majeure may shall not be liable in any way under this contract to the extent of such delay or impedance. The party affected shall take appropriate measures to eliminate the impact of such “force majeure” and shall attempt to resume 

the performance of obligations delayed or impeded by such “force majeure”. As soon as the force majeure event is eliminated, the parties agree to use their best efforts to resume the performance of this contract. 

14.. Confidentiality

Each party hereby agrees that all information exchanged by all parties, orally or in writing, is strictly confidential. Each party shall hold such information in confidence without the prior written consent by another party and shall not disclose to any other third party except the following the circumstances: [a] the public has been or will be informed of such information (only when such information is not disclosed by the recipient); [b] such information is required to be make known by law or rules and regulations of security exchanges; or [c] such information is required to be disclosed by any party to its legal or financial consultant in view of the consummation of the transactions contemplated hereby and such legal or financial consultant are also required to guarantee to keep such information strictly confidential. The disclosure of such confidential information by any staff or appointed institution of any party shall be deemed as the violation of the confidentiality clause hereby and shall hold liable for breach of contract in accordance with this agreement. This section shall survive the termination of this

Contract for any reason..

15.

Settlement of Disputes

15.1

This contract shall be governed by laws of PRC and shall be construed in accordance therewith.

15.2

All the disputes arising in connection with the interpretation and performance of the agreement (including the existence, validity or termination of this agreement) should be settled amicably through negotiations. But if there is no agreement to be reached within 30 days after any party brings forward the requirement for disputes settlement, the other party may submit such disputes for arbitration. Arbitration shall be conducted by China International Economic and Trade Arbitration Commission in Beijing in accordance with its effective procedure rule. The award given by the Arbitration Commission shall be final and binding upon both parties;

16. Notification

Notice sent by the parties to perform the rights and obligations under this contract shall be in writing. If sent by personal delivery, such a notice shall be deemed served upon actual delivery; if sent by telex or facsimile, such a notice shall be deemed served at the time of transmission. If the date of transmission is not a business day or if transmission is after business hours, then the next consecutive business day shall be the date of service. The address of service shall be the addresses of the two parties on the first page of this contract or addresses notified in writing at any time subsequently. In writing shall include facsimiles and telexes.

 

17. Entire Agreement

Notwithstanding the Clause 10, this Agreement constitutes the entire agreement upon the execution and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter herein.

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Severability  

Notwithstanding annexed to Loan Agreement signed by both parties, the contract shall be individually valid and effective, and the Loan Agreement shall not affect its legal force.

 In the event that any provisions of this Agreement are invalid or unenforceable due to inconsistency with law, then such provisions shall only be invalid or unenforceable to the extent of the jurisdiction of such law, and shall not affect the legal validity of the remaining provisions of this Agreement

19 Amendments and Supplementation

19.1

All parties shall make amendment and supplementation in writing. Any amended and supplementary agreements shall be an integral part of this contract and have the same legal effect.

19.2

 Amendments, changes and supplements to this contract shall be in writing and shall take effect upon affixation of the signatures and seals of all the parties. 

20.

Texts 

The contract is done in triplicate and written in English, each party holds one, and each original has equal legal effect.

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

Pledgee:

Party A: Dalian Vitup Management Holding Co., Ltd

   

Authorized Representative:____________________

Pledgor:

      Party B: Wang Shubin

Signature:____________________

 

      Gu Feng

Signature:____________________

Dalian Vitup Healthcare Management Co.,Ltd

Authorized Representative:____________________Exclusive Option Contract

Exclusive Option Contract

This Exclusive Option Contract (Hereinafter referred to as “the Contract”) is made and entered into in Dalian as of    9   (month)   1   (day), 2006 by the parties listed as below:

Party A: Dalian Vitup Management Holdings Co., Ltd

Address: NO.108-1, Nanshan Road, Zhongshan District, Dalian, China.

Party B: 

Shubin Wang 

ID No.: [220622196506270630]

Feng Gu 

ID No.: [220602196409190940]

Party C: Dalian Vitup Healthcare Management Co. Ltd. 

Address: NO.108-1, Nanshan Road, Zhongshan District, Dalian, China.

In this Contract, Party A, Party B and Party C shall be referred to as a “ Party” respectively and they shall be collectively referred to as the "Parties."

Whereas:

1.

Party A is a foreign-funded limited corporation registered under the laws of PRC;

2.

Party C is a limited corporation registered in Dalian, PRC;

3.

Party B is a shareholder of Party C and holds the whole shares  (hereinafter referred to as the “stocks”) of the company;

4.

Pursuant to the Loan Agreement signed in    9   (month)   1   (day), 2006 by Party A and Party B, Party B borrows RMB 8,000,000 from Party A;

5.

Pursuant to the Stock Pledge Contract signed in    9   (month)  1    (day), 2006 by Party A and Party B, Party B agrees to provide Party A with the stocks of Party C held by it as the pledges for the loan as stipulated in the Loan Agreement.

6.

Party B proposes to grant Party A with exclusive options to purchase the stocks, which enables Party A purchase the stocks of Party B under certain conditions as may be prescribed.

Now therefore, through friendly negotiation, both Parities hereby agree it as follows:

1.

Stock Option

The Grant of the Stock Option

Party B hereby irrevocably grants to Party A an irrevocable right to or designate one or more persons (each, a "Designee") to purchase, any or all of the shares held by Party B (hereinafter referred to as “Stock Option”) at any time in part or in whole at Party A's sole and absolute 

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discretion to the extent permitted by Chinese laws at the price described in the Clause 1.3 hereof, no other person shall be entitled to the Stock Option. Party B shall not sell, offer to sell, transfer, confer any stocks to any other third party. Party C hereby agrees that Party B grants Party A and/or appointed person or persons with stock options. Party C hereby agrees to the grant by Party B of the Stock Option to Party A. The term "person" as used herein shall refer to individuals, corporations, partnerships, partners, enterprises, trusts or non-corporate organizations.

Steps for Exercise an Option

Subject to the provisions of the laws and regulations of the PRC, Party A and/or its Designee may exercise the Stock Option by issuing a written notice to Party B (hereinafter referred to as the “Stock Option Notice”) and specifying the number of shares to be subscribed or purchased from Party B (hereinafter referred to as the “Option Shares”) and the way of purchase before the exercise of the stock option.

.

Stock Option Price

Unless an appraisal or restriction on the stock price is required by the laws, rules and regulation of the PRC applicable to the Stock Option exercised by Party A, the purchase price of the Option Shares (hereinafter referred to as the “Stock Option Price”) shall be equal to the actual capital contributions paid for the Option Shares by the Party B.

In case an appraisal or restriction on the stock price is required to be made pursuant to the laws, rules and regulation of the PRC applicable to the Stock Option exercised by Party A, All parties agree on stock purchase price as the lowest price allowed under the applicable laws.

Transfer of Option Shares 

The stocks may be transfer in installments. For each exercise of the Stock Option:

Party B shall cause Party C to promptly convene a shareholders meeting, at which a resolution shall be adopted approving Party B's transfer of Option Shares to Party A and / or the Designee(s);

Party B shall entered into a stock transfer contract with respect to each transfer with Party A and/or each Designee (whichever is applicable) pursuant to the provisions as prescribed hereof and the Stock Option Notice regarding the Option Shares;

The relevant Parties shall execute all other necessary contracts, agreements or documents, obtain all necessary governmental licenses and permits a and take all necessary actions, to to give valid ownership of the Option Shares to Party A and/or the Designee(s) unencumbered by any security interest and cause Party A and/or the Designee(s) to become the registered owner(s) of the Option Shares. For the purchase of this clause and Contract, “Security Interests” shall include security, mortgages, third party's rights or interests, any stock options, acquisition right, right of first refusal, right to offset, ownership, detention or other security arrangements, etc. To clarify, security interest shall not include any security interest generated under this Contract and Party B's Share Pledge agreement

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Payment for the Stock Option Price

The terms of payment shall be settled through the friendly negotiations by Party A and/or the Designee(s) and Party B and in accordance with the requirements applicable to the exercise of stock options. All parties hereby agree that any proceeds obtained by Party B through the transfer of its shares shall be used as consideration for repayment of the loan provided by Party A and loan interest or the cost of occupation of fund allowed under the relevant law in accordance with the Loan Agreement.

2.

Covenant Relating to Stock Option

Covenant By Party C

Party B and Party C hereby warrant the following:

Without the prior written consent of Party A, they shall not in any manner supplement, change or amend the articles and bylaws of Party C, increase or decrease its registered capital or change its structure of registered capital in any other manner;

They shall keep the sound existence of the Company; prudently and effectively carry out the business in accordance with the good financial and business standards and conventions.

Without the prior written consent of Party A, they shall not, at any time following the date of execution hereof, sell, transfer, mortgage, dispose of in any other manner any assets of Party C or legal or beneficial interest in the business or revenues of Party C, or allow the encumbrance thereon of any security interest;

Without the prior written consent of Party A, they shall not incur, inherit, guarantee for or suffer the existence of any debt, except for (i) debt incurred in the ordinary course of business instead of that incurred through any loans; and (ii) debt already disclosed to Party A for which Party A's written consent has been obtained;

Always operate all of businesses during the ordinary course of business, to maintain the asset value and refrain from any action / omission sufficient to affect operating status and asset value;

Without the prior written consent of Party A, they shall not execute any major contract, except contracts in the ordinary course of business (for purpose of this subsection, a contract whose value exceeds RMB1 million shall be deemed a major contract);

Without the prior written consent of Party A, they shall not provide any person with any loan or credit;

Provide Party A with information on Party C's business operations and financial condition at Party A's request;

Procure and maintain insurance from an insurance carrier acceptable to Party A, and the amount and types of coverage maintained shall be identical to the amount and types of coverage usually maintained by companies that operate similar business and hold similar properties or assets in the same area where Party C is located;.

Without the prior written consent of Party A, they shall not merge or be consolidated with any person, or acquire any person or make investments in any person;.

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Immediately notify Party A of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings relating to Party C's assets, business and revenue;

To maintain the ownership by Party C of all of its assets, execute all necessary or appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate complaints or raise necessary and appropriate defenses against all claims;

Without the prior written consent of Party A ,Party C shall not in any manner distribute any dividend and allocate any profits to shareholders before obtaining prior written consent by Party A; provided that Party A makes a request, Party C shall immediately distribute all distributable profits to the respective shareholders; and

According to the requirement of Party A, they shall appoint the person proposed by Party A as the director of Party C.

Covenants regarding Party B

Party B hereby warrants the following:

Without the prior written consent of Party A, Party B shall not at any time following the date of execution hereof sell, transfer, mortgage or dispose of in any other manner any legal or beneficial interest in the shares of Party C held by Party B, or allow the encumbrance thereon of any security interest, except for the pledge placed on these shares

Party B shall neither, without the prior written consent by Party A, agree or support or sign any agreement aimed at the sale, transfer, mortgage or disposition in any other manner of any legal or beneficial interest in the shares of Party C held by Party B in the shareholder’s meeting of the Party C nor allow the encumbrance thereon of any security interest, unless which is made to Party A or any persons appointed by Party A;

Without the prior written consent by Party A, Party B shall not agree or support or sign any shareholder’s resolution to approve the merger or consolidation with any person, or the acquisition of or investment in any person, without the prior written consent of Party A;

Party B shall irrevocably agree to grant Party A with an exclusive stock option and each member of Party B hereby undertakes to gives up its prior option on the stocks sold to Party A by the other member of Party B upon the exercise of stock option; 

Party B shall immediately notify Party A of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings in connection with the held stocks;

Party B shall cause the shareholders in the shareholder’ meeting to approve the transfer of the Option Shares as prescribed in the contract;

To maintain his ownership of the shares, Party B shall execute all necessary or appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate complaints or raise necessary and appropriate defenses against all claims;

They shall appoint any Designee proposed by Party A as the director of Party C at the request of Party A;

Party B shall strictly comply with this Contract and provisions as prescribed in the other contracts signed jointly or respectively by Party B, Party C and Party A and duly perform the obligations hereinunder, and refrain from any action or omission sufficient to affect the effectiveness and enforceability of this contract. 

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3.

Representation and Warranties

Party B and Party C hereby represent and warrants on the date of the execution of this Contract and each date of transfer of the Option as follows: 

Party B and Party C have all requisite corporate power and authority to enter into, execute, deliver, and perform its obligations under, this contract and any other stock transfer contracts that Party B and Party C have entered into pursuant to this Contract. This contract is, and each of the stock transfer contracts when executed by Party B and Party C shall be, a valid and binding obligation of Party B and Party C enforceable against Party B and Party C;

The execution and delivery of this Contract or any other transfer contracts or the performance of the obligations hereinunder shall not [i] cause any violation of any applicable laws, rules and regulations of PRC. [ii] be inconsistent of their articles, bylaws or other organizational documents; [iii] cause the violation of any contracts or instruments to which they are a party or which are binding on them, or constitute any breach under any contracts or instruments to which they are a party or which are binding on them; [iv] cause any violation of any condition for the grant and /or continued effectiveness of any licenses or permits issued to either of them; or (v) cause the suspension or revocation of or imposition of additional conditions to any licenses or permits issued to either of them;or [v] result in the termination, cancellation of any approvals or authorizations or the addition of extra conditions for such approvals or authorizations;

Party C has a good and merchantable title to all of its assets.Party C has not placed any security interest on the aforementioned assets;

Party C does not have any outstanding debt, except for [i] debt incurred in the ordinary course of business; and [ii] debt already disclosed to Party A for which Party A's written consent has been obtained;

Party C has complied with all Chinese laws and regulations applicable to asset acquisitions;

Currently, there are no pending or possible litigation, arbitration or administrative proceedings relating to the shares or assets of Party C; and 

Party C has a good and merchantable title to its shares and there are not any security rights and interests placed on the aforesaid shares with the exclusion of the security rights agreed in the Stock Pledge Contract signed earlier.

4 Transfer of the Contract

4.1

All the rights and obligations of Party B and Party C subject to this Contract shall not be transferred to any third party without prior written consent by Party A.

4.2

Party B and Party C hereby agree that Party A may transfer all its rights and obligations hereinunder to any third party if required. Party A is not required to obtain the consent from Party B and Party C in this regard but should notify them in writing upon the transfer.

5. Effective Date and Validity

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5.1

This Contract becomes effective on the date of execution hereinabove written. 

5.2

The term of this Contract is the same as that of Loan Agreement.

6. Legal Applications and Settlement of Disputes

6.1

Legal Applications

The conclusion, interpretation, implementation and disputes settlement of the contract should be adopted to and be under the jurisdiction of the law of PRC.

Settlement of Disputes

All the disputes arising in connection with the interpretation and performance of the agreement (including the existence, validity or termination of this agreement) should be settled amicably through negotiations. But if there is no agreement to be reached within 30 days after any party brings forward the requirement for disputes settlement, the other party may submit such disputes for arbitration. Arbitration shall be conducted by China International Economic and Trade Arbitration Commission in Beijing in accordance with its effective procedure rule. The award given by the Arbitration Commission shall be final and binding upon both parties;

7.

Taxes and Fees

Each party shall pay any registration or transfer taxes, stamp duties or similar levies, which may be imposed by any jurisdiction in connection with the preparation and execution and the consummation of the tractions contemplated herein and in various transfer contracts.

8.

Notification

The notices or other communications required of any Party shall be in writing in Chinese or English, and shall be sent to the addresses of other Parties or other designated addresses in notices from such a Party from time to time via personal delivery, letter or facsimile. The date on which such a notice shall be deemed actually served shall be determined as follows: (a) if a notice is sent via personal delivery, it shall be deemed actually served on the date of such personal delivery; (b) if a notice is sent via letter, on the tenth day (as indicated by the postmark) after the letter is sent via registered air mail, postage prepaid, or on the fourth day after the notice is given to an internationally recognized express mail carrier, it shall be deemed actually served; and (c) if a notice is sent via facsimile, the time of receipt shown on the transmission acknowledge sheet of the document shall be deemed the time of actual service.

9.

Confidentiality

Each party hereby undertakes and agrees that all information exchanged by all parties, orally or in 

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writing, is strictly confidential. Each party shall hold such information in confidence and shall not disclose to any other third party without the prior written consent by the two parties with the exception of the following the circumstances: 

9.1

the public has been or will be informed of such information (only when such information is not disclosed by the recipient); 

9.2

such information is required to be make known pursuant to the law or rules and regulations of security exchanges; or 

9.3 such information is required to be disclosed by any party to its legal or financial consultant in view of the consummation of the transactions contemplated hereby and such legal or financial consultant are also required to guarantee to keep such information strictly confidential. The disclosure of such confidential information by any staff or appointed institution of any party shall be deemed as the violation of the confidentiality clause hereby and shall hold liable for breach of contract in accordance with this agreement. This section shall survive the termination of this

Contract for any reason.

10.

Further Assurance

All parties agrees to cooperate fully with the other parties and to execute such further instruments, documents and agreements and take further actions as may be reasonably requested to carry into the intents and purposes of this contract.

11. Miscellaneous

11.1

Revision, Amendment and Supplementation 

All parties shall make amendment and supplementation in writing. Any amended and supplementary agreements are a part of this Contract and have the same legal effect. 

11.2

 Entire Agreement

   This Agreement constitutes the entire agreement upon the execution and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter herein.

11.3

Severability

    If any provision of this contract, or application thereof, will for any reason and to any extent be invalid or unenforceable, then the reminder of this contract and the application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. The parties further agree to replace such void or unenforceable provision of this contract with a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision.

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11.4

Headings

 The headings used in this contract are for convenience of the parties only and shall not be considered in interpreting the meaning of any provision of this contract.

11.5

Languages and Texts  

The contract is done in quadruplicate and written in English, each party holds one, and each original has equal legal effect 

11.6

Successors.

    

  The provision of this contract shall extend to and be binding upon all the parties and their respective successors and assigns.

11.7

 Survival

Any obligation of the parties occurred or expired with regard to this contract shall survive the expiration or early termination of this agreement; The rights and obligations of the parties under Clause 6, 8, 9 and 11.7 herein shall survive the termination of this Agreement.

11.8

Waiver

Any Party may waive the terms and conditions of this Agreement, provided that such a waiver must be provided in writing and shall require the signatures of the Parties. No waiver by any Party in certain circumstances with respect to a breach by other Parties shall operate as a waiver by such a Party with respect to any similar breach in other circumstances.

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

Party A: Dalian Vitup Management Holdings Co., Ltd

Authorized Representative:____________________

8

Party B: Wang Shubin

Signature :____________________

Gu Feng

Signature:____________________

Party C: Dalian Vitup Healthcare Management Co., Ltd

Authorized Representative:____________________

9

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