Document:

LOAN
CONVERSION AGREEMENT

     

    This Loan
Conversion Agreement (this “Agreement”) is dated May 15,
2009, among Renhuang Pharmaceuticals, Inc., a Nevada Corporation, (the “Company”) and the investors
listed and identified on the signature pages hereto (each an “Investor” and
together, the “Investors”).

     

    WHEREAS,
the Investors provided the Company with a loan in the aggregate amount of $1.5
million on January 29, 2008 for a term of one year in anticipation of a private
placement by the Company (the “Bridge Loan”).

     

    WHEREAS,
it was understood at the time of the making of the Bridge Loan that the
[Principal and any accrued and unpaid interest of the] Bridge Loan was
convertible into shares of the Company’s common stock, par value $0.001 (“Common
Stock”), at the conversion price of $1.25 per share at the option of the
Investors with a 50% warrant coverage which permits the Investors to purchase
shares of the Common Stock at an exercise price equal to 125% of the conversion
price.

     

    WHEREAS,
Company was not able to complete the private placement due to market conditions
and as a result of certain circumstances, the Company was not able to file
required periodic reports with the Securities and Exchange Commission (the
“SEC”) and was delisted from the Over-the-Counter Bulletin Board
(“OTCBB”).

     

    WHEREAS,
the Company was not able to repay the Bridge Loan and is willing to reduce the
conversion price to $0.70 per share and the warrant exercise price to $0.875 per
share in exchange for the Investors’ (i) waiver of the repayment of the Bridge
Loan and any accrued but unpaid interest thereupon and (ii) conversion of the
Bridge Loan into shares of the Common Stock plus warrants (the “Warrants”)
to purchase shares of the Common Stock (the “Securities”)

     

    WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to
Regulation D and Regulation S, or other applicable exemptions under the
Securities Act of 1933, as amended (the “Securities
Act”), the Company desires to issue and sell to the Investor, and the
Investor desires to convert into and purchase from the Company certain
Securities of the Company, as more fully described in this
Agreement.

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and the Investor agree as
follows:

     

    I.
PURCHASE AND SALE

     

    A.          
 Closing.
Subject to the terms and conditions set forth in this Agreement, the Company
shall issue and sell to the Investors (i) shares of Common Stock of the Company
as set forth on the signatures and (ii) Warrants to purchase shares of the
Common Stock as set forth on the signature pages in exchange for the waiver of
the Bridge Loan and any accrued interest thereupon by the
Investors.  The Investors shall receive the Shares and Warrants in
lieu of the repayment of the principal of the Bridge Loan and any accrued
interest thereupon.  The closing of the transactions contemplated
hereby shall take place at the offices of Cadwalader Wickersham & Taft LLP,
79 Jianguo Road, China Central Place, Tower 2, Room 2301, Beijing, China 100025,
on May 15, 2009 or at such other location or time as the parties may agree (the
“Closing
Date”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    B.            
Closing
Deliveries.

     

    1.           On
the Closing Date, the Company shall deliver or cause to be delivered to the
Investor the following:

     

    (a)           certificates
evidencing the Shares, registered in the name of the Investors; and

     

    (b)           warrants,
substantially in the form attached hereto as Exhibit A, in the name of the
Investors and duly authorized and executed by the Company.

     

    2. The Investor shall deliver or cause
to be delivered to the Company the following:

     

    (a)           any
documentation evidencing the Bridge Loan for cancellation;

     

    (b)           a
waiver and release, substantially in the form attached hereto as Exhibit B, duly
authorized and executed by the Investors.

     

    II.
REPRESENTATIONS AND WARRANTIES

     

    A.          
 Representations
and Warranties of the Company.

     

    
      	
               
      

            	
              1.

            	
              Organization and
      Qualification. The Company is a corporation duly incorporated,
      validly existing and in good standing under the laws of the State of
      Nevada, with the requisite power and authority to own and use its
      properties and assets and to carry on its business as currently
      conducted.

            

    

     

    
      	
               
      

            	
              2.

            	
              Authorization and
      Power; Enforcement. The Company has the requisite corporate power
      and authority to enter into and to consummate the transactions
      contemplated hereby. The execution and delivery of this Agreement by the
      Company and the consummation by it of the transactions contemplated
      hereby, including the issuance of the securities, has been duly authorized
      by all necessary action on the part of the Company. This Agreement is the
      valid and binding obligation of the Company enforceable against the
      Company in accordance with its
terms.

            

    

     

    
      	
               
      

            	
              3.

            	
              Issuance of the
      Securities. The Shares are duly authorized and, when issued and
      paid for in accordance with this Agreement, will be duly and validly
      issued, fully paid and nonassessable. The shares issuable upon exercise of
      the Warrants (“Warrant
      Shares”), when issued in accordance with the terms of the Warrants,
      will be validly issued, fully paid and
  nonassessable.

            

    

     

    B.    
       Representations and
Warranties of the Investor. Each of the Investors, severally and not
jointly, hereby represents and warrants to the Company as follows:

     

    
      	
               
      

            	
              1.

            	
              Organization and
      Standing of the Investor.  If such Investor is an entity, such
      Investor is a corporation, partnership or other entity duly incorporated
      or organized, validly existing and in good standing under the laws of the
      jurisdiction of its incorporation or
      organization.

            

    

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.

            	
              Authorization and
      Power; Enforcement.  Such
      Investor has the requisite power and authority to enter into and perform
      this Agreement and the transactions contemplated hereby and to purchase
      the Securities being sold to it
      hereunder.  The execution, delivery and performance of this
      Agreement by such Investor and the consummation by it of the transactions
      contemplated hereby and thereby have been duly authorized by all necessary
      corporate or partnership action, and no
      further consent or authorization of such Investor or its Board of
      Directors, stockholders, partners, members, as the case may be, is
      required.  This Agreement has been duly authorized, executed and
      delivered by such Investor and constitutes, or shall constitute
      when executed and delivered, a valid and binding obligation of such
      Investor enforceable against such Investor in accordance with the terms
      hereof.

            

    

     

    
      	
               
      

            	
              3.

            	
              No
      Conflicts.  The execution,
      delivery and performance of this Agreement and the consummation
      by such Investor of the transactions
      contemplated hereby or relating hereto do not and will not (i) result in a
      violation of such Investor’s charter
      documents or bylaws or other organizational documents or (ii) conflict
      with, or constitute a default (or an event which
      with notice or lapse of time or both would become a default) under, or
      give to others any rights of termination, amendment, acceleration or
      cancellation of any agreement, indenture or instrument or obligation to
      which such Investor is a party or by which
      its properties or assets are bound, or result in a violation of any law,
      rule, or regulation, or any order, judgment or decree of any court or
      governmental agency applicable to such Investor or its properties (except
      for such conflicts, defaults and
      violations as would not, individually or in the aggregate, have a material
      adverse effect on such Subscriber).  Such Investor is not
      required to obtain any consent, authorization or order of, or make any
      filing or registration with, any court or governmental
      agency in order for it to execute, deliver or perform any of its
      obligations under this Agreement or to purchase the Securities in
      accordance with the terms hereof, provided that for purposes of the
      representation made in this sentence, such Investor is
      assuming and relying upon the accuracy of the relevant representations and
      agreements of the Company
herein.

            

    

     

    
      	
               
      

            	
              4.

            	
              Access to
      Information.    Such Investor acknowledges that
      it has been afforded (i) the opportunity to ask such questions as it has
      deemed necessary of, and to receive answers from, representatives of the
      Company concerning the terms and conditions of the offering of the
      Securities and the merits and risks of investing in the Securities; (ii)
      access to public information about the Company and the subsidiaries and
      their respective financial condition, results of operations, business,
      properties, management and prospects sufficient to enable it to evaluate
      its investment; and (iii) the opportunity to obtain such additional public
      information that the Company possesses or can acquire without unreasonable
      effort or expense that is necessary to make an informed investment
      decision with respect to the
investment.

            

    

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              5.

            	
              Investor
      Information.  Such Investor is, and will be at the
      time  of exercise of the Warrants, an "accredited investor", as
      such term is defined in Regulation D promulgated by the Commission under
      the 1933 Act, is experienced in investments and business matters, has made
      investments of a speculative nature and has purchased securities of United
      States publicly-owned companies in private placements in the past and,
      with its representatives, has such knowledge and experience in financial,
      tax and other business matters as to enable such Investor to utilize the
      information made available by the Company to evaluate the merits and risks
      of and to make an informed investment decision with respect to the
      proposed purchase, which represents a speculative
      investment.  Such Investor
      has the authority and is duly and legally qualified to purchase and own
      the Securities.  Such
      Investor is able to bear the risk of such investment for an indefinite
      period and to afford a complete loss thereof.  The information
      set forth on the signature page hereto regarding such Investor is
  accurate.

            

    

     

    
      	
               
      

            	
              6.

            	
              Purpose
      of Investment.  On the Closing Date, such Investors will purchase the Securities
      as principal for its own account for investment only and not with a view
      toward, or for resale in connection with, the public sale or any
      distribution thereof.

            

    

     

    
      	
               
      

            	
              7.

            	
              Compliance with
      Securities Act.   Such Investor understands and agrees that
      the Securities have not been registered under the 1933 Act or any
      applicable state securities laws, by reason of their issuance in a
      transaction that does not require registration under the 1933 Act (based
      in part on the accuracy of the representations and warranties of such Investor contained herein), and that
      such Securities must be held indefinitely unless a subsequent disposition
      is registered under the 1933 Act or any applicable state securities laws
      or is exempt from such registration.  Such Investor will comply with all
      applicable rules and regulations in connection with the sales of the
      Securities including laws relating to short
  sales.

            

    

     

    
      	
               
      

            	
              8.

            	
              Certain Trading
      Activities. Such Investor has not directly or indirectly, nor has
      any person acting on behalf of or pursuant to any understanding with such
      Investor, engaged in any transactions in the securities of the Company
      (including, without limitations, any short sales as defined by Rule 200
      under Regulation SHO (“Short
      Sales”) involving the Company’s securities since the time that such
      Investor was first contacted by the Company regarding the investment in
      the Company contemplated by this Agreement. Such Investor covenants that
      neither it nor any Person acting on its behalf or pursuant to any
      understanding with it will engage in any transactions in the securities of
      the Company (including Short Sales) prior to the time that the
      transactions contemplated by this Agreement are publicly
      disclosed.

            

    

     

    
      	
               
      

            	
              9.

            	
              Independent Investment
      Decision. Such Investor has independently evaluated the merits of
      its decision to purchase the Securities pursuant to the transaction
      contemplated hereby, and such Investor confirms that it has not relied on
      the advice of any other Investor’s business and/or legal counsel in making
      such decision. Such Investor has not relied on the business or legal
      advice of the Company or any of its agents, counsel or affiliates in
      making its investment decision hereunder, and confirms that none of such
      persons has made any representations or warranties to such Investor in
      connection with the transactions contemplated
  hereby.

            

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              10.

            	
              Opportunity to Conduct
      Due Diligence. The Investor was granted the opportunity to conduct
      due diligence prior to entering into the transactions contemplated by this
      Agreement.

            

    

     

    11. 
         Regulation S
Representation. If such Investor is not a US person as defined in Rule
902 promulgated under the Securities Act (“Rule
902”), such Investor hereby represents and warrants to the Company as
follows:

     

    a.           The
offer or sale of the Securities by the Company, a distributor, any of their
respective affiliates, or any person acting on behalf of the foregoing, were
made in an offshore transaction, as such term is defined in Rule 902
;

     

    b.           No
directed selling efforts, as such term is defined in Rule 902, were made in the
United States by the Company, a distributor, any of their respective affiliates,
or any person acting on behalf of any of the foregoing;

     

    c.           The
Investor is not a U.S. person as defined in Rule 902 and is not acquiring the
securities for the account or benefit of any U.S. person or is a U.S. person who
purchased securities in a transaction that did not require registration under
the Securities Act; and

     

    d.           Such
Investor agrees to resell such securities only in accordance with the provisions
of Regulation S under the Securities Act, pursuant to registration under the
Securities Act, or pursuant to an available exemption from registration; and
agrees not to engage in hedging transactions with regard to such securities
unless in compliance with the Securities Act;

     

    III.
OTHER AGREEMENTS OF THE PARTIES

     

    A.           
Publicity. The
parties agree that this Agreement and the transactions contemplated hereby will
remain confidential until the Company files a Form 8-K with the Securities and
Exchange Commission disclosing this Agreement. The Investor agrees not to effect
any purchase or sale of the securities of the Company until after such filing is
made.

     

    B.           
 Transfer
Restrictions.

     

    
      	
               
      

            	
              4.

            	
              The
      Investors hereby acknowledge that the Securities and any part hereof may
      only be disposed of in compliance with state and federal securities laws.
      In connection with any transfer of Securities or Warrant Shares other than
      pursuant to an effective registration statement, Regulation S or Rule 144,
      to the Company or to an Affiliate of a Investor or in connection with a
      pledge, the Company may require the transferor thereof to provide to the
      Company an opinion of counsel selected by the transferor and reasonably
      acceptable to the Company, the form and substance of such opinion shall be
      reasonably satisfactory to the Company, to the effect that such transfer
      does not require registration of such transferred Securities or Warrant
      Shares under the Securities Act.

            

    

     

    
      	
               
      

            	
              5.

            	
              The
      Investor agrees to the imprinting, so long as is required, of a legend on
      any of the Securities and Warrant Shares in the following
      form:

            

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    [THE
SHARES] [THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT]
HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, REGULATION S UNDER
THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY; HEDGING TRANSACTIONS
INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
SECURITIES ACT.

     

    C.           
Market
Standoff.  The Investors hereby agree that, during the period
of duration(not to exceed 180 days) specified by the Company and an underwriter
of Common Stock or other securities of the Company, following the effective date
of any registered underwritten public offering of Company securities, it shall
not, to the extent requested by the Company and such underwriter, directly or
indirectly sell, offer to sell, contract to sell (including, without limitation,
any short sale), grant any option to purchase or otherwise transfer or dispose
of (other than to donees who agree to be similarly bound) any securities of the
Company held by it at any time during such period except Common Stock included
in such registration.  In order to enforce the foregoing covenant, the
Company may impose stop-transfer instructions with respect to the shares of
Common Stock of the Investor (and the shares or securities of every other person
subject to the foregoing restriction (until the end of such period.

     

    D.       
    General
Indemnity.  The Company agrees to indemnify and hold harmless
the Investor (and its respective directors, officers, managers, partners,
members, shareholders, affiliates, agents, successors and assigns) from and
against any and all losses, liabilities, deficiencies, costs, damages and
expenses (including, without limitation, reasonable attorneys' fees, charges and
disbursements) incurred by the Investor as a result of any inaccuracy in or
breach of the representations, warranties or covenants made by the Company
herein. The Investor agrees to indemnify and hold harmless the Company and its
directors, officers, managers, affiliates, agents, successors and assigns from
and against any and all losses, liabilities, deficiencies, costs, damages and
expenses (including, without limitation, reasonable attorneys’ fees, charges and
disbursements) incurred by the Company as result of any inaccuracy in or breach
of the representations, warranties or covenants made by such Investor
herein.

     

    IV.
MISCELLANEOUS

     

    C.          Fees and Expenses.
Each party shall be responsible for its own fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred
by such party in connection with this Agreement.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    D.         
  Notices. Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the earliest of: (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or by email to
the email address set forth on the signature page or (c) upon actual receipt by
the party to whom such notice is required to be given.

     

    E.      
     Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors. This Agreement is not assignable by either
party.

     

    F.       
    Governing Law. All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of
Nevada.        

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Securities Conversion
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          Renhuang
      Pharmaceuticals, Inc.

                                        
	 
      	 
	
                                          By:
      

                                        	 /s/
      Li Shaoming
	
                                          Name:
      Li Shaoming

                                        
	
                                          Title:
      CEO

                                        
	 
      
	
                                          Office
      Address:

                                        
	
                                                                      

                                        
	
                                          Fax
      No.  ̈

                                        
	 
      
	
                                          Email
      Address:

                                        

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    Allied
Merit International Inc.

     

    
      
        
          
            
              
                	
                        Amount
      of Loan Converted

                      	 	$	1,250,000	 
	 
      	 	 	 	 
	
                        Shares
      Received upon Conversion

                      	 	 	1,785,714	 
	 
      	 	 	 	 
	
                        Warrants
      Received upon Conversion

                      	 	 	892,857	 

              

            

          

        

         

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      By:
      

                                    	/s/Jeff
      Liu
	
                                      Name:
      Jeff Liu

                                    
	
                                      Title:
      President

                                    
	 
      
	
                                      Office
      Address:

                                    
	
                                                                  

                                    
	
                                      Fax
      No.

                                    
	 
      
	
                                      Email
      Address:

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    Griffin
Ventures Ltd.

     

    
      
        	
                Amount
      of Loan Converted

              	 	$	250,000	 
	 	 	 	 	 
	
                 Shares
      Received upon Conversion

              	 	 	357,142	 
	 	 	 	 	 
	
                Warrants
      Received upon Conversion

              	 	 	178,571	 

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            By:

                                          	/s/
      Jodie Rinde
	
                                            Name:
      Jodie Rinde

                                          
	
                                            Title:
      Director

                                          
	 
      
	
                                            Office
      Address:

                                          
	
                                                                        

                                          
	
                                            Fax
      No.

                                          
	 
      
	
                                            Email
      Address:

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        -10-NETGEAR, INC.

AMENDMENT #2 TO EMPLOYMENT AGREEMENT

This amendment (the "Amendment") is made by and between Christine Gorjanc (the "Executive") and NETGEAR, Inc. (the "Company" and together with the Executive hereinafter collectively referred to as the "Parties") on September 21, 2009. 

W I T N E S S E T H:

WHEREAS, the Parties previously entered into an employment agreement, dated November 16, 2005, and an Amendment to Employment Agreement, dated December 31, 2008 (together, the "Agreement"); and

WHEREAS, the Parties wish to amend the Agreement to modify the severance provisions to reflect Executive's promotion to Chief Financial Officer, as set forth below.

NOW, THEREFORE, for good and valuable consideration, Executive and the Company agree that the Agreement is hereby amended as follows:

	Severance.  Section 6(a) of the Agreement is hereby amended as follows:

	The words "thirteen (13) weeks" shall be deleted and replaced with the words "twenty-six (26) weeks"; and

	The words "three month" shall be deleted and replaced with the words "twelve month".  

	Full Force and Effect.  To the extent not expressly amended hereby, the Agreement shall remain in full force and effect.

	Entire Agreement.  This Amendment and the Agreement constitute the full and entire understanding and agreement between the Parties with regard to the subjects hereof and thereof.

	Successors and Assigns.  This Amendment and the rights and obligations of the parties hereunder shall inure to the benefit of, and be binding upon, their respective successors, assigns, and legal representatives.

	Governing Law.  This Amendment will be governed by the laws of the State of California (with the exception of its conflict of laws provisions).

oOo

 

IN WITNESS WHEREOF, each of the Parties has executed this Amendment, in the case of the Company by its duly authorized officer, as of the day and year set forth above.

 

COMPANYNETGEAR, INC.

By:/s/ Patrick Lo

Title:Chief Executive Officer

Date:September 18, 2009

 

EXECUTIVEBy: /s/ Christine Gorjanc

Title:Chief Financial Officer

Date:September 21, 2009

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]