Document:

Exhibit
10.4

    

    Loan
Agreement

    

    By
and between

    

    The
Shareholder of Qingdao Niao Bio-Technology Ltd.

    

    and

    

    NeoStem
(China), Inc.

    

    June
1, 2009

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      
        
          
            	
                    Loan
      Agreement

                  	
                    Confidential

                  

          

        

      

    

     

    Loan
Agreement

    

    This Loan
Agreement (this “Agreement”) is executed by and between the following Parties
on June 1, 2009, in Qingdao City, the People’s Republic of China ( the
“PRC”).

    

    
      	
              (1) 

            	
              Sole Shareholder of Qingdao Niao Bio-Technology
      Ltd. (hereinafter as the “Borrower” or “Party A”):

            

    

     

    
      
        
          
            
              
                
                  
                    	
                            Name
      of Each 

                            Shareholder

                          	 
      	
                            Shareholding
      

                            Ratio
      (%)

                          	 
      	
                            ID
      Card No.

                          	 
      	
                            Contact
      Address

                          
	
                            Liu
      Hongbing

                          	 
      	
                            100

                          	 
      	 
      	 
      	
                            Room
      102, Unit 4 Building 6, No.138 Huaneng Road, Licheng District, Ji’nan
      City

                          

                  

                

              

            

          

        

      

    

    

    
      
        	
                (2)

              	
                NeoStem
      (China), Inc. (hereinafter as the “Lender” or “Party
      B”)

              

      

    

    Legal
Representative: Robin Smith

     

    
      
        	
              	
                Address

              	
                : Room 0425A,
      Building C, No.6 XiangGangZhong Road, Shinan District, Qingdao
      City.

              

      

    

    (Party A
and Party B are collectively called “the Parties” and individually
called “each Party” or “a Party” in this Agreement.)

    

    WHEREAS:

    

    (1) The
Borrower (Party A) hold 100% of the equity interests in Qingdao Niao
Bio-Technology Ltd. (the “Company”);

    

    (2) Party
B is a wholly foreign-owned enterprise incorporated under the PRC
laws;

    

    (3) Party
A desires to secure a loan from Party B, for the purpose of increasing the
registered capital of the Company, by pledging its equity in the Company to
Party B as a guaranty of the loan, and Party B agrees to provide the
loan to Party A ;

    

    NOW, THEREFORE, The Parties have
agreed through friendly negotiation to the terms and conditions with
respect to the loan hereunder as follows:

    

    1.
DEFINITION

    

    Except
where provided otherwise, the terms used in this Agreement shall
mean:

    

    1.1
“PRC” refers to the People’s Republic of China, excluding the
Hong Kong Special Administrative Region, Macao Special Administrative
Region and Taiwan Province;

    
      
         

      

      
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    1.2 “PRC
Laws” refers to all PRC laws, administrative regulations and government rules in
effect;

    

    1.3 “RMB” refers
to the legal currency within the PRC;

    

    1.4
“Loan” refers to the Total Principal to be loaned to the Borrower by the Lender
in accordance with Article 2 hereunder;

    

    1.5 “The
Company” refers to Qingdao Niao Bio-Technology Ltd., a domestic company
which is incorporated and validly existing under PRC Laws; its business license
No. is370212230011070, and its registered address is Room 501, Unit 2
Building 1, No.17 YinChuanDong Road, Laoshan District, Qingdao
City.;

    

    1.6
“Shareholder” refers to the sole Shareholders of the Company;

    

    1.7
“Equity” or “Equity Interests” refers to the equity interests in the
Company;

    

    1.8
“Equity Transfer” refers to the assignment of Equity Interests in the Company
held by Party A to Party B or its designated third party in accordance with the
provisions of the exclusive purchase option agreement (the “Exclusive
Purchase Option Agreement”) executed on June 1, 2009.

    

    1.9
“Asset Transfer” refers to the assignment of the assets of the Company by the
Company to Party B or its designated third party in accordance with the
provisions of the Exclusive Purchase Option Agreement.

    

    1.10
“Consideration for Equity Transfer” has the meaning set forth in Section 6
of this Agreement.

    

    1.11
“Consideration for Assets Transfer” has the meaning set forth in Section 6 of
this Agreement.

    

    2.
THE TOTAL LOAN AMOUNT

    

    2.1 The
total principal amount of the loan hereunder is RMB
2,100,000.00 Yuan (the “Total Principal”), and the amount and ratio of the
loan to be made to the Shareholder is as set forth in the following
table:

    

    
      
        
          
            
              
                
                  
                    	
                            Name
      of the 

                            Shareholder

                          	 	
                            Amount
      of the Loan 

                            (Yuan)

                          	 	 	
                            Percentage
      of Total 

                            Principal(%)

                          	 
	
                            Liu
      Hongbing

                          	 	 	2,100,000.00	 	 	 	100	%

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
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    3.  TERM
OF THIS AGREEMENT

    

    3.1
Unless otherwise provided, the term of this Agreement shall begin from the
Effective Date and expire when the loan is completely repaid by the
Borrower in accordance with the provisions of Article 6
hereunder.

    

    4.
LOAN USAGE

    

    4.1 The
full amount of the loan provided hereunder shall be used to increase the
registered capital of the Company, and the Borrower shall in no event change
the usage without the prior written consent of the Lender.

    

    4.2 The
Borrower shall cause the Company to complete the registration of the Company
with the competent Administration Bureau of Industry and Commerce in respect of
the increase in the registered capital of the Company within thirty
(30) business days upon receipt of the Loan hereunder, and such period may be
prolonged upon the consent of the Lender.

    

    5.
LOAN INTEREST

    

    5.1
Except as provided in Section 5.2 hereunder, the Loan hereunder shall be
interest-free.

    

    5.2 If
the Consideration for Equity Transfer or the Consideration for Asset
Transfer, in accordance with Section 6 hereof, is higher than the Total
Principal as a result of the requirements of then applicable law or for any
other reason, the excess shall be deemed to be loan interest/utilizing fees of
the Loan to the largest extent permitted by PRC Laws, and will be paid to Party
B by Party A together with loan principal.

    

    6.  LOAN
REPAYMENT

    

    6.1 The
Loan shall be repaid upon receipt of written notice sent by Party B to Party A
(the “Repayment Notice”), which shall instruct Party A to repay the Loan in
accordance with Section 6.3 hereof.

    

    6.2 The
Repayment Notice shall indicate the term of repayment, which shall be adjusted
from time to time by Party B in accordance with the provisions of PRC Laws
regarding equity transfers (the “Repayment Term”).

    

    6.3
Except as provided otherwise by the Repayment Notice, Party A shall make payment
to Party B during the Repayment Term as follows:

    

    
      	
            	
              6.3.1 
      

            	
              In
      the event of any Equity Transfer by Party A, the after-tax
      consideration paid to Party A in exchange for such Equity
      Transfer (including the principal and interest of the loan, if
      applicable) (hereinafter as the “Consideration for Equity
      Transfer”) shall be used by Party A to repay the Loan to Party
      B;

            

    

    
      
         

      

      
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              6.3.2 
      

            	
              In
      the event that the Company receives consideration for any Asset Transfer,
      Party A shall cause the Company to adopt a plan of profit distribution to
      transfer all after-tax income of the Company to Party B to the greatest
      extent permitted by PRC Laws, in order to repay the loan made by Party B
      under this agreement.

            

    

    

    6.4 If
the Consideration for Equity Transfer or Consideration for Asset Transfer is
lower than the total principal under this Agreement, Party A shall be exempted
from the shortfall repayment obligation.

     

    7.
CONDITONS FOR GRANTING OF THE LOAN

    

    7.1 The
loan shall be granted only upon satisfaction of all the following
conditions:

    

    
      
        	
              	
                7.1.1 

              	
                Party
      A shall approve increasing the registered capital by an amount equal to
      the Total Principal.

              

      

    

    

    
      
        	
              	
                7.1.2 

              	
                Party
      A, or the Company on behalf of Party A, shall execute all documents
      necessary for the registration with the competent Administration Bureau of
      Industry and Commerce in respect of the increase of registered capital of
      the Company.

              

      

    

    

    7.2 Party
B shall grant the Loan immediately and deposit it in the escrow account as
agreed by Party B for increasing the registered capital of the Company
after it receives written evidence which proves that Party A has
fulfilled all the conditions under Section 7.1 hereof.

     

    8. WARRANTIES
AND UNDERTAKINGS

    

    8.1 Party
A hereby represents and warrants to Party B that, as of the execution date of
this Agreement:

    

    
      	
            	
              8.1.1

            	
              Party
      A legally holds 100% of the Equity in the
  Company;

            

    

    
      
        	
              	
                8.1.2

              	
                Except
      as otherwise provided in the Equity Pledge Agreement and Exclusive
      Purchase Option Agreement, there is no pledge or other form of encumbrance
      on the Equity;

              

      

    

    
      
        	
              	
                8.1.3

              	
                There
      are no material debts which will adversely affect the Equity of Party
      A;

              

      

    

    
      
        	
              	
                8.1.4

              	
                Execution
      of this Agreement by Party A shall not constitute a breach of the articles
      of association of the
Company.

              

      

    

    
      
         

      

      
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    8.2 Party
A warrants to Party B that, as of the execution date of this
Agreement:

    

    
      
        	
              	
                8.2.1

              	
                Except
      as otherwise provided in the Equity Pledge Agreement and Exclusive
      Purchase Option Agreement, without Party B’s prior written consent, Party
      A shall not transfer, sell, mortgage or otherwise dispose of assets
      or income of the
Company;

              

      

    

    
      
        	
              	
                8.2.2

              	
                Without
      Party B’s prior written consent, Party A shall not supplement or amend the
      articles of association or rules of the Company, nor shall it increase or
      decrease the registered capital or change the shareholding structure of
      the Company in any manner;

              

      

    

    
      
        	
              	
                8.2.3

              	
                Without
      Party B’s prior written consent, Party A shall not approve the resolutions
      for the Company to dissolve, liquidate or change legal
    form;

              

      

    

    
      
        	
              	
                8.2.4

              	
                Without
      Party B’s prior written consent, Party A shall not approve any Profit
      Distribution Proposal, nor shall he accept such a distributed
      dividend; and at Party B’s request, Party A shall promptly approve a
      Profit Distribution Proposal and accept such a distributed
      dividend;

              

      

    

    
      
        	
              	
                8.2.5

              	
                At
      Party B’s request, Party A shall provide Party B with all information
      regarding Party B’s business operations and financial
      condition;

              

      

    

    
      
        	
              	
                8.2.6

              	
                Without
      Party B’s prior written consent, Party A shall not incur or succeed to any
      debts or liabilities which may adversely affect its Equity
      Interests;

              

      

    

    
      
        	
              	
                8.2.7

              	
                Party
      A shall appoint, and appoint only, the candidates nominated by Party B to
      be the executive director of the Company, and shall not replace such
      candidates without Party B’s written
consent;

              

      

    

    
      
        	
              	
                8.2.8

              	
                Without
      Party B’s prior written consent; Party A shall not approve any acquisition
      of, any consolidation with, or any investment in any third
      party;

              

      

    

    
      
        	
              	
                8.2.9 

              	
                Party
      A shall promptly notify Party B of any pending or threatened lawsuit,
      arbitration or administrative dispute which involves the assets, business
      or income of the Company; and shall make every effort to take action to
      resolve such lawsuit, arbitration or administrative dispute in order
      to safeguard the legal rights and interests of the
  Company;

              

      

    

    
      
        	
              	
                8.2.10

              	
                Without
      Party B’s prior written consent, Party A shall not commit any act or
      omission that would materially affect the Company’s assets, business or
      liabilities;

              

      

    

    
      
        	
              	
                8.2.11

              	
                Party
      A shall strictly comply with the provisions of this Agreement, and
      effectively perform its obligations hereunder, and shall be prohibited
      from committing any act or omission which may affect the validity or
      enforceability of
this Agreement.

              

      

    

     

    
      
         

      

      
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    8.3 Party A warrants to Party B
that it shall use its best efforts to ensure that the Company:

     

    
      
        	
              	
                8.3.1

              	
                shall
      not, without Party B’s prior written consent, supplement or amend the
      articles of association or rules of the Company in any manner, nor shall
      it increase or decrease the registered capital or change the shareholding
      structure of the aforesaid entities in any
  manner;

              

      

    

    
      
        	
              	
                8.3.2

              	
                shall
      prudently and effectively maintain its business operations according to
      good financial and business standards so as to maintain or increase the
      value of its assets;

              

      

    

    
      
        	
              	
                8.3.3

              	
                shall
      not transfer, mortgage or otherwise dispose of the lawful rights and
      interests to and in its assets or incomes, nor shall it encumber its
      assets and income in any way that would affect Party B’s security
      interests unless as required for the business operations of the Company or
      upon prior written consent by Party
B;

              

      

    

    
      
        	
              	
                8.3.4

              	
                shall
      not incur or succeed to any debts or liabilities without Party B’s prior
      written consent;

              

      

    

    
      
        	
              	
                8.3.5

              	
                without
      Party B’s prior written consent, shall not enter into or materially amend
      any material contract (exceeding RMB 100,000 in value), except for the
      routine business contracts;

              

      

    

    
      
        	
              	
                8.3.6

              	
                without
      Party B’s prior written consent, shall not provide any loans or guaranty
      to any third party;

              

      

    

    
      
        	
              	
                8.3.7

              	
                at
      Party B’s request, shall provide Party B with all information regarding
      the Company’s business operation and financial
  condition;

              

      

    

    
      
        	
              	
                8.3.8

              	
                without
      Party B’s prior written consent, shall not acquire or consolidate with any
      third party, nor shall it invest in any third
  party;

              

      

    

    
      
        	
              	
                8.3.9

              	
                shall
      promptly notify Party B of any pending or threatened litigation,
      arbitration or administrative dispute which involves the assets, business
      or income of the Company; and shall make every effort to take action to
      resolve such litigation, arbitration or administrative dispute in order to
      safeguard the legal rights and interests of the
  Company;

              

      

    

    
      
        	
              	
                8.3.10

              	
                without
      Party B’s prior written consent, shall not distribute any dividends to the
      Shareholder in any manner, and, at Party B’s request, shall promptly
      distribute all distributable dividends to the
  Shareholder;

              

      

    

    
      
        	
              	
                8.3.11

              	
                without
      Party B’s prior written consent, shall not commit any act or omission that
      would materially affect the Company’s assets, business or
      liabilities.

              

      

    

    

    9.
GUARANTY OF THE LOAN

    

    9.1 To
secure the repayment of the debts under this Agreement, Party A agrees to pledge
all his equity in the Company to Party B, and both Parties agree to execute the
Equity Pledge Agreement with respect thereto.

    
      
         

      

      
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    10.
TAX AND EXPENSE

    

    10.1 The
Parties shall pay their respective taxes and expenses in relation to the
execution and performance hereof in accordance with PRC Laws.

    

    10.2
Party B shall pay taxes and expenses in accordance with Section 6.4 hereof (if
applicable).

    

    11.
ASSIGNMENT OF AGREEMENT

    

    11.1
Party A shall not transfer any or all of its rights and obligations under this
Agreement to any third party without the prior written consent of Party
B.

    

    11.2 The
Parties agree that Party B shall have the right to transfer any or all of its
rights and obligations under this Agreement to any third party upon a six (6)
days’ written notice to Party A without approval by Party A.

    

    12.
LIABILITIES AND INDEMITIES FOR BREACH OF THIS AGREEMENT

    

    12.1 If
Party A uses the Loan other than in compliance with the terms of this
Agreement without Party B’s written consent, Party B shall require Party A
repay the improperly used part promptly.

    

    12.2 If
Party A breaches the warranties and undertakings as provided in Article 8
hereof or other provisions under this Agreement and fails to redress such
breach within sixty (60) days upon receipt of written notice from Party B,
Party B shall be entitled to require Party A to repay the granted Loan
promptly.

    

    12.3 If
Party A fails to duly repay the Loan in accordance with the provisions
hereunder, then Party A shall pay the liquidated damage per day equal to 0.03%
of the unpaid Consideration which falls due; if any delay of payment amounts to
sixty (60) days, then Party B shall be entitled to exercise the right of pledge
under the Equity Pledge Agreement.

    

    13.
 EFFECTIVENESS, MODIFICATION AND CANCELLATION

    

    13.1 This
Agreement shall take effect on the date of execution hereof by Party A and the
duly authorized representative of Party B.

    

    13.2 The
modification of this Agreement shall not be effective without written agreement
through negotiation. If the Parties do not reach an agreement as to
modification, this Agreement remains effective.

    

    13.3 This
Agreement shall not be discharged or canceled without written agreement through
negotiation, provided that Party B may, by giving thirty (30) days’ prior
notice to Party A, terminate this Agreement.

    
      
         

      

      
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    13.4
Unless Party B fails to grant the Loan as required hereunder after the
satisfaction of all conditions as set forth in Section 7.1 hereof by Party A,
Party A shall in no event unilaterally terminate this Agreement.

    

    13.5 If
Party B fails to provide the Loan in accordance with the terms hereof, this
Agreement shall be automatically terminated.

    

    14.
CONFIDENTIALITY

    

    14.1 Any
information, documents, data and all other materials (herein “confidential
information”) arising out of the negotiation, signing, and implementing of this
Agreement shall be kept in strict confidence by the Parties. Without the written
approval of the other Parties, no Party shall disclose to any third party
any relevant materials, but the following circumstances shall be
excluded:

    
      
        	
              	
                (1)

              	
                Material
      that is known by the Public (but not including material disclosed by each
      Party receiving the
materials);

              

      

    

    
      
        	
              	
                (2) 

              	
                Material
      required to be disclosed subject to the applicable laws or the rules or
      provisions of a stock exchange;
or

              

      

    

    
      
        	
              	
                (3) 

              	
                Material
      disclosed by each Party to its legal or financial consultant
       relating to the transaction of this Agreement, and this legal or
      financial consultant shall comply with the confidentiality set forth in
      this Section. The disclosure of confidential material by staff or a
      consignee of any Party shall be deemed to be disclosure of such materials
      by such Party, and such Party shall bear the liabilities for breaching the
      contract.

              

      

    

    

    14.2 This
Clause shall survive whether this Agreement is invalid, amended, revoked,
terminated or incapable of implementation for any reason.

    

    15.  FORCE
MAJEURE

    

    15.1
“Force Majeure” refers that any event that could not be foreseen, and could not
be avoided and overcome, which includes among other things, but without
limitation, acts of nature (such as earthquakes, flood or fire), government
acts, strikes or riots.

    

    15.2 If
an event of force majeure occurs, any of the Parties that is prevented from
performing its obligations under this Agreement by an event of force majeure
shall notify the other Party without delay and within fifteen (15) days of the
event provide detailed information about and notarized documents evidencing the
event, shall take appropriate means to minimize or remove the negative
effects of force majeure on the other Party and shall not assume the liabilities
for breaching this Agreement. The Parties shall continue performing
this Agreement after the event of force majeure disappears.

    
      
         

      

      
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    16.  GOVERNING
LAW AND DISPUTE RESOLUTION

    

    16.1 The
effectiveness, interpretation, implementation and dispute-resolution related to
this Agreement shall be governed under PRC Laws.

    

    16.2 Any
dispute arising out of this Agreement shall be resolved by both Parties through
mutual negotiation. If both parties cannot reach an agreement within thirty (30)
days from the date on which the dispute is brought forward, either Party
may submit the dispute to the Qingdao Arbitration Commission for arbitration
under its applicable rules. The arbitration award shall be final and binding
upon both Parties.

    

    16.3
During the process of dispute-resolution, both parties shall continue to perform
other terms under this Agreement, except for the provisions subject to the
dispute resolution.

    

    17.  MISCELLANEOUS

    

    17.1 The
Parties acknowledge that this Agreement constitutes the entire agreement of the
Parties with respect to the subject matters herein and supersedes and replaces
all prior or contemporaneous oral or written agreements and
understandings.

    

    17.2 This
Agreement shall bind and benefit the successor of each Party and
any transferee permitted hereunder with the same rights and obligations as
if such successor or transferee were an original party hereto.

    

    17.3 Any
notice required to be given or delivered to the Parties hereunder
shall be in writing and delivered to the address as indicated below or such
other address or as such party may designate, in writing, from time to time. All
notices shall be delivered by personal delivery, fax or registered mail. It
shall be deemed to be delivered upon: (1) registered air mail: 5 business days
after deposit in the mail; (2) personal delivery: the next business day after
transmission. If the notice is delivered by fax, it should be confirmed by
original through registered air mail or personal delivery:

    

    Party
A:

    Contact
person: Liu Hongbing

    Address:
Room 102, Unit 4 Building 6, No.138 Huaneng Road, Licheng District, Ji’nan
City

    Tel:                                     Fax:

    

    Party
B:

    Contact
person: Robin Smith

    Address:

    Tel:                                     Fax:

    
      
         

      

      
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    17.4 This
Agreement is executed in two (2) originals with each of the person for
signing this Agreement holding one original, and each of originals shall be
equally valid and authentic.

    

    17.5
Whenever the consent of Party B is required under this Agreement, such consent
shall not be effective unless such consent is also provided by either the sole
shareholder, or the Executive Director, of Party B.

    
      
         

      

      
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    IN WITNESS THEREFORE, the
parties hereto have caused this Agreement to be executed and delivered as of the
date first above written.

    

    For
and on behalf of

    

    Party A  The Shareholder of
Qingdao Niao Bio-Technology Ltd.

    

    
      
        
          
            
              
                
                  
                    	
                            Name
      of the Shareholder

                          	 	
                            Signature

                          
	
                            Liu
      Hongbing

                          	 	
                            /s/
      Liu
Hongbing

                          

                  

                

              

            

          

        

      

    

    

    
      Party B  NeoStem (China), Inc.
 (Seal)

    

    

    Legal
Representative (or Authorized Representative): Robin Smith

    

    
      
        	
                Signature

              	
                /s/ Robin
Smith

              

      

    

     

    
      
         

      

      
        11Exhibit
10.5

     

    Consigned
Management and Technology Service Agreement

    

    by
and among

    

    Beijing
Ruijieao Bio-Technology Ltd.

    

    NeoStem
(China), Inc.

    

    and

    

    The
Shareholder of Beijing Ruijieao Bio-Technology Ltd.

    

    June
1, 2009

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Consigned
Management and Technology Service Agreement

      
        

      

    

    Consigned
Management and Technology Service Agreement

    

    This
Consigned Management and Technology Service Agreement (“this Agreement”) is
entered into on June 1, 2009 between the following Parties:

    

    
      	
              (1)

            	
              Beijing Ruijieao Bio-Technology
      Ltd. (“Party A”) is a limited liability company, duly incorporated
      in in Beijing City, People’s Republic of China (“PRC”) whose legal address
      is: Room 2007 20/F, Qingyundangdai Building, No.9 Mantingfangyuan
      Community, Qingyun Li, Haidian District, Beijing
    City. 

            

    

    

    
      	
              (2)

            	
              NeoStem (China), Inc.
      (“Party B”), is a wholly foreign owned enterprise (“WFOE”) and duly
      incorporated under PRC Laws, whose registered address is Room 0425A,
      Building C, No.6 XiangGangZhong Road, Shinan District, Qingdao
      City.

            

    

    

    
      	
              (3)

            	
              Sole shareholder of Beijing
      Ruijieao Bio-Technology Ltd. (the
  “Shareholder”)

            

    

    

    
      
        
          
            
              
                	
                        Name of the

                        Shareholder

                      	 
      	
                        Shareholding

                        Ratio (%)

                      	 
      	
                        ID Card No.

                      	 
      	
                        Contact Address

                      
	
                        Fu
      Wenyuan

                      	 
      	
                        100

                      	 
      	 
      	 
      	
                        No.27
      Shandabei Road, Licheng District, Ji’nan
City

                      

              

            

          

        

      

    

    

    (Party A,
Party B and the Shareholder are referred to collectively in this agreement as
the “Parties” or “the Parties”, and individually as “a Party” or “each
Party”.)

    

    WHEREAS:

    

    
      	
              (1)

            	
              Party
      A’s business scope is as follows: technology development, technology
      transfer, technology consultation and technology
  service;

            

    

    

    
      	
              (2)

            	
              Party
      B’s business scope is the research & development, transfer and
      technological consultation service of biotech technology, regenerative
      medical technology and anti-aging technology (excluding the development or
      application of human stem cell, gene diagnosis and treatment
      technologies); consultation of economic information; import, export and
      sales of machines and equipments (the import and export do not involve the
      goods specifically stipulated in/by state-operated trade, import &
      export quota license, export quota bidding, export permit, etc.) (The
      aforesaid business scope should be operated with relevant permits if such
      permits are required);

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    Consigned
Management and Technology Service Agreement

      
        

      

    

    
      	
              (3)

            	
              The
      Parties agree that, Party A consigns Party B to manage all its business
      and human resources, etc., and engages Party B to provide technology
      services such as the update and maintenance of internal software and
      hardware, technology training and technology
  support;

            

    

    

    
      	
              (4)

            	
              The
      Shareholder holds 100% of equity interests of Party
  A.

            

    

    

    NOW
THEREFORE, the Parties
hereby agree through friendly negotiation as follows:

    

    Article
1 Definition

    

    1.1 “PRC”
refers to the People’s Republic of China, for the purpose of this Agreement,
excluding the Hong Kong Special Administrative Region, Macao Special
Administrative Region and Taiwan Province;

    1.2 “PRC
Laws” refers to all PRC laws, administrative regulations and government rules in
effect;

    1.3 “RMB”
refers to the legal currency within the PRC;

    1.4
“Party A Staff” refers to the senior management staff of Party A and the manager
of each plant;

    1.5
“Consigned Management and Technology Service Fee” or “Consideration” refers to
the consideration as defined in Article 3.1 and paid to Party B by Party
A.

    

    Article
2 Contents of Consigned Management and Technology Services

    

    2.1
Contents of Consigned Management Services

    

    2.1.1
Business Management Services

    

    2.1.1.1
Target

    

    Provide
services on management and staff training so as to enhance the professional
management and eventually promote economic achievement of Party A.

    

    2.1.1.2
Contents

    

    (1)
Training to Party A Staff

    A. Latest
biotech industry knowledge training

    B.
Related operating methods and skills training

    C.
Preserve and maintenance of equipments training

    D.
Management principals and skills training

    

    (2)
Business Management

    A.
Procedure management

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
       

      Consigned
Management and Technology Service Agreement

        
          

        

         

      

    

    B.
Operation and technology management

    C.
Equipment management

    D. Field
management

    E.
Quality management

    F. Sales
and Marketing management

    G.
Service management

    

    2.1.2
Advertising and Development Services

    

    
      2.1.2.1
Target

    

    

    Improve
the economic benefits of the Company, ensure the healthy development of the
Company, improve the fame of the Company, establish the image of the Company,
gain the good reputation, contribute to the public welfare, and expand the
popularity of the Company.

    

    2.1.2.2
Contents of Service

    

    (1)
Advertising Services

    A.
Products planning

    B. Price
planning

    E. Sales
planning

    F.
Advertising planning

    G.
Marketing planning

    H.
Promotion planning

    I. Public
relation planning

    J. Brand
planning

    K.
Corporate image planning

    

    (2)
Development Services

    
      	
               
      

            	
              A.

            	
              Conduct
      research on the market and provide suggestions on the selection of
      location and layout of new
businesses;

            

    

    
      	
               
      

            	
              B.

            	
              Conduct
      research on the impressions of customers, and provide suggestions for
      perfection of customer services in accordance with the results of that
      research.

            

    

    
      	
            	
              C.

            	
              Conduct
      research on the potential cooperative partners, and provide suggestions
      for business expansion and cooperation development in accordance with the
      results of that research.

            

    

    

    2.1.3
Human Resources Management Services

    

    
      	
            	
              2.1.3.1

            	
              Target:
      Achieve the proper distribution of human resources, maintain the stability
      of the management team, and stimulate the employees to positively work so
      as to increase the economic
achievement.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
       

      Consigned
Management and Technology Service Agreement

        
          

        

         

      

    

    2.1.3.2
Contents of Service

    

    
      	
               
      

            	
              (1)

            	
              Recommend
      and nominate the candidates of senior management staff of Party A, and
      Party A shall appoint such candidates in accordance with the requirement
      of the position;

            

    

    
      	
               
      

            	
              (2)

            	
              Facilitate
      to perfect the organizational structure to improve the effects of the
      management;

            

    

    
      	
               
      

            	
              (3)

            	
              Establish
      the labor management system for Party A, including, but without
      limitation, employment policies, training, systems of leaves and
      vocations, overtime working, resignation, demission and
    etc.;

            

    

    
      	
               
      

            	
              (4)

            	
              Complete
      the employees’ salary system including its senior management
      staff;

            

    

    
      	
               
      

            	
              (5)

            	
              Facilitate
      to complete the working effectiveness assessment system of the employees
      and perfect the salary incentive
system;

            

    

    
      	
               
      

            	
              (6)

            	
              Provide
      training of labor management in the human resources department of Party
      A;

            

    

    
      	
               
      

            	
              (7)

            	
              Provide
      consultancy services to Party A in relation to the labor policies and
      social insurance;

            

    

    
      	
               
      

            	
              (8)

            	
              Facilitate
      Party A to standardize the management of human resources and establishment
      of related system.

            

    

    

    2.1.4
Internal Control Services

    

    Party B
shall assist Party A to establish internal control system and provide the proper
suggestions on the following systems:

    

    (1) Rules
for stamp usage

    (2) Rules
for receipts and checks

    (3) Rules
of budgeting management

    (4)
Assets management system

    (5)
Quality management system

    (6)
Authorization and agency system

    

    2.2
Contents of Technology Services

    

    
      	
              2.2.1

            	
              Select,
      purchase and update the proper software in accordance with practical
      requirements of Party A with respect to human resources and business
      management, etc., and conduct training on the use of such software, and
      provide relevant consulting
services.

            

    

    

    
      	
              2.2.2

            	
              Assist
      with other related systems and software in accordance with the specific
      requirements of Party A, and the relative costs shall be borne by Party
      A.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
       

      Consigned
Management and Technology Service Agreement

        
          

        

         

      

    

    
      	
              2.2.3

            	
               If
      necessary, seek qualified network service companies to provide services to
      Party A with respect to its application for the domain name and design of
      website, assist Party A in communication with the network service company
      on matters relating to the domain name and
  website.

            

    

    

    
      	
              2.2.4

            	
              Assist
      with the computers, server and other facilities in accordance with the
      requirements of Party A.

            

    

    

    
      	
              2.2.5

            	
              Make
      periodic maintenance and necessary update on hardware facilities in
      accordance with the requirements of Party
A.

            

    

    

    
      	
              2.2.6

            	
              Conduct
      technology training of the technical employees of Party
  A.

            

    

    

    
      	
            	
              (1)

            	
              Conduct
      training to Party A for the operation of technologies with regard to
      latest bio-technologies, regenerative medical technologies, anti-aging
      technologies, etc.

            

    

    
      	
            	
              (2)

            	
              Conduct
      training to Party A with regard to research and development of relevant
      technologies.

            

    

    
      	
            	
              (3)

            	
              Strengthen
      the training of Party A’s staff to use new apparatus and equipments,
      quickly apply the new equipments into research and operation, and improve
      the capacity and efficiency.

            

    

    

    
      	
              2.2.7

            	
              In
      the event of occurrence of technical problems of Party A, Party B shall
      designate relevant staff to perform on-site research for assisting Party A
      to resolve such problems if
necessary.

            

    

    

    
      	
              2.2.8

            	
              Party
      B shall be the sole and exclusive owner of all rights, title, interests
      and intellectual property rights arising from the performance of this
      Agreement (including but not limited to, any copyrights, patent, know-how,
      commercial secrets and otherwise), regardless developed independently by
      Party B or by Party A based on Party B’s intellectual property or by Party
      B based on Party A’s intellectual property. Party A shall not claim
      against Party B on any rights, ownership, interests or intellectual
      property.

            

    

    

    If such
development is conducted on the basis of Party A’s intellectual property, Party
A shall ensure that such intellectual property is clear and free from any lien
or encumbrance or license, or Party A shall indemnify Party B any and all
damages incurred thereby. In case Party B shall be liable to any third party by
reason thereof, Party B shall be compensated in full by Party A as long as Party
B has compensated the third party.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
       

      Consigned
Management and Technology Service Agreement

        
          

        

         

      

    

    Article
3 Consigned Management and Technology Service Fee

    3.1 Party
A shall pay the Consigned Management and Technology Service Fee, equal to 51-90
% of its total annual after-tax profit on a yearly basis as the Consideration of
services provided Party B as set forth in Article 2 hereunder.

    

    3.2 Party
A shall pay to Party B the year’s Consigned Management and Technology Service
Fee before each calendar day of December 31st.

    

    3.3
Whereas the daily business operations of Party A shall bear a material impact on
its capacity to make the payments due to Party B, the Shareholders of Party A
jointly agree that they will immediately and unconditionally pay or transfer to
Party B any bonus, dividends or any other incomes or benefits (regardless of the
forms) obtained from Party A as the shareholders of Party A at the time when
such payables occur and provide all necessary documents or take all necessary
actions required by Party B to realize such payment or transfer .

    

    3.4 Party
B shall be entitled to request Party A in writing to adjust the Consideration in
accordance with the quantity and quality of the consigned services. The Parties
shall positively negotiate with each other in respect of the Consigned
Management and Technology Service Fee, and Party A shall agree with such
adjustment.

    

    Article
4 Warranties and Undertakings by Party A

    

    4.1
Within the term of this Agreement, Party B shall be the entity exclusively
consigned by Party A to provide the services as set forth in Article 2
hereunder, and Party A shall not consign any other entities to provide to Party
A any services same as or similar with those services provided in Article 2
hereunder.

    

    4.2
Without the prior written consent by Party B, Party A shall not change its
business target.

    

    4.3
Without the prior written consent by Party B, Party A shall not change its rules
and policies regarding the business operation, management, human resources and
finance.

    

    4.4
Without the prior written consent by Party B, Party A shall not change its
internal control system.

    

    4.5
Without the prior written consent by Party B, Party A shall not change its
internal organization.

    

    4.6
Without the prior written consent by Party B, Party A shall not replace any
senior management staff itself.

    

    4.7 Party
A shall provide Party B information regarding the business operation, management
and finance of Party A.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
       

      Consigned
Management and Technology Service Agreement

        
          

        

         

      

    

    4.8 Party
A shall promptly and proactively notify Party B of any matters that adversely
affect Party A.

    

    4.9 Party
A shall give full cooperation to Party B, and provide assistance and convenience
to Party B for its on-site working, and shall not hinder Party B to provide
services as set forth in Article 2 hereunder.

    

    4.10
Party A shall promptly make full payment of Consigned Management and Technology
Service Fee to Party B in accordance with the provisions hereunder.

    

    4.11Without
the prior written consent by Party B, Party A shall not take any action that
would materially affect Party B’s rights and interests hereunder.

    

    Article
5 Warrants and Undertakings by Party B

    

    5.1 Party
B shall take advantage of its capacity and resources to provide the services as
stipulated in Article 2 hereunder.

    

    5.2 Party
B shall timely adjust and improve the services in accordance with the practical
request from Party A.

    

    5.3 In
the event that Party B proposes to provide services to any other entities
engaged in similar business as Party A, it shall give prior notice to Party A
and strictly keep the confidential information obtained during the course of
providing services to Party A .

    

    5.4 Party
B shall accept any reasonable suggestions from Party A during the course of
providing services to Party A.

    

    Article
6 Guaranty for this Agreement

    

    6.1 To
secure the performance of the obligations assumed by Party A hereunder,
Shareholder agree to pledge all their equity interests in Party A to Party B,
and the Parties agree to execute the Equity Pledge Agreement with respect
thereto.

    

    Article
7 Taxes and Expenses

    

    7.1 The
Parties shall pay, in accordance with relevant PRC laws and regulations, their
respective taxes and fees arising from the execution and performance of this
Agreement.

    

    Article
8 Assignment of the Agreement

    

    8.1 Party
A shall not transfer part or all its rights and obligations under this Agreement
to any third party without the prior written consent of Party
B.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
       

      Consigned
Management and Technology Service Agreement

        
          

        

         

      

    

    8.2 The
Parties agree that Party B shall be entitled to transfer, at its own discretion,
any or all of its rights and obligations under this Agreement to any third party
upon a six (6) –day written notice to Party A.

    

    Article
9 Liability of Breach

    

    9.1 If
Party A fails to duly pay the Consigned Management and Technology Service Fee in
accordance with the provisions of Article 3 hereunder, then Party A shall pay
the liquidated damage per day equal to 0.03% of the unpaid Consideration which
falls due; if any delay of payment amounts to sixty (60) days, then Party B
shall be entitled to exercise the right of pledge under the Equity Pledge
Agreement.

    

    9.2 If
Party A violates its representations and warranties hereunder and fails to
redress such violation within sixty (60) days upon receipt of written notice
from Party B, Party B shall be entitled to exercise the right of pledge under
the Equity Pledge Agreement.

    

    9.3 If
Party B is in non-performance, or incomplete performance of this Agreement, or
is otherwise in default of any of its representations and warranties hereunder,
Party A shall be entitled to request Party B to redress its
default.

    

    Article
10 Effect, Modification and Cancellation

    

    10.1 This
Agreement shall take effect on the day of execution hereof, and the valid term
hereof shall be expired upon the day of completion of the acquisition of all or
the substantial part of assets or the equity of Party A by Party B or its
designated third party.

    

    10.2 The
modification of this Agreement shall not be effective without written agreement
of the Parties through negotiation. If the Parties could not reach an agreement,
this Agreement remains effective.

    

    10.3 This
Agreement shall not be discharged or canceled without written agreement of the
Parties through negotiation, provided Party B may, by giving a thirty (30)-day
prior notice to the other Parties hereto, terminate this Agreement.

    

    Article
11 Confidentiality

    

    11.1 Any
information, documents, data and all other materials (herein “Confidential
Information”) arising out of the negotiation, signing, content and implementing
of this Agreement, shall be kept in strict confidentiality by the Parties.
Without the written approval by the other Parties, none of the Parties shall
disclose to any third party any confidential information, but the following
shall not be considered to be “confidential information”:

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
       

      Consigned
Management and Technology Service Agreement

        
          

        

         

      

    

    (1) The
materials that are known by the general public (but not include the materials
disclosed by a Party receiving the materials in breach of this
Agreement);

    (2) The
materials required to be disclosed subject to the applicable laws or the rules
or provisions of any stock exchange; or

    (3) The
materials disclosed by each Party to its legal or financial consultants relating
the transactions under this Agreement, provided the legal or financial
consultants shall comply with the confidentiality set forth in this Section. The
disclosure of the Confidential Information by staff or employed institution of
any Party shall be deemed as the disclosure of Confidential Information by such
Party, and such Party shall bear the liabilities for breaching the
contract.

    

    11.2 If
this Agreement is terminated or becomes invalid or unenforceable, the validity
and enforceability of Article 11 shall not be affected or impaired.

    

    Article
12 Force Majeure

    

    12.1
“Force Majeure” refers to any event that could not be foreseen, and could not be
avoided and overcome, which includes among other things, but without limitation,
acts of nature (such as earthquake, flood or fire), governmental acts, strikes
or riots.

    

    12.2 If
an event of force majeure occurs, any of the Parties who is prevented from
performing its obligations under this Agreement by an event of force majeure
shall notify the other Party without delay and within fifteen (15) days of the
event provide detailed information about and notarized documents evidencing the
event and take appropriate means to minimize or remove the negative effects of
force majeure on the other Parties, and shall not assume the liabilities for
breaching this Agreement. The Parties shall keep on performing this Agreement
after the event of force majeure disappears.

    

    Article
13 Governing Law and Dispute Resolution

    

    13.1 The
effectiveness, interpretation, implementation and dispute-resolution related to
this Agreement shall be governed under the PRC Laws.

    

    13.2 Any
dispute arising out of this Agreement shall be resolved by the Parties through
friendly negotiation. If the Parties could not reach an agreement within thirty
(30) days since the dispute is brought forward, each Party may submit the
dispute to Qingdao Arbitration Commission for arbitration under its applicable
rules. The arbitration award should be final and binding upon the
Parties.

    

    13.3
During the process of dispute-resolution, the Parties shall continue to perform
other terms under this Agreement, except for provisions subject to dispute
resolution.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
       

      Consigned
Management and Technology Service Agreement

        
          

        

         

      

    

    Article
14 Miscellaneous

    

    14.1 The
Parties acknowledge that this Agreement constitutes the entire agreement of the
Parties with respect to the subject matters therein and supersedes and replaces
all prior or contemporaneous oral or written agreements and
understandings.

    

    14.2 This
Agreement shall bind and benefit the successor of each Party and the transferee
permitted hereunder with the same rights and obligations as if such successor or
transferee were an original party hereof.

    

    14.3 Any
notice required to be given or delivered to the Parties hereunder shall be in
writing and delivered to the address as indicated below or such other address or
as such party may designate, in writing, from time to time. All notices shall be
deemed to have been given or delivered upon by personal delivery, fax and
registered mail. It shall be deemed to be delivered upon: (1) registered air
mail: five (5) business days after deposit in the mail; (2) personal delivery
and fax: the next business day after transmission. If the notice is delivered by
fax, it should be confirmed by original through registered air mail or personal
delivery:

    Party
A:

    Contact
person: Fu Wenyuan

    
      	
               
      

            	
              Address:

            	
              Room
      2007 20/F, Qingyundangdai Building, No.9 Mantingfangyuan Community,
      Qingyun Li, Haidian District, Beijing
City.

            

    

    Tel:

    Fax:

    

    Party
B:

    Contact
person:  Robin Smith

    Address:

    Tel:

    Fax:

    

    The Shareholder

    Contact
person: Fu Wenyuan

    Address:
No.27 Shandabei Road, Licheng District, Ji’nan City

    Tel:

    Fax:

    

    14.4 This
Agreement is executed in three (3) originals with each Party holding one
original, and each of the originals shall be equally valid and
authentic.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    Consigned
Management and Technology Service Agreement

      
        

      

       

    

    14.5
Whenever the consent of Party B is required under this Agreement, such consent
shall not be effective unless such consent is also provided by either the sole
shareholder, or the Executive Director, of Party B.

    

    IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be executed and delivered as of the
date first written above.

    

    Party
A    Beijing Ruijieao Bio-Technology Ltd.

    Legal
Representative: Fu Wenyuan

    Signature
and Company seal:

    /s/ Fu
Wenyuan

    

    
      Party
B    NeoStem (China), Inc.

    

    Legal
Representative: Robin Smith

    Signature
and Company Seal:

     /s/ Robin
Smith

    

    The
Shareholder of Beijing Ruijieao Bio-Technology Ltd.

     

    
      
        	
                Name of the

                Shareholder

              	
                 
      

              	
                Signature

              
	 	 	 
	
                Fu
      Wenyuan

              	 
      	
                /s/
      Fu Wenyuan

              

      

    

    
      
         

      

      
        11

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