Document:

Exhibit 10.21

 

ALLONGE TO CONVERTIBLE
PROMISSORY NOTES

 

Allonge (this “Allonge”)
to those certain Convertible Promissory Notes (the “Convertible Promissory Notes”) attached hereto as Exhibit 1
and made a part hereof in the principal amount of (a) $[___] dated December [__], 2016, (b) $[___] dated January [__], 2017 and
(c) $[___] dated February [__], 2017, in each case from Bionik Laboratories Corp., as Maker, to [_____], as Holder (the “Holder”).

 

Borrower and Holder
agree that each of the Convertible Promissory Notes shall be revised as follows:

 

1.       The
second sentence of the first paragraph of each of the Convertible Promissory Notes shall be amended and replaced to read as follows:

 

“This Note shall bear interest
at a fixed rate of 6% per annum, beginning on the Issue Date and ending on and through March 31, 2017, and shall bear interest
at a fixed rate of 12% per annum, beginning on April 1, 2017.

 

2.       The
definition of “Maturity Date” in Section 1.1 of each of the Convertible Promissory Notes shall be amended and replaced
to read as follows:

 

““Maturity
Date” shall mean the earlier of: (a) November 15, 2017 and (b) the consummation of a Qualified Financing.”

 

3.       Section
1.1 of each of the Convertible Promissory Notes shall be amended to include, in appropriate alphabetical order, the following new
definition:

 

““Subsequent
Note” means the promissory note issued by the Company as of March 28, 2017 to RGD Investissements S.A.S., evidencing
Company indebtedness of US$500,000.00.”

 

4.       The
definition of “Tier 1 Qualified Financing” in Section 1.1 of each of the Convertible Promissory Notes shall be amended
and replaced to read as follows:

 

““Tier
1 Qualified Financing” means the next equity or equity-linked round of financing of the Company in whatever form
or type that raises gross proceeds of $5,000,000 or more, less the aggregate amount raised by the Company pursuant to the Subscription
Agreement and the Subsequent Note.”

 

5.       The
definition of “Tier 2 Qualified Financing” in Section 1.1 of each of the Convertible Promissory Notes shall be amended
and replaced to read as follows:

 

““Tier
2 Qualified Financing” means the next equity or equity-linked round of financing of the Company in whatever form
or type that raises gross proceeds of $3,500,000 or more and less than $5,000,000, less the aggregate amount raised by the Company
pursuant to the Subscription Agreement and the Subsequent Note.

 

    	 

     

    

 

6.       The
definition of “Tier 3 Qualified Financing” in Section 1.1 of each of the Convertible Promissory Notes shall be amended
and replaced to read as follows:

 

““Tier
3 Qualified Financing” means the next equity or equity-linked round of financing of the Company in whatever form
or type that raises gross proceeds of less than $3,500,000, less the aggregate amount raised by the Company pursuant to the Subscription
Agreement, this Note and the Subsequent Note.”

 

7.       Section
3.1(a) of each of the Convertible Promissory Notes shall be amended and replaced to read as follows:

 

(a)       Conversion
upon Tier 1 Qualified Financing. Upon the consummation of a Tier 1 Qualified Financing, at the written election of the holders
of a majority of the outstanding principal of the convertible promissory notes under the Subscription Agreement (collectively,
the “Concurrent Notes”) and the Subsequent Note, the (i) outstanding principal, (ii) accrued and unpaid interest under
the Concurrent Notes (including this Note) and the Subsequent Note and (iii) the Premium, would be either payable upon demand,
or convertible into shares of New Round Stock based upon the price of the New Round Stock in the Qualified Financing.

 

8.       Section
3.1(c) of each of the Convertible Promissory Notes shall be amended and replaced to read as follows:

 

“No Conversion
upon Tier 3 Qualified Financing; Security Interest. Neither the Holder nor the Company may cause the conversion of this Note
upon a Tier 3 Qualified Financing. In the event the Company is unsuccessful in consummating either a Tier 1 Qualified Financing
or a Tier 2 Qualified Financing by November 15, 2017, the Company shall promptly grant to the Holder a security interest on all
of the Company’s assets and shall file a UCC-1 Financing Statement to perfect such security interest, and shall execute and
deliver such other documents, agreements and instruments that the Holder reasonably requires to so grant and perfect the security
interest in the Company’s assets; provided, however, that such security interest shall be subject to an Intercreditor
Agreement or other similar agreement, in customary form, if and to the extent the Company enters into one or more secured loans
with third part lenders from the Issue Date through the Maturity Date, providing for pari passu rights among the Holder, the other
lenders pursuant to the Subscription Agreement, the lender pursuant to the Subsequent Note and such other third parties.”

 

    	 

     

    

 

9.       Section
6.3 of each of the Convertible Promissory Notes shall be amended and replaced to read as follows:

 

6.3 REMEDIES
NOT WAIVED; EXERCISE OF REMEDIES. No course of dealing between the Company and the Holder or any delay in exercising any rights
hereunder shall operate as a waiver by the Holder. No failure or delay by the Holder in exercising any right, power or privilege
under this Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. By acceptance hereof, the Holder acknowledges and agrees
that this Note is one of a series of Convertible Promissory Notes of similar tenor issued by the Company, including the Concurrent
Notes and the Subsequent Note (collectively, the “Related Notes”) and that upon the occurrence and during
the continuance of any Event of Default, the holders of a majority in original principal amount of the Related Notes shall have
the right to act on behalf of the holders of all such Notes in exercising and enforcing all rights and remedies available to all
of such holders under this Note, including, without limitation, foreclosure of any judgment lien on any assets of the Company.
By acceptance hereof, the Holder agrees not to independently exercise any such right or remedy without the consent of the holders
of a majority in original principal amount of the Related Notes.

 

10.       As
partial consideration for entering into this Allonge, the Company shall issue to the Holder, on the date hereof, a warrant to purchase
shares of the Company’s common stock in the form attached to this Allonge as Exhibit A.

 

This Allonge is intended
to be attached to and made a permanent part of the Convertible Promissory Note.

 

Dated as of the 28th
day of March, 2017.

 

	Maker:	 	BIONIK LABORATORIES CORP.	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	     	 
	 	 	Name:	     	 
	 	 	Title:	     	 
	 	 	 	 	 
	 	 	 	 	 
	Holder:	 	[_____]	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	     	 
	 	 	Name:	     	 
	 	 	Title:Exhibit 10.22

 

CO-OPERATIVE
JOINT VENTURE
CONTRACT

 

between

 

GINGER
CAPITAL INVESTMENT
HOLDING, LTD.

 

and

 

BIONIK
LABORATORIES CORP.

 

with respect
to the establishment
of

 

China
Bionik Medical Rehabilitation
Technology Ltd.

 

May
17, 2017

 

    	 		 

     

    

 

TABLE
OF CONTENTS

 

	 	Page
	 	 
	CHAPTER 1 DEFINITIONS	1
	 	 
	CHAPTER 2 PARTIES	5
	 	 
	CHAPTER 3 ESTABLISHMENT OF THE COMPANY	6
	 	 
	CHAPTER 4 PURPOSES, SCOPE AND SCALE OF BUSINESS	7
	 	 
	CHAPTER 5 TOTAL INVESTMENT, REGISTERED CAPITAL AND TERMS OF COOPERATION	8
	 	 
	CHAPTER 6 RESPONSIBILITIES OF THE PARTIES	10
	 	 
	CHAPTER 7 LICENSE	11
	 	 
	CHAPTER 8 PURCHASING, SALES AND REGULATORY COMPLIANCE	12
	 	 
	CHAPTER 9 BOARD OF DIRECTORS	12
	 	 
	CHAPTER 10 BUSINESS MANAGEMENT	15
	 	 
	CHAPTER 11 LABOR MANAGEMENT	16
	 	 
	CHAPTER 12 TAXATION, FINANCE, INSURANCE AND INSPECTION	17
	 	 
	CHAPTER 13 PROFIT DISTRIBUTION	18
	 	 
	CHAPTER 14 TERM	18
	 	 
	CHAPTER 15  TERMINATION AND
    LIQUIDATION	18
	 	 
	CHAPTER 16 CONFIDENTIALITY AND NON-COMPETITION	21
	 	 
	CHAPTER 17 FORCE MAJEURE	22
	 	 
	CHAPTER 18 GOVERNING LAW	23
	 	 
	CHAPTER 19 DISPUTE RESOLUTION	23
	 	 
	CHAPTER 20 LIABILITIES FOR BREACH OF CONTRACT	24
	 	 
	CHAPTER 21 MISCELLANEOUS	24

 

	SCHEDULE I	PRODUCTS
	SCHEDULE II	PARTY A’S CONTRIBUTION SCHEDULE
	SCHEDULE III	BIONIK IP
	EXHIBIT A	FORM OF LICENSE AGREEMENT
	EXHIBIT B	FORM OF DISTRIBUTION AGREEMENT

 

    	 	i	 

     

    

 

CO-OPERATIVE
JOINT VENTURE
CONTRACT

 

Preamble

 

In
accordance with the
Law of the People’s Republic
of China
on Chinese-Foreign Co-Operative
Joint Venture Enterprises and its
implementing regulations
(hereinafter
collectively referred to as the “CJV
Law”)
and in conformity
with other relevant
Laws of the PRC, and adhering
to the principles
of equality and mutual
benefit and through friendly
consultations,
Ginger Capital
Investment Holding,
Ltd of Hong Kong
and Bionik
Laboratory,
Corp. of the USA
agree to enter into
this cooperative
joint venture contract (this “Contract”)
to establish a co-operative
joint venture enterprise in Beijing,
the PRC, to carry
on business activities as permitted
by Law for the purposes
set forth herein below.

 

Chapter
One 

Definitions

 

Unless
the context otherwise
requires,
capitalized
terms used in this Contract
shall have the following
meanings: 

 

“Acquired
Future Product”
shall mean any Party
B medical device product other
than Current Products
that Party B proposes to
market in the PRC after
the date of this Contract
and which Party A acquires
the license to do so. 

 

“Acquirer”
means the Person acquiring
Control of the
equity interests
and/or
assets of either Party
through a Change-of-Control
Event.

 

“Additional
Capital” has
the meaning ascribed thereto in
Section 5.5. 

 

“Affiliate”
means, with regard
to a given Person,
a Person that Controls,
is Controlled by, or
is under
common Control
with, the given
Person where “Control”
means (i) ownership of more than fifty percent of the equity
interest or voting stock,
(ii) the power
to appoint or elect
a majority of the directors, or (iii)
the power to direct
the management and policies of a Person,
directly or indirectly,
whether through
the ownership
of voting securities,
by contract or otherwise.

 

“Application
Date”
has the meaning ascribed thereto
in Section
3.3(a). 

 

“Approval
Authority”
has the meaning ascribed
thereto
ill
Section 3.3(a).

 

“Approval
Certificate”
has the meaning ascribed thereto
in Section 3.4(a)

 

“Approval
Date”
means the date of issuance
of the Approval
Certificate. 

 

“Approval
Letter”
has the meaning
ascribed thereto
in Section 3.4(a). 

 

“Articles
of Association”
means the Articles
of Association of the Company executed by the Parties
on the date hereof,
as amended, modified
or supplemented
from time to time and
as approved by the Approval Authority.

 

“Auditor”
has the meaning ascribed thereto
in Section 12.5. 

 

“Board”
means the board of directors of the Company.

 

“Business”
has the meaning ascribed
thereto in Section 4.2.

 

“Business
Day” means
a day other than a Saturday,
Sunday or public holiday
on which banks in the PRC are open
for general
business. 

 

    	 	2	 

     

    

 

“Business
License”
has the meaning ascribed thereto
in Section 3.4.

 

“Business
Plan”
has the meaning ascribed
thereto in Section 10.6. 

 

“Chairman”
has the
meaning ascribed thereto in Section 9.2(b).

 

“CFDA
Registrations”
means the registrations with China
Food & Drug
Administration.

 

“CFO”
has the meaning ascribed
thereto in Section
10.1. 

 

“Change-of-Control
Event”
means with respect to an entity (i)
any consolidation or
merger involving such entity
pursuant to which
such entity’s shareholders
or other equity holders after such event own less
than fifty
percent (50%) of the voting
securities or other equity
interests of the surviving
entity
or (ii] the sale of all or substantially
all of the assets of such entity. 

 

“CJV
Law”
has the meaning
ascribed thereto in the
Preamble
hereto. 

 

“Company”
has the meaning ascribed
thereto in Section 3.1. 

 

“Confidential
Information”
has the meaning ascribed
thereto in Section 16.1(a). 

 

“Contract”
has the meaning ascribed thereto in the Preamble hereto.

 

“Current
Products”
shall mean the Products
listed in Schedule I attached hereto,
together with all
follow-on dosage forms,
strengths and indications of such products. 

 

“Director”
means a member of
the Board of the Company. 

 

“Dispute”
has the meaning ascribed
thereto in Section
19.1 (a).

 

“Establishment
Date”
has the
meaning ascribed thereto in Section 3.4.

 

“Financial
and Accounting
System”
has the meaning ascribed
thereto in
Section 12.2. 

 

“Financial
Budget”
has the meaning ascribed thereto in Section 12.4.

 

“Fiscal
Year”
means a period beginning on January 1 and ending December 31 of
each calendar year, provided that the first Fiscal Year of the Company shall commence
on the Establishment
Date and end
on the December
31 immediately following
such Date and the
final Fiscal Year
of the Company
shall end on the date of dissolution of the Company.

 

“Force
Majeure Event”
has the meaning ascribed thereto in Section
17.1(a).

 

“General Manager”
has the meaning ascribed
thereto in Section
10.1.

 

“Hindered
Party” has the meaning ascribed
thereto in
Section 17.1 (a).

 

“HKIAC”
means the Hong Kong
International Arbitration Center.

 

“Hong
Kong” means the Hong Kong
Special Administrative Region.

 

    	 	3	 

     

    

 

“Intellectual
Property” means any and all: (i) inventions
(whether patentable or
unpatentable and whether or not reduced to practice),
all improvements thereto,
and all patents,
patent applications
and patent disclosures,
together with
all re-issuances, continuations,
continuations
in pan, revisions, extensions
and re-examinations
thereof; (ii) registered
and unregistered trademarks,
service marks, trade dress,
logos, trade names, assumed
names, together with
all translations, adaptations,
derivations and combinations
thereof and including
all goodwill associated therewith,
and all applications, registrations
and renewals 111 connection
therewith; (iii) copyrightable works,
all copyrights and all applications,
registrations and renewals
in connection therewith, works of authorship;
(iv) rights in the nature of the
aforesaid items 111 any country, and rights to sue for
passing off (whether for past,
present or future infringement).

 

“Law”
means any published laws, regulations,
rules, provisions, circulars,
permits, authorizations,
interpretations, orders
or decisions of any government authorities
or legislative authorities or judgments,
awards, decisions
or interpretations
of any judicial authorities.

 

“License and Distribution Agreements”
have the meaning ascribed thereto in Section 5.2.

 

“Liquidation Committee”
has the meaning ascribed thereto in Section 15.6(a).

 

“BIONIK
IP” means all Intellectual
Property rights owned or otherwise
held by Party B and
its Affiliates relating
to those items set
forth on Schedule
III. 

 

“Party”
or “Parties” has the
meaning ascribed in
Section 2.1.

 

“Party
A” has the meaning
ascribed thereto
in Section 2.1(a).

 

“Party
B” has the meaning ascribed thereto in
Section 2.1(b).

 

“Person”
means any natural person,
company, corporation,
association, partnership,
organization, business,
firm, joint venture, trust, unincorporated organization
or any other entity or organization.

 

“PRC”
means the People’s Republic of China (solely
for the purpose of this Contract,
excluding the province of Taiwan,
Hong Kong and
the Macau Special Administrative Region).

 

“Products”
means the those products
as listed in the Schedule
I.

 

“Registration
Authority”
has the meaning
ascribed thereto in Section 3.4. 

 

“RMB”
means the lawful
currency of the
PRC.

 

“Services
Contract”
has the meaning
ascribed thereto
in Section 6.1 (d). 

 

“Terminating
Party” has
the meaning
ascribed thereto in Section
15.4. 

 

“Territory”
means the
PRC, Hong
Kong, and the Macau
Special Administrative
Region. 

 

“Three
Funds” has
the meaning ascribed
thereto in Section 13.1.

 

    	 	4	 

     

    

 

“Transition
Period”
has the
meaning ascribed
thereto
in Section 15.5. 

 

“Transfer”
has the
meaning
ascribed
thereto in
Section
5.6(a). 

 

“Transferring
Party”
has the
meaning ascribed thereto in Section 5.6(b).

 

“U.S.,
US or USA”
means The
United States
of America.

 

“US
GAAP” has
the meaning
ascribed
thereto in Section 12.2.

 

“Vice
Chairman”
has the
meaning ascribed
thereto in Section
9.2(b). 

 

Chapter
Two

Parties

 

		2.1	Parties.
On the date of the
signing of this
Contract,
the corporate information
of the Parties
to this Contract
is as follows:

 

		(a)	Ginger Capital Investment Holding, Ltd. (hereinafter referred
to as “Party A”), an enterprise registered in Hong Kong, in accordance with the Law of Hong Kong, having its
principal office at ________________________, P.R. China.

 

Legal representative:

 

Name:

Position:         Legal Representative

Nationality:    USA

 

		(b)	Bionik Laboratories Corp. (hereinafter referred to as “Party B”), a company incorporated in accordance with
the Law of the U.S., having its principal office at 483 Bay Street, Office NJ OS, Toronto, ON M5G 2C9, Canada.

 

Legal
representative:

 

Name:            
Peter Bloch

Position:         CEO

Nationality:    Canada

 

In
this Contract,
Party A and Party
B are collectively
referred to as “Parties”;
and a “Party”
means each or either
of the Parties, as
the context may require.

 

		2.2	Representations
and Warranties.

 

		(a)	Party
A and Party
B each represents and warrants
to the other
that: (i)
it is a duly organized
and validly existing
independent
legal Person
in its jurisdiction
of formation and has the full power and right
to conduct its business
in accordance
with its
business
licenses,
articles
of association
or similar
corporate organizational
documents; (ii)
it possesses
full power and
authority
to enter
into this Contract and to perform its
obligations hereunder;
(iii) its
representative
whose signature
is affixed hereto has been
fully
authorized
to sign this Contract
and to bind
the respective Party
thereby; and
(iv) upon the effective
date of this
Contract,
the provisions
of this Contract
should
constitute
its legal,
valid and binding obligations.

 

    	 	5	 

     

    

 

		(b)	Party
B represents
and warrants
that (i) it has
all rights
necessary
to enable
Party A to
sell the Products
except
such approvals
as are necessary
under the
laws of
the Territory,
(ii) the
rights
granted under this
Contract do not
conflict with those
contained
In any
instrument or other
agreement
to which
Party B is a party,
(iii) the
Products
have been
fully approved
for sale
in every
location in
which they
are currently
sold except
for the Territory,
(iv) no
claims
have been made against
Party B for infringement
of the Intellectual
Property of any
third party as a
result
of the sale
of the Products
and Parry
B is not
aware of any
valid
basis for
any such claim,
(v) it is
the sale
and exclusive
owner or licensee
of the BIONIK IP, (vi)
it has the
power and authority
to make the grant
of rights
to Party A as
provided
In Section 2.1 of the License
Agreement with
respect to
BIONIK IP and (vii)
except
as provided
in Schedule
IV no product
liability
claims have
been made by any
Person with respect
to any of
the Products.

 

		(c)	Party A and
Party B each
shall be responsible
to the other
for, and, hold
harmless and indemnify
the other
against, any
and all direct and
foreseeable losses,
damages,
expenses or
liabilities arising
from its breach
of any of the
foregoing
representations
and warranties.
Notwithstanding
anything to
the contrary
herein, the
indemnity
of either Party under
this Contract
does not apply
to indirect,
special,
incidental
or consequential
losses.

 

		2.3	Change of
Legal Representative.
Each Party
shall have
the right
to change
its legal representative
but shall promptly
notify the
other Party of such change
and the name,
position and nationality
of its
new legal representative.

 

Chapter
Three

Establishment
of the
Company

 

		3.1	Establishment.
In accordance with
the CJV Law
and other relevant Law of the
PRC, Party
A and Party 8 hereby agree to establish a Chinese-foreign
co-operative joint
venture enterprise
in Beijing, the
PRC (hereinafter
referred to as the “Company”).

 

		3.2	Name of the
Company. The
name of the Company in Chinese
is

 

The name
of the Company in English is “China Bionik
Medical Rehabilitation Technology
Ltd.” 

 

			The registered address
of the Company is Waterside
Pavilion
Garden No. 1 Building,
Suite 2003, Nankai
District,
Tianjin, PRC.

 

		3.3	Application.

 

		(a)	This Contract
and the
Articles of Association
shall be submitted
to the Ministry of Commerce
of the PRC or its authorized
local office (the
“Approval
Authority”)
for examination
and approval (the
date of such submission is hereinafter
referred to as the
“Application
Date”). 

 

    	 	6	 

     

    

 

		(b)	The Parties
agree that the submission of all
filings and other documents
relating to Sections 3.3 to 3.4 will
be made on behalf
of the Parties by
Party A, with
prompt and necessary cooperation
from Party
B, and
that the Company will be responsible
for all reasonable expenses incurred
by Party A in connection
therewith. 

 

		3.4	Approvals
and Business
Licenses.

 

		(a)	Promptly
after the date of
the issuance by the
Approval Authority of an approval letter (the “Approval
Letter”)
and a PRC Foreign Invested Enterprise
Approval
Certificate
(the “Approval
Certificate”)
approving the
establishment of the
Company, Party A shall
notify Party B by
delivering
or faxing to Party B a copy of the Approval
Letter and the Approval Certificate.

 

		(b)	After the issuance of the Approval
Certificate,
the Parties agree that
Party
A shall,
with prompt and necessary
cooperation by
Party B, apply
to the State Administration
for Industry
and Commerce or its
competent local office (the “Registration
Authority”)
to register the
Company as a foreign invested
limited liability
company
and to obtain the Company’s business
license (the “Business
License”)
on behalf of the
Parties. The
date of the issuance
of the Business License shall be
referred to as the “Establishment
Date”.

 

		3.5	Benefit
of Chinese Law.
The Company
shall be registered as a PRC legal Person.
All activities of
the Company
shall comply with and shall
be entitled to the benefits and protection of the relevant
Laws of the PRC.

 

		3.6	Limited Liability.
The Company shall
be a limited liability company.
The Company shall be
liable for all its debts and
obligations to the
extent of its own assets. Each
Party is only liable
to the
Company up to the
share
of the registered capital
of the Company that
such Party shall subscribe for as set
forth
hereunder or up to the
terms of cooperation that
such Party
shall
provide hereunder.
Creditors
of the Company (including
taxation
and other authorities)
shall have no
recourse
whatsoever
against either Party
for the debts of the
Company. The Company shall
indemnify
and hold the
Parties
harmless against any
and all losses,
damages, or
liabilities
suffered by the Parties
In respect of any third party
claims arising out
of the operation
of the Company.

 

Chapter
Four

Purpose,
Scope and Scale
of Business

 

		4.1	Purpose.
The purposes of the
Parties in establishing
the Company are:

 

		(a)	to strengthen
economic cooperation
and technical
exchange and
adopt advanced
and appropriate technology
and scientific management
methods through
distributing
and promoting
the Products
as listed in the Schedule
I, in order to achieve the objectives
of the Company; 

 

    	 	7	 

     

    

 

		(b)	to promote the continued
growth of the
Company so as to enable each
Party to obtain satisfactory
returns
on its
investment.

 

		4.2	Scope of Business.
The business
scope of the Company
is to sell, and distribute
medical and healthcare products,
provide
related technical
consulting, repair
and after-sale services, and
import and export
product and technology
(the “Business”).1

 

		4.3	Scale of Operations.
The anticipated scale
of operations of the
Company is set forth in the feasibility study report
relating
to the Company.
To the
extent permitted by Law,
the Company
may increase or
decrease its scale of operations in
accordance with changes in market
demand and
other factors.

 

Chapter
Five

Total
Investment,
Registered
Capital
and Terms
of Cooperation

 

		5.1	Registered
Capital. The registered
capital of the Company shall
be Ten Million
RMB or One
Million Four Hundred Fifty Thousand
United States
Dollars (US$1.45
million), all
of which will
be contributed
by Party A in cash
in installments
on the dates and in
the amounts
set forth on Schedule
II.

 

		5.2	Terms of Cooperation.
As a term of its
cooperation under this Contract,
Party
B shall grant the
Company an exclusive,
nontransferable,
revocable and
royalty-free license
in the
Territory to market,
sell and distribute
the Products (as designated
in Schedule
I) in accordance
with the provisions set forth under
Chapter Seven by executing
and delivering
a License Agreement and a Distribution
Agreement with the Company
in the form attached
as Exhibit
A and Exhibit
B, respectively
hereto (collectively,
the “License
and Distribution
Agreements”).

 

		5.3	Conditions Precedent
to Capital Contributions.

 

		(a)	Notwithstanding
anything
to the
contrary set
forth in Section
5.1, Party
A shall
not be obligated
to make any contribution
to the registered
capital of
the Company
unless each
of the following
conditions
has been satisfied
and remains true:

 

		(l)	The Business
License issued by the
Registration
Authority
to the
Company is in the
form and substance in
compliance
with the provisions
hereof;

 

		(2)	The
Company and Party
B shall have
executed
and delivered
the License
and Distribution
Agreements,
and such
agreements
have been duly
registered with
the Approval Authority
in charge
of technology importation
and shall
remain effective by the
time of
such contribution;

 

		(3)	Party
B is not in
breach of
this Contract or the
License and
Distribution
Agreements.

 

 

1 Drafting note: Subject to
approval by the Approval Authority.

 

    	 	8	 

     

    

 

		5.4	Investment
Certificates. After Party
A has made a required
contribution
to the Company’s
registered capital
pursuant
to Section 5.1,
the Company shall,
at its own expense,
retain an independent
accounting
firm registered in
the PRC
to verify
such capital
contribution, and,
on the basis of a verification
report issued
by such
accounting
firm, issue
to Party A an investment
certificate
evidencing the
total amount
of the capital contributions
Patty
A has made
as of the date of the
certificate.

 

		5.5	Additional
Financing. In addition
to the registered
capital of the Company,
and without limiting
the provisions
of Section 15.6(h) of this Contract,
the Company’s
future additional
financing
may be obtained from Party
A and/or
from other sources
in the PRC or outside
the PRC upon such
terms and conditions
as the Board
shall deem appropriate, subject to
the next succeeding sentence.
Unless the Parties agree that an external
equity
capital raise is warranted,
Party A agrees
to periodically
contribute
additional capital
(“Additional
Capital”)
to the Company
as Party A deems
necessary
to cover the costs and expenses of the Company’s operation,
including,
sales and marketing
costs, and
other overhead
operating
costs of the Company,
subject
to the Parties’ joint
approval of the budget for the
operating
costs submitted
by the
Company and provided
always that Party
B’s equity
interests
in the Company
shall not
be changed in
any way whatsoever without its
explicit consent
in writing. After
Party A has helped obtain
PRC Food and Drug
Administration
(“CFDA”)
approval for Party
B’s Current Products (in this case,
InMotion Arm,
InMotion
Hand
and InMotion
Wrist), and
those products
are ready for sale
in Territory,
if additional capital
is needed
for the Company’s future
growth, an external
equity capital
raise may be necessary.

 

		5.6	Transfers
of Ownership Interest.

 

		(a)	During the
term of this Contract,
both Party
may not
sell, assign,
pledge, give or otherwise
dispose of (each
a “Transfer”)
any part
of its interest in
the Company
without the prior written
consent of the other
Party
if the other Party’s
equity position gets diluted (which consent shall
not be unreasonably delayed or withheld)
and the
approval of the Approval
Authority.

 

		(b)	Without
prejudice
to (a) above,
if either Party
wishes to Transfer
all of its
interest
in the Company
to a third
party, it
must still receive the
prior written
consent
of the other
Party. The Party
wishing to
Transfer all of
its interest in
the Company
(the “Transferring
Party”) shall
give written
notice to the
other Party
stating its
wish to make such
Transfer, the
interest
it wishes
to transfer,
the price of such
interest
and the identity of
the proposed
transferee, The
other Party
shall have
the right
of first
refusal to purchase
such interest
on terms no Jess
favorable
than those offered
to or by
such intended transferee.
Within
thirty (30) days after
notice to such effect
from the Transferring
Party, the
other
Party
shall deliver
its response
stating whether it
chooses to
exercise its right to purchase
the Transferring
Party’s
interest
in the Company.
If the other Party
fails to respond to
such notice
of intent to
Transfer within
the aforementioned
thirty
(30)-day period,
it shall be
deemed to have
given its prior
written consent
to the
Transferring
Party’s Transfer
of its interest
to the Intended
transferee on the terms set forth
111 the
above-mentioned notice.
Notwithstanding
the above provisions,
neither
Party shalt Transfer
any of its
ownership
interest in the Company
to a third
party which
conducts business
in competition
with the business of the Company
or any Affiliate of
the Company. Further
neither Party shall Transfer
any equity interest
in the Company without
the prior written
consent of the
other Party,
such
consent not to be
unreasonably
withheld.

 

    	 	9	 

     

    

 

		(c)	Each Party agrees to
assist in applying
to the Approval Authority with
regard to the
approval of any
Transfer
pursuant to
paragraph (b) above.

 

		(d)	Any transferee of an interest
in the
Company shall assume
the corresponding
obligations and responsibilities
of the Transferring Party as stipulated
in this Contract.

 

		(e)	Upon any Transfer
by a Party of all
or any part of its
interest in the Company
pursuant to this Section 5.6,
the Transferring
Party shall tum in to the Company for
cancellation its
investment certificate, if any,
issued by the
Company, and the
Company
shall issue in
its place
a new investment certificate or certificates,
as appropriate.

 

Chapter
Six

Responsibilities
of the Parties

 

		6.1	Party A’s Responsibilities.
In addition
to its obligations
stated
in other provisions of this Contract, Party
A shall be responsible
for the
following
matters:

 

		(a)	handle
matters to
establish the Company,
including,
submission of all filings
and other documents
relating Sections
3.3 to 3.4 hereunder;

 

		(b)	direct the
Company and attending
to its day-to-day
operations, with
oversight
from the Board, in
obtaining, sourcing,
purchasing or leasing
or otherwise acquiring from
either domestic or
foreign
vendors adequate supplies
of all equipment, facilities, articles
for office
use, services or other items
necessary or desirable
for the Company’s operation;

 

		(c)	recruitment of personnel for the Company;

 

		(d)	provide the sales and marketing services to the Company
and, within a reasonable period of time after the Establishment Date, execute a sales service contract with the Company (the “Services
Contract”), with the terms to be mutually determined;

 

		(e)	assist the Company in obtaining RMB and foreign exchange
loans from financial institutions in the PRC;

 

		(f)	assist
the Company in
applying for and obtaining
all possible
tax reductions
and exemptions and all other
relevant investment
incentives, privileges
and preferences
available
to the Company
under the Laws
of the PRC;

 

		(g)	assist
the Company
in marketing, selling
and distributing
its Products in the PRC;

 

    	 	10	 

     

    

 

		(h)	assist
the Company in its
relations with government
authorities and
PRC domestic
companies;

 

		(i)	periodically contribute Additional Capital to the Company
to cover the costs and expenses of the Company’s operation, including, sales and marketing costs, and other overhead operating
costs of the Company;

 

		(j)	assist
the Company in obtaining
loans
or investments;

 

		(k)	assist
the Company
in applying for and obtaining
CFDA approval
and all other requisite
approvals for
the commercial
marketing,
sale and
distribution
of Products in
the Territory
and maintaining
the same;

 

		(l)	attending
to all relevant
work in
connection with
the seeking
and obtaining
of the
said approvals,
including
without
limitation,
coordinating
with hospitals,
clinics and
medical institutions
to conduct clinical
trials and collate
trial data;
and

 

		(m)	handle such
other matters
as are
entrusted to
it by the Company.

 

		6.2	Party B’s
Responsibilities.In
addition to its
obligations
stated in other
provisions
of this
Contract,
Party B shall
be responsible
for the following
matters:

 

		(a)	assist
Party A in
handling matters
to establish
the Company,
including,
assist in the
submission
of all filings
and other documents
relating Sections 3.3
to 3.4 hereunder;

 

		(b)	provide
the relevant
Products
to the Company
pursuant to the
License and Distribution
Agreements as stated
under Section 5.2;

 

		(c)	assist
the Company in arranging
foreign visas
and accommodations
for personnel and
directors
of the Company travelling
abroad on Company
business;

 

		(d)	assist the Company in obtaining loans or investments;

 

		(e)	provide
all necessary technical
support,
documentation,
and other
assistance
and, as promptly
as reasonably practical,
provide
cooperation
required to receive
the regulatory
approvals
(including
but not limited
to CFDA Registrations)
of all relevant Products;
and

 

		(f)	handle
such other matters
as are entrusted
to it by the Company.

 

Chapter
Seven

License

 

		7.1	Execution
of the
Distribution Agreement.
On or before the Establishment
Date, Party B,
as the licensor, and
the Company,
as the licensee, shall
enter
into the Distribution
Agreement under
which Party B shall
grant to the Company
an exclusive,
nontransferable,
revocable
and royalty-free license
to market, sell and
distribute the Products
within the
Territory.

 

    	 	11	 

     

    

 

		7.2	Registration
of the License Agreement.
Parties will
cooperate to carry
out formalities to register
the License Agreement
with the Approval
Authority in charge
of technology importation within
sixty (60) days after the Company enters
into the
License Agreement
with Party
B if required
by applicable
Law.

 

Chapter
Eight 

Purchasing,
Sales and Regulatory
Compliance

 

		8.1	Purchasing Policy.

 

(a)
The Company shall
purchase
required the Products from Parry
B pursuant to the Distribution
Agreement in Exhibit
B hereto on or before the
Establishment
Date. The
Company shall have right of first negotiation
and right of
first refusal with respect to any new products Party
B plans to introduce
into the Territory
from time
to time during the term of the Contract.
If and when the Parties
decide to sell or
distribute a new
product
within the
Territory,
Schedule
I will
be modified
accordingly
and such new product will
be deemed a Product
under this Contract.
All products sold
under the Distribution
Agreement to
the Company
under any purchase order
shall be priced approximately
forty per cent (40%)
off the list
price of the
Distribution Products
in other territories.
After
CFDA approval
or six month after
the establishment
of the JV, if
the government-approved
selling
pnce is below
or above the Company’s
expected selling
price, the
Company may renegotiate the purchase
price from Party
B. 

 

		8.2	Regulatory
Compliance.

 

		(a)	The
Company is primarily
responsible for all
regulatory approvals
relating
to the
Company’s operation
(including
but not
limited to CFDA
Registrations
of all
Products) and all
costs associated
with gaining these
approvals,
except that
Party B shall cooperate
and lend any
assistance necessary in order
for Company
to accomplish
this responsibility.

 

		(b)	A third party
consultant
acceptable
to both Parties
shall be appointed
for regulatory
compliance
related
to the Products
manufactured
by the Company.

 

		(c)	The Company
shall at all times
comply with all applicable
U.S. anti-corruption
Laws including, without
limitation, the Foreign Corrupt
Practices
Act, as if it were
a U.S. person,
all applicable PRC
anti-corruption
Laws, and
all other
applicable
Law in the PRe.

 

Chapter Nine Board
of

Directors 

 

		9.1	Establishment.
The Board of the Company shall
be established on the Establishment Date. The
Board of Directors shall
be the highest
authority
of the Company, and
shall decide on all matters concerning
the Company
unless the Board of Directors
otherwise authorizes or delegates
the relevant decision-making
power to a member of the
Company’s management team.
The Board shall
set the annual
forecasts of profits,
capital expenditures
or cash flows of the Company mutually
agreeable to both
Parties.

 

		9.2	Size; Appointments.

 

			(a) The Board of
Directors
shall consist
of five (5) Directors,
of whom Party A shall
appoint
three (3) Directors
and Party
B shall appoint two (2) Directors.
Each Director shall
serve a term
of three (3) years, renewable
upon reappointment.
Each Party shall have
the power to remove, reappoint
and/or
designate any successors to any director
which it is entitled
to appoint to the Board hereunder
by written
notice to the
Company and the other Party. 

 

    	 	12	 

     

    

 

			(b) The Chairman
of the Board
(the “Chairman”)
shall be appointed
alternately
by Party
A and Party
B from among the Directors
serving on the Board. If one Party appoints the Chairman,
the other
Party shall
be entitled to
appoint the Vice Chairman of the
Board (the “Vice
Chairman”)
from among the Directors
serving on the Board. For
the first three
(3)-year term
of the Board commencing on Establishment Date,
Party A shall designate
one of the Directors
appointed by Party
A to be the
Chairman, and
Party B shall
designate
one of the Directors
appointed by Party B to be the
Vice Chairman. Thereafter, in each
subsequent three
(3)-year term of the Board,
the power to designate
the Chairman
and the Vice Chairman
shall, effective as
of the relevant anniversary of
the Establishment Date,
alternate between Party
A and Party B.

 

		9.3	Duties of Chairman.
The Chatman
shall be the legal
representative of the
Company and shall exercise his authority
within the limits prescribed by the
Board. The
Vice Chairman shall
discharge the responsibilities
of the Chairman
when the Chairman for any reason is
unable to perform
his or her duties. lf the Vice
Chairman
is also
unable
to perform such duties,
the Board
shall authorize
another Director to perform
such duties.

 

		9.4	Quorum.
The quorum for
all Board meetings
shall be not less
than three (3) Directors
present throughout the
meeting, one of whom has
to be a Director
appointed by Party
B. However, if proper notice
to convene
a board meeting
has been given and if any of the Directors fail to attend
the meeting,
and therefore
a quorum is not present in accordance with the preceding
sentence, such Board
meeting shall
be adjourned
and reconvened at the
same location and
time on the seventh
(7th) Business Day
thereafter,
or at such other time as IS
designated by
a majority of the Directors present
immediately prior to
such adjournment,
and noticed to all Directors.
No resolutions by the Board
may be approved at any Board meeting unless notice of
such meeting has been given to
all Directors in accordance with the provisions
of Section 9.5 or such notice has been waived
by each Director
that is not present
at such meeting (it being agreed
and understood that
a Director’s presence at a meeting shall
be automatically
deemed a waiver of any such notice requirements
by such Director unless such presence is for
the sale purpose
of objecting to the holding
of the meeting and announced as such
by such Director at the beginning of the
meeting).

 

		9.5	Board Meeting. Board
meeting shall be called and presided over by the Chairman
or a Director authorized
by the Chairman.
Regular
meetings of the Board shall
be convened at least twice
each year and held alternatively
in the PRC and the USA.
Save as provided in Section 9.11 below
with respect to the Director’s
travel expenses, Party A shall bear all
reasonable costs incurred
for organizing the Board meeting
in the PRC and Party B shall
bear all reasonable
costs Incurred
for organizing the
Board meeting in the USA. Special
meetings of the
Board shall be convened by the
Chairman, Vice Chairman
or a Director
authorized by the Chairman
at any time on a motion of any Director. Each Director
(including the Chairman) shall have
one vote In Board meetings.
In the event
that any deadlock occurs in the Board meeting, both Parties
shall use their
respective reasonable
efforts to resolve such deadlock in accordance
with the dispute resolution
procedures set forth
in Chapter Nineteen of this
Contract Not less than fourteen (14) days’ notice
(or such shorter
period of notice in
respect of any particular
meeting as may be
agreed by all the Directors) of each meeting
of the Board
specifying the date,
place and time, of the meeting
and the
business
to be transacted
thereat shall be given
to all Directors.

 

    	 	13	 

     

    

 

		9.6	Proxies.
lf a Director
is unable to
attend a meeting of the Board, he may appoint
a proxy in writing
to be present and vote on his behalf A proxy may represent
one or more Directors.
If a Director neither
attends the meeting
nor appoints a proxy, he will be considered
to have abstained
from voting. A proxy shall
have the same rights and powers
as the Director who
appointed him.
A proxy’s presence at a Board meeting
shall be deemed to be the
presence at such meeting of the Director
who appointed
him.

 

		9.7	Majority
Vote Standard. Subject
to Section 9.8, resolutions
of any Board meeting shall be
passed with the approval of more than half of the Directors
present at the meeting.

 

		9.8	Actions
Requiring
Unanimous Consent.
Resolutions
involving the following
matters
may only
be adopted
at a duly constituted
and convened
meeting of the
Board upon
the unanimous
affirmative
vote of each Director
in attendance
at the
meeting,
whether in person
or by proxy:

 

		(a)	amendment
to this Contract
and the Articles
of Association of the Company;

 

		(b)	termination
or dissolution
of the Company;

 

		(c)	increase or reduction
of the Company’s registered
capital;

 

		(d)	mortgage
of the assets of the
Company;

 

		(e)	annual
sales forecast,
Financial
Budget,
Business Plan
and staffing
of the
Company;

 

		(f)	change in equity interests of the Parties,

 

		(g)	selling
price of Products in
the Territory;

 

		(h)	appointment of any sub-distributors
or sub-licensees;

 

		(i)	appoint
of the Auditor; and

 

		(j)	merger,
division
or change in the
form of the organization
of the Company.

 

		9.9	Written Consent.
A resolution
circulated
to all the Directors for the
time being and signed
by such number of the
Directors as required
to approve such resolution under
Sections 9.7
or 9.8 as appropriate,
shall
be valid
and effectual as if
it had been a
resolution passed at a meeting of the
Board (i)
duly convened and
held and (ii)
attended by all the
Directors
and may consist of several
documents
in the like
form, each signed
by one or more persons.
For the purpose
of this Section
9.9, a “resolution
circulated”
means a notice in
English
and Chinese to each Party
setting forth a description
of the matter being
submitted
for Board approval and
copies of all reports,
documents and other materials
relevant for adequate and
informed
consideration
of the matter.
For the
purpose of this
Section 9.9,
“in
writing”
and “signed”
include
approval by cable,
e-mail, fax,
telegram.

 

		9.10	Conference
Telephones. Any
Director
may participate at
a meeting of the
Board by
conference telephone
or by means of similar
communication
equipment
whereby all persons participating
in the meeting
are able to
hear each other, in
which event such
Director
shall be deemed to
be present
at the meeting. A Director
participating in a
meeting
in the manner
aforesaid shall also
be taken
into account in ascertaining
the presence of a quorum
at the meeting.

 

    	 	14	 

     

    

 

		9.11	Remuneration. Each Director shall serve III such
capacity without any remuneration, but all reasonable costs incurred by the Directors in the performance of their duties as members
of the Board (such as transportation and accommodation costs) shall be borne or reimbursed by the Company, except that the Company
shall bear and pay its Directors’ out-of-pocket expenses incurred in attending the Board meetings including the related travel
expenses.

 

		9.12	Indemnification.
To the greatest
extent permitted
by applicable
Law, the Parties
shall cause the Company to indemnity
each Director
against all claims
and liabilities
incurred
by such Director
in his/her capacity
as a Director
of the Company; provided
that any acts or
omissions of such
Director which give rise
to such claims and liabilities
do not constitute intentional
misconduct, gross negligence or
violations of criminal Law.

 

Chapter
Ten

Business
Management

 

		10.1	Management
Personnel. The
Company shall establish an operations management
structure,
to be responsible
for the Company’s day-to-day
work of operations management. The
management
of the Company shall
be undertaken by the following officers, subject to
the supervision
and direction
of the Board and
the other limitations set out herein:

 

		(a)	a general manager
(the “General
Manager”),
who will be responsible
for the
overall command and direction
of the Company and the Business;

 

		(b)	a chief financial
officer (the “CFO”),
who will responsible for the
financial management of the Company, including
the preparation
and administration of budgets, cash
management, accounting
and tax matters, together with all
administration and compliance
functions, including
the retention of legal counsel,
and such other matters
as the Board determines; and

 

		(c)	such
other officers as
the Parties
shall jointly
agree upon.

 

Party
A shall nominate
the General Manager end Party B shall
approve the nomination
within three (3) months of Establishment
Date. Parry A shall
similarly be entitled
to recommend the
removal of
the General Manager
but such removal shall
be subject
to approval
by Party B.
The Parties shall
discuss and
approve the recruitment
and appointment
of the CFO at a subsequent
date depending
on the needs of the Company.
In the absence
of the CPO, the
latter’s duties shall
be borne
by the General Manager.

 

Any
vacancy of the abovementioned
positions caused by
the resignation, death
or removal thereof
shall be filled
only by the joint concurrence
of the Parties
as evidenced by a formal
unanimous approval
by the Board.

 

Other
management personnel
shall be
selected by the General
Manager through open recruitment
subject to the annual sales forecast, Financial
Budget and staffing
as approved by
the Parties, Management
personnel shall be
employed
pursuant
to such terms as shall
be set out in an employment
contract entered into between each employee Company.
The General Manager
may in his or her
discretion dismiss,
at any time,
any personnel
other than the CFO.

 

		10.2	Responsibilities.

 

		(a)	The
responsibilities
of the General Manager
shall be to implement the vancus
resolutions
of the Board
and to organize and lead the day-to-day
operations
management
work of the Company, as more
fully provided
in the
Articles of Association.

 

    	 	15	 

     

    

 

		(b)	The responsibilities
of the CFO shall be
to implement and
maintain
financial controls and procedures
to meet the reporting,
taxation,
financial and auditing
requirements
of the Company, as outlined
in Chapter Twelve of this Contract.

 

		10.3	Removal
or Replacement.

 

		(a)	In case of graft or
serious dereliction
of duty, or for any other reason, the General
Manager, or the
CFO may be removed and
replaced
at any time upon resolution
of the Board.

 

		(b)	If any officer is
discharged or departs,
a successor shall
be nominated and appointed
in the same manner as the original appointee.

 

		10.4	Compensation and Benefits.
The salaries
and welfare and other benefits of both PRC
and foreign
management personnel
of the Company shall be determined
in accordance with the following
principles:

 

		(a)	Compensation
including
salaries,
appropriate
living allowances,
and similar benefits
for any member of the senior
management staff nominated by either
of the Parties will be
set by the Board based
on established standards
of such member’s
home country and established
standards
of the local business environment.

 

		(b)	Other personnel
shall receive salaries
and welfare and other
benefits from the Company commensurate
with their expertise and
experience in accordance
with the established local standards and applicable Laws
of the PRC.

 

		10.5	Operational Rules. The Parties shall cause the Board to
adopt and require the Company to adhere to a set of policies and procedures in all major operational areas, including, without
limitation, sourcing, marketing, sales, human resources, environmental protection, health and safety, and matters relating to
proper business practices, compliance with all applicable Law.

 

		10.6	Business
Plan. The Company shall
operate 111 accordance
with an annual sales forecast (including
the overall sales volume plan) and business plan (the
“Business
Plan”) prepared
by the
General Manager and
unanimously
approved by the Board. The General Manager shall
submit the initial
Business Plan
to the Board for its
consideration as soon as practicable
following the
Establishment
Date, and thereafter
shall submit an annual
revision of the
Business Plan
no later than the December 1
that precedes the calendar
year for which the
Business
Plan has been prepared.
The Board shall have the power and authority
to approve the Business
Plan as submitted
or with any modifications
or/and recommendations
as it may deem appropriate.

 

Chapter
Eleven
Labor

Management

 

		11.1	Employees. Employees
of the Company (other than the General Manager, and CFO
nominated and appointed
by the Parties)
shall be employed
through open recruitment
or pursuant to a Services
Contract based on qualification,
experience and competency.
Employment plans and contracts covering the recruitment, qualifications,
testing, employment, dismissal,
resignation, wages,
labor insurance,
welfare benefits, bonuses,
labor
disciplines,
retirement
insurance and other matters concerning the
employees of the Company shall
be handled in full
compliance with relevant
Law of the PRC. All
employees of the Company (including
management personnel) shall be required, at the
time they are hired,
to agree in writing to comply
with the operational
rules of the Company
described in Section
10.5.

 

    	 	16	 

     

    

 

Chapter
Twelve

Taxation,
Finance, Insurance
and Inspection

 

		12.1	Taxation.
The Company and the Parties
shall pay taxes
and customs duties in accordance with the
Law of the PRC. The Parties
shall seek to confirm the benefits
for the
Company, the Parties
and all of their personnel of all of
the applicable tax exemptions, reductions,
privileges and
preferences which are now or in the future become obtainable
under the Law of the PRC and under any applicable treaties
or international agreements to
which the PRC may now
be or may hereafter
become a party. 

 

		12.2	Financial and Accounting System. The
CFO shall formulate the Company’s internal accounting control
system and financial
accounting and reporting
system (the “Financial
and Accounting
System”)
and submit it to the Board [or approval.
Such Financial and Accounting System shall be in accordance with
the Law of the PRC,
including
the PRC Enterprise Accounting System,
the particular
circumstances of the Company and, to the extent permitted
by the Law of the PRC,
those methods and principles
that are consistent
with the generally accepted accounting principles
of the U.S. (“US
GAAP”). Changes
in accounting procedures
and practices may be implemented only
upon approval by
the Board.

 

		12.3	Currency. The
Company shall use the RMB as its accounting
unit. The conversion of foreign currencies into
RMB for accounting purposes
shall be calculated
according
to the mean RMB-U.S.
dollar exchange rate announced
by the China Foreign Exchange Trading System (__________)
(as published on the official
website or the People’s Bank of China) for the
relevant currency on the date of the relevant transaction,
unless the Parties agree on and applicable
Law permits the use of another exchange rate
for such conversions.

 

		12.4	Financial
Budget. As soon as practicable
after the Establishment
Date, and thereafter prior to the
beginning of each Fiscal Year, the CFO shall, in a manner
consistent with
the form and
timing requirements
of the Parties,
prepare and
submit to the
Board
an annual plan and
budget for the ensuing
Fiscal Year
(the “Financial
Budget”), including
at a minimum a financial
budget,
a plan for
capital investments
and dispositions
and borrowings,
forecasts of
price levels,
sales, expenses,
earnings and
distributable
profits, and such
other items as are required [or
production and
business
operations
of the Company.

 

		12.5	Auditing.
The Company
shall select
and appoint as its auditor
(the “Auditor”)
an accounting firm registered
in the PRC
acceptable to the Board that shall
be (i) a foreign invested
accounting firm
with good
international
reputation
and (ii) capable
of performing accounting work
meeting
both PRC
domestic accounting standards
and US GAAP.

 

		12.6	Bank Accounts. The Company may open RMB bank accounts and foreign
currency bank accounts
in the PRC.
The Company
may also open foreign currency bank accounts outside of
the PRC in
accordance with relevant
PRC foreign exchange Laws.

 

		12.7	Insurance.
The Company shall, at its
own expense,
at all times purchase
and maintain
from reputable
insurance companies
within the
PRC full and adequate insurance
of the Company against product liability,
loss or damage by fire and such other risks
as may be decided by the Board or are customarily
insured against.

 

		12.8	Inspection.
The Company shall
ensure that each Party
and its authorized
personnel (including,
but not limited to,
its internal
auditors)
shall be permitted,
at such Party’s expense,
to examine any
property owned or used by
the Company, the
books of account and records of the Company
and discuss the business,
finances and accounts
of the Company with
the Directors, senior
officers, employees,
Auditor and
legal counsel thereof,
all at such
reasonable times as
such Party
may request.

 

    	 	17	 

     

    

 

		12.9	Audit of Party A.
Within two years following
the Establishment
Date, with
at least thirty (30) days prior
written notice,
Party B shall
have right, at
its expense, to authorize a representative who shall be
SUbject to reasonable
confidentiality obligations to
Party
A, to audit Party A’s financial statements during
the normal business hours.

 

Chapter
Thirteen

Profit
Distribution

 

		13.1	Three Funds. The
Company shall
make allocations of after tax profits to
a reserve fund, an
enterprise expansion fund and
a bonus and welfare
fund for employees of the Company (collectively,
the “Three
Funds”),
as determined by the
Board in accordance
with the business
circumstances
of the Company and
applicable PRC
Law. Any amounts
to be contributed
to such the Three
Funds shall be set aside prior
to distribution
of after-tax profit.

 

		13.2	Accumulated
Losses and Profits.
The Company may not
distribute profits
until the losses of the previous Fiscal Years have been
made up. Undistributed
profits from previous Fiscal Years
may be distributed
together with the profits of the current
Fiscal Year as determined
by the Board.

 

		13.3	Profit Distribution.
The profit distribution plan and the amount of profits to be distributed
to each Party
shall be determined
by the Board within
the first four
(4) months following
the close
of each Fiscal Year after launching the
first Product of the Company. The Company
will adopt
a profit
distribution plan
such that all after-tax profits
(remaining
after contributions
are made to
the Three Funds in accordance with Section 13.1 above)
are distributed
in accordance with the Parties’
respective
interests in the Company,
i.e.
seventy-five
percent (75%) to Party A and twenty
-five percent (25%)
to Party
B.

 

Chapter
Fourteen Term

 

		14.1	Term. This Contract shall take effect from the Approval
Date. The term of this Contract and the Company shall be ten (10) years from the Establishment Date unless otherwise provided
under this Contract or earlier termination by the Parties pursuant to Sections 15.2 and 15.3.

 

		14.2	Extension. Subject to the Law of the PRC and the
approval by the Approval Authority, the term of this Contract and the Company specified in Section 14.1 above shall be extended
automatically for further five (5) years unless written notice of termination is given by either Party before one hundred and
eighty (180) days prior to the expiration of such term. If the Contract is extended, an application for extension shall be filed
with the Approval Authority not later than one hundred and eighty (180) days prior to the expiration of such term.

 

Chapter
Fifteen

Termination
and Liquidation

 

		15.1	Termination upon Expiration of Term. Except for
extension of the term set forth under Section 14.2, this Contract shall automatically terminate upon expiration of the term specified
under Section 14.1.

 

		15.2	Termination by Mutual Agreement. The Parties may
mutually agree in writing to terminate this Contract at any time.

 

    	 	18	 

     

    

 

		15.3	Early Termination.
Either Party (except as otherwise provided below in this Section 15.3) shall have the right to terminate this Contract in accordance
with the provisions of
Section 15.4 for so
long as any
of the following events
occurs and
continues:

 

		(a)	Either
Party or its Affiliates
breaches
a material provision
of this Contract,
and such breach,
if capable of being
cured,
is not cured
within sixty (60)
days after
the date of written
notification of such
breach, in which
event only
the non-breaching
Party has the
right to terminate;

 

		(b)	Either Party
becomes
bankrupt,
or is the subject
of proceedings
for liquidation or
dissolution,
or ceases
to canyon business
or becomes unable
to pay its debts as they come due,
in which
event the other Party has
the right
to terminate;

 

		(c)	Either Party
becomes
entitled
to terminate this Contract
under Section 17.1(c);

 

		(d)	The
expiration
or termination
of either
the License and
Distribution
Agreement.;
and

 

		(e)	Either Party
engages in any act of fraud
or commits any crime which
has resulted in
a material effect
on such Party’s
capacity to perform
this Contract.

 

		15.4	Process. In the event
a Party desires to terminate
this Contract under Section 15.3
(the “Terminating
Party”),
the following process
shall apply:

 

		(a)	The Terminating
Party
shall provide
written notice to the other Party
indicating its desire to terminate this Contract
and detailing the effected sub-section in Section
15.3;

 

		(b)	The Parties (acting through
their respective most senior
officers) attempt to remove
or cure the reason during a sixty (60)-day period
following the notice; and

 

		(c)	If unresolved
by the end of the sixty
(60)-day period, this
Contract shall be terminated.

 

		15.5	Change-of-Control
Event of a Party.
Upon the occurrence
of a Change-of-Control
Event of a Patty,
there is no change to the
status of the Company.
However, the
Party undergoing the Change-of-Control
Event or its
Acquirer shall have the right,
but not the
obligation, exercisable by written notice to the
other Patty, to terminate
this Contract in accordance with the
following:

 

		(a)	Before
the Contract can be
terminated, it shall
first automatically
be extended for two (2) additional
years from the dale when the other Puny receives the
written termination notice, or four
(4) years if the written termination
notice
is received prior to the end of the
third (3) anniversary
of this Contract (“Transition
Period”);

 

		(b)	If the Change-of-Control
Event occurs
to Party B and
the Acquirer of Party B intends to terminate
this Contract,
Party B shall make
the following payments to Party
A:

 

		(1)	Upon the date Party A receives the termination notice,
an upfront termination fee of three (3) times of the capital invested by Party A into the Company, including Registered Capital
and Additional Capital invested by Party A to cover the operation cost of the Company up to the date of termination; and

 

    	 	19	 

     

    

 

		(2)	At the end of the Transition Period, four times of the
revenue of the trailing
twelve (12) months
of the Company,
less the
upfront
termination
fee stipulated above, plus
remaining unsold inventory
still viable
for sale.

 

		(c)	If the
Change-of-Control
Event occurs
to Party A and the
Acquirer of Party
A intends to terminate
this Agreement, all
sale and
distribution
rights of the Company
shall returnto
Party
B immediately.
Party A
shall perform
the following
obligations:

 

		(1)	Cause
the Company to continue
to supply the Products
to Party B until
the CFDA
Registrations
can be transferred
within
the Transition
Period.

 

		(2)	Cause the Company
to transfer its
Business to
Party B,
including customer lists,
CFDA Registrations
and the Company’s
Intellectual
Property,
to the extent permitted
by the Law of the
PRC. Party
A would be responsible for
the staff costs during the transfer
and Party B would be responsible
for all
out of pocket costs of such transfer.

 

		15.6	Liquidation.

 

		(a)	At the
expiration
of the term set forth under Section
14.1 (or any
extension thereof)
without renewal,
or in the
event that
this Contract is terminated
pursuant to Sections
15.1, 15.2,
15.3 15.4,
or 15.5, the Board shall,
within ten
(10) days, appoint a liquidation
committee
(the “Liquidation
Committee”)
which shall have the power to represent the
Company in all legal matters. The Liquidation
Committee shall value and
liquidate the Company’s assets in accordance with
the applicable
Law of the
PRC and the principles
set out herein.

 

		(b)	The
Liquidation
Committee shall consist
of four (4) members,
of which two (2) members
shall be
appointed
by Party
A, and two
(2) members
shall be appointed
by Party B. Decisions
of the Liquidation
Committee shall
be made by
majority
vote. Members
of the Liquidation
Committee may, but
need not be, directors
or senior employees of the Company.
Any Party may appoint
professional
advisors to
the members of the
Liquidation
Committee and the Liquidation
Committee may
also appoint professional
advisors to assist it.

 

		(c)	The
Liquidation Committee
shall conduct
a thorough examination
of the Company’s assets and
liabilities,
on the basis of which it
shall, in
accordance
with the relevant provisions
of this Contract,
develop a liquidation
plan which, if approved by the
Board,
shall be executed under
the Liquidation
Committee’s
supervision.
The liquidation
plan shall
provide that the
Parties will have a priority
right, assuming equal
price and other
terms, over third
parties to purchase any of the Company’s
machinery,
equipment and other facilities.

 

		(d)	In developing and executing the liquidation plan, the Liquidation
Committee shall use every effort to obtain the highest possible price for the Company’s assets.

 

    	 	20	 

     

    

 

		(e)	The technology
and proprietary
information which
is licensed
by Party B to the Company shall
not be
deemed an asset of the Company for purposes
of liquidation proceedings,
and may not
be transferred.

 

		(f)	The
liquidation expenses,
including
remuneration
of members
and advisors
to the
Liquidation
Committee,
shall be paid out
of the
Company’s
assets in priority
to the
claims
of other creditors.

 

		(g)	After
the liquidation
of the
Company’s
assets and the
settlement of
all of
its outstanding
debts,
the remaining
assets of the Company
shall be paid
to the Parties
in proportion
to their then
respective
equity ownership
of the Company.
The Parties agree
that following
the Establishment
Date the ownership
percentages of the
equity
interests
in the Company held
by Party
A and Party B shall
be deemed as seventy-five percent
(75%) and
twenty-five percent
(25%) equity interest,
respectively.

 

		(h)	On
completion
of all liquidation
procedures,
the Liquidation
Committee shall submit
to the Approval
Authority a final
report
approved by the
Board and
an independent accounting
firm registered
in the PRC
to the
Approval Authority,
surrender the
Business
License to
the Registration Authority
and complete all other
formalities
for nullifying
the Company’s
accounting
books and other
documents at
its own expenses
but the originals
thereof shall be left
in the care of
Party
A, and Party B shall
be entitled
to retain copies thereof.

 

		15.7	Effect of Termination.
The termination of
this Contract for any reason shall
not release a Party
from its liability
to pay any sums of money
accrued, due
and payable
to the other Party,
or to discharge its
then-accrued and unfulfilled
obligations,
including
any obligation
to the Company
or to the other
Parry in respect
of breach
of this Contract or
any obligation
otherwise stipulated
in this Contract.

 

		15.8	Further
Obligations. The
Parties hereby
agree to cause their
appointed Directors
to act in such
manner as to give
effect to
the provisions
of this Chapter
Fifteen.

 

Chapter
Sixteen

Confidentiality
and Non-Competition

 

		16.1	Confidentiality

 

		(a)	All technology, know-how, techniques, trade secrets, trade
practices, methods, specifications, designs and other proprietary information disclosed by either Party to the Company under the
terms of this Contract or otherwise, or developed by the Company, as well as the terms of this Contract and other confidential
business and technical information (collectively, “Confidential Information”) shall be used by the Company and
its personnel solely for the Company’s account and purposes. Each Party and the Company shall maintain the secrecy of all Confidential
Information that may be disclosed or furnished to it by the Company or the other Party, and it shall not disclose or reveal any
such Confidential Information to any third party absent explicit written authorization from the Board or the relevant Party, as
the case may be.

 

		(b)	Confidential
Information
obtained by a Party that is restricted
hereunder
may be disclosed by
that Party
only to its designated
employees whose duties
require such disclosure
for the
implementation of
this Contract.
In that event,
the receiving
Party shall
take all
reasonable
precautions,
Including
the conclusion
of confidentiality
contracts
with each
such employee,
to prevent
such employees
from using Confidential
Information
for their
personal
benefit and
to prevent
any unauthorized
disclosure
of such Confidential
Information
to any third party.

 

    	 	21	 

     

    

 

		(c)	Notwithstanding
the foregoing,
the Parties
and the
Company
may with prior
written approval of
the Party who
disclosed the
Confidential
Information reveal
Confidential
Information
to government personnel
to the extent
necessary to obtain
any required governmental
approval,
and to outside
lawyers, accountants
and consultants
to the extent necessary
for them
to provide
their professional
assistance,
provided
that Confidential
Information
so revealed in written
form is
marked confidential
and that
such
government
personnel and outside individuals
shall be requested
to undertake
to respect the
confidentiality
provisions
of this Contract.

 

		16.2	Non Competition
Each Party agrees
that during
the period when it holds, directly
or indirectly,
any interest
in the Company,
it shall
not, and shall not cause
its Affiliates
not to
engage or participate
in the ownership,
management,
control or financing
of, or be employed
by, or consult
for or otherwise
render
services to, any Person
that competes
in any
place in the Territory with
the Company or any Affiliate
of the Company in activities
identical or substantially
identical with
the Business conducted
or continued
by the Company
or any Affiliate
of the Company,
without the prior
written consent
of the other Party.

 

Chapter
Seventeen

Force
Majeure 

 

		17.1	Force Majeure

 

		(a)	When
the obligations
of a Party under this
Contract
cannot be performed in
full or in part according
to the agreed terms as a direct
result of an event that is unforeseeable
and the
occurrence and consequences of which cannot
be prevented or avoided,
such as earthquake, typhoon,
flood, fire and other
natural disasters,
war, insurrection
and similar military
actions, civil
unrest and strikes,
slowdowns and other labor actions
(a “Force Majeure
Event”),
the liability
of the Party
that encounters such Force
Majeure Event (the
“Hindered
Party”) shall
be released
in full or in
part in
light of the impact of the
event upon
this Contact, if all
of the following conditions
are met:

 

		(1)	The Force
Majeure Event was the
direct cause of the stoppage,
impediment
or delay
encountered
by the Hindered
Party in performing
its obligations under
this Contract;

 

		(2)	The
Hindered
Party used its best
efforts to perform
its obligations under
this
Contract
and to reduce the losses to the other Party or
to the Company
arising from the Force
Majeure
Event; and

 

		(3)	At the
time of the
occurrence of the
Force Majeure
Event, the Hindered
Party immediately
informed the other
Party,
providing
written information
on such event within
fifteen (15) days
of its occurrence,
including a statement of the
reasons for the delay
in implementing
or partially implementing
this Contract.

 

		(b)	If a Force Majeure Event shall
occur, the Parties
shall decide whether
this Contract should
be amended
in light of
the impact of the
event upon the
implementation hereof, and
whether the Hindered
Party
should be partially
or fully freed from its
obligations hereunder.

 

		(c)	If a Force
Majeure Event lasts for more than
sixty (60) days, either
Party shall
be entitled
to terminate this Contract in accordance
with Sections 15.3 to 15.4.

 

    	 	22	 

     

    

 

Chapter
Eighteen

Governing
Law

 

		18.1	Governing Law. The
formation,
validity,
interpretation, execution,
amendment
and termination
of and settlement
of Disputes
under this Contract
shall all
be governed by the Law of the PRC. When
the Law of the
PRC do not cover a certain matter, international
legal principles
and practices shall apply.

 

Chapter
Nineteen

Dispute
Resolution

 

		19.1	Resolution of Disputes

 

		(a)	Notwithstanding Section 18.1, any dispute, controversy
or claim arising out of or relating to this Contract, or the interpretation, breach, termination or validity hereof (a “Dispute”)”,
shall be resolved through friendly consultation. Such consultation shall begin immediately after one Party has delivered to the
other Party a written request for such consultation. If within thirty (30) days following the date on which such notice is given
the Dispute cannot be resolved, the Dispute shall be submitted to arbitration upon the request of either Party with notice to
the other Party.

 

			The arbitration
shall be conducted m Hong Kong
under the auspices of the HKIAe.
There shall
be three arbitrators.
Each Party
shall select one arbitrator
within thirty (30) days after giving or receiving
the demand for arbitration.
Such arbitrators shall
be freely selected,
and the Parties
shall not be
limited in their selection to any
prescribed list. The Secretary General
of the HKJAC shall
select the third arbitrator.
If a Party does not appoint
an arbitrator who has consented to participate within
thirty
(30) days after the selection of the first
arbitrator, the relevant appointment shall
be made by the Secretary
General of the HKlAC.

 

		(b)	The
arbitration proceedings shall be conducted in English. The arbitration tribunal
shall apply the Arbitration
Rules of the
United Nations Commission on International
Trade Law in effect at the time of the
arbitration. However, if such rules
are in conflict with the provisions of this
Section 19.1, including the provisions
concerning
the appointment of arbitrators,
the provisions of this Section
19.1 shall prevail.

 

		(c)	Each Party
shall cooperate
with the other in
making full disclosure
of and providing complete access to all information
and documents requested
by the other
Party in
connection
with such arbitration
proceedings, subject
only to any confidentiality
obligations
binding
on such Party.

 

		(d)	The award of the arbitration
tribunal shall
be final and binding upon
the disputing Parties,
and either
Party
may apply
to a court of competent
jurisdiction
for enforcement of such
award.

 

		(e)	Either
Party
shall be entitled
to seek preliminary
injunctive relief,
if possible, from any court
of competent
jurisdiction
pending the
final decision or award of the
arbitrators.

 

    	 	23	 

     

    

 

		19.2	Other
Matters Unaffected During
the period when
a Dispute is being resolved,
except for the matter being
disputed,
the Parties
shall in all other respects continue their implementation
of this Contract.

 

Chapter
Twenty 

Liabilities for Breach
of Contract 

 

		20.1	Breach of Contract.
Subject to the provisions
of Chapter Seventeen,
a Party shall be in
breach of this Contract
if it fails fully
to perform, or unlawfully
suspends
its performance of,
its obligations under
this Contract,
and if it does not correct such
failure within thirty
(30) days from receipt of
notice thereof from the
other Party or the Company.

 

		20.2	Damages

 

		(a)	If the
Company suffers any cost, liability
or loss,
including
but not limited
to lost profits, as
a result of a breach of
this Contract by either Party,
the Party in breach shall indemnify
and hold
the Company harmless
in respect of any such cost, liability or loss, Including,
but not limited to,
interest paid or lost as a result thereof
and reasonable attorney’s fees and
expenses.

 

		(b)	If
a non-breaching
Party
suffers
any cost, liability
or loss directly as a result of a breach of this Contract,
the Party in breach shall
indemnify and hold
such non-breaching
Party harmless in respect of any such
cost, liability
or loss incurred
by such non-breaching
Party, including,
but not
limited to, interest
paid or lost as a result
thereof and reasonable
attorney’s
fees and expenses.

 

		20.3	Limitation
of Liability.
IN NO EVENT SHALL EITHER PARTY
OR ITS AGENTS, OFFICERS, OR EMPLOYEES,
BE LIABLE FOR ANY SPECIAL DAMAGES, INCIDENTAL
DAMAGES, INDIRECT
DAMAGES,
CONSEQUENTIAL
DAMAGES, OR EXEMPLARY DAMAGES WHATSOEVER
(INCLUDING DAMAGES FOR
LOSS OF PROFITS, BUSINESS
INTERRUPTION,
LOSS OF INFORMATION),
HOWEVER CAUSED, WHETHER OR NOT
THE POSSIBILITY OF SUCH DAMAGES
HAS BEEN DISCLOSED
TO THE OTHER PARTY
IN ADVANCE; PROVIDED,
HOWEVER, THAT
THE FOREGOING
SHALL NOT
APPLY TO AND
SHALL NOT
BE CONSTRUED
TO PRECLUDE RECOVERY
FROM AN INDEMNIFYING
PARTY BY AN INDEMNIFIED
PARTY
IN RESPECT
OF ANY OF
SUCH LOSSES DIRECTLY
INCURRED FROM
THIRD PARTY
CLAIMS.

 

Chapter Twenty-One 

Miscellaneous

 

		21.1	Survival.
The agreements of the
Parties
contained in Sections
2, Chapter
Fifteen, Chapter Sixteen, Chapter
Seventeen,
Chapter Eighteen,
Chapter
Nineteen, Chapter Twenty and Chapter Twenty-One
shall continue to survive after the expiration or termination
of this Contract
and the dissolution
of the Company.

 

		21.2	Notices.
Notices or
other
communications
required to be given by either
Party or
the Company
pursuant to
this Contract shall
be written in English and
Chinese and sent
in letter form or
by facsimile to the
address of the other Party
set forth
below or to such other
address as may
from time to time be designated by the
other Patty through notification
to such Party,
and to the Company
at its legal address
as in effect from
time to time.
The dates on which
notices shall be deemed
to have been effectively
given shall be determined
as follows:

 

    	 	24	 

     

    

 

		(a)	Notices
given by personal
delivery
shall
be deemed
effectively
given on the date of personal delivery,

 

		(b)	Notices given
in letter form
shall be deemed effectively
given
on the seventh
day after the date
mailed (as indicated
by the postmark) by
registered
airmail, postage
prepaid,
or the third day after delivery to an internationally
recognized courier
service;

 

		(c)	Notices
given by
facsimile shall be deemed
effectively
given upon receipt
by the
sender of a confirmed
transmittal receipt.

 

			

	Party A:	Ginger Capital Investment Holding, Ltd.	 
	 	 	 
	 	 	 
	 	Attention: Rita Jiang	 
	 	Fax Number: +1-646-691-5047	 
	 	 	 
	Party B:	Bionik Laboratories Corp	.
	 	483 Bay Street, Office N105	 
	 	Toronto, ON M5G 2C9	 
	 	Canada	 
	 	 	 
	 	Attention:  Peter Bloch	 
	 	Phone: (416) 640-7887	 

 

		21.3	Entire Agreement This
Contract and its
appendices hereto constitute the complete and only
agreement between the
Parties on the subject matter of this
Contract and replaces all previous oral or written
agreements, contracts,
understandings
and communications of the
Parties in respect of the subject
matter of
This Contract. In
the event of any inconsistency between the terms
and provisions of this Contract
and the terms and provisions of the Articles
of Association, the terms
and provisions
of this Contract shall
prevail.

 

		21.4	No Implied Waivers.
A Party that in a particular situation waives its rights in respect of a breach of contract
by the other Party
shall not be deemed to have waived
its rights against the other Party for a similar breach
of contract in other situations.

 

		21.5	Severance. If any provision
of this Contract or
part thereof is rendered
void, illegal or unenforceable in any respect under any
Law, the
validity, legality
and enforceability
of the remaining provisions shall
not in any way be affected or impaired
thereby.

 

		21.6	Amendments. Amendments
to this Contract must be made by a written agreement signed by each of the Parties
in both Chinese and English texts, each of which
shall have equal validity
and legal effect, and shall be submitted to the original
Approval Authority (or
its successor) for approval before
they can become effective.

 

		21.7	No Assignment.
This Contract
shall be binding
upon and shall be enforceable by each Party hereto and
its respective successors and assigns including the Acquirer.
No Party may assign any of
its rights or obligations
hereunder to any person or Party without the prior written approval of the
other Party.

 

    	 	25	 

     

    

 

		21.8	Language.
This Contract and its
exhibit are written in Chinese
and English in five counterparts
in each language. Each Party
shall retain
one counterpart in each language
and one counterpart in each language
shall be submitted
to the Approval Authority
for approval. Any remaining
counterparts shall be retained
by the Company for use as necessary.
Both language versions
shall have the
same validity
and legal effect.

 

		21.9	Counterparts. This Contract and any amendment hereto
or any other agreement (or document) delivered pursuant hereto may be executed in one or more counterparts and by different parties
in separate counterparts. All of such counterparts shall constitute one and the same agreement (or other document) and shall become
effective (unless otherwise therein provided) when one or more counterparts have been signed by each party and delivered to the
other parties.

 

[The
remainder of this page is intentionally
left blank.] 

 

    	 	26	 

     

    

 

IN
WITNESS HEREOF,
both Parties
hereby
cause this
Contract to
be executed
by their duly
authorized
representatives
on May 17th, 2017.

 

Party A:

 

GINGER CAPITAL INVESTMENT HOLDING, LTD.

 

	By:  	/s/ Rongrong Jiang	 
	Name:  	Rongrong Jiang	 
	Capacity: 	Legal Representative	 
	 	 	 
	Party B:	 	 
	 	 	 
	BIONIK LABORATORIES CORP.	 
	 	 	 
	By: 	/s/ Peter Bloch	 
	Name:  	Peter Bloch	 
	Capacity: 	CEO	 

 

    	 	27	 

     

    

 

Schedule I

Products

 

1.       InMotion
Arm

2.       InMotion
Arm/Hand

3.       InMotion
Wrist

 

    	 	28	 

     

    

 

Schedule
II

 

Party A’s Contribution
Schedule 

 

	Payment Date 	 	Amount of Parry A’s Contribution for Each Instalment

(US$) 
	Within 30 days after 	 	US$290,OOO.OO 
	Establishment Date 	 	 
	Within 12 months after 	 	US$435,OOO.OO 
	Establishment Date 	 	 
	Within 60 months after 	 	US$725,OOO.OO 
	Establishment Date 	 	 

 

    	 	29	 

     

    

 

Schedule III

 

BIONIK
IP

 

1.
US201 50025423,
EP3021796A4, EP3021796AI,
WO/2015/006853AI 

2. US20140276261,
WO/2014/13887IAI,

3. US20140276263

4  US20140276265,
WO/2014/138872AI

5. US20140276264,
9421143 

6. US20150359697,
7618381 

7. US7556606,
US8608674 

8. US8613691

9
 InMotion ARMTM 

10.InMotion
WRISTTM 

11.InMotion
HandTM

 

    	 	30	 

     

    

 

EXHIBIT A & B

 

FORMS OF LICENSE AND DISTRIBUTION
AGREEMENTS

 

    	 	31

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