Document:

Asset Acquisition Agreement

 Exhibit 4.2 
 Execution Version 
  
  
  
 ASSET ACQUISITION AGREEMENT 
 dated as of 
 October 5, 2008 
 by and among 
 CMED TECHNOLOGIES LTD., 
 MOLECULAR DIAGNOSTIC TECHNOLOGIES LIMITED 
 AND 
 THE
OTHER PARTIES NAMED HEREIN 
  
  
  

 ASSET ACQUISITION AGREEMENT 
 THIS ASSET ACQUISITION AGREEMENT (this “Agreement”) is made and entered into as of October 5, 2008 (the “Agreement Date”) by and among China Medical Technologies, Inc., an exempt
corporation incorporated under the laws of the Cayman Islands (“CMED”), CMED Technologies Ltd., a business company incorporated under the laws of the British Virgin Islands and a wholly owned subsidiary of CMED (“CMED
Sub”), Molecular Diagnostic Technologies Limited, a business company under the laws of the British Virgin Islands (“Seller”), and Supreme Well Investments Limited, a business company under the laws of the British Virgin
Islands (“Supreme Well”). Each of Seller and Supreme Well is individually referred to herein as a “Seller Party”, and collectively as the “Seller Parties.” Each of CMED, CMED Sub and each Seller
Party is individually referred to herein as a “Party”, and collectively as the “Parties.” 
 RECITALS

  

	A.	As of the Agreement Date, CytoTrend Biotech Engineering Limited, a company incorporated in Hong Kong (“CytoTrend HK”), and CytoTrend (Beijing) Biotech Engineering
Co., Ltd. (

), a wholly-foreign owned enterprise established in the People’s Republic of China ( “CytoTrend WFOE”), are engaged in the business of research, development, use, import, manufacturing,
sales, maintenance and support of technologies, products and services used for research and diagnostic purposes in the field of medicine, comprising of (i) biochips and un-label bio-molecule high-throughput on-line parallel analysis systems
based on surface plasmon resonance platform (the “SPR Business”), and (ii) testing kits and assays based on PCR and other molecular genetics platforms (the “PCR Business” and collectively with the SPR Business,
the “Business”) (each of CytoTrend HK and CytoTrend WFOE is individually referred to herein as a “Group Company”, and collectively, as the “Group Companies”, and the Group Companies and the Seller
Parties are each individually referred to herein as a “Seller Group Member” and are collectively referred to herein as the “Seller Group” ); 

  

	B.	Supreme Well owns all of the issued share capital of Seller, and there are no outstanding options or rights to acquire any share capital of Seller; 

  

	C.	Seller owns all of the issued share capital of CytoTrend HK, and there are no outstanding options or rights to acquire any share capital of CytoTrend HK; 

 

	D.	CytoTrend HK owns all of the registered capital of CytoTrend WFOE, and there are no outstanding options or rights to acquire any registered capital of the CytoTrend WFOE;

  

	E.	As of the Agreement Date, CytoTrend WFOE is the sole legal and beneficial owner of the Assets, PRC IP Rights and Relevant IP Rights (each as defined below), which, together with the
Excluded IP and Excluded Asset (each as defined below), constitute all of the properties and assets, real, personal, mixed, tangible and intangible assets relating to the SPR Business, as currently conducted and as proposed to be conducted;

  

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	F.	CMED and CMED Sub believe it is advisable and in the best interests of CMED and its shareholders for CMED Sub and a PRC subsidiary of CMED (“CMED
WFOE,” together with CMED and CMED Sub, the “CMED Group”) to acquire the Designated Assets (as defined below), PRC IP Rights and Relevant IP Rights from the Seller Group, and the Seller Parties desire for the Seller and
CytoTrend WFOE to sell the Designated Assets, PRC IP Rights and Relevant IP Rights to CMED Sub and CMED WFOE, upon the terms and subject to the conditions set forth in this Agreement and in the PRC Asset Acquisition Agreement (as defined below),
such that upon consummation of this Agreement and the PRC Asset Acquisition Agreement, CMED Sub will own all of the Relevant IP Rights of the SPR Business and CMED WFOE will own PRC IP Rights and certain of the tangible assets of the SPR Business as
specified in the PRC Asset Acquisition Agreement. In addition, the Parties desire for the Seller Parties to agree to enter into and be bound by certain covenants and restrictions, including covenants to cause certain of the employees and consultants
of the SPR Business to accept employment with CMED or its Affiliates (as defined below), covenants not to compete with CMED or its Affiliates (including the SPR Business), covenants not to solicit the employees or consultants of CMED or its
Affiliates (including the Transferred Employees (as defined below)), and covenants to provide CMED or its Affiliates with transitional technical support to operate the Designated Assets, PRC IP Rights and Relevant IP Rights upon the request of CMED
or its Affiliates. For the purpose of this Agreement, “PRC” shall mean the People’s Republic of China, excluding for the purposes of this Agreement, Hong Kong, Macao and Taiwan; and 

  

	G.	As an inducement for CMED and CMED Sub to consummate the Transaction (as defined below), the Seller Parties have agreed to make certain representations, warranties,
covenants and other agreements in connection with the Assets, PRC IP Rights and Relevant IP Rights, all as set forth herein. 

  

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 AGREEMENT 
 In consideration of the mutual promises, agreements, representations, warranties and provisions contained in this Agreement, the Parties, intending to be legally bound, hereby agree as follows:

 SECTION 1. 
 PURCHASE AND SALE OF DESIGNATED ASSETS, PRC IP RIGHTS AND 
 RELEVANT IP
RIGHTS 
  

	1.1	Designated Assets and PRC IP Rights to be Sold and Purchased. 

  

	 	(a)	Sale and Purchase of Designated Assets and PRC IP Rights. Subject to the terms and conditions of this Agreement, CMED and CMED Sub shall cause CMED WFOE, and the
Seller Parties shall cause CytoTrend WFOE, to enter into a PRC asset acquisition agreement dated as of the Closing Date as defined in Section 2.1 hereunder by and between CMED WFOE and CytoTrend WFOE (the “PRC Asset Acquisition
Agreement”), pursuant to which CytoTrend WFOE as the sole legal and beneficial owner shall sell, assign, transfer, convey and deliver, and CMED WFOE shall purchase, acquire and receive, free from any Liens, all right, title and interest in
the Designated Assets and PRC IP Rights. For the purpose of this Agreement, “Liens” shall mean any pledge, lien (including, without limitation any Tax lien), collateral assignment, security interest, mortgage, deed of trust, title
retention, conditional sale or other security arrangement, or any license, order or charge, or any adverse claim of title, ownership or use, or agreement of any kind restriction transfer, or any other encumbrance whatsoever.

  

	 	(b)	PRC IP Rights Schedule. All PRC IP Rights shall be set out in a schedule prepared by the Seller Parties as of the Agreement Date (the “PRC IP Rights
Schedule”). 

  

	 	(c)	Assets to be Purchased. From the Agreement Date, the Seller Parties shall cause CytoTrend WFOE to allow representatives of CMED Group to inspect from time to
time during normal business hours all of its tangible assets related to the SPR Business, including, without limitation, all raw materials, works in progress, product inventory, supplies, samples, packaging, equipment and machinery (but excluding
the asset set out in the Excluded Asset Schedule (the “Excluded Asset”)) (collectively, the “Assets”), upon the request of CMED Group. CMED WFOE shall be entitled, in its discretion, to purchase, and CytoTrend WFOE
shall be required to sell, any of such tangible assets designated by CMED WFOE to CytoTrend WFOE in writing prior to the Closing (the “Designated Assets”). The price for the Designated Assets shall be determined in accordance with
Section 1.7 below, and CytoTrend WFOE shall prepare a schedule of the Designated Assets which shall be attached to the PRC Asset Acquisition Agreement. 

  

	1.2	Relevant IP Rights to be Sold and Purchased. 

  

	 	(a)	 Sale and Purchase of Relevant IP Rights. Subject to the terms and conditions of this Agreement, as of the Closing Date, the Seller as the sole
legal and beneficial owner shall sell, assign, transfer, convey and deliver, and CMED Sub shall purchase,

  

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acquire and receive, free from any Liens, all right, title and interest in the Relevant IP Rights. For the avoidance of doubt, the Excluded IP set forth in Schedule 1.2(a) attached hereto are
excluded from the sale and purchase contemplated under this Agreement. 

  

	 	(b)	Execution and Delivery of Instruments. The Seller covenants and agrees to duly execute and deliver all instruments of sale, conveyance, transfer and assignment,
and all notices, releases, acquittances and other documents, and take all other actions that may be necessary to more fully grant, convey, transfer and assign, and deliver to, and vest in, CMED Sub the Relevant IP Rights hereby sold, conveyed,
transferred and delivered, and further covenants and agrees to warrant and defend the sale, conveyance, transfer and assignment of the Relevant IP Rights against all persons, the costs of which shall be borne by the Seller. 

 

	 	(c)	Relevant IP Rights Schedule. All Relevant IP Rights are set out in Schedule 1.2(c) attached hereto prepared by the Seller Parties as of the Agreement Date (the
“Relevant IP Rights Schedule”). 

  

	 	(d)	Relevant IP Rights. For the purpose of this Agreement, “Relevant IP Rights” shall mean all Intellectual Property (as defined below) used in the
SPR Business as conducted at any time prior to the Closing Date or proposed to be conducted, and (if any), to the extent permitted by all applicable laws, all rights to causes of action and remedies under such Intellectual Property (including,
without limitation the right to sue for past, present or future infringement, misappropriation or violation of rights related to the foregoing), in each case to the extent owned by the Seller Group, including any such rights set forth in the
Relevant IP Rights Schedule attached hereto (including without limitation any and all software licenses used for imaging, data collection, processing, display, storage and/or analysis in the SPR Business), but is deemed to exclude the PRC IP Rights
and the Excluded IP. Such Relevant IP Rights are set out in the Relevant IP Rights Schedule and do not include the PRC IP Rights. 

  

	 	(e)	 Intellectual Property. For the purpose of this Agreement, “Intellectual Property” shall mean any or all of the following and
all rights in, arising out of, or associated therewith: (A) all United States, international and foreign (including PRC) patents and applications therefore and all reissues, re-examinations, renewals, extensions, supplemental protection
certificates, certificates of invention, provisionals, substitutions, divisionals, continuations and continuations-in-part thereof; (B) all inventions (whether patentable or not), invention disclosures, discoveries, ideas, protocols, processes,
methods, designs, techniques, formulas, improvements, trade secrets, confidential or proprietary information, know how, technology, technical data and customer and supplier list, and all documentation relating to any of the foregoing; (C) all
copyrights and works of authorship in any media, copyright registrations and applications therefore and all other rights corresponding

  

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thereto throughout the world; (D) all mask works, mask work registrations and applications therefore; (E) all industrial designs and utility models and any registrations and
applications therefore throughout the world; (F) all trade names, service names, brand names, trade dress, logos, symbols, common law trademarks and service marks; trademark and service mark registrations and applications therefore and all
goodwill associated therewith throughout the world; (G) all databases and data collections and all rights therein throughout the world; (H) all computer software including all source code, object code, firmware, development tools, test
suites, files, records and data, all media on which any of the foregoing is recorded, all Web addresses, sites and domain names; and (I) all documentation related to any of the foregoing irrespective of the media on which it is recorded, but
(where applicable) excluding the Excluded IP. 

  

	 	(f)	PRC IP Rights. For the purpose of this Agreement, “PRC IP Rights” shall mean all patent applications filed in the PRC by CytoTrend WFOE with a
PRC intellectual property state, government or public legal authority, all copyrights or works of authorship in the PRC and any related Intellectual Property used in the SPR Business, all as set forth in the PRC IP Rights Schedule, but (where
applicable) excluding the Excluded IP. 

  

	1.3	No Assumed Liabilities. The Parties agree that none of CMED, CMED Sub or any of their Affiliates shall assume, pay, perform or discharge, or otherwise
have any obligation or Liability whatsoever for any Liabilities in connection with the Assets, PRC IP Rights and Relevant IP Rights attributable to the period prior to Closing, which shall remain the sole responsibility of the Seller Parties;
provided that as from the Closing, CMED Sub and CMED WFOE shall be responsible for the registration, maintenance and renewal fees of the PRC IP Rights and the Relevant IP Rights once the Requisite Actions (as defined below) have been completed.
“Liabilities” (or when used with reference to a single item described below, “Liability”) shall mean debts, commissions, duties, fees, salaries, performance or delivery penalties, and obligations (whether pecuniary
or not, including without limitation obligations to perform or forebear from performing acts or services), fines or penalties, whether accrued or fixed, absolute or contingent, matured or un-matured, determined or determinable, known or unknown,
arising or existing anywhere in the world, including without limitation those arising under any law, action or governmental order, liabilities for Taxes and those arising under any contract, agreement, arrangement, commitment or undertaking of any
kind whatsoever (whether written or oral, express or implied). 

  

	1.4	Updating of Schedules. At the Closing, the Seller Parties shall update and prepare, in good faith in a manner consistent with the PRC IP Rights Schedule
and Relevant IP Rights Schedule as of the Agreement Date, and deliver updated PRC IP Rights Schedule and Relevant IP Rights Schedule as of the Closing Date to CMED Sub and its counsel, and all work papers and back-up materials relating thereto.

  

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	1.5	 Consideration. In consideration for the sale of the Designated Assets, PRC IP Rights and Relevant IP Rights and subject to the terms and
conditions set forth in this Agreement, CMED Sub agrees to pay the Seller the total consideration of US$345,000,000, being the aggregate of (a) the Net Signing Cash described in Section 1.6 below, (b) the Total Closing Cash described
in Section 1.7 below, and (c) the right to receive the Deferred Payments pursuant to the terms and subject to the conditions set forth in Section 1.8 below and (d) US$22,000,000, which CMED Sub has previously paid to Supreme Well
as a deposit pursuant to the Letter of Intent dated July 20, 2007 by and between CMED Sub and Supreme Well (the “Deposit”) ((a), (b) and (c) and (d) together, the “Consideration”). The Parties hereby
agree that CMED Sub may, in its sole and absolute discretion, elect to pay all or any portion of the Consideration in RMB, calculated using the Exchange Rate. The “Exchange Rate” means the daily RMB/USD Dollar closing exchange rate
set by the People’s Bank of China and published by the State Administration of Foreign Exchange at www.safe.gov.cn on the sixth (6th) Business Day preceding each applicable payment date set forth in Sections 1.6, 1.7 and 1.8 below, rounded to the
nearest two decimal places. “Business Day” means any day except a Saturday, Sunday or a day on which banking institutions in the U.S., PRC or Hong Kong are obligated or permitted by law, regulation or governmental order to close.

  

	1.6	Signing Payment. Within ten (10) Business Days after the Agreement Date: (a) CMED Sub shall pay to the Seller US$47,000,000 (the “Net
Signing Cash”), being US$69,000,000 less the deposit, subject to withholding for Taxes (as defined below) pursuant to Section 2.3 below. 

  

	1.7	Closing Payment. At the Closing: (a) CMED Sub shall pay US$103,500,000 (the “Total Closing Cash”) less the PRC Allocated Closing
Value (as defined below) to the Seller, subject to withholding for Taxes pursuant to Section 2.3 below; and (b) CMED and CMED Sub shall cause CMED WFOE to pay the PRC Allocated Closing Value to CytoTrend WFOE pursuant to the PRC Asset
Acquisition Agreement. The “PRC Allocated Closing Value” means the purchase price to be paid on the Closing Date for the Designated Assets and the PRC IP Rights being sold pursuant to the PRC Asset Acquisition Agreement, which
amount shall be the fair market value to be determined jointly by CytoTrend WFOE and CMED WOFE prior to the Closing Date, in RMB, and for the purpose of determining the Total Closing Cash (and components thereof), the USD equivalent of such RMB
amount, calculated using the Exchange Rate. The amount of the Total Closing Cash, less the PRC Allocated Closing Value and Taxes that are withheld pursuant to Section 2.3 below, is referred to in this Agreement as the “Net Closing
Cash”). 

  

	1.8	 Deferred Payments. In addition to the Net Signing Cash and Total Closing Cash, CMED Sub shall deliver to the Seller, subject to the right
of set-off provided in Section 8.2 below and for Taxes pursuant to Section 2.3 below, an amount of US$69,000,000, US$51,750,000 and US$51,750,000 in cash, on the last Business Day of the third (3rd), seventh (7th) and twelfth (12th) month after the Closing Date, respectively (each a “Deferred Payment” and collectively the
“Deferred Payments”). 

  

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	1.9	Set-off. Notwithstanding anything to the contrary in this Agreement, CMED Sub shall have the right to deduct from any unpaid amounts due to the Seller on
the terms set forth in Section 8.2 below. 

  

	1.10	Taxes; Prorations. Unless otherwise required under any applicable laws, the Seller Group shall be responsible for and shall pay any Taxes arising or
resulting from or in connection with the ownership of the Designated Assets, PRC IP Rights and Relevant IP Rights attributable to the period prior to the Closing Date. CMED Sub and CMED WFOE shall be responsible for and shall pay any Taxes arising
or resulting from or in connection with ownership of the Designated Assets, PRC IP Rights and Relevant IP Rights attributable to the period after the Closing Date. 

  

	 	(a)	All real property, personal property, ad valorem or other similar Taxes (not including income Taxes) levied with respect to the Designated Assets, PRC IP Rights and
Relevant IP Rights for a taxable period which includes (but does not end on) the Closing Date shall be apportioned between the Seller Group and CMED Sub and CMED WFOE based on the number of days included in such period through and including the
Closing Date and the number of days included in such period after the Closing Date. 

  

	 	(b)	The term “Taxes” shall mean all taxes, however denominated, including any interest, penalties or other additions to tax that may become payable in
respect thereof, imposed by any federal, territorial, state, local or foreign (including the United States, PRC, Hong Kong and British Virgin Islands) Governmental Authority (as defined below), which taxes shall include, without limiting the
generality of the foregoing, all income or profits taxes (including but not limited to, federal income taxes and state income taxes, enterprise income taxes, business taxes), payroll and employee withholding taxes, unemployment insurance, social
security taxes, social insurance contributions or payments (including housing funds), sales and use taxes, ad valorem taxes, value added taxes, customs duties, excise taxes, franchise taxes, gross receipts taxes, business license taxes, occupation
taxes, real and personal property taxes, stamp taxes, environmental taxes, transfer taxes, workers’ compensation and other governmental charges and fees, and other obligations of the same or of a similar nature to any of the foregoing, which
are required to be paid, withheld or collected. 

  

	1.11	Employees; Transferred Employees. 

  

	 	(a)	 Schedule 1.11 attached hereto sets forth all employees and consultants who perform any services for the SPR Business as of the Agreement Date
prepared by the Seller Parties (the “Employees”). CMED shall have the right, in its sole discretion, to interview or cause any Affiliate of CMED to interview any or all of the Employees, and to offer or cause any Affiliate of CMED
to offer, any or all of the Employees an employment or a consulting arrangement with CMED or an Affiliate of

  

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CMED to commence immediately after the Closing (as defined below) on such terms and conditions as CMED shall agree with any such Employee (each such Employee that accepts CMED or its
Affiliate’s offer of employment or consultancy is referred to herein as a “Transferred Employee”). 

  

	 	(b)	Upon acceptance by each Transferred Employee of the offer of the employment or consultancy with CMED or an Affiliate of CMED, the relevant Seller Group Member shall
(i) effective as of the Closing terminate its existing employment or consulting contract with any such Transferred Employee and take such actions as are necessary or appropriate under applicable PRC labor laws so that CMED WFOE is not required
to assume the seniority of any Transferred Employee and (ii) bear, solely for its own account, all severance and other related costs associated with terminating the employment or consultancy of any such Transferred Employee.

  

	 	(c)	Other than the Transferred Employees, neither CMED nor its Affiliates shall be obligated to hire and shall not assume any obligations with respect to the Employees, and
the Seller Parties shall be responsible for any and all continuing salary, benefits, severance and other costs of such Employees for the period before and after the Closing. 

 SECTION 2. 
 CLOSING 
  

	2.1	 Closing Date. The closing (the “Closing”) of the purchase and sale provided for in this Agreement (the
“Transaction”) shall be held at the offices of CMED, No. 24 Yongchang North Road, Beijing Economic-Technological Development Area, Beijing, P.R. China 100176 at 11:00 a.m. Beijing time on a date (the “Closing
Date”) to be specified by CMED Sub and the Seller, which shall be no later than the fifth (5th) Business Day after satisfaction or waiver of the latest to occur of the conditions set forth in Section 7 below (other than the conditions contemplated to be satisfied (unless waived) on the
Closing Date), unless another date, time or place is agreed to in writing by CMED and the Seller. 

  

	2.2	Actions at the Closing. At the Closing, the Parties shall take such actions and execute and deliver such agreements and other instruments and documents as
necessary or appropriate to effect the Transaction in accordance with its terms, including without limitation the following: 

  

	 	(a)	At the Closing, the Seller Parties shall deliver or cause to be delivered to CMED Sub or CMED WFOE, as the case may be, the following: 

  

	 	(i)	resolutions unanimously approved by each of the boards of directors and the shareholders of the Seller Parties approving this Agreement, the Related Agreements (as
defined below) and the consummation of the Transaction; 

  

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	 	(ii)	all Designated Assets and PRC IP Rights will be delivered to CMED WFOE by delivery of possession thereto to CMED WFOE pursuant to the PRC Asset Acquisition Agreement;

  

	 	(iii)	all Relevant IP Rights, to the extent in tangible form, will be delivered to CMED Sub by delivery of possession thereto to CMED Sub at No. 24 Yongchang North Road,
Beijing Economic-Technological Development Area, Beijing, P.R. China 100176 or at such other place mutually agreed between CMED and the Seller; 

  

	 	(iv)	any and all documents necessary to properly record the assignment or transfer to CMED Sub of all of the Seller’s right, title and interest in and to the Relevant
IP Rights, including an assignment agreement (the “Relevant IP Rights Assignment Agreement”) substantially in the form of Exhibit 2.2(a)(iv) attached hereto; 

  

	 	(v)	any and all documents necessary to properly record the assignment or transfer to CMED WFOE of all of CytoTrend WFOE’s right, title and interest in and to the PRC
IP Rights, including an assignment agreement (the “PRC IP Rights Assignment Agreement”) substantially in the form as attached to the PRC Asset Acquisition Agreement; 

  

	 	(vi)	an asset transfer agreement or other legally valid instrument of transfer evidencing the transfer of Relevant IP Rights from CytoTrend WFOE to the Seller in form and
substance satisfactory to CMED, duly executed by CytoTrend WFOE and the Seller (the “Asset Transfer Agreement”) and, to the extent deemed necessary or appropriate by CMED, duly filed with the requisite PRC Governmental Authorities;
and 

  

	 	(vii)	all other documents, certificates, instruments or writings required to be delivered by the Seller Parties pursuant to this Agreement, including without limitation those
documents set forth in Section 7.3 below. 

  

	 	(b)	At the Closing, CMED Sub shall deliver or cause to be delivered: 

  

	 	(i)	to the Seller, the Net Closing Cash by bank draft(s), subject to the right of CMED Sub to pay the Net Closing Cash in USD or RMB in its discretion as provided in
Section 1.5 above; 

  

	 	(ii)	to CytoTrend WFOE, the PRC Allocated Closing Value pursuant to the terms of the PRC Asset Acquisition Agreement; and 

  

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	 	(iii)	to the Seller, all other documents, certificates, instruments or writings required to be delivered by CMED at the Closing pursuant to this Agreement, including without
limitation those documents set forth in Section 7.2 below. 

  

	 	(c)	At the Closing, CMED Sub and the Seller Parties shall deliver or cause to be delivered the PRC Asset Acquisition Agreement. 

  

	2.3	Tax Withholding. Notwithstanding anything in this Agreement to the contrary, the CMED Group shall be entitled to deduct and withhold from the
portion of the Consideration otherwise payable pursuant to this Agreement and the PRC Asset Acquisition Agreement to the Seller and CytoTrend WFOE such amounts as the CMED Group is required to deduct and withhold with respect to the making of such
payment under the United States Internal Revenue Code of 1986, as amended (the “Code”), or any provision of United States state or local Tax law, PRC Tax law, Hong Kong Tax law, British Virgin Islands Tax law, or the Tax laws of any
other jurisdiction. To the extent that amounts are so withheld and paid over to the appropriate taxing authority by the CMED Group, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Seller and
CytoTrend WFOE in respect of which such deduction and withholding was made by the CMED Group. 

 SECTION 3. 

 REPRESENTATIONS AND WARRANTIES OF THE SELLER PARTIES 
 In this Agreement, any reference to any event, change, condition or effect being “material” with respect to any entity or group of entities means any material event, change, condition or
effect related to the condition (financial or otherwise), properties, assets (including intangible assets), liabilities, business, operations, results of operations or prospects of such entity or group of entities. In this Agreement, any reference
to a “Material Adverse Effect” with respect to any entity or group of entities means any event, change or effect that, when taken individually or together with all other adverse changes and effects, is or is reasonably likely to be
materially adverse to the condition (financial or otherwise), properties, assets, liabilities, business, operations, results or prospects of such entity and its subsidiaries, taken as a whole, or to prevent or materially delay consummation of the
Transaction or otherwise to prevent such entity and its subsidiaries from performing their obligations under this Agreement; provided, however, that without limiting the generality of the foregoing, the Parties agree that any event,
change or effect that has an adverse impact on the Assets, PRC IP Rights and Relevant IP Rights in an aggregate amount equal to or greater than US$1,000,000 shall be deemed a Material Adverse Effect for purposes of this Agreement. 
 In this Agreement, any reference to a party’s “knowledge” means such party’s actual knowledge or knowledge such party would
reasonably be expected to have of such matters, including with respect to corporate entities, the actual knowledge or knowledge such party would be reasonably expected to have after due and diligent inquiry of its officers, directors, shareholders
(direct and indirect),

  

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and subsidiaries (direct and indirect), as well as other employees and consultants of such party, its shareholders (direct and indirect) or its subsidiaries (direct or indirect) that would
reasonably be expected to have knowledge of such matters. 
 Each Seller Party hereby jointly and severally represents and warrants to CMED and
CMED Sub that the statements contained in this Section 3 are true and correct as of the Agreement Date, except as expressly set forth in the disclosure schedule delivered by the Seller to CMED Sub on or before the Agreement Date (the
“Disclosure Schedule”). The Disclosure Schedule shall be arranged in paragraphs corresponding to the numbered and lettered paragraphs contained in this Section 3. 
  

	3.1	Organization, Standing and Power; Subsidiaries. 

  

	 	(a)	Each Seller Group Member is a company or corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. Each
Seller Group Member has the requisite corporate power and authority and all necessary approvals by the respective authorities to own, lease and operate its properties and to carry on its business as now being conducted and as proposed to be
conducted. Each Seller Group Member is duly qualified or licensed to do business, and is in good standing, in each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its business makes such
qualification or licensing necessary, except for such failures to be so qualified or licensed and in good standing that would not, individually or in the aggregate, have a Material Adverse Effect on the Assets, PRC IP Rights and Relevant IP Rights
or any Seller Group Member. 

  

	 	(b)	Neither CytoTrend WFOE, CytoTrend HK (other than with respect to CytoTrend WFOE) or Seller (other than with respect to CytoTrend HK and CytoTrend WFOE) owns, directly
or indirectly any interest or any right to acquire interest in any corporation or other business entity or otherwise, directly or indirectly, controls, by way of security or otherwise any such entity. Section 3.1(b) of the Disclosure Schedule
also contains a true and complete listing of the locations of all sales office and branch offices, manufacturing facilities, and any other office or facilities of the Seller Group, a true and complete list of all jurisdictions in which each Seller
Group Member maintain any employees, and a true and complete list of all jurisdictions in which each Seller Group Member is duly qualified and licensed to transact business as a foreign corporation. 

  

	 	(c)	As of the Closing, there is not outstanding any contractual relationship, arrangement or undertaking between any Seller Group Member on one hand and any other Seller
Group Member or any Seller Group Member’s direct or indirect shareholders, directors and officers on the other, in each case with respect to the SPR Business. 

  

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	 	(d)	CytoTrend Biotech Engineering Limited-USA Inc., a corporation previously established under the laws of the State of Utah (“CytoTrend US”) was duly
dissolved on September 29, 2008. 

  

	3.2	Authorization. Each Seller Group Member has all requisite corporate power and authority to enter into this Agreement, each of the agreements listed as an
exhibit hereto or otherwise referenced herein (collectively, the “Related Agreements”) to which it is a party and to consummate the Transaction. The execution and delivery of this Agreement and the Related Agreements and the
consummation of the Transaction have been duly authorized by all necessary corporate action on the part of each of Seller Group Member (as applicable), and no further action is required on the part of any Seller Group Member to authorize this
Agreement, the Related Agreements and the consummation of the Transaction. This Agreement has been and the Related Agreements has been or will be, as the case may be, as of the Closing Date, duly executed and delivered by each of the Seller Group
Member who is a party thereto. This Agreement and the Related Agreements constitute, or will constitute as of the Closing Date as applicable, assuming the due authorization, execution and delivery by the other parties hereto and thereto, the valid
and legally binding obligation of each Seller Group Member who is a party thereto, enforceable by CMED and CMED Sub against each of Seller Group Members who is a party thereto in accordance with its terms except (a) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and other laws of general application affecting enforcement of creditors’ rights generally, or (b) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies. 

  

	3.3	No Conflict. The execution and delivery of this Agreement and the Related Agreements by each of the Seller Parties does not, and the consummation of the
Transaction will not, conflict with, or result in any violation of, or default under (with or without notice or lapse of time, or both), or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any benefit
under (any such event, a “Conflict”) (a) any provision of the charter documents of any Seller Group Member, or (b) any mortgage, indenture, lease, contract or other agreement or instrument, permit, concession, franchise or
license to which any of the Seller Group Member or any of their respective properties or assets is subject, or (c) any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to any Seller Group Member or their
respective properties or assets, except for the Requisite Actions as set out in Schedule 3.3 (“Requisite Actions”). 

  

	3.4	Consents. No consent, waiver, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any court,
administrative agency or commission or other federal, state, county, local or other foreign governmental authority, instrumentality, agency or commission (“Governmental Authority”) or any third party, including a party to any
agreement with any Seller Party (so as not to trigger any Conflict), is required by or with respect to any Seller Group Member in connection with the execution and delivery of this Agreement, the Related Agreements or the consummation of the
Transaction except for the Requisite Actions. 

  

 12 

	3.5	No Undisclosed Liabilities. Except as set forth in Section 3.5 of the Disclosure Schedule, the Assets, PRC IP Rights and Relevant IP Rights are not
subject to any Liability, indebtedness, obligation, expense, claim, deficiency or guaranty of any type, whether accrued, absolute, contingent, matured, unmatured or other of a nature. 

  

	3.6	Restrictions on Business Activities. There is no agreement (non-compete or otherwise), commitment, judgment, injunction, order or decree to which any
Seller Party is a party or otherwise binding upon any Seller Group Member which has or may reasonably be expected to have the effect of prohibiting or impairing in any material respect any business practice of the CMED Group or the Seller Group or
their respective Affiliates relating to the SPR Business or any acquisition of the Assets, PRC IP Rights and Relevant IP Rights or their use by the CMED Group. Without limiting the foregoing, no Seller Group Member has entered into any agreement
pursuant to which any Seller Group Member is restricted from selling, licensing or otherwise distributing any of its technology or products relating to the SPR Business to or providing services relating to the SPR Business to, customers or potential
customers or any class of customers, in any geographic area, during any period of time or in any segment of the market relating to the SPR Business. 

  

	3.7	Title to Assets, PRC IP Rights and Relevant IP Rights; Absence of Liens and Encumbrances; Condition of Assets. 

  

	 	(a)	As of the Agreement Date, CytoTrend WFOE owns all of the Assets, PRC IP Rights and Relevant IP Rights, and holds good and valid title to all of the Assets, PRC IP
Rights and Relevant IP Rights, and, subject to the Requisite Actions, has the complete and unrestricted power and authority and the unqualified right to sell, assign and deliver the Assets, PRC IP Rights and Relevant IP Rights free and clear of any
Liens, as contemplated under this Agreement and the PRC Asset Acquisition Agreement. Immediately prior to the Closing, CytoTrend WFOE owns all of the Assets and PRC IP Rights, the Seller owns all of Relevant IP Rights, and each holds good and valid
title to all of the Assets, the PRC IP Rights and Relevant IP Rights, respectively, and, subject to the Requisite Actions, each has the complete and unrestricted power and authority and the unqualified right to sell, assign and deliver: (i) the
Assets and PRC IP Rights to CMED WFOE; and (ii) the Relevant IP Rights to CMED Sub, respectively. There is no action, proceeding, claim or, to the Seller Parties’ knowledge, investigation against any Seller Group Member or any of the
Seller Group Member’s assets, properties or, as applicable, any of the Seller Group Member’s shareholders (direct or indirect), officers or directors, pending or, to the Seller Parties’ knowledge, threatened, at law or in equity, or
before any court, arbitrator or other tribunal, or before any administrative law judge, hearing officer or administrative agency relating to or in any other manner impacting upon the Assets, PRC IP Rights and Relevant IP Rights. Except for the
Requisite Actions, no restrictions will exist between the Agreement Date and the Closing Date on the Seller Group’s right to sell, assign, transfer, convey and deliver the Assets, PRC IP Rights and Relevant IP Rights as contemplated under this
Agreement and the PRC Asset Acquisition Agreement. 

  

 13 

	 	(b)	CytoTrend US has validly and irrevocably transferred, under all applicable laws, all Intellectual Property held by it to CytoTrend WFOE, and has obtained from each
Governmental Authority or any other third party all approvals, waivers and consents, if any, necessary for such transfer. 

  

	 	(c)	As of the Closing Date, CytoTrend WFOE has validly and irrevocably assigned, transferred, conveyed and delivered, under all applicable laws, all Relevant IP Rights held
by it to the Seller, and has obtained from each Governmental Authority or any other third party all approvals, waivers and consents, if any, necessary for such transfer. 

  

	 	(d)	The Assets have been properly maintained and are in good working condition, and are in all respects in a condition that is adequate for the intended uses of such
Assets, subject to continued repair and replacement in accordance with past practice. 

  

	3.8	Relevant IP Rights; Intellectual Property. 

  

	 	(a)	Section 3.8(a) of the Disclosure Schedule lists all Relevant IP Rights and lists any commencement or notice or to the knowledge of the Seller Parties, threat of
any proceedings or actions before any court, tribunal (including the United States Patent and Trademark Office, the PRC State Intellectual Property Office and any other foreign equivalents (collectively, the “PTO”)) related to any
of the Relevant IP Rights. 

  

	 	(b)	To the extent that any Relevant IP Rights has been developed or created by any person other than the Seller Group Members for which the Seller Group has, directly or
indirectly, paid, a Group Company has a written agreement with such person with respect thereto and (i) as of the Agreement Date, the relevant Group Company thereby has, and (ii) immediately prior to the Closing, the Seller has obtained
ownership of and is the exclusive owner of, all such Relevant IP Rights by operation of law or by valid assignment. 

  

	 	(c)	No Seller Group Member has transferred ownership of or granted any license of or right to use or authorized the retention of any rights to use any Relevant IP Rights,
to any other person other than: (i) as of the Agreement Date, the Group Companies, and (ii) immediately prior to the Closing, the Seller. 

  

	 	(d)	The Relevant IP Rights constitute all the Intellectual Property (other than the PRC IP Rights and the Excluded IP) used in and/or necessary to the SPR Business as
conducted at any time prior to the Closing Date or proposed to be conducted. 

  

 14 

	 	(e)	Section 3.8(e) of the Disclosure Schedule includes all Contracts (including licenses) to which any Seller Group Member is a party with respect to any Relevant IP
Rights. With respect to each such Contract, there is no default (or event that with the giving of notice or passage of time would constitute a default by any Seller Group Member or, to the knowledge of the Seller Parties, any other party(ies)
thereto). No person who has licensed Intellectual Property related to the SPR Business to the Seller Group has ownership rights or license rights to improvements made by the Seller Group in such Intellectual Property that has been licensed to the
Seller Group, and all such Intellectual Property has been licensed to: (i) as of the Agreement Date, CytoTrend WFOE; and (ii) immediately prior to the Closing, the Seller. Neither the execution, delivery or performance of this Agreement or
the Related Agreements, nor the consummation of the Transaction, do or will constitute a breach or default under such license, cause the forfeiture or termination of any right under such license, or materially impair the right to use, make, market,
license, sell, offer for sale, import, copy, distribute or dispose of any Relevant IP Rights or portion thereof. There are no royalties or other payments payable by any Seller Group Member or any third person as a result of the ownership, use,
manufacture, marketing, license-in, sale, offering for sale, importing, copying, distribution, or disposition of any Relevant IP Rights by the Seller Group, and none shall become payable as a result of the execution, delivery or performance of this
Agreement or the Related Agreements, or consummation of the Transaction. For the purpose of this Agreement, “Contracts” shall mean all contracts, leases, subleases, customer accounts, promises, commitments, undertakings, guarantees,
warranties, representations, grant of rights, licenses, registrations, authorizations and agreements, and any and all claims, rights of setoff or recoupment, causes of action, accounts receivable, contract rights, accounts and/or rights to
reciprocal compensation arising under or in connection therewith. 

  

	 	(f)	No Seller Group Member is a party to or subject to any Contracts with any other person wherein or whereby such Seller Group Member has agreed to, or assumed, any
obligation or duty to warrant, indemnify, reimburse, defend, hold harmless, guaranty or otherwise assume or incur any Liability or provide a right of rescission with respect to the infringement or misappropriation by any Seller Group Member or such
other person of the Intellectual Property of any person in connection with the SPR Business. 

  

	 	(g)	 Each Relevant IP Right is valid, enforceable and subsisting, and except for the Requisite Actions, all necessary registration, maintenance and renewal
fees in connection with such Relevant IP Rights have been paid and all necessary documents and certificates, including the notification of any change of the owner’s and/or applicant’s trade name or address in connection with such Relevant
IP Rights have been filed with the relevant patent, copyright, trademark or other authorities in the United States or foreign jurisdictions, as the case may be, for the purposes of maintaining such Relevant IP Rights. There are no actions that have
not been taken by the Seller Group as of the Agreement Date nor any actions (other than those in

  

 15 

	 	 
relation to the Seller Party Restructuring which shall be completed on or before the Closing and the transactions contemplated under this Agreement) that must be taken by any Seller Group within
sixty (60) days of the Agreement Date (including the payment of any registration, maintenance or renewal fees or the filing of any documents, applications or certificates for the purposes of maintaining, perfecting, preserving or renewing any
Relevant IP Rights or the assignment thereof to the Seller Group). In each case in which any Seller Group Member has acquired any Relevant IP Rights from any person, the Seller Group Member has obtained a valid and enforceable assignment sufficient
to irrevocably transfer all rights expressed to be acquired in such Relevant IP Rights (including, where applicable and to the extent permitted by all applicable laws, the right to seek past and future damages with respect to such Relevant IP
Rights) (i) as of the Agreement Date, to CytoTrend WFOE, and (ii) immediately prior to the Closing, to the Seller. 

  

	 	(h)	There is no Contract (including licenses) between any Seller Group Member and any other person with respect to Relevant IP Rights under which there is any dispute known
to the Seller Group or its shareholders regarding the scope of such agreement, or performance under such agreement, including with respect to any payments to be made or received by a Seller Group Member thereunder. 

  

	 	(i)	To the knowledge of the Seller Parties, no person is infringing or misappropriating any Relevant IP Rights. 

  

	 	(j)	The Seller Group has taken all necessary steps to protect the Seller Parties’ rights in confidential information and trade secrets in connection with the Relevant
IP Rights, and as of the Agreement Date, all of the SPR Business’ current and former employees and consultants have irrevocably assigned or otherwise transferred to the Group Companies all of their respective right, title and interest in the
Relevant IP Rights. Immediately prior to the Closing, the Seller Group Members shall have assigned all of their respective right, title and interests in the Relevant IP Rights to the Seller, free and clear of any Liens. Without limiting the
foregoing, the Seller Group has and uses all necessary efforts to enforce a policy requiring each current and former employee, consultant and contractor involved in the research and development of any nature related to the Relevant IP Rights to
execute proprietary information, confidentiality and assignment agreements substantially in the form which has been approved in writing by CMED Sub (true and correct copies of which have been provided to CMED Sub), and all current and former
employees, consultants and contractors involved in the research and development of any nature related to the Relevant IP Rights of the Seller Group Members in connection with the SPR Business have executed such an agreement. No current or former
employee or consultant of the Seller Group or the SPR Business is in violation of any term in connection with covenant of any such agreement. 

  

 16 

	 	(k)	No Relevant IP Right is subject to any proceeding or outstanding decree, order, judgment, agreement or stipulation that restricts in any manner the use, transfer or
licensing thereof by the Seller Group or may affect the validity, use or enforceability of the Relevant IP Rights. 

  

	 	(l)	No Seller Group Member has any agreement or arrangement between such Seller Group Member and any person or entity that would permit such person or entity or any other
party to obtain a copy of any Seller Party’s source code and program documentation (or any portion thereof) upon a change of control, or the liquidation, dissolution or winding up of the SPR Business or upon termination, breach or alleged
breach of any contract or agreement between a Seller Group Member and such person or entity, or under any other circumstances in connection with the SPR Business. Without limiting the generality of the foregoing, no portion of the software products
in connection with the Relevant IP Rights is subject to the provisions of any open source or other third party license agreement that (i) requires the distribution of source code in connection with the distribution of such software in object
code form; (ii) prohibits or limits any Seller Group Member from charging a fee or receiving consideration in connection with sublicensing or distributing such licensed software (whether in source code or object code form); or (iii) allows
a customer or requires that a customer have the right to decompile, disassemble or otherwise reverse engineer the software by its terms and not by operation of law. 

  

	 	(m)	Section 3.8(m) of the Disclosure Schedule lists all software, documentation, or other material that is distributed, used by the SPR Business in any way,
incorporated or made available as “free software,” “open source software” or under a similar licensing or distribution terms (“Open Source Materials”), including without limitation pursuant to the GNU General
Public License (GPL), GNU Lesser General Public License (LGPL), GNU Free Documentation License (FDL), Logica Open Source License, Mozilla Public License (MPL), BSD licenses, the Artistic License, the Netscape Public License, the Sun Community Source
License (SCSL), the Sun Industry Standards License (SISL), the Apache License, or any Creative Commons License (together, the “Open Source Terms”), and describes the manner in which such Open Source Materials were used (such
description shall include whether the Open Source Materials were modified and/or distributed by the SPR Business). Each Seller Group Member has complied, and is in compliance with, all applicable Open Source Terms. 

  

	 	(n)	No government funding, facilities of a university, college, other educational institution or research center, or funding from third parties was used in the development
of the Relevant IP Rights. No current or former employees or consultants of the SPR Business performed services for the government, a university, college, other educational institution, or a research center during the time when such person was also
performing services for the SPR Business, the performances of services for such entity of which has not and will not result in the claim, grant or right to any Relevant IP Rights to the entity for which such consultant provided services.

  

 17 

	 	(o)	The SPR Business has complied with all laws and privacy policies relating to (i) the privacy of users of the products and services of the SPR Business and
(ii) the collection, use, storage, and transfer of any personally identifiable information collected by the SPR Business or by third parties having authorized access to the record of the SPR Business. The execution, delivery, and performance of
this Agreement, the Related Agreements and the consummation of the Transaction comply with all laws and regulations relating to privacy and each Seller Group Member’s privacy policies. The current and prior privacy policies of the Seller Group,
including any policies on any Seller Group Member’s web site, are attached to Section 3.8(o) of the Disclosure Schedule. 

  

	 	(p)	The disclosure by the Seller Group to the CMED Group, and the use and further disclosure by the CMED Group to other persons, of the Relevant IP Rights transferred to
CMED Sub hereunder will not violate any privacy policy, data sharing agreement, confidentiality agreement, or non-disclosure agreement of which any Seller Group Member is a party, or infringe or violate the privacy rights of any third party.

  

	 	(q)	Section 3.8(q) of the Disclosure Schedule contains a list of all industry standards bodies or similar organizations that any Seller Group Member is now or ever was
a member or promoter of, or a contributor to, or otherwise participated in. None of the Seller Group or the CMED Group or their respective Affiliates is or could be, as a result of such activities, obligated to grant or offer to any other Person (as
defined below) any license or right to any Relevant IP Rights, or otherwise restricted or impaired in its ability to assert or enforce any Relevant IP Rights against any other Person. The Seller Group has provided to the CMED Group complete and
accurate copies of all agreements, contracts, covenants, instruments, leases, commitments, licenses, policies and rules to which any Seller Group Member is a party or by which any Seller Group Member is bound relating to Intellectual Property rights
of each standards body or similar organization identified in the Disclosure Schedule. 

  

	3.9	Governmental Authorization. Section 3.9 of the Disclosure Schedule accurately lists each consent, license, permit, certificate, grant or other
authorization issued to any Seller Group Member by a Governmental Authority presently required by the Seller Group and presently held by the Seller Parties in connection with the Assets, PRC IP Rights and Relevant IP Rights (herein collectively
called “Authorizations”). The Authorizations are in full force and effect and constitute all Authorizations required for the Seller Group with respect to the Assets, PRC IP Rights and Relevant IP Rights. 

  

 18 

	3.10	Litigation. There is no action, suit or proceeding of any nature pending, or, to the Seller Parties’ knowledge, threatened, before any court or
administrative agency against any Seller Group Member, the Assets, PRC IP Rights and Relevant IP Rights, nor, to the knowledge of the Seller Parties, is there any reasonable basis therefore. There is no investigation pending or, to the Seller
Parties’ knowledge threatened, against any Seller Group Member, the Assets, PRC IP Rights and Relevant IP Rights (nor, to the knowledge of the Seller Parties, is there any reasonable basis therefore) by or before any Governmental Authority. No
Governmental Authority has at any time challenged or questioned the legal right of the Seller Group to hold any interest in the Assets, PRC IP Rights and Relevant IP Rights. 

  

	3.11	Minutes. The minutes of the Seller Group furnished to counsel for CMED constitute the entirety and the only minutes of the board of directors or other
supervisory body of the Seller Group and all committees thereof, and of the meetings of the security holders of the Seller Group, and contain true and accurate copies of all resolutions adopted by the board of directors or other supervisory body of
the Seller Group and all committees thereof, and their respective security holders, in each case since the time of incorporation or formation. 

  

	3.12	Environmental Matters. 

  

	 	(a)	Hazardous Material. No Seller Group Member has: (i) operated any underground storage tanks at any property that has at any time been owned, operated,
occupied or leased by such entities; or (ii) released any material amount of any substance that has been designated by any Governmental Authority or by applicable federal, state or local law to be radioactive, toxic, hazardous or otherwise a
danger to health or the environment, including, without limitation, PCBs, asbestos, petroleum, and urea-formaldehyde and all substances listed as hazardous substances, hazardous waste, or similar classification pursuant to the applicable law (a
“Hazardous Material”). No Hazardous Materials are present, as a result of the deliberate actions of any Seller Group Member, or, to the knowledge of the Seller Parties, as a result of any actions of third parties or otherwise, in,
on or under any property in a manner that would violate applicable law in effect on or before the date hereof, including the land and the improvements, ground water and surface water thereof, that any Seller Group Member has at any time owned,
operated, occupied or leased. 

  

	 	(b)	Hazardous Materials Activities. The Seller Group has not transported, stored, used, manufactured, disposed of, released or exposed its employees or others to
Hazardous Materials in violation of any law in effect on or before the Agreement Date, nor has any Seller Group Member disposed of, transported, sold, or manufactured any product containing a Hazardous Material (any or all of the foregoing being
collectively referred to as “Hazardous Materials Activities”) in violation of any rule, regulation, treaty or statute promulgated by any Governmental Authority in effect prior to or as of the date hereof to prohibit, regulate or
control Hazardous Materials or any Hazardous Material Activity. 

  

 19 

	 	(c)	Permits. The Seller Group currently holds all environmental approvals, permits, licenses, clearances and consents (the “Environmental Permits”)
necessary for the conduct of the Seller Group’s Hazardous Material Activities, respectively, and other businesses of the Seller Group as such activities and businesses are currently being conducted and proposed to be conducted.

  

	 	(d)	Environmental Liabilities. No action, proceeding, revocation proceeding, amendment procedure, writ, injunction or claim is pending, or to the knowledge of the
Seller Parties, threatened concerning any Environmental Permit, Hazardous Material or any Hazardous Materials Activity of the Seller Group. The Seller Parties are not aware of any fact or circumstance that could involve any Seller Group Member in
any environmental litigation or impose upon any Seller Group Member in any environmental Liability. 

  

	3.13	Brokers’ and Finders’ Fees. The Seller Group and their shareholders (direct or indirect) have not incurred, nor will they incur, directly or
indirectly, any Liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement, the Related Agreements or the consummation of the Transaction. 

  

	3.14	Labor Matters. 

  

	 	(a)	No Seller Group Member is a party to any collective bargaining agreement or other labor union contract applicable to persons employed by any Seller Group Member or the
SPR Business, and currently there are no organizational campaigns, petitions or other unionization activities seeking recognition of a collective bargaining unit that could affect any Seller Group Member or the SPR Business.

  

	 	(b)	There are no controversies, strikes, slowdowns or work stoppages pending or, to the knowledge of the Seller Parties, threatened between any Seller Group Member and any
of the Seller Group Member’s or the SPR Business’ employees, and no Seller Group Member has experienced any such controversy, strike, slowdown or work stoppage within the past (3) three years. 

  

	 	(c)	No Seller Group Member has breached or otherwise failed to comply with the provisions of any collective bargaining or union contract in respect of the SPR Business and
there are no grievances outstanding against any Seller Group Member under any such agreement or contract. 

  

	 	(d)	The Seller Group has been and is in compliance with all applicable laws relating to the employment of labor, including those related to wages, hours, collective
bargaining and the payment and withholding of taxes and other sums as required by the appropriate Governmental Authority. No Seller Group Member is liable for any arrears of wages or any taxes or penalties with respect to the foregoing.

  

 20 

	 	(e)	There is no claim with respect to employment discrimination, payment of wages, salary or overtime pay that has been asserted or is now pending or threatened before any
Governmental Authority with respect to any persons currently or formerly employed by or consulting for any Seller Group Member or the SPR Business. 

  

	3.15	Employees of the Business. 

  

	 	(a)	All current and former employees and consultants of the Seller Group in relation to the SPR Business are under written obligation to the relevant Group Company, as
applicable, to maintain in confidence all confidential or proprietary information acquired by them in the course of their employment or service during such employment or service and for a reasonable period thereafter and to assign to the relevant
Group Company, all inventions made by them within the scope of their employment or service. Immediately prior to the Closing, all confidential or proprietary information assigned by current and former employees and consultants of any Seller Group
Member in relation to the SPR Business, to the extent related to the Assets, PRC IP Rights and Relevant IP Rights, have been assigned by the relevant Group Company to the Seller or CytoTrend WFOE. To the knowledge of the Seller Parties, no current
or former employee or consultant of the Seller Parties in relation to the SPR Business is in violation of any term of any employment agreement, patent disclosure agreement, non-competition agreement, or any restrictive covenant to a former employer
restricting the right of any such person or entity to be employed or otherwise engaged by CMED, CMED Sub, or any Seller Party because of the nature of the SPR Business or the use of trade secrets or proprietary information of others.

  

	 	(b)	 Section 3.15(b) of the Disclosure Schedule contains a true, complete and correct list setting forth (i) the names, job descriptions/titles,
current compensation rate (including but not limited to salary, commission and bonus compensation, and withholdings (including social insurance and social housing withholding)), date of hire, vacation accrual rate and accrued vacation time of the
employees and consultants of the SPR Business (“Employees”), and (ii) the amounts of any and all 13th month bonuses, annual wage supplements or similar bonuses. No Seller Group Member has received notice from any
Employee that he or she is terminating his or her employment or consultancy with the Seller Group or the SPR Business, and to the knowledge of the Seller Parties, no Employee intends to terminate his or her employment or consultancy with the Seller
Group or the SPR Business, as the case may be, except as specifically required pursuant to this Agreement. 

  

 21 

	3.16	Insurance. Section 3.16 of the Disclosure Schedule lists all insurance policies and fidelity bonds covering the Assets, PRC IP Rights and Relevant IP
Rights (if any). There is no claim by any Seller Group Member pending under any of such policies or bonds as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds. All premiums due and payable under
all such policies and bonds have been paid, and the Seller Group is otherwise in material compliance with the terms of such policies and bonds (or other policies and bonds providing substantially similar insurance coverage). The Seller Parties have
no knowledge of any threatened termination of, change to named insured under, premium increase or other material amendment with respect to, any of such policies. 

  

	3.17	Certain Advances; Guaranties. There are no receivables in connection with the Assets, PRC IP Rights and Relevant IP Rights owing by any director, officer,
employee, consultant of the Business or owing by any Affiliate of any director, officer, employee, or consultant of the Business. No Seller Group Member has agreed to, or assumed, any obligation or duty to guaranty or otherwise assume or incur any
Liability of any other Seller Group Member in connection with the SPR Business. 

  

	3.18	Compliance with Laws. The Seller Group has, in respect of the Assets, PRC IP Rights and Relevant IP Rights, complied in all material respects with, is not
in violation in any material respect of, and has not received any notices of violation with respect to, any foreign (including PRC, Hong Kong and British Virgin Islands), federal, state or local statute, law or regulation. 

 

	3.19	Warranties; Indemnities. No Seller Group Member has given any warranties or indemnities relating to the Assets, PRC IP Rights and Relevant IP Rights in
connection with the SPR Business except as set forth in Section 3.19 of the Disclosure Schedule. 

  

	3.20	Complete Copies of Materials. The Seller Parties have delivered true and complete copies of each document that has been requested by CMED or its counsel
in respect of the SPR Business or in respect of these representations and warranties. 

  

	3.21	Offers. Since April 1, 2008, the Seller Group, its shareholders (direct and indirect), directors, officers, employees, consultants, agents and
representatives have suspended or terminated, and have the legal right to suspend or terminate, all negotiations and discussions with respect to any offer or proposal for, or any indication of interest in, other than the Transaction, any
(i) sale, license, disposition or acquisition of all or a material portion of the Assets, PRC IP Rights and Relevant IP Rights, (ii) issuance, grant, disposition or acquisition of (A) any shares or other equity security of any Seller
Group Member or its Affiliates, (B) any option, call, warrant or right (whether or not immediately exercisable) to acquire any shares of any Seller Group Member or its Affiliates, or (C) any security, instrument or obligation that is or
may become convertible into or exchangeable for any share or other equity security of any Seller Group Member or its Affiliates; or (iii) any merger, consolidation, business combination, share exchange, reorganization or similar transaction
involving any Seller Group Member or its Affiliates. 

  

 22 

	3.22	Corporate Approvals. The boards of directors or other supervisory bodies, as applicable, of each Seller Group Member have unanimously approved this
Agreement, the Related Agreements, and the consummation of the Transaction. 

  

	3.23	Certain Business Practices. 

  

	 	(a)	The Seller Group has complied with the U.S. Foreign Corrupt Practices Act (“FCPA”) and any applicable PRC anti-corruption laws with respect to the SPR
Business. No Seller Group Member has, to obtain or retain business for the SPR Business in contravention of the FCPA and any applicable PRC anti-corruption laws, directly or indirectly offered, paid or promised to pay, or authorized the payment of,
any money or other thing of value (including any fee, gift, sample, travel expense or entertainment with a value in excess of US$100 in the aggregate to any one individual in any year) or any commission payment to: (i) any person who is an
official, officer, agent, employee or representative of any Governmental Authority or of any existing or prospective customer (whether or not government owned); (ii) any political party or official thereof; (iii) any candidate for
political or political party office; or (iv) any other individual or entity; while knowing or having reason to believe that all or any portion of such money or thing of value would be offered, given, or promised, directly or indirectly, to any
such official, officer, agent, employee, representative, political party, political party official, candidate, individual, or any entity affiliated with such customer, political party or official or political office (collectively,
“Prohibited Payments”). 

  

	 	(b)	Each Seller Group Member has made all payments relating to the SPR Business to third parties in compliance with the laws of the PRC, US (regardless of whether the
Seller Group Members are currently subject to US law) and any other applicable jurisdiction. 

  

	 	(c)	Each transaction in respect of the SPR Business is properly and accurately recorded on the books and records of the Seller Group, and each document in respect of the
SPR Business upon which entries in the Seller Group’s books and records are based is complete and accurate in all respects. The Seller Group maintains a system of internal accounting controls adequate to insure that the Seller Group maintains
no off-the-books accounts and that the Seller Group’s assets are used only in accordance with the Seller Group’s management directives. 

  

	 	(d)	The Seller Group has at all times been in compliance with all legal requirements relating to export control and trade embargoes. No product sold or service provided by
the SPR Business during the last five (5) years has been, directly or indirectly, sold to or performed on behalf of Cuba, Iraq, Iran, Libya or North Korea. 

  

 23 

	 	(e)	The Seller Group has not violated the anti-boycott prohibitions contained in 50 U.S.C. 2401 et seq. or taken any action that can be penalized under
Section 999 of the Code. During the five (5) years immediately preceding the Closing Date, no Seller Group Member has been a party to, or a beneficiary under or performed any service or sold any product of the SPR Business to customers in
Bahrain, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Sudan, Syria, United Arab Emirates or the Republic of Yemen. 

  

	3.24	Disclosure. Each Seller Group Member has disclosed to CMED and CMED Sub in writing all material information relating to the SPR Business, the Agreement,
the Related Agreements and the consummation of the Transaction. No representation or warranty contained in this Agreement or the Related Agreements, and no statement contained in the Disclosure Schedule or in any certificate, list, business plan or
other writing furnished to CMED, CMED Sub or its advisors (including the financials), contains any untrue statement of material fact or omits to state a material fact necessary in order to make the statements herein or therein, in light of the
circumstances in which they are made, not misleading. 

 SECTION 4. 
 GUARANTY 
 Each
Seller Party hereby jointly, severally and unconditionally guarantees the full and complete discharge and performance of each and every other term, covenant, Liability, obligation and warranty contained in this Agreement and the Related Agreements
by each other Seller Party (the “Seller Party Guaranty”). CMED hereby jointly, severally and unconditionally guarantees the full and complete discharge and performance of each and every other term, covenant, Liability, obligation
and warranty contained in this Agreement and the Related Agreements by CMED Sub (“CMED Guaranty”, and together with the Seller Party Guaranty, the “Guarantees”). The Seller Party Guaranty and the CMED Guaranty are
continuing guarantees of the obligations of the Seller Parties and CMED Sub, respectively. Each Seller Party and CMED acknowledges that there are no conditions precedent to the effectiveness of the Guarantees, and that the Seller Party Guaranty and
the CMED Guaranty are in full force and effect and is binding on each Seller Party and CMED, respectively, as of the Agreement Date. Each Seller Party and CMED waives the benefit of any statute of limitations affecting any Seller Parties’
Liability or CMED Sub’s Liability hereunder or the enforcement thereof and the Seller Parties and CMED agree that any act which shall toll any statute of limitations applicable thereto shall similarly operate to toll such statute of limitations
applicable to the Seller Parties’ Liability or CMED’s hereunder. 
  

 24 

 SECTION 5. 
 REPRESENTATIONS AND WARRANTIES OF CMED AND CMED SUB 
 CMED and CMED
Sub jointly and severally represent and warrant to the Seller that the statements contained in this Section 5 are true and correct on or before the Agreement Date. 
  

	5.1	Organization, Good Standing and Qualification. Each of CMED and CMED Sub is a company or corporation duly organized, validly existing and, if applicable,
in good standing under the laws of its jurisdiction of organization. Each of CMED and CMED Sub has the requisite corporate power and authority and all necessary approvals by the respective authorities to own, lease and operate its properties and to
carry on its business as now being conducted, and to carry out the Transaction. Each of CMED and CMED Sub is duly qualified to transact business and in good standing in each jurisdiction where the failure so to qualify would have a Material Adverse
Effect on its business or properties. 

  

	5.2	Authorization. All corporate action on the part of each of CMED, CMED Sub necessary for the authorization, execution and delivery of this Agreement and
the Related Agreements, the performance of all obligations of CMED and CMED Sub hereunder and thereunder has been taken or will be taken prior to the Closing, and this Agreement and the Related Agreements, when executed and delivered by CMED and
CMED Sub shall constitute the valid and legally binding obligations of CMED and CMED Sub, enforceable against CMED and CMED Sub in accordance with their respective terms except (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, and other laws of general application affecting enforcement of creditors’ rights generally, or (b) as limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies. 

  

	5.3	No Violation. Neither the execution and delivery of this Agreement or the Related Agreements nor the consummation of the Transaction, each by CMED or CMED
Sub, will violate any provisions of the charter documents of CMED or CMED Sub or violate, or be in conflict with, any statute or law or any judgment, decree, order, regulation, or rule of any Governmental Authority that CMED or CMED Sub is subject
to. 

 SECTION 6. 
 ADDITIONAL AGREEMENTS 
  

	6.1	 Expenses. All fees and expenses incurred in connection with this Agreement and the Transaction, including, without limitation, all legal,
accounting, financial advisory, appraisal, consulting, broker, and all other fees and expenses of third parties and all bonus, retention, relocation (if applicable), incentive and severance payments and costs paid or incurred by the Parties in
connection with the Transaction (collectively, “Transaction Expenses”), shall be borne by the party incurring such expense. For

  

 25 

	 	 
the avoidance of doubt, all Transaction Expenses of the Seller Parties shall be jointly and severally borne by the Seller Parties and shall not be payable by CMED or CMED Sub. The Seller Parties
shall be jointly and severally responsible for any of their Liability caused by them and payment of any local, state, federal and foreign sales, use, stamp or similar Taxes or duties incurred by the Seller Parties in connection with the Transaction.
CMED and CMED Sub shall be jointly and severally responsible for any of their Liability and payment of any local state, federal and foreign sales, use, stamp or similar Taxes or duties incurred by CMED and CMED Sub in connection with the
Transaction. 

  

	6.2	Conduct of the Business. During the period from the Agreement Date to the Closing Date, the Seller Parties shall and shall cause the Seller Group to
(except to the extent expressly contemplated by this Agreement, or as consented to in writing by CMED or CMED Sub in their reasonable discretion) carry on the SPR Business in the usual, regular and ordinary course, consistent with past practice, in
substantially the same manner as heretofore conducted, to pay debts and Taxes when due subject to good faith disputes over such debts or Taxes, to pay or perform other obligations when due, and to use all reasonable efforts consistent with past
practice and policies to preserve intact its present business organization, keep available the services of its present officers and key employees and preserve its relationships with customers, suppliers, distributors, licensors, licensees, and
others having business dealings with it, to the end that its goodwill and ongoing SPR Business shall be unimpaired. The Seller Parties shall and shall cause the Seller Group to promptly notify CMED and CMED Sub of any event or occurrence not in the
ordinary course of the SPR Business, consistent with past practice, and of any event which could have a Material Adverse Effect on any Seller Group Member, the Assets, PRC IP Rights and Relevant IP Rights, or which could reasonably be expected to
result in the representations and warranties of the Seller Parties in this Agreement or the Related Agreements not being true and correct as of the Closing, or prevent the Seller Group from performing or cause the Seller Group not to perform the
Seller Parties covenants under this Agreement or the Related Agreements. 

  

	6.3	 No Solicitation. Until the Long-Stop Date (as defined below), the Seller Parties shall not, and shall not permit any Seller Group Member
and the members of the boards of directors of such Seller Group Member, and their respective Affiliates, officers, directors, employees or other agents of each of the foregoing, directly or indirectly, (a) take any action to solicit, initiate
or encourage any Acquisition Proposal (as defined below) or (b) engage in negotiations with, continue negotiations with or disclose any nonpublic information relating to the SPR Business, (c) afford access to the properties, books or
records of the SPR Business to, any person that has advised that it may be considering making, or that has made, an Acquisition Proposal, or (d) enter into any agreement with any Person providing for the acquisition of all or any portion of the
SPR Business or any Seller Group Member. The Seller Parties will promptly (within 24 hours) notify CMED Sub in writing after receipt of any Acquisition Proposal or any notice that any person is considering making an Acquisition Proposal or any
request for nonpublic information relating to the SPR Business or for access to the properties, books or records of the SPR Business by any person that

  

 26 

	 	 
has advised any Seller Group Member that it may be considering making, or that has made, an Acquisition Proposal and will keep CMED Sub fully informed of the status and details of any such
Acquisition Proposal notice or request. For purposes of this Agreement, “Acquisition Proposal” shall mean any transaction involving: (i) the sale, license, disposition or acquisition of all or a material portion of the assets
of the SPR Business or of any Seller Group Member; (ii) the issuance, grant, disposition or acquisition of (A) any capital stock or other equity security of any Seller Group Member, (B) any option, call, warrant or right (whether or
not immediately exercisable) to acquire any capital stock or other equity security of any Seller Group Member, or (C) any security, instrument or obligation that is or may become convertible into or exchangeable for any capital stock or other
equity security of any Seller Group Member; or (iii) any merger, consolidation, business combination, share exchange, reorganization or similar transaction involving any Seller Group Member. 

  

	6.4	Access to Facilities and Employees; Cooperation. For a period of five (5) years following the Agreement Date, the Seller Parties shall not, and shall
not permit any Seller Group Member or other party to, dispose of or destroy any of the books and records of any of the Seller Group Member in their possession with respect to the Assets (or Designated Assets from and after Closing), PRC IP Rights
and Relevant IP Rights, for any periods prior to the Survival Date (as defined below) without offering to turn over possession thereof to CMED Sub by written notice to CMED Sub at least thirty (30) days prior to the proposed date of such
disposition or destruction. From and after the Agreement Date up to the Survival Date, each of the Seller Parties agrees to make available all books, records, facilities, employees, non-employee agents (such as patent and regulatory counsel) and
information with respect to the Assets, PRC IP Rights and Relevant IP Rights necessary for CMED, CMED Sub and their respective Affiliates and advisors, and financing sources in their possession, power or control, excluding: (a) any such
materials already provided by the Seller Parties to CMED or its respective Affiliates and advisors, (b) any such materials generated by CMED and its Affiliates and advisors after the Closing Date, and (c) any such materials related only to
the Assets which are not the Designated Assets at Closing. Until the earlier of the termination of this Agreement or the Closing Date, the Seller Parties shall and shall cause the Seller Group Members and the members of the boards of directors of
each of the foregoing shall allow CMED and CMED Sub and their respective Affiliates and advisors to have, upon reasonable notice, free access to the premises and the Employees for discussions regarding employment or consultancy with CMED, CMED Sub
or their respective Affiliates, as applicable. The Seller Parties will use their respective best efforts to offer the Employees selected by CMED and CMED Sub for employment or consultancy with CMED or an Affiliate of CMED, as applicable.

  

	6.5	 Confidentiality. Each of CMED, CMED Sub and the Seller Parties shall, and the Seller Parties shall cause the Seller Group and its
shareholders (direct and indirect) to, keep confidential and not make use of any information treated by any other Party as confidential (including, without limitation, the existence of this Agreement, the Related Agreements, the consummation of the
Transaction or the failure of such a consummation), obtained from disclosing party concerning the assets, properties, business or

  

 27 

	 	 
operations of the other party other than to legal counsel, consultants, financial advisors, key employees, lenders and investment bankers where such disclosure is related to the performance of
obligations under this Agreement or the consummation of the Transaction (all of whom shall be similarly bound by the provisions of this Section 6.5), except as may be required to be disclosed by applicable law or as may be required to obtain
the consents, waivers or releases from any Governmental Authority or other third party. Each of the Seller Parties shall, and shall cause the Seller Group, its shareholders (direct and indirect) and Employees to, keep confidential and not make use
of any Assets, PRC IP Rights and Relevant IP Rights, except as may be required to be disclosed by applicable law, as may be required to obtain the consents, waivers or releases from any Governmental Authority or other third party, or in connection
with the authorized performance of duties as an employee or consultant of CMED or its Affiliates. Notwithstanding the foregoing, the foregoing confidentiality restrictions shall not apply to any information which (a) becomes generally available
to the public through no fault of the receiving party or its employees, agents or representatives; (b) is independently developed by the receiving party without benefit of the above-described information (and such independent development is
substantiated in writing), or rightfully received from another source on a non-confidential basis; (c) when such disclosure is required by a Governmental Authority or is otherwise required by law or is necessary to establish rights under this
Agreement or any agreement contemplated hereby, provided that (i) the disclosing party has taken all reasonable efforts to limit the scope of such disclosure and to protect the confidential nature of the information disclosed and (ii) that
the non-disclosing party shall provide prompt notice of such court order or requirement to the disclosing party to enable the disclosing party or non-disclosing party to seek a protective order or otherwise prevent or restrict such disclosure.

  

	6.6	Public Announcements. No Party hereto shall without the prior written consent of the other parties (which consent shall not be unreasonably withheld)
disclose to any third party (other than to legal counsel, consultants, financial advisors, key employees, lenders and investment bankers where such disclosure is related to the performance of obligations under this Agreement, the Related Agreements
or the consummation of the Transaction) the existence of this Agreement, the identity of the other parties hereto or the Transaction except (i) as required by law, (ii) as reasonably necessary to obtain any consents, waivers or releases
from any Governmental Authority or other third party, or (iii) as reasonably requested by any Governmental Authority. Notwithstanding the foregoing, following the Agreement Date, CMED and its Affiliates may disclose to third parties the
existence of this Agreement, the identity of the other parties hereto or the Transaction without the prior written consent of the other Parties hereto. 

  

	6.7	 Cooperation. Each Party will cooperate with the other Parties, their counsel and accountants in connection with any steps required to be
taken as part of its obligations under this Agreement and the Related Agreements and the consummation of the Transaction, including without limitation, obtaining from the relevant Governmental Authorities of all consents, licenses, filings and
registrations required under PRC law and other applicable law for the transfer and assignment of the Designated Assets,

  

 28 

	 	 
PRC IP Rights and Relevant IP Rights as contemplated under this Agreement. The Seller Parties will use their best efforts to cause all conditions to this Agreement to be satisfied as promptly as
possible and to obtain all consents and approvals necessary for the due and timely performance of this Agreement and the Related Agreements, for the satisfaction of the conditions hereof and thereof, and to consummate the Transaction. No party will
undertake any course of action inconsistent with this Agreement or which would make any representations, warranties or agreements made by such party in this Agreement untrue or any conditions precedent to this Agreement or the Related Agreements
unable to be satisfied at or prior to the Closing. 

  

	6.8	Notification of Claims. Until the Survival Date, the Seller Parties shall promptly notify CMED Group in writing of the commencement or threat of any
claims, litigation or proceedings against or affecting any of the Seller Parties or the Assets (or the Designated Assets from and after Closing), PRC IP Rights and Relevant IP Rights. 

  

	6.9	Release. Subject to the Closing, each Seller Party hereby agrees, and shall use its best efforts to cause the Seller Group, its successors, assigns and
Affiliates to agree, to waive, release, and discharge CMED, CMED Sub, and their present and former subsidiaries, divisions, departments, predecessors, partners, joint ventures, directors, officers, shareholders, agents, employees, successors,
assigns, and any and all other Affiliates from any and all claims, rights, demands, debts, obligations, damages or accountings of whatever nature in respect of the Assets, PRC IP Rights and Relevant IP Rights, that it may have or may have had,
arising on or prior to the Closing Date (other than the rights and obligations hereunder or under the Related Agreements), whether known or unknown, asserted or unasserted other than acts or conduct constituting fraud or intentional misconduct;
provided, however, that the foregoing waivers, releases and discharges do not affect in any respect the rights and obligations of the Parties pursuant to this Agreement and the Related Agreements. For the purpose of this Agreement,
“Affiliate” means, with respect to any means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, a Governmental
Authority (or any department, agency, or political subdivision thereof) or any other type of entity (each, a “Person”), (a) any Person that directly or indirectly through one or more intermediaries controls, is controlled by,
or is under common control with the specified Person; (b) any Person that is a director or officer of, partner in, or trustee of, or serves in a similar capacity with respect to, the specified Person or of which the specified Person is a
director, officer, partner, or trustee, or with respect to which the specified Person serves in a similar capacity; or (c) any Person that directly or indirectly through one or more intermediaries is the beneficial owner of 10% or more of any
class of equity securities of the specified Person or of which the specified Person is directly or indirectly through one or more intermediaries the owner of 10% or more of any class of equity securities. For purposes of this definition,
“control” as applied to any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract,
or otherwise. 

  

 29 

	6.10	Further Acts. 

  

	 	(a)	After the Closing Date, each Party hereto, at the request of and without any further cost or expense to the other parties (except as expressly provided in this
Agreement), will take any further actions necessary or desirable to carry out the purposes of this Agreement and to vest in CMED Sub and CMED WFOE full title to all the Designated Assets, PRC IP Rights and Relevant IP Rights. In addition, without in
any way limiting the generality of the foregoing, the Seller Parties hereby agree to, upon the request of CMED Group, take at such Seller Parties’ expense any and all further actions necessary or desirable to carry out the assignment or
transfer of all Relevant IP Rights from the Seller to CMED Sub and the assignment or transfer of all PRC IP Rights from CytoTrend WFOE to CMED WFOE. 

  

	 	(b)	After the Closing Date, if any Designated Assets, PRC IP Rights and Relevant IP Rights continue to be owned, held or titled by any Seller Party, then the Seller Parties
shall within three (3) Business Days of its discovery of such ownership, holding or titling, or within three (3) Business Days of a request by CMED or CMED Sub, transfer and assign (or cause to be transferred and assigned) to CMED or any
Person designated by CMED, all of such Seller Party’s right, title and interest in such property or asset. Such transfer or assignment shall be at the sole expense of the Seller Parties. 

  

	6.11	CytoTrend Non-Competition Covenant. 

  

	 	(a)	For a period of five (5) years following the Closing (the “Restricted Period”), the Seller Parties shall not, directly or indirectly, and shall
not cause or permit any other Seller Group Member or any Employee to, without the prior written consent of CMED or CMED Sub (i)(x) engage in a Competitive Business Activity (as defined below) anywhere in the Restricted Territory (as defined
below), or (y) interfere with the SPR Business or business of the CMED Group or their respective Affiliates, or approach, contact or solicit any supplier, customers or potential suppliers or customers of the CMED Group or their respective
Affiliates in connection with a Competitive Business Activity, and (ii) during the Restricted Period, the Seller Parties shall not, directly or indirectly, and shall not cause or permit any other Seller Group Member or Employee to, solicit,
encourage, entice, influence, induce or take any other action which is intended to solicit, encourage, entice, influence, induce or has the effect of inducing, influencing or encouraging, any employee or consultant of the CMED Group or their
respective Affiliates, or to terminate his or her employment with CMED, CMED Sub or their respective Affiliates. 

  

 30 

	 	(b)	For all purposes hereof, the term “Competitive Business Activity” shall mean (i) engaging in (with or without compensation), or managing or
directing persons engaged in: (A) any business which provides products, services or technologies substantially similar to the SPR Business or the business currently conducted or proposed to be conducted by CMED or its Affiliates, or
(B) any business relating to the SPR Business or the business currently conducted or proposed to be conducted by CMED or its Affiliates; (ii) acquiring or having an ownership interest in any firm, partnership, corporation, entity or
business engaged in the activities described under clauses (i) of this Section 6.11 (except for passive ownership of one percent (1%) or less of any entity whose securities have been listed or quoted on the NASDAQ Global Select
Market, New York Stock Exchange, the Main Board of the Tokyo Stock Exchange, the Main Board of the Hong Kong Stock Exchange or any other recognized stock exchange(s)); or (iii) participating in the financing, operation, management or control of
any firm, partnership, corporation, entity or business described in clause (i) of this sentence or engaged in any of the activities described in clauses (i) or (ii) of this sentence. For all purposes hereof, the term
“Restricted Territory” shall mean worldwide. For the avoidance of doubt, the operation of the PCR Business and the holding of the Excluded IP and the Excluded Asset shall not be deemed a Competitive Business Activity; provided that
the Excluded IP and Excluded Asset are not otherwise used by the Seller Parties or their Affiliates in furtherance of a Competitive Business Activity. The Parties recognize that the laws and public policies of various jurisdictions may differ as to
the validity and enforceability of covenants similar to those set forth in this Section 6.11. It is the intention of the Parties that the provisions of this Section 6.11 shall be enforced to the fullest extent permissible under the laws
and policies of each jurisdiction in which enforcement may be sought, and that the unenforceability (or the modification to conform to such laws or policies) of any provisions of this section shall not render unenforceable, or impair, the remainder
of the provisions of this section. Accordingly, if any provision of this Section 6.11 shall be determined to be invalid or unenforceable, such invalidity or unenforceability shall be deemed to apply only with respect to the operation of such
provision in the particular jurisdiction in which such determination is made and not with respect to any other provision or jurisdiction. 

  

	6.12	Restructuring. The Seller Parties shall, and shall cause the Seller Group, to take all requisite action so that prior to the Closing, all of the Relevant
IP Rights of CytoTrend WFOE shall have been transferred to the Seller in compliance with all applicable laws, and free and clear of any Liens (“Seller Party Restructuring”). The Seller Parties shall, and shall cause the Seller Group
and their Affiliates to, provide CMED Sub or its advisors with copies of all draft agreements, filings, applications and memorandums regarding the Seller Party Restructuring, and provide CMED with no less than five (5) days prior written notice
to approve or comment on the Seller Party Restructuring. The Seller Parties shall, and shall cause the Seller Group to, also use their best efforts to assist CMED and its Affiliates to obtain all relevant licenses, permits and contractual rights
necessary for the Designated Assets, PRC IP Rights and Relevant IP Rights. 

  

 31 

	6.13	Certain Business Practices. The Seller Parties shall, and shall cause the Seller Group and their Affiliates to, comply with the FCPA and any applicable
PRC anti-corruption laws with respect to the SPR Business. No Seller Party shall, directly or indirectly, make or permit to be made any Prohibited Payments with respect to the SPR Business, and shall make, and cause to be made, all payments in
compliance with the laws of the PRC, US (regardless of whether the Seller Parties are currently subject to US law) and any other applicable jurisdiction. The Seller Parties shall, and shall cause the Seller Group to, maintain a system of internal
accounting controls adequate to insure that the Seller Group maintain no off-the-books accounts and that the Seller Group’s assets are used only in accordance with the Seller Group’s management directives. The Seller Parties shall, and
shall cause the Seller Group, to at all times remain in compliance with all legal requirements relating to export control and trade embargoes with respect to the SPR Business. The Seller Parties shall not, and shall cause the Seller Group not to,
violate the anti-boycott prohibitions contained in 50 U.S.C. 2401 et seq. or take any action that can be penalized under Section 999 of the Code, as applied to the SPR Business. No Seller Group Member shall be a party to, or a
beneficiary under or perform any service on behalf of the SPR Business or sell any product on behalf of the SPR Business in Bahrain, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Sudan, Syria, United Arab Emirates or the Republic
of Yemen. 

  

	6.14	Transitional Technical Support. Upon the request of CMED or its Affiliates, the Seller Parties shall, and shall cause the Seller Group and their
Affiliates to, promptly provide CMED or its Affiliates with transitional technical support to operate the Designated Assets, PRC IP Rights and/or Relevant IP Rights. 

 SECTION 7. 
 CONDITIONS; CLOSING ACTIONS;
DELIVERABLES 
  

	7.1	Conditions to Obligations of Each Party. The respective obligations of each party to this Agreement to consummate and effect the Closing and the
Transaction shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing, by agreement of each of CMED and the Seller hereto: 

  

	 	(a)	 No Injunctions or Restraints; Illegality. No temporary restraining order, preliminary or permanent injunction or other order issued by
any court of competent jurisdiction or other legal or regulatory restraint or prohibition preventing the consummation of the Transaction or limiting the CMED Group’s ownership of or interest in the Designated Assets, PRC IP

  

 32 

	 	 
Rights and Relevant IP Rights immediately following the Closing shall be in effect, nor shall any proceeding brought by any Governmental Authority, foreign or domestic, seeking any of the
foregoing be pending; nor shall there be any action taken, or any statute, rule, regulation or order enacted, entered, enforced or deemed applicable to the Transaction, which makes the consummation of such transactions illegal.

  

	 	(b)	Governmental Approval. The Parties shall have obtained from each Governmental Authority all approvals, waivers and consents, if any, necessary for
consummation of or in connection with the execution and delivery of this Agreement and the Related Agreements, and the consummation of the Transaction. 

  

	 	(c)	Completion of Seller Restructuring. Seller shall have acquired all of the Relevant IP Rights, in compliance with all applicable laws, and free any clear
of any Liens. 

  

	7.2	Conditions to Obligations of the Seller Parties; Actions Taken by CMED Sub. The obligations of the Seller Parties to consummate and effect the Closing and
the Transaction shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing, by the Seller (on behalf of the Seller Parties): 

  

	 	(a)	Representations, Warranties and Covenants. (i) Each of the representations and warranties of CMED and CMED Sub in this Agreement that is expressly
qualified by a reference to materiality shall be true in all respects as so qualified, and each of the representations and warranties of CMED and CMED Sub in this Agreement that is not so qualified shall be true and correct in all material respects,
on and as of the Closing as though such representation or warranty had been made on and as of the Closing (except that those representations and warranties which address matters only as of a particular date shall remain true and correct as of such
date), and (ii) CMED and CMED Sub shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by CMED and CMED Sub as of the Closing.

  

	 	(b)	Compliance Certificate of CMED. Seller shall have been provided with a certificate executed on behalf of a director or officer of CMED Sub to the effect
that, as of the Closing, each of the conditions set forth in Section 7.2(a) above has been satisfied with respect to CMED and CMED Sub. 

  

	7.3	Deliverables to CMED; Actions Taken by the Seller; Conditions. The obligations of CMED and CMED Sub to consummate and effect the Closing and the
Transaction shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing, by CMED Sub: 

  

	 	(a)	Representations, Warranties and Covenants. (i) Each of the representations and warranties of the Seller Parties in this Agreement that is expressly
qualified by a reference to materiality shall be true in all respects as so qualified, and each of the representations and warranties of the Seller Parties in this Agreement that is not so qualified shall be true and correct in all material
respects, on and as of the Closing as though such representation or warranty had been made on and as of the Closing (except that those representations and warranties which address matters only as of a particular date shall remain true and correct as
of such date) and (ii) the Seller Parties shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by them as of the Closing.

  

 33 

	 	(b)	No Material Adverse Changes. There shall not have occurred any Material Adverse Effect on any of the Seller Group, the Designated Assets, PRC IP Rights
and Relevant IP Rights. 

  

	 	(c)	Due Diligence. CMED Sub shall have completed its financial, tax, business and legal due diligence to its satisfaction. 

  

	 	(d)	Certificates of the Seller. 

  

	 	(i)	Seller Party Certificates. CMED Sub shall have been provided with certificates executed by the directors of the Seller and Supreme Well, certifying that
as of the Closing, each of the conditions set forth in Section 7.1 and this Section 7.3 (other than Sections 7.3(c),(g), and (h)) have been satisfied; 

  

	 	(ii)	Seller Director/Secretary Certificates. CMED Sub shall have been provided with a certificate executed by a director or the secretaries of the Seller
Parties on behalf of such entities certifying: 

  

	 	(A)	resolutions duly adopted by the boards of directors of each of the Seller Parties, authorizing the Transaction and the execution of this Agreement and the execution,
performance and delivery of all agreements, documents and the Transaction; 

  

	 	(B)	the incumbency of the officers of the Seller Parties executing this Agreement and all agreements and documents contemplated hereby. 

  

 34 

	 	(e)	Amendments to Contracts; Third Party Consents. CMED Sub shall have received: 

  

	 	(i)	An executed invention assignment and general release agreement signed by CytoTrend WFOE and each current and former Employee substantially in the form of Exhibit
7.3(e)(i); 

  

	 	(ii)	Evidence reasonably satisfactory to CMED Sub that the representations and warranties in Section 3.8(n) above are true and correct (if applicable);

  

	 	(iii)	Executed consents from third party licensors or assignors for the Designated Assets, PRC IP Rights and Relevant IP Rights, in a form reasonably acceptable to CMED Sub;

  

	 	(iv)	Other consents reasonably requested by CMED Sub, upon completion of its due diligence review; and 

  

	 	(v)	In addition to the consents, waivers, approvals and authorizations described in (i) through (iv) above, CMED Sub shall have been furnished with evidence
satisfactory to it that the Seller Group has obtained those consents, waivers, approvals or authorizations of those Governmental Authorities and third parties whose consent or approval are required in connection with this Agreement, the Related
Agreements, and the consummation of the Transaction, including without limitation, the Seller Party Restructuring. 

  

	 	(f)	Assignment Agreements. The Relevant IP Rights Assignment Agreement shall have been duly executed by CMED Sub and the Seller and delivered to CMED Sub. The
PRC IP Rights Assignment Agreement shall have been duly executed by CMED WFOE and CytoTrend WFOE and delivered to CMED WFOE. 

  

	 	(g)	Anti-Trust Approvals and Waiting Periods. Any waiting period (and extension thereof) application to the consummation of the Transaction under applicable
law will have expired or been terminated. 

  

	 	(h)	Releases. CMED Sub shall have received duly and validly executed copies of all agreements, instruments, certificates and other documents, in form and
substance satisfactory to CMED Sub, that are necessary or appropriate to evidence the release of any and all Liens on the Designated Assets, PRC IP Rights and Relevant IP Rights arising out of, resulting from or in connection with any loans,
guarantees or other similar arrangements between or among the Seller Group or their Affiliates or any third party creditors of any of the foregoing. 

  

 35 

	 	(i)	Hong Kong and US Legal Opinion. CMED and CMED Sub shall have received a legal opinion from K&L Gates, legal counsel to the Seller Parties or such
other legal counsel acceptable to CMED and CMED Sub, with respect to matters of Hong Kong and US law, in a form acceptable to CMED and CMED Sub. 

  

	 	(j)	PRC Legal Opinion. CMED, CMED Sub and CMED WFOE shall have received a legal opinion from PRC counsel to the Seller Parties or CytoTrend WFOE acceptable to
CMED and CMED Sub, with respect to matters of PRC law, which opinion shall be in form and substance satisfactory to CMED Sub. 

  

	 	(k)	BVI Legal Opinion. CMED and CMED Sub shall have received a legal opinion from Conyers Dill & Pearman, British Virgin Islands counsel to the
Seller Parties, or such other legal counsel acceptable to CMED and CMED Sub, with respect to matters of British Virgin Islands law, which opinion shall be in form and substance satisfactory to CMED Sub. 

  

	 	(l)	Transferred Employees. Each of the Employees offered employment or consultancy by CMED or an Affiliate of CMED in accordance with Section 1.11 above
shall have accepted (effective upon the Closing), executed and delivered an Employment Agreement and Proprietary Information and Inventions Agreement (for employees) or a Consulting Agreement and Proprietary Information and Inventions Agreement (for
consultants) in forms and substance satisfactory to CMED (together, the “Employment and Consulting Agreements”). 

  

	 	(m)	Updated Schedules. CMED shall have approved the updated PRC IP Rights Schedule and Relevant IP Rights Schedule provided by the Seller pursuant to
Section 1.4 above. 

  

	 	(n)	Filings; Recordation. The Seller shall have filed with the U.S. Patent and Trademark Office the assignment of the U.S. patent applications referred to in
I of Schedule 1.2(c) attached hereto from the Seller to CMED Sub; provided that the Seller hereby agrees to use its best efforts to effect the recordation of such assignment on or as soon as practicable after the Closing Date and in any event no
later than three (3) Business Days following the Closing. In addition, CytoTrend WFOE shall have filed with the relevant PRC Governmental Authorities the assignment of the PRC IP Rights from CytoTrend WFOE to CMED WFOE; provided that the Seller
hereby agrees to cause CytoTrend WFOE to complete the recordation of such assignment on or as soon as practicable after the Closing Date and in any event no later than ten (10) Business Days after the Closing Date, in the case of PRC patent
applications, and sixty (60) Business Days after the Closing Date, in the case of copyright or similar applications. 

  

 36 

 SECTION 8. 
 SET-OFF AND INDEMNIFICATION 
  

	8.1	 Survival of Representations and Warranties. All covenants to be performed prior to the Closing, and all representations and warranties in
this Agreement or in any instrument delivered pursuant to this Agreement shall survive the consummation of the Closing and continue for two (2) years following the Closing Date (the “Survival Date”); provided,
however, that if any claims for indemnification have been asserted with respect to any such representations and warranties prior to the Survival Date, the representations and warranties on which any such claims are based shall continue in
effect until final resolution of any claims, provided, further, that all claims based on fraud and intentional misrepresentation shall survive indefinitely. All covenants to be performed, in whole or in part, after the Closing shall continue
until the Survival Date, provided, that all covenants and agreements in Section 6.11 above shall survive until the fifth (5th) anniversary of the Closing Date, and all indemnification obligations shall survive in accordance with
Section 8.3(b)(iii) below. 

  

	8.2	Set-Off. In connection with Section 1.9 above, any and all amounts claimed by an Indemnified Person (as defined below) pursuant to Section 8.3
below in connection with Damages (as defined below) for which the Indemnified Person has delivered a notice to the Seller may be set-off, at CMED’s sole direction, any unpaid amounts by the CMED Group due to the Seller. In the event the Seller
objects to CMED’s set-off, the dispute shall be subject to Section 8.5 below, provided, that CMED Group shall not be required to make any unpaid amounts that it has set-off unless, until and to the extent it is so ordered to do so in a
final and binding award of an arbitration tribunal pursuant to an arbitration conducted in accordance with Section 8.5 below. 

  

	8.3	Indemnification. 

  

	 	(a)	Indemnification Obligations. Subject to the limitations set forth in this Section 8, from and after the Closing Date, each of the Seller Parties
shall jointly and severally protect, defend, indemnify and hold harmless CMED, CMED Sub and their respective Affiliates, officers, directors, employees, representatives and agents (each, an “Indemnified Person” and collectively, the
“Indemnified Persons”) from and against any and all losses, costs, amounts paid or payable, damages, liabilities, fees (including without limitation reasonable attorneys’ fees) and expenses (collectively, the
“Damages”), that any of Indemnified Persons incurs by reason of or in connection with: 

  

	 	(i)	any claim, demand, action or cause of action alleging misrepresentation, breach of, or default in connection with, any of the representations, warranties, covenants or
agreements of any of the Seller Parties contained in this Agreement, the Related Agreements, and any exhibits or schedules attached hereto or thereto; 

  

 37 

	 	(ii)	any Damages for Known Liabilities (as defined below) up to the Survival Date; 

  

	 	(iii)	any failure of any of the Seller Parties to perform any of its covenants, obligations or agreements under this Agreement; 

  

	 	(iv)	 any claims brought prior to the second (2nd) anniversary of the Closing relating to title, infringement, misappropriation or unlawful use by CMED or its
Affiliates of the Relevant IP Rights (excluding, for the avoidance of doubt, claims brought relating to title, infringement, misappropriation or unlawful use by CMED or its Affiliates with respect to improvements and derivative works of the PRC IP
Rights or Relevant IP Rights developed exclusively by CMED or its Affiliates from and after the Closing); 

  

	 	(v)	any claims brought by a Governmental Authority, shareholder or Employee in respect of Employees who were or who are terminated by a Seller Group Member prior to or as
of the Closing (excluding, for the avoidance of doubt, any claims brought by Transferred Employees of the CMED or its Affiliates after the Closing arising out of the Employment and Consulting Agreements executed by such Transferred Employees and
CMED or its applicable Affiliates); 

  

	 	(vi)	any Transaction Expenses of the Seller Parties that remain unpaid as of the Closing; 

  

	 	(vii)	any fraud or intentional misrepresentation by any Seller Group Member, or any of their respective employees, officers, directors or shareholders (direct or indirect)
with respect to the subject matter of any of the representations, warranties, covenants, obligation or agreements contained or contemplated by this Agreement or the Related Agreements; and 

  

	 	(viii)	 any termination of service of the Transferred Employees, whether by CMED or its applicable Affiliate, on one hand, or by the Transferred Employee, as
applicable, on the other hand, on or prior to or on the fifth (5th) anniversary of the Closing Date, unless and to the extent such termination resulted from an intentional breach by CMED, CMED Sub or their Affiliates (as the case may be) of any employment agreement with any Transferred Employee.

 In determining the amount of any Damages in respect of the failure of any representation or warranty to be
true and correct, any materiality standard or qualification (including a Material Adverse Effect qualification) contained in such

  

 38 

 
representation or warranty shall be disregarded. The Seller Parties shall have no right of contribution, indemnification or similar right from CMED or CMED Sub. Each of the Seller Parties is
individually referred to in this Section 8 as the “Indemnifying Person”, and collectively, the “Indemnifying Persons”. 
  

	 	(b)	Limitations. 

  

	 	(i)	The Seller Parties shall not be required to indemnify an Indemnified Party or be liable to CMED, CMED Sub or their Affiliates for any Liability under this Agreement or
the Related Agreements unless the aggregate amount of all Damages and Liability exceeds US$100,000 (“Basket”), after which the Seller Parties shall be responsible for all Damages and Liability, including the Basket;

  

	 	(ii)	The maximum Liability of the Seller Parties under this Agreement or the Related Agreements shall be limited to the aggregate amount of Consideration actually paid to
the Seller Parties under this Agreement (including the PRC Allocated Closing Value); provided, however, that nothing herein shall limit the Liability: (A) of any Seller Party for any breach of a representation or warranty,
covenant or agreement pursuant to Section 9.2 below if the Transaction does not close, or (B) of any officer, director, shareholder or other equity holder of the Seller Parties for such Person’s fraud or intentional misrepresentation.
Nothing contained in this Section 8 is intended to limit the right of CMED to terminate this Agreement pursuant to Section 9.1 below; 

  

	 	(iii)	 Except for (A) claims in connection with fraud or intentional misrepresentation, which shall survive indefinitely; and (B) claims in
connection with a breach of or default of the covenants and agreements in Section 6.11 above (whether or not through an indemnification claim brought under Section 8.3(a)(iii) above), or an indemnification claim in connection with
Section 8.3(a)(viii) above), which shall survive until the fifth (5th) anniversary of the Closing Date, no claim may be initiated against any of the Seller Parties after the Survival Date; and 

  

	 	(c)	Known Liabilities. “Known Liabilities” shall mean all Damages incurred related to any compensation expenses (including payments made to
employees in connection with covenants not to compete) made to the Transferred Employees as contemplated under this Agreement to the extent greater than the lesser of: (i) the compensation paid to such Transferred Employees while employed with
the Seller Party in the twelve (12) months preceding the Closing; or (ii) the compensation payable to similarly situated employees of CMED and its Affiliates, up to the period of 5 years from the Closing Date. The foregoing shall be
considered Damages without regard to whether or not such Damages are disclosed on the Disclosure Schedule. 

  

 39 

	8.4	Method of Asserting Claims. Whenever any claim shall arise for indemnification hereunder, the Indemnified Party shall promptly notify the Seller in
writing of the claim and, when known. The facts constituting the basis for such claim, provided, that failure to give such notice shall not affect any rights or remedies of the Indemnified Party hereunder with respect to the indemnification of
Damages except to the extent the Indemnifying Party is materially and irrevocably prejudiced thereby. In the event of any claim for indemnification hereunder resulting from any claim by a third party, the notice to the Indemnifying Party shall
specify, if known, the amount or an estimate of the amount of the Damages arising therefrom, which estimate may be the amount claimed by such third party. 

  

	8.5	Resolution of Conflicts; Arbitration. 

  

	 	(a)	Negotiation Between Parties. The Parties agree to negotiate in good faith to resolve any dispute under this Agreement and the Related Agreements, and for
such purpose the Seller (including the Selling Parties), and CMED (including CMED Sub) shall each nominate one senior officer of the rank of Vice President or higher as its representative. These representatives shall, within fifteen (15) days
of a written request by either Party to call such a meeting, meet in person and alone (except for one assistant for each Party) and shall attempt in good faith to resolve the dispute. If the dispute cannot be resolved by such senior managers within
thirty (30) days of the written meeting request, either Party may thereafter commence appropriate legal proceedings in accordance with Section 8.5(b) below. 

  

	 	(b)	 Arbitration. Any dispute not resolved under Section 8.5(a) above shall be resolved through arbitration pursuant to this
Section 8.5(b). The arbitration shall be conducted in Hong Kong, administered by the Hong Kong International Arbitration Centre (“HKIAC”) in accordance with the UNCITRAL Rules in effect at the time of the arbitration. There
shall be three arbitrators. The Seller and CMED shall each select one arbitrator. The Party commencing the arbitration shall nominate his arbitrator at the time of filing the demand for arbitration. The respondent shall nominate his arbitrator
within thirty (30) days after receiving the demand for arbitration. The two nominated arbitrators shall select a third arbitrator. Each arbitrator shall be qualified to practice law in New York and shall have experience in connection with
mergers and acquisitions in the PRC. If either Party does not appoint an arbitrator within the time set forth above, the relevant appointment shall be made by HKIAC. The arbitration proceedings shall be conducted in English. The arbitrators shall
have the authority to award attorney’s fees and other costs and expenses of the arbitration as they deem just and appropriate under the circumstances. Pending appointment of the arbitration tribunal, any Party shall be entitled to seek
preliminary injunctive relief from any court of competent jurisdiction. Once the arbitration tribunal is appointed, such

  

 40 

	 	 
tribunal shall have exclusive authority to order such relief. Any award of the arbitration tribunal, whether it is for interim, provisional or final relief, shall be binding upon the disputing
Parties, and any Party may apply to a court of competent jurisdiction for enforcement of such award. The Parties shall cooperate and use its respective best efforts to take all actions reasonably required to facilitate the prompt enforcement in any
jurisdiction of any arbitration award made by the tribunal. 

  

	8.6	Third-Party Claims. 

  

	 	(a)	For any claim by a Person who is not a Party (“a Third Party Claim”) for which the Indemnifying Party has indemnification obligations under this
Agreement or the Related Agreements, the Indemnifying Party at its sole expense may, upon written notice to the Indemnified Party, assume the defense of any such claim if the Indemnifying Party acknowledges to the Indemnified Party in writing its
obligation to indemnify the Indemnified Party with respect to all elements of such claim, and thereafter diligently conducts the defense thereof with counsel reasonably acceptable to the Indemnified Party. The Indemnified Party shall be entitled to
employ counsel separate from counsel employed by the Indemnifying Party in any such action and to participate therein at their own expense. The Indemnifying Party may not consent to the entry of any judgment or enter into any settlement which does
not require the claimant to give the relevant Indemnified Parties an unconditional release from all Liability with respect to such claims. In the event it is determined by a final, binding and non-appealable award by an arbitration tribunal pursuant
to Section 8.5 above that the Indemnified Party was not entitled to indemnification by the Indemnifying Party under this Agreement and the Related Agreements (as applicable), the Indemnifying Party shall be entitled to be reimbursed by the
Indemnified Party for all reasonable attorneys’ fees and costs incurred by the Indemnifying Party in connection with investigating and defending the Third Party Claim. 

  

	 	(b)	If the Indemnifying Party does not assume the defense of the Third Party Claim for which the Indemnifying Party has indemnification obligations under this Agreement or
the Related Agreements within thirty (30) days after written notice thereof from the Indemnified Party or does not thereafter diligently conduct such defense in a manner acceptable to the Indemnified Party, the Indemnified Party may defend
against such claim in such manner as it may reasonably deem appropriate (including settling such claim on such terms as the Indemnified Party may deem appropriate) at the sole cost and expense of the Indemnifying Party, provided that the
Indemnifying Party uses its commercially reasonable efforts to defend the claim diligently. 

  

 41 

 SECTION 9. 
 TERMINATION 
  

	9.1	Termination. Notwithstanding anything herein to the contrary, this Agreement may be terminated and the Transaction abandoned at any time prior to the
Closing Date: 

  

	 	(a)	By mutual written consent of CMED Sub, on one hand, and the Seller, on the other hand; 

  

	 	(b)	By CMED Sub, if any representation or warranty of the Seller Parties shall be untrue, incomplete or incorrect, or any covenant or agreement of the Seller set forth in
this Agreement shall be breached, in either case such that the conditions in Section 7.3(a) above would not be satisfied; provided, however, that if such breach or such failure to be true, complete or correct is curable by the
Seller Parties through the exercise of its reasonable efforts within five (5) Business Days and such breach or such failure is cured during such period, CMED and CMED Sub may not terminate this Agreement under this Section 9.1(b);

  

	 	(c)	By the Seller if any representation or warranty of CMED or CMED Sub shall be untrue, incomplete or incorrect, or any covenant or agreement of CMED or CMED Sub set forth
in this Agreement shall be breached, in either case such that the conditions in Section 7.2(a) above would not be satisfied; provided, however, that if such breach or such failure to be true, complete or correct is curable by CMED
or CMED Sub through the exercise of its reasonable efforts within five (5) Business Days and such breach or such failure is cured during such period, the Seller may not terminate this Agreement under this Section 9.1(c); or

  

	 	(d)	By CMED Sub or the Seller, if the Closing shall not have occurred within ninety (90) days of the Agreement Date or a longer period as agreed by all the Parties
(the “Long-Stop Date”). 

  

	9.2	Survival. If this Agreement is terminated prior to the Closing and the Transaction is not consummated as described above, this Agreement shall become void
and of no further force and effect and none of the Parties shall have any claim of any nature or liabilities under this Agreement or the Related Agreements, except for the provisions of this Section 9.2 (Survival); Section 9.1
above (Termination); Section 4 above (Guarantee), Section 6.1 above (Expenses); Section 6.5 above (Confidentiality); and Section 10 below (Miscellaneous). Notwithstanding the foregoing, nothing in this Section 9.2 shall
limit any Party’s remedies for any breach of representation, warranty, covenant or agreement that may have occurred on or prior to the termination of this Agreement. 

  

 42 

 SECTION 10. 
 MISCELLANEOUS 
  

	10.1	Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by courier,
overnight delivery service or confirmed facsimile, or forty-eight (48) hours after being deposited in the regular mail as certified or registered mail (airmail if sent internationally) with postage prepaid, if such notice is addressed to the
party to be notified at such party’s address or facsimile number as set forth below, or as subsequently modified by written notice: 

  

	 	(a)	if to CMED or CMED Sub, to: 

 No. 24 Yongchang North
Road 
 Beijing Economic-Technological Development Area 
 Beijing, P.R. China 100176 
 Attention: Mr. Xiaodong Wu 
 Facsimile No.: +86 10 6788 4694 
 Telephone
No.: +86 10 6787 1166 
 with a copy to: 
 Morrison & Foerster 
 Edinburgh Tower, 41/F, The Landmark 
 15 Queen’s Road Central, Hong Kong 
 Attention: Mr. Paul Boltz 
 Facsimile No.: +852 2585 0800 
 Telephone No.: +852 2585 0856 
  

	 	(b)	if to the Seller Parties, to: 

 

 
 Beijing, PRC 
 Attn : Mr. Peter Chong 
 Fax : +86 10 6786 7396 
 Phone : +86 138 0224 3202 / +852 9011 8721 
 with a copy to: 
 K&L Gates 
 35th Floor, Two International Finance Centre

 8 Finance Street, Central, Hong Kong 
 Attn : Mr. Navin Aggarwal / Mr. Eric Fung 
 Fax : +852 2511 9515 
 Phone +852 2230 3515 / +852 2230 3513 
  

 43 

	10.2	Interpretation. When a reference is made in this Agreement to Exhibits, such reference shall be to an Exhibit attached to this Agreement unless otherwise
indicated. The words “include,” “includes” and “including” when used herein shall be deemed in each case to be followed by the words “without limitation.” The phrases
“Agreement Date”, “the date hereof,” and terms of similar import, unless the context otherwise requires, shall be deemed to refer to the date listed on the cover page to this Agreement. The headings contained in
this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 

  

	10.3	Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall
constitute one instrument. 

  

	10.4	Entire Agreement; No Third Party Beneficiaries. This Agreement (including the documents and the instruments referred to herein) (a) constitutes the
entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and (b) are not intended to confer upon any person other than the parties hereto any
rights or remedies hereunder. 

  

	10.5	Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such
provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible to that under the provision rendered unenforceable. In the event that the parties cannot reach a mutually agreeable and enforceable
replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be
enforceable in accordance with its terms. 

  

	10.6	Remedies Cumulative. Except as otherwise provided herein, any and all remedies herein expressly conferred upon a party will be deemed cumulative with and
not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any other remedy. 

  

	10.7	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, regardless of the laws that might
otherwise govern under applicable principles of conflicts of laws thereof. Subject to Section 10.10 below, all disputes shall be settled by arbitration as described in Section 8.5 above and all other forms of recourse are hereby expressly
waived by the parties. 

  

 44 

	10.8	Rules of Construction. The parties hereto agree that they have been represented by counsel during the negotiation, preparation and execution of this
Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

  

	10.9	Amendments and Waivers. Any term of this Agreement may be amended or waived only with the written consent of CMED, CMED Sub, Seller or their respective
successors and assigns. Any amendment or waiver effected in accordance with this Section 10.9 shall be binding upon all parties and their respective successors and assigns. 

  

	10.10	Specific Performance. The parties recognize that in the event that any Seller Party should refuse to perform under the provisions of this Agreement,
monetary damages alone will not be adequate. CMED and CMED Sub shall therefore be entitled, in addition to any other remedies that may be available, including money damages, to obtain specific performance of the terms of this
Agreement, including without limitation, Section 6.11 above (CytoTrend Non-competition Covenant). In the event of any action to enforce this Agreement specifically, the Seller Parties hereby waive the defense that there is an adequate remedy at
law. 

  

	10.11	Assignment. This Agreement shall not be assigned by any party without the prior written consent of the non-assigning party. Notwithstanding the foregoing,
nothing in this Agreement shall restrict CMED, CMED Sub or its Affiliates from a transfer in respect of a change of control of CMED, CMED Sub or their Affiliates. 

  

	10.12	Payments in United States Dollars. Except as provided in Section 1.5 and 1.8 above, all cash payments contemplated by this Agreement shall be made in
United States Dollars. The Seller Parties shall provide all information requested by CMED and CMED Sub in order to permit CMED Sub and any financial institution acting on CMED Sub’s behalf to comply with their obligations under the USA Patriot
Act of 2001, as amended, and other applicable laws. If the Seller Parties do not provide any such information, CMED Sub’s obligations to pay shall be tolled until such information is provided. 

 [Signature Pages Follow] 
  

 45 

 The Parties have duly executed this Asset Acquisition Agreement as of the date first above written.

  

					
	 “CMED”
	 	CHINA MEDICAL TECHNOLOGIES, INC.
			
		 	By:	 	 /s/ Xiaodong Wu

		 	Name:	 	 Xiaodong Wu

		 	Title:	 	 Chairman and Chief Executive Officer

		
	“CMED SUB”	 	CMED TECHNOLOGIES LTD.
			
		 	By:	 	 /s/ Xiaodong Wu

		 	Name:	 	 Xiaodong Wu

		 	Title:	 	 Director

 The Parties have duly executed this Asset Acquisition Agreement as of the date first above written.

  

					
	“SUPREME WELL”	 	SUPREME WELL INVESTMENTS LIMITED 
			
		 	By:	 	 /s/ Chong Kam Chu

		 	Name:	 	 Chong Kam Chu

		 	Title:	 	 Director

		
	“SELLER”	 	MOLECULAR DIAGNOSTIC TECHNOLOGIES LIMITED
			
		 	By:	 	 /s/ Kam Chu Chong

		 	Name:	 	 Kam Chu Chong

		 	Title:	 	 Director

 Disclosure Schedule 
 [Attached Separately] 

 Schedule 1.1(c) 
 Excluded Asset 
 [Attached Separately] 

 Schedule 1.2(a) 
 Excluded IP 
 [Attached Separately] 

 Schedule 1.2(c) 
 Relevant IP Rights Schedule 
 [Attached Separately]

 Schedule 1.11 
 Employees 
 [Attached Separately] 

 Schedule 3.3 
 Requisite Actions 
 [Attached Separately] 

 Exhibit 2.2(a)(iv) 
 Relevant IP Rights Assignment Agreement 
 [Attached
Separately] 

 Exhibit 7.3(e)(i) 
 Intellectual Property Rights Assignment and General Release Agreement 
 [Attached Separately]Share Purchase Agreement

 Exhibit 4.3 
 Execution Copy 
 SHARE PURCHASE AGREEMENT 
 among 
 CMED ECLIA
Diagnostic Technology Ltd 
 and 
 Chengxuan International Ltd. 
 December 17, 2008 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I
	DEFINITIONS
			
	1.1	  	Certain Definitions	  	1
			
	1.2	  	Other Terms	  	6
			
	1.3	  	Other Definitional Provisions	  	6
	
	ARTICLE II
	PURCHASE AND SALE OF SHARES; THE CLOSING
			
	2.1	  	Purchase and Sale	  	6
			
	2.2	  	The Closing	  	6
			
	2.3	  	Delivery of Share Certificates	  	6
	
	ARTICLE III
	[RESERVED]
	
	ARTICLE IV
	REPRESENTATIONS AND WARRANTIES OF THE SELLER
			
	4.1	  	Organization, etc	  	7
			
	4.2	  	Authorization, etc	  	7
			
	4.3	  	No Violations	  	7
			
	4.4	  	Acquired Companies	  	8
			
	4.5	  	Organizational Documents, Minutes	  	8
			
	4.6	  	Capitalization	  	9
			
	4.7	  	Compliance	  	9
			
	4.8	  	Consents and Approvals	  	9
			
	4.9	  	Other Shareholders Agreements	  	9
			
	4.10	  	Financial Information	  	9
			
	4.11	  	Absence of Undisclosed Liabilities	  	10
			
	4.12	  	Absence of Changes	  	10
			
	4.13	  	Litigation	  	10
			
	4.14	  	Taxes	  	10
			
	4.15	  	Governmental Approvals	  	11
			
	4.16	  	Title to Assets; Liens	  	11

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	4.17	  	Intellectual Property	  	11
			
	4.18	  	Environmental Laws	  	12
			
	4.19	  	Product Liability and Warranty	  	12
			
	4.20	  	Material Contracts	  	12
			
	4.21	  	Labor Agreements and Actions; Employee Matters	  	13
			
	4.22	  	Certain Transactions	  	13
			
	4.23	  	Employee Benefits	  	13
			
	4.24	  	Business Practices	  	13
			
	4.25	  	Restricted Activities	  	14
			
	4.26	  	Availability and Transfer of Foreign Currency	  	14
			
	4.27	  	Brokers	  	14
			
	4.28	  	Customers and Suppliers	  	14
			
	4.29	  	Title to the Shares	  	15
	
	ARTICLE V
	REPRESENTATIONS AND WARRANTIES OF THE BUYER
			
	5.1	  	Organization, etc	  	15
			
	5.2	  	Authorization, etc	  	15
			
	5.3	  	No Violations	  	16
			
	5.4	  	Brokers	  	16
			
	5.5	  	Status and Investment Intent	  	16
	
	ARTICLE VI
	COVENANTS OF THE SELLER
			
	6.1	  	Opportunity to Ask Questions; Access to Documents	  	17
			
	6.2	  	Conduct of Business	  	17
			
	6.3	  	Approvals and Consents	  	18
			
	6.4	  	Further Actions	  	18
	
	ARTICLE VII
	CONDITIONS TO THE CLOSING
			
	7.1	  	Conditions to Each Party’s Obligations	  	19

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	7.2	  	Conditions to Obligations of the Buyer	  	19
			
	7.3	  	Conditions to Obligations of the Seller	  	20
	
	ARTICLE VIII
	INDEMNIFICATION
			
	8.1	  	Indemnification by the Seller	  	20
			
	8.2	  	Indemnification Procedures; Third Party Claims	  	21
			
	8.3	  	Limitation on Indemnification	  	22
	
	ARTICLE IX
	MISCELLANEOUS
			
	9.1	  	Survival of Representations and Warranties	  	22
			
	9.2	  	Transfer Taxes	  	22
			
	9.3	  	[Reserved]	  	22
			
	9.4	  	Waivers and Amendments	  	23
			
	9.5	  	Notices, etc	  	23
			
	9.6	  	Dispute Resolution	  	23
			
	9.7	  	Governing Law	  	25
			
	9.8	  	Successors and Assigns	  	25
			
	9.9	  	No Third Party Beneficiaries	  	25
			
	9.10	  	Delays or Omissions	  	25
			
	9.11	  	Publicity	  	25
			
	9.12	  	Expenses	  	26
			
	9.13	  	Currency	  	26
			
	9.14	  	Specific Performance	  	26
			
	9.15	  	Entire Agreement	  	26
			
	9.16	  	Severability	  	26
			
	9.17	  	Counterparts	  	27
			
	9.18	  	Descriptive Headings; Interpretation	  	27
			
	9.19	  	No Strict Construction	  	27

  

 iii 

 SHARE PURCHASE AGREEMENT 
 Share Purchase Agreement (the “Agreement”), dated December 17, 2008 between CMED ECLIA Diagnostic Technology Ltd, a limited
liability company organized and existing under the laws of the British Virgin Islands (the “Seller”) and Chengxuan International Ltd., a limited liability company organized and existing under the laws of the British Virgin Islands
(the “Buyer”); 
 WHEREAS, the Seller desires to sell to the Buyer, and the Buyer desires to purchase from the Seller all of
the issued and outstanding share capital (the “Shares”) of CMED HIFU Technology Limited, a limited liability company organized and existing under the laws of the British Virgin Islands (the “Company”) which
develops, manufactures and markets medical equipment systems that use high intensity focused ultrasound for the treatment of solid cancers and benign tumors (the “Business”), for the consideration and upon the terms and conditions
set forth herein; 
 NOW, THEREFORE, in consideration of the agreements, covenants, representations and warranties set forth herein, and
intending to be legally bound hereby, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 1.1 Certain Definitions.
Capitalized terms used in this Agreement shall have the meanings set forth below: 
 “Acquired Companies” shall mean the
Company and its Subsidiaries, collectively, and “Acquired Company” shall mean each or any of them as the context requires. 
 “Affiliate” shall mean, with respect to any party, any Person that, alone or together with any other Person, directly or indirectly, through one or more intermediaries controls, or is controlled by, or is under common
control with, such party. For the purposes of this definition, “control” (including the terms “controlling,” “controlled by” and “under common control with”), as used with respect to any party shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management policies of such party, whether through the ownership of voting securities, by contract, agency or otherwise. 
 “Agreement” shall have the meaning specified in the recitals hereof. 
 “Applicable Contract” shall mean any Contract (a) under which any Acquired Company has or may acquire any rights, (b) under
which any Acquired Company has or may become subject to any obligation or liability, or (c) by which any Acquired Company or any of the assets owned or used by it is or may become bound. 
 “Applicable Law” shall mean, with respect to any Person, any statute, law, regulation, ordinance, rule, judgment, rule of common law,
order, decree, award, Governmental Approval, concession, grant, franchise, license, agreement, directive, guideline, policy, requirement, or other governmental restriction or any similar form of decision of, or determination by, or any
interpretation or 

 
administration of any of the foregoing by, any Governmental Authority, whether in effect as of the date hereof or thereafter and in each case as amended,
applicable to such Person or its subsidiaries or their respective assets. 
 “Assets” shall have the meaning specified in
Section 4.16 herein. 
 “Basket Amount” shall have the meaning specified in Section 8.3(b) herein. 
 “Business” shall have the meaning specified in the recitals hereof. 
 “Business Day” shall mean any day excluding (i) Saturday, Sunday and any day which shall be a legal holiday in the City of New
York, United States, the British Virgin Islands, Hong Kong or Beijing, China, or (ii) a day on which commercial banks in the City of New York, United States, the British Virgin Islands, Hong Kong or Beijing, China are authorized or required by
law or other government actions to close. 
 “Buyer” shall have the meaning specified in the recitals hereof. 
 “Centre” shall have the meaning specified in Section 9.6(b) herein. 
 “China” or “PRC” shall mean the People’s Republic of China, excluding, for the purposes of this Agreement only,
Taiwan and the special administrative regions of Hong Kong and Macau. 
 “China Medical” shall mean China Medical
Technologies, Inc., a limited liability company organized and existing under the laws of the Cayman Islands and an Affiliate of the Seller. 
 “Closing” shall have the meaning specified in Section 2.2(a) herein. 
 “Closing Date” shall
have the meaning specified in Section 2.2(a) herein. 
 “Code” shall mean the United States Internal Revenue Code of
1986 and any successor statute, as amended from time to time. 
 “Contract” shall mean any agreement, contract, obligation,
promise, or undertaking (whether written or oral and whether express or implied) that is legally binding. 
 “Controlled
Substance” shall mean narcotics and substance so defined under Section 102 of the United States Controlled Substances Act, as amended. 
 “Company” shall have the meaning specified in the recitals hereof. 
 “Confidential
Information” shall mean all information relating to the Business and any data, materials, drawings, specifications, formula, documents or information obtained or used in conjunction with the Business or any contract, agreement or
information directly or indirectly connected with this Agreement including but not limited to client lists, intellectual and industrial 

  

 2 

 
property, drawings, financial information, specifications, analysis, feasibility studies, information, data or knowledge relating to market conditions, negotiations, costs, products, financing
arrangements, designs, plans, processes, formulas, employees of the Acquired Companies and all other knowledge or information whatsoever relating directly or indirectly to the Business. 
 “Disclosure Schedules” shall mean the disclosure schedules attached to this Agreement containing matters relevant to the
representations and warranties contained herein that are disclosed pursuant to the terms of this Agreement. 
 “Encumbrance” shall mean any lien, encumbrance, proxy, voting trust or similar arrangement, pledge, security interest, collateral security agreement, limitations on voting rights, limitations on rights of ownership,
financing statement (and similar notices) filed with any Governmental Authority, claim (including any claim as defined in the Code), charge, equities, mortgage, pledge, objection, title defect, option, restrictive covenant, restriction on transfer
or any comparable interest or right created by or arising under Applicable Law, of any nature whatsoever. 
 “Environmental Law” shall mean all Applicable Laws, relating to pollution or protection of the environment, and to human health and safety including, without limitation, laws relating to releases, discharges, leaching,
migration or disposal of hazardous, toxic, or radioactive substances, oils, pollutants or contaminants into the indoor or outdoor environment (including, without limitation, ambient air, surface water, groundwater, land, surface and subsurface
strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, transport or handling of such substances, oils, pollutants or contaminants. 
 “First Payment” shall have the meaning set forth in Section 2.1 herein. 
 “Foreign Benefit Plan” shall have the meaning specified in Section 4.24 herein. 
 “GAAP” shall mean the generally accepted accounting principles in the United States, as in effect from time to time and as
adopted by China Medical, consistently applied. 
 “Government Official” shall mean (i) any employee or
official of any government, including any employee or official of any entity owned or controlled by a government, (ii) any employee or official of a political party, (iii) any candidate for political office or his employee, or
(iv) any employee or official of an international organization. For the avoidance of doubt, the term Government Official shall include any employee or official of a hospital, clinic or other healthcare institution owned or controlled by
government. 
 “Governmental Approval” shall mean any action, order, authorization, consent, approval, license,
lease, ruling, permit, tariff, rate, certification, exemption, filing or registration by or with any Governmental Authority. 
 “Governmental Authority” shall mean any government or political subdivision thereof, including without limitation, any governmental department, commission, board, bureau, agency, regulatory authority, instrumentality,
judicial or administrative body, having jurisdiction over the matter or matters in question. 
  

 3 

 “Indebtedness” shall mean, as to any Person, without duplication
(i) all Obligations of such Person for borrowed money or for the deferred purchase price of property or services (other than trade payables incurred in the ordinary course of business), (ii) all Obligations of such Person evidenced by a
note, bond, debenture or similar instrument, (iii) all reimbursement obligations of such Person with respect to all letters of credit securing Obligations of the type described in clauses (i), (ii), (iv) and (v) of any other Person,
but only to the extent of the Obligations secured, (iv) all Obligations under any interest rate or currency protection agreement (including, without limitation, any swaps, forward contracts, caps, floors, collars and similar agreements) and
commodity swaps, forward contracts and similar agreements and (v) all guarantees issued in respect of Obligations described in clauses (i)-(iv) above of any other Person. 
 “Immediate Family” shall mean a person’s spouse, parents, siblings, sons, daughters, mothers and fathers-in-law and
sons and daughters-in-law, brothers and sisters-in-law, grandparents and granddaughters and grandsons. 
 “Indemnified
Party” shall have the meaning specified in Section 8.1 herein. 
 “Liabilities” shall mean any
liability, indebtedness, obligation, commitment, expense, claim, deficiency, guaranty or endorsement of or by any Person of any type, whether accrued, absolute, contingent, matured, unmatured or other, and shall include all reserves (including a
reserve for Taxes). 
 “Losses” shall have the meaning specified in Section 8.1 herein. 
 “Material Adverse Change” shall mean any development or event, either individually or in the aggregate, involving a
material adverse change in the business condition (financial or otherwise), affairs, operations, assets, properties or prospects of the Business since September 30, 2008. 
 “Material Adverse Effect” shall mean, with respect to any Person, an event or series of events having a material adverse
effect on the business, condition (financial or otherwise), affairs, operations, liabilities, assets, properties or prospects of such Person or any of its Subsidiaries, individually or taken as a whole. 
 “Obligations” shall mean, in respect of any indebtedness, any principal, interest, penalties, fees, guarantees,
reimbursements and other liabilities pursuant to the terms thereof. 
 “OFAC” shall have the meaning set forth
in Section 4.25(b) herein. 
 “Order” shall mean any award, decision, injunction, judgment, order, ruling,
subpoena, or verdict entered, issued, made, or rendered by any court, any administrative body or other Governmental Authority or any arbitrator. 
 “Organizational Documents” shall mean (a) the articles or certificate of incorporation and the bylaws of a company; (b) the partnership agreement and any statement of
partnership of a general partnership; (c) the limited partnership agreement and the certificate of limited partnership of a limited partnership; (d) any charter or similar document adopted or filed in connection with the creation,
formation, or organization of a Person; and (e) any amendment to any of the foregoing. 
  

 4 

 “Original Currency” shall have the meaning specified in
Section 9.13(a) herein. 
 “Person” shall mean any natural person, company, corporation, association,
partnership, organization, business, firm, joint venture, trust, unincorporated organization or any other entity or organization, including a government, or any political subdivision, department or agency of any government. 
 “Proprietary Rights” shall have the meaning specified in Section 4.17(a) herein. 
 “Purchase Price” shall have the meaning specified in Section 2.1 herein. 
 “RMB” shall mean the lawful currency of the PRC. 
 “SAFE Registration” shall mean the registration that a PRC resident is required to make with the State Administration of
Foreign Exchange or its local branch pursuant to the Notice on Relevant Issues Concerning Foreign Exchange Administration for PRC Residents to Engage in Financing and Inbound Investment Via Overseas Special Purpose Vehicle or any successor
regulation. 
 “Second Payment” shall have the meaning specified in Section 2.1 herein. 
 “Securities Act” shall have the meaning specified in Section 5.5(b) herein. 
 “Shares” shall have the meaning defined in the recitals of this Agreement. 
 “Subsidiary” shall mean any Person of which the Company (either alone or through or together with any other Subsidiary)
owns, directly or indirectly, more than 50% of the capital stock or other equity interest, the holders of which are generally entitled to vote for the election of the board of directors or other governing body of such Person. 
 “Tax” or “Taxes” shall mean all taxes, charges, fees, levies or other assessments, including, without
limitation, all net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, withholding, employment, excise, estimated, stamp, property, value added, social security or other taxes, fees or charges (including
interest and penalties relating thereto) imposed by any Governmental Authority or any other taxing authority. 
 “Tax
Returns” shall have the meaning specified in Section 4.14(a) herein. 
 “Third Payment” shall
have the meaning specified in Section 2.1 herein. 
 “Transfer Taxes” shall have the meaning specified in
Section 9.2 herein. 
 “U.S. Dollars” and the sign “US$” shall each mean freely
transferable lawful currency of the United States of America. 
  

 5 

 1.2 Other Terms. Other terms may be defined elsewhere in the text of this Agreement
and, unless otherwise indicated, shall have such meaning throughout this Agreement. 
 1.3 Other Definitional Provisions.
The words “hereof,” “herein,” and “hereunder” and words of similar import shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The terms defined in the singular shall have a
comparable meaning when used in the plural, and vice versa. 
 ARTICLE II 
 PURCHASE AND SALE OF SHARES; THE CLOSING 
 2.1 Purchase and Sale. Upon the terms and conditions of this Agreement, at the Closing, the Seller will sell and transfer the Shares to the Buyer, and the Buyer will purchase the Shares from the
Seller. The purchase price of the Shares shall be US$53.5 million (the “Purchase Price”), which shall be payable by the Buyer through interbank transfer of immediately available funds to an account designated by the Seller as
follows: (a) US$23.5 million (the “First Payment”) shall be paid on the Closing Date, (b) US$15.0 million (the “Second Payment”) shall be paid within six months after the Closing Date, and (c) US$15.0
million (the “Third Payment”) shall be paid within twelve months after the Closing Date. 
 2.2 The
Closing. (a) Subject to Article VII hereof, the purchase and sale (the “Closing”) provided for in this Agreement shall take place, with all actions deemed to occur simultaneously, at 24 Yong Chang North Road, Beijing
Economic-Technological Development Area, Beijing 100176, P.R.C. on December 30, 2008. The time and date upon which the Closing occurs is herein called the “Closing Date.” 
 At the Closing, (i) the Seller shall deliver to the Buyer against payment of the Purchase Price therefor a certified copy of the
updated register of members of the Company showing the Buyer as the registered holder of the Shares; (ii) the Buyer shall deliver to the Seller, against delivery of a certified copy of the updated register of members of the Company showing the
Buyer as the registered holder of the Shares, US$23.5 million by interbank transfer of immediately available funds to an account designated in writing by the Seller, and (iii) each party to this Agreement shall deliver to the other party such
other documents as may be required to be delivered in accordance with this Agreement or as reasonably requested by such other party. 
 (b) Subject to Section 2.1, the Buyer may elect the respective dates on which the Second Payment and the Third Payment shall be made, provided that the Buyer shall notify the Seller of each such date in writing at least two Business
Days prior to such date. The parties hereto agree that all of the transactions contemplated by this Agreement shall be deemed completed, and the Buyer’s obligation to make the Second Payment and the Third Payment in accordance with this Article
II shall become unconditional, at the Closing upon the satisfaction or waiver of all of the conditions set forth in Article VII hereof. 
 2.3 Delivery of Share Certificates. Within 15 days after the Closing, the Seller shall deliver to the Buyer duly executed share certificates representing the Shares registered in the names of the
Buyer. 
  

 6 

 ARTICLE III 
 [RESERVED] 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE SELLER 
 The Seller represents and warrants to the Buyer as follows:

 4.1 Organization, etc. The Seller is a limited liability company duly incorporated, validly existing and in good standing under the
laws of the British Virgin Islands and has all requisite power and authority to own, lease and operate the properties and assets it now owns, leases and operates and to carry on its business as now being conducted. The Seller is duly qualified and
licensed and is in good standing to do business in each jurisdiction in which the property owned, leased or operated by it or the nature of the business conducted by it makes such qualification or licensing necessary, except for such failures to be
so duly qualified and licensed and in good standing that will not in the aggregate have a Material Adverse Effect on the Seller. 
 4.2
Authorization, etc. The Seller has all requisite right, power and authority and full legal capacity to enter into this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution and
delivery of this Agreement by the Seller, and the consummation by the Seller of the transactions contemplated hereby, have been duly authorized by all necessary action on the part of the Seller and, no other proceedings (corporate or otherwise) on
the part of the Seller (or its shareholders) or any other Person are necessary to authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Seller and constitutes
legal, valid and binding obligations of the Seller, enforceable against the Seller in accordance with its terms, subject to the effect of any applicable bankruptcy, reorganization, insolvency, moratorium, restructuring or similar laws affecting
creditors’ rights and remedies generally and by general equitable principles (regardless of whether enforceability is considered in a proceeding in equity or at law). 
 4.3 No Violations. The execution, delivery and performance of this Agreement by the Seller, and the consummation of the transactions contemplated
hereby, do not and will not (a) contravene, conflict with, or result in a violation of any provision of the Organizational Documents of the Seller or any Acquired Company, or any resolution adopted by the board of directors or the stockholders
of the Seller or any Acquired Company; (b) contravene, conflict with, or result in a violation of, or give any Governmental Authority or other Person the right to challenge any of the transactions contemplated hereby or to exercise any remedy
or obtain any relief under, any Applicable Law or any Order to which the Seller or any Acquired Company, or any of the assets owned or used by any Acquired Company, may be subject; (c) contravene, conflict with, or result in a violation of any
of the terms or requirements of, or give any Governmental Authority the right to revoke, withdraw, suspend, cancel, terminate, or modify, any Governmental Approval that is held by any Acquired Company or that otherwise relates to the Business or any
of the assets owned or used by any Acquired Company; (d) cause the Buyer or any Acquired Company to become subject to, or to become liable for the 

  

 7 

 
payment of, any Tax; (e) cause any of the assets owned by any Acquired Company to be reassessed or revalued by any taxing authority or other
Governmental Authority; (f) contravene, conflict with, or result in a violation or breach of any provision of, or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or
to cancel, terminate, or modify, any Applicable Contract; or (g) result in the imposition or creation of any Encumbrance upon or with respect to any of the assets owned, leased or operated by any Acquired Company, excluding in the case of each
of clauses (d), (e), (f) and (g), such instances, contravention, conflict, violation, breach, default or Encumbrance, as the case may be, that will not in the aggregate have a Material Adverse Effect on the Acquired Companies, taken as a whole,
and that will not adversely affect, in a material respect, the ability of the Seller to consummate the transactions contemplated hereby. Neither the Seller or any Acquired Company is or will be required to give any notice to or obtain any consent
from any Person in connection with the execution and delivery of this Agreement or the consummation or performance of any of the transactions contemplated hereby. 
 4.4 Acquired Companies. (a) Each Acquired Company is duly incorporated or organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or organization. Each Acquired
Company has the requisite power and authority to own, lease or operate the properties and assets that it purports to own, lease or operate and to carry on its business as now being conducted. Each Acquired Company is duly qualified and licensed and
is in good standing to do business in each jurisdiction in which the property owned, leased or operated by it or the nature of the business conducted by it makes such qualification or licensing necessary, except for instances where the failure to be
so qualified or licensed, and the failure to maintain such good standing, will not in the aggregate have a Material Adverse Effect on the Acquired Companies, taken as a whole. 
 (b) Disclosure Schedule 4.4 sets forth a complete list of the Acquired Companies and, if applicable, the following information for each Acquired Company:
(i) its name and jurisdiction of incorporation or organization; (ii) its date of incorporation or organization; (iii) its authorized share capital or other equity interests; (iv) the number and type of its issued and outstanding
share capital or other equity interests; and (v) the current ownership of such share capital or other equity interests (including the identity of each shareholder and the number of shares held by each). 
 (c) With respect to each Acquired Company, the Seller and each Acquired Company owning stock or share capital or other equity interests in such Acquired
Company (i) are equity interest holders or shareholders in good standing, (ii) own their interests as identified in Disclosure Schedule 4.4 free and clear of all Encumbrances and (iii) are not in breach of any provision of any
agreement, document or contract governing their rights in, or to the interests so owned or held in, such Acquired Company. There are no agreements or understandings in effect with respect to the voting or transfer of any interest in any Acquired
Company. 
 4.5 Organizational Documents, Minutes. The Seller has heretofore delivered to the Buyer true and correct copies of all
Organizational Documents of the Acquired Companies as in effect on the date hereof. The minute books of the Acquired Companies heretofore delivered to the Buyer contain true, correct and complete records of all meetings and actions in lieu of
meeting of their 

  

 8 

 
respective boards of directors (or other governing bodies) and any committees thereof and of their shareholders or holders of equity interests, as the case
may be, since the time of their respective organizations and accurately reflect all transactions referred to in such minutes and actions in lieu of meeting. The register of members, stock ledgers or register of shareholders (as the case may be) of
each Acquired Company are true, correct and complete. 
 4.6 Capitalization. The maximum number of shares which the Company is
authorized to issue is 50,000 shares, par value US$1.00 per share, of which 10 shares are issued and outstanding and constitute the Shares. The Seller is and will be on the Closing Date the record and beneficial owners and holders of the Shares,
free and clear of all Encumbrances. With the exception of the Shares (which are owned by the Seller), all of the outstanding share capital and other securities of each Acquired Company are owned of record and beneficially by one or more of the
Acquired Companies, free and clear of all Encumbrances. No legend or other reference to any purported Encumbrance appears upon any certificate representing equity securities of any Acquired Company. All of the outstanding share capital of each
Acquired Company have been duly authorized and validly issued and are fully paid and nonassessable. There are no Contracts relating to the issuance, sale, or transfer of any equity or other securities of any Acquired Company. None of the outstanding
equity or other securities of any Acquired Company was issued in violation of Applicable Law. No Acquired Company owns, or has any Contract to acquire, any equity securities or other securities of any Person (other than Acquired Companies) or any
direct or indirect equity or ownership interest in any other business. 
 4.7 Compliance. None of the Acquired Companies is in
violation of any term or provision of (a) its Organizational Documents, (b) any agreement or instrument to which it is a party or by which it or its assets are bound, including any existing license to conduct business, note, bond,
mortgage, indenture, contract, lease, permit, franchise or other instrument, or (c) any Applicable Law, excluding from such clauses (b) and (c), such violations that will not in the aggregate have a Material Adverse Effect on the Acquired
Companies, taken as a whole. 
 4.8 Consents and Approvals. The execution, delivery and performance of this Agreement does not and
will not require any consent, approval, authorization, Governmental Approval or other action by, or filing with or notification to, any third party or any Governmental Authority. 
 4.9 Other Shareholders Agreements. There are no agreements, arrangements or understandings (whether oral or written) among the shareholders of the
Seller or its Affiliates, respectively, with respect to the holding, voting or transfer or otherwise with respect to any securities of any Acquired Company. On the date hereof, no shareholder of the Seller or any other Person has any right of first
refusal or preemptive rights in connection with the sale of the Shares or any other securities of any Acquired Company. 
 4.10 Financial
Information. (a) The Seller has delivered to the Buyer (i) the audited consolidated balance sheet of China Medical as at March 31, 2008 and the related consolidated statements of income and cash flow for the fiscal year then ended
(including the related notes and schedules thereto and the report thereon of KPMG, independent certified public accountants), and (ii) an unaudited consolidated balance sheet of China Medical as at September 30, 2008 (the “Interim
Balance Sheet”) and the 

  

 9 

 
related unaudited consolidated statements of income and cash flow for the six months then ended. Such financial statements and, where applicable, notes are complete and correct in all material
respects and has been prepared all in accordance with GAAP applied on a consistent basis during the periods involved and presents fairly the financial position, results of operations and cash flows of China Medical as at the date and for the periods
presented. 
 (b) The books and records of each Acquired Company will, as of the Closing Date, accurately disclose all payments
made and permit the preparation of financial statements in accordance with GAAP. 
 4.11 Absence of Undisclosed
Liabilities. The Acquired Companies have no material liabilities or obligations of any nature (whether known or unknown and whether absolute, accrued, contingent, or otherwise), except for current liabilities incurred in the ordinary course of
business. 
 4.12 Absence of Changes. Since September 30, 2008, (a) the Business has been operated only in the
ordinary course of business consistent with past practice, (b) there has been no Material Adverse Change, and (c) no dividends or other distributions have been declared, paid or set aside for payment by the Company or any other Acquired
Company to their respective shareholders. 
 4.13 Litigation. There is no action, suit, investigation or proceeding by or
before any court, arbitrator, administrative agency or other Governmental Authority pending or, to the knowledge of the Seller, threatened against or affecting the Seller or any Acquired Company, any properties, revenues or assets of the Acquired
Companies, or the Shares that could reasonably be expected to have a Material Adverse Effect on the Acquired Companies, taken as a whole, or the ability of the Seller to consummate the transactions provided for by this Agreement. There is no
injunction, writ, preliminary restraining order or any order of any nature issued by an arbitrator, court or other Governmental Authority affecting the Seller or any Acquired Company, any properties, revenues or assets of the Acquired Companies, or
the Shares that has or could have a Material Adverse Effect on the Acquired Companies, taken as a whole, or the ability of the Seller to consummate the transactions provided for in any of this Agreement. 
 4.14 Taxes. (a) Each Acquired Company has timely filed with the competent Government Authorities all income tax returns, and all
other material tax returns, declarations, reports, estimates, information returns and statements (“Tax Returns”) which are required to be filed for all periods up to and including the Closing Date, and all such Tax Returns are true,
correct and complete in all material respects. To the knowledge of the Seller, each Acquired Company has, within the time and in the manner prescribed by Applicable Law, paid (and until the Closing Date will pay), or made adequate provisions for the
payment in full of (and until the Closing Date will make adequate provisions for the payment in full), all material Taxes that are due and payable or which may become due and payable for all periods up to and including the Closing Date. 

(b) No deficiencies for Taxes have been asserted, assessed or, to the knowledge of the Seller, proposed by any taxing authority against
any Acquired Company. None of the Acquired Companies have any pending requests for waivers of time to

  

 10 

 
extend the payment date in connection with, or the statute of limitation applicable to, any taxable year or Tax Return or to assess any Tax against the Acquired Company nor any outstanding
waivers or comparable consents relating thereto. 
 (c) For each Acquired Company, there has been no written claim by a
jurisdiction where it does not file a Tax Return that it is required to file a Tax Return in such jurisdiction. 
 (d) None of
the Acquired Companies is a party to any agreement providing for the allocation or sharing of Taxes. 
 (e) None of the Acquired
Companies has filed or made any entity classification election for United States federal income tax purposes. 
 (f) None of the
Acquired Companies has, to the knowledge of the Seller, engaged in a “reportable transaction” within the meaning of United States Treasury Regulations section 1.6011-4, or any similar provision of state, local or foreign law. 

4.15 Governmental Approvals. Except as set forth in Disclosure Schedule 4.15, there are no Governmental Approvals that any
Acquired Company is required to obtain under Applicable Law in connection with the conduct of the Business as it is presently carried on. The Seller has no reason to believe that any Governmental Approval set forth in Disclosure Schedule 4.15 cannot
be granted or obtained, free from any condition or requirement the compliance of which would have a Material Adverse Effect on the Acquired Companies, taken as a whole, or which the Acquired Companies could not reasonably be expected to be able to
satisfy. 
 4.16 Title to Assets; Liens. All of the right, title and interest of the Seller and its Affiliates, as the
case may be, in, to and under the Business and all of the material assets, properties, rights, contracts, claims, operations and management of the Seller of every kind and description (except the office premises and production facilities, and
arrangements with certain employees, currently employed for the purposes of the Business) related to or necessary for the ownership or operation of the Business, wherever located, whether tangible or intangible, real, personal or mixed, whether or
not appearing on the books of the Seller (collectively, the “Assets”), which are owned or leased by the Seller will be assigned, transferred, conveyed and delivered to an Acquired Company on or prior to the Closing Date, free and clear of
all Encumbrances, except for Encumbrances that do not detract from the current value of the Assets subject thereto or interfere with the current or proposed use by such Acquired Company of the Assets subject thereto or otherwise affect or impair the
condition (financial or otherwise) of such Acquired Company. No Person other than the Acquired Companies has any right to use or have possession of any of the Assets. 
 4.17 Intellectual Property. (a) Disclosure Schedule 4.17(a) sets forth and describes all patent rights and software registration (including pending patent applications) held in whole or in
part or used with respect to or otherwise in connection with the Business (collectively, the “Proprietary Rights”). 
  

 11 

 (b) The Proprietary Rights have or will be transferred to the Acquired Companies on or prior
to the Closing and the rights of the Acquired Companies with respect to the Proprietary Rights are, or will as of the Closing Date be, valid. The Seller has taken all reasonable steps to protect and maintain the Proprietary Rights. To the knowledge
of the Seller, there is not currently any pending or any threatened written assertion or claim, and there has been no such written assertion or claim, challenging the validity or enforceability of, or contesting its rights or the rights of any
Acquired Company with respect to, any of the Proprietary Rights or any agreement relating thereto. None of the Seller or the Acquired Companies is party to any consent, indemnification, forbearance to sue or settlement agreement with respect to any
Proprietary Rights. 
 (c) The use of the Proprietary Rights by the Acquired Companies, the conduct and operation of the
Business as currently conducted, or the current provision of products or services therein by the Acquired Companies, do not infringe upon, misappropriate or violate in any way the rights of any Person (including rights in intellectual property).
There is no pending or, to the knowledge of the Seller, threatened, written assertion or claim, and there has been no such written assertion or claim that the use or exploitation of any of the Proprietary Rights by the Seller or the Acquired
Companies, or the conduct or operation of the Business by the Seller or the Acquired Companies as currently conducted, or the provision of products or services therein, infringes upon, misappropriates or violates in any way the rights of any Person
(including rights in intellectual property). 
 (d) None of the Acquired Companies is obligated or under any liability
whatsoever to make payments by way of royalties, fees or otherwise to any owner, licensor of, or other claimant to, any Proprietary Rights or other intangible asset with respect to the use thereof in connection with the conduct of the Business, or
otherwise. 
 4.18 Environmental Laws. The Business is and has been conducted in compliance with all Environmental Laws.
There is no existing practice, action or activity of the Acquired Companies and no existing condition relating to any of the properties or assets owned or used by the Acquired Companies which might require clean up or remediation or give rise to any
civil or criminal liability under, or violate or prevent compliance with, any Environmental Law or any health or occupational safety or other applicable statute, regulation, ordinance or decree. None of the Acquired Companies has received any notice
from any Governmental Authority revoking, canceling, materially modifying or refusing to renew any permit, license or authorization or providing written notice of violations under any Environmental Law. 
 4.19 Product Liability and Warranty. There is no basis for any present or, to the knowledge of the Seller, future action, suit,
proceeding, investigation, charge, compliant, claim or demand against any Acquired Company giving rise to any liability, arising out of any injury to individuals or properties as a result of any products designed, manufactured, assembled, repaired,
distributed, delivered or sold or services rendered in connection with the Business, except such as will not result in a Material Adverse Effect. 
 4.20 Material Contracts. Except for those agreements listed on Disclosure Schedule 4.20 or agreements entered into in the ordinary course of business for sale of goods or purchases of equipment,
none of the Acquired Companies is a party to (i) any agreement, arrangement, understanding or contract, whether formal or informal, written or oral, requiring payment of an amount in

  

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excess of RMB 1.0 million per annum (or its equivalent in other currencies), (ii) any license, distribution, confidentiality or similar agreements, and (iii) any agreement not in
the ordinary course of business or not made at arm’s length. 
 4.21 Labor Agreements and Actions; Employee Matters.
(a) There is no complaint, grievance, strike or other collective labor dispute, slowdown or stoppage involving any Acquired Company pending or threatened. Each Acquired Company has been and is in compliance with all applicable laws including,
without limitation, those laws respecting employment and employment practices, child labor, terms and conditions of employment, pay equity and wages and hours and has not engaged in any unfair labor practices. 
 (b) Neither the execution, delivery and performance of this Agreement, nor the consummation of the transactions contemplated hereby and
thereby will (either alone or upon the occurrence of any additional or further acts or events) result in any payment (whether of severance pay or otherwise) becoming due from any Acquired Company to any director, officer, employee or shareholder
thereof. None of the Seller or its Affiliates is aware that any senior executive of any Acquired Company has any plans to terminate their employment or arrangement with such Acquired Company. 
 (c) There are no collective bargaining, severance or similar agreements with any labor union. No action is pending or threatened with
respect to union representation of the employees of any Acquired Company. No collective bargaining agreement is currently being negotiated by any Acquired Company. 
 4.22 Certain Transactions. None of the Acquired Companies is a party to any agreement, arrangement or understanding (whether oral or written), directly or indirectly (including, without limitation,
any purchase, sale, lease, investment, loan, service or management agreement or other transaction), with any Person in which any Affiliate, shareholder, officer or director of the Company or any of its Subsidiaries, or any Acquired Company, or any
member of the Immediate Family of any of such persons, has an interest that exceeds 5% of the equity of such Person. 
 4.23
Employee Benefits. All employer and employee contributions to each benefit plan that is not subject to United States law (a “Foreign Benefit Plan”) required by Applicable Law or by the terms of such Foreign Benefit Plan have
been made, or if applicable, accrued in accordance with GAAP. 
 4.24 Business Practices. (a) Neither the Seller nor
any Acquired Company, nor any of their respective officers, employees, directors, representatives or agents, has offered, promised, authorized or made, directly or indirectly, (i) any unlawful payments or (ii) payments or other inducements
(whether lawful or unlawful) to any Government Official, with the intent or purpose of: 
  

	 	(A)	influencing any act or decision of such Government Official in his official capacity; 

  

 13 

	 	(B)	inducing such Government Official to do or omit to do any act in violation of the lawful duty of such Government Official; 

  

	 	(C)	securing any improper advantage; or 

  

	 	(D)	inducing such Government Official to use his influence with a government or instrumentality thereof, political party or international organization to affect or influence any act or
decision of such government or instrumentality, political party or international organization; 

 in order to assist any Acquired Company in
obtaining or retaining business for or with, or directing business to, any Person. 
 (b) Neither the Seller nor any of its Affiliates, nor
any Acquired Company, nor any of their respective officers, employees, directors, representatives or agents has offered, promised, authorized or made, directly or indirectly, any payments or other inducements specified in Section 4.24(a) to
Government Officials in violation of either British Virgin Islands, Hong Kong or PRC law against improper payments. 
 (c) Notwithstanding
anything else in this Section 4.24, any facilitating or expediting payment made to a Government Official for the purpose of expediting or securing the performance of a routine governmental action by a Government Official shall not constitute a
breach of the representation made in this Section 4.24. 
 4.25 Restricted Activities. (a) None of the Acquired Companies
has conducted or entered into a contract to conduct any transaction with the governments or any of sub-division thereof, agents or representatives, residents of, or any entity based or resident in the countries that are currently subject to any U.S.
sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and none of the Acquired Companies has financed the activities of any Person currently subject to any U.S. sanctions
administered by OFAC. 
 (b) None of the Acquired Companies has exported, or are exporting, or have traded, or are trading, firearms or
military weaponry, narcotics or other Controlled Substances. 
 4.26 Availability and Transfer of Foreign Currency. All requisite
foreign exchange control approvals and other authorizations, if any, by any Governmental Authority have been validly obtained and are in full force and effect to assure the ability of each Acquired Company to make any and all payments to any other
party in order to conduct the Business. 
 4.27 Brokers. No broker, agent, finder, consultant or other person (other than legal and
accounting advisors) has been retained by, or has acted on behalf of the Seller or its Affiliates or is entitled to be paid based upon any agreements or understandings made by the Seller or its Affiliates in connection with any of the transactions
contemplated by this Agreement. 
 4.28 Customers and Suppliers. (a) To the extent that any customer of the Business comprises
10% or more of the Acquired Companies’ consolidated net sales for the most recent fiscal year, (i) the Seller believes such customer to be creditworthy, (ii) since 

  

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September 30, 2008, there has been no material deterioration in the accounts receivable due from such a customer and (iii) to the knowledge of the
Seller, no such customer has indicated that it shall stop, or materially decrease the rate of, buying materials, products or services from the Acquired Companies. 
 (b) To the knowledge of the Seller, since September 30, 2008, no material supplier to the Business that comprises 10% or more of the consolidated purchases made for the purposes of the Business during the most
recent fiscal year has indicated that it shall stop, or materially decrease the rate of, supplying materials, products or services to the Acquired Companies. 
 4.29 Title to the Shares. The Seller has the complete and unrestricted power and the unqualified right to issue, assign, transfer and deliver to the Buyer and the Buyer will acquire at the Closing good, valid
and marketable title to the Shares free and clear of all Encumbrances. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF THE BUYER 
 The Buyer represents and warrants to the Seller as follows: 
 5.1 Organization, etc. The Buyer is a limited liability
company duly incorporated, validly existing and in good standing under the laws of the British Virgin Islands and has all requisite power and authority to own, lease and operate the properties and assets it now owns, leases and operates and to carry
on its business as now being conducted. The Buyer is duly qualified and licensed and is in good standing to do business in each jurisdiction in which the property owned, leased or operated by it or the nature of the business conducted by it makes
such qualification or licensing necessary, except for such failures to be so duly qualified and licensed and in good standing that will not in the aggregate have a Material Adverse Effect on the Buyer. 
 5.2 Authorization, etc. The Buyer has all requisite right, power and authority and full legal capacity to enter into this Agreement, to carry out
its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by the Buyer, and the consummation by the Buyer of the transactions contemplated hereby, have been duly authorized by all
necessary action on the part of the Buyer and, no other proceedings (corporate or otherwise) on the part of the Buyer (or its shareholders) or any other Person are necessary to authorize this Agreement or to consummate the transactions contemplated
hereby. This Agreement has been duly executed and delivered by the Buyer and constitutes legal, valid and binding obligations of the Buyer enforceable against the Buyer in accordance with its terms, subject to the effect of any applicable
bankruptcy, reorganization, insolvency, moratorium, restructuring or similar laws affecting creditors’ rights and remedies generally and by general equitable principles (regardless of whether enforceability is considered in a proceeding in
equity or at law). 
  

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 5.3 No Violations. The execution, delivery and performance of this Agreement by the
Buyer, and the consummation of the transactions contemplated hereby, do not and will not (a) conflict with, or result in a breach of or default under, any terms or conditions of the Organizational Documents of the Buyer, (b) conflict with
or violate any Applicable Law, or (c) result in any breach of, or constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation pursuant to any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument to which the Buyer is a party or by which its assets or properties may be bound, excluding from
such clauses (b) and (c), such conflicts, violations, breaches and defaults that, in the aggregate, would not have a Material Adverse Effect on the Buyer or that will not adversely affect, in a material respect, the ability of the Buyer to
consummate the transactions provided for by this Agreement. 
 5.4 Brokers. No broker, agent, finder, consultant or other
person has been retained by, or has acted on behalf of the Buyer or its Affiliates (other than legal and accounting advisors) or is entitled to be paid based upon any agreements or understandings made by the Buyer or its Affiliates in connection
with any of the transactions contemplated by this Agreement. 
 5.5 Status and Investment Intent.
(a) Experience. The Buyer has sufficient knowledge and experience in the Business, and in financial and business matters generally, so as to be capable of evaluating the merits and risks of its investment in the Shares. The Buyer is
capable of bearing the economic risks of such investment, including a complete loss of its investment. 
 (b) Accredited
Investor. At the time the Buyer was offered the Shares that it is purchasing pursuant to this Agreement, it was, and it is, an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3) (a)(7) or (a)(8) of the Securities Act or
1933, as amended (the “Securities Act”). 
 (c) Purchase Entirely for Own Account. The Buyer is
acquiring the Shares that it is purchasing pursuant to this Agreement for investment for its own account for investment purposes only and not with the view to, or with any intention of, resale, distribution or other disposition thereof. The Buyer
has no direct or indirect arrangement, or understanding with any other Persons to distribute, or regarding the distribution of the Shares, in violation of the Securities Act or any other applicable state securities law. 
 (d) Restricted Securities. The Buyer acknowledges that the Shares are “restricted securities” that have not been registered
under the Securities Act or any applicable state securities law. The Buyer further acknowledges that, absent an effective registration under the Securities Act, the Shares may only be offered, sold or otherwise transferred (i) to the Seller,
(ii) outside the United States in accordance with Rule 904 of Regulation S under the Securities Act, (iii) pursuant to an exemption from registration under the Securities Act, or (iv) in compliance with certain other procedures
satisfactory to the Seller. 
  

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 (e) No Public Market. The Buyer understands that no public market now exists for the
Shares and that a public market may never exist for the Shares or other securities of the Company. 
 (f) Access to Data.
The Buyer has received and reviewed information in respect of the Business and the Acquired Companies and have had an opportunity to discuss the business, management and financial affairs of the Acquired Companies with management and to review the
Acquired Companies’ facilities. The Buyer has received all the information it considers necessary or appropriate for deciding whether to purchase the Shares. The Buyer understands and acknowledges that such discussions, as well as any written
information issued by the Seller (i) were intended to describe the aspects of the Acquired Companies’ business and prospects which the Seller believes to be material, but were not necessarily exhaustive descriptions, and (ii) may have
contained forward-looking statements involving known and unknown risks and uncertainties which may cause the Acquired Companies’ actual results in future periods or plans for future periods to differ materially from what was anticipated and
that no representations or warranties were or are being made with respect to any such forward-looking statements or the probability of achieving any of the results projected in any of such forward-looking statements. The foregoing, however, does not
limit or modify the representations and warranties of the Seller in Article IV of this Agreement or the right of the Buyer to rely thereon. 
 ARTICLE VI 
 COVENANTS OF THE SELLER 
 From and after the date hereof and until the Closing, the Seller hereby covenants and agrees that: 
 6.1 Opportunity to Ask Questions; Access to Documents. The Seller shall cause its representatives to be available upon reasonable
notice to answer questions of the Buyer’s representatives concerning the Business and the operations and affairs of the Acquired Companies, and shall further cause them to make available all relevant books, records, contracts and all other
documents reasonably requested by the Buyer in connection with such inspection and examination. No investigation by the Buyer or its representatives prior to or after the date of this Agreement shall diminish or obviate any of the representations,
warranties, covenants or agreements of the Seller contained in this Agreement. 
 6.2 Conduct of Business. Until the
Closing Date, the Seller shall (and, where applicable, shall cause its Affiliates or the Acquired Companies to), with respect to the operation of the Business (unless the Buyer shall otherwise consent in writing or except as otherwise specifically
contemplated by this Agreement): 
 (a) operate solely in the usual, regular and ordinary manner consistent with past practice,
and use all reasonable efforts to (i) preserve its present business operations, organization and goodwill, (ii) keep available the services of its present employees, (iii) preserve all present relationships with Persons having
business dealings with it, and (iv) maintain all assets and properties in their current condition, normal wear and tear excepted; 
  

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 (b) maintain its books, accounts and records in the usual, regular and ordinary manner, on a
basis consistent with prior years; 
 (c) maintain or cause to be maintained the Proprietary Rights in full force and effect
through the Closing Date and, without limitation, with respect to any of the Proprietary Rights subject to expiration on or prior to the Closing Date, renew or make, within an applicable renewal period ending on or prior to the Closing Date,
application to renew such Intellectual Property; 
 (d) perform in all material respects all of its obligations under all
Applicable Contracts and other agreements and instruments relating to or affecting the Business and comply in all material respects with all Applicable Laws; 
 (e) not grant (or commit to grant) any increase in the compensation of any employee employed in the operation of the Business or institute, adopt or amend (or commit to institute, adopt or amend) any
compensation or benefit plan, policy or arrangement applicable to any such employee; 
 (f) not modify any Applicable Contract
with any Person, other than in the ordinary course of business consistent with past practice; and 
 (g) not take any action or
omit to take any action, which action or omission would result in a breach of any of the representations and warranties set forth in Article IV. 
 6.3 Approvals and Consents. The Seller shall use its best efforts to assist the Buyer and the Acquired Companies (or their nominees) to obtain the Governmental Approvals set forth in Disclosure
Schedule 4.15 and the consent of any third party or Governmental Authority which is required in order to assign any instrument, contract, lease or other agreement or arrangement or any claim, right or benefit arising thereunder or resulting
therefrom. If any such consent is not obtained prior to the Closing Date, or if an attempted assignment would be ineffective or would adversely effect the ability of the Seller to convey its interest in question to the Buyer, the Seller will
cooperate with the Buyer in any lawful arrangement to provide that the Buyer shall receive the interest of the Seller in the benefits under any such instrument, contract, lease, permit or other agreement or arrangement until such consent is
obtained. If the Seller is unable to obtain any such consent after using its best efforts to do so, such contract, lease, Permit or other agreement or arrangement shall, at the Buyer’s election, be excluded from the assets being conveyed to the
Buyer hereunder. Nothing in this Agreement shall be construed as an attempt to assign any contract, lease, Permit or other agreement or arrangement that is by its terms non-assignable without the consent of the other party thereto. 
 6.4 Further Actions. The Seller shall execute and deliver such instruments and take such other actions as may reasonably be required
to (a) carry out the intent of this Agreement and (b) consummate the transactions contemplated hereby. 
  

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 ARTICLE VII 
 CONDITIONS TO THE CLOSING 
 7.1 Conditions to Each
Party’s Obligations. The respective obligations of each party to effect the transactions to be effected by it at the Closing shall be subject to the satisfaction, or waiver, at or prior to the Closing Date of the following conditions:

 (a) No Injunctions. There shall not be in effect any statute, regulation, order, decree or judgment of any
Governmental Authority which makes illegal or enjoins or prevents the consummation of the transactions contemplated by this Agreement; 
 (b) No Action by Governmental Authority. There is no action, suit, investigation or proceeding by any Governmental Authority pending or threatened against or affecting any Acquired Company, any properties, revenues or assets of the
Acquired Companies, or this Agreement; and 
 (c) No Material Action by Third Party. There is no action, suit,
investigation or proceeding by any third party before any court, arbitrator, administrative agency or other Governmental Authority pending or threatened against or affecting any Acquired Company, any properties, revenues or assets of the Acquired
Companies, or this Agreement, which could reasonably be expected to have a Material Adverse Effect on the Acquired Companies, taken as a whole, or could reasonably be expected to materially and adversely affect the Seller’s ability to perform
its obligations under this Agreement. 
 7.2 Conditions to Obligations of the Buyer. The obligations of the Buyer to
effect the transactions to be effected by it at the Closing shall be subject to the satisfaction, or waiver, on or prior to the Closing Date of the following further conditions: 
 (a) The Company’s Obligations Performed. The Seller shall have performed in all material respects its obligations under this
Agreement required to be performed by it on or prior to the Closing Date; 
 (b) Delivery of the Shares. At the Closing
Date, the Seller shall have sold and transferred all of the Shares to the Buyer as evidenced by the delivery of the Company’s updated register of members in accordance with the terms hereof; 
 (c) The Company’s Representations and Warranties True. Each of the representations and warranties of the Seller contained in
this Agreement which is qualified as to materiality shall be true and correct and each such representation and warranty that is not so qualified shall be true and correct in all material respects in each case as of the date hereof and on and as of
the Closing Date as if made on and as of such time (except for representations and warranties expressly stated herein to be applicable solely as to a specified date which were true and correct as of such date); 
 (d) No Material Adverse Effect. No event or series of events shall have occurred which has had or would reasonably be expected to
have a Material Adverse Effect on the Business, including, without limitation, any currency devaluation or foreign exchange restriction or other actions by any Governmental Authority limiting repatriation of capital or any material change in the
governmental or political climate of the British Virgin Islands, Hong Kong or the PRC; 
  

 19 

 (e) Officers Certificate and Certificates of Good Standing. The Seller shall have
delivered to the Buyer the resolutions of the Seller’s board of directors and the sole shareholder, certified by the chief executive officer of the Seller authorizing it to enter into this Agreement and to consummate the transactions and
perform the obligations contemplated hereunder and certificates of good standing in respect of the Acquired Companies (to the extent applicable). In addition, the Seller shall have delivered to the Buyer a certificate, dated the Closing Date,
certified by the chief executive officer of the Seller to the effect that all conditions set forth in Section 7.2(c) pertaining to the Acquired Companies that have not otherwise been waived by the Buyer have been satisfied and that the
Seller’s representative has resigned from the board of directors of the Company, CMED HIFU Technology Limited and HIFU (Hong Kong) Limited, respectively. 
 (f) Noncompetition Agreement. The Seller shall have delivered to the Buyer a noncompetition agreement in the form of Exhibit 7.2(f), duly authorized and executed by China Medical and the Seller.

 7.3 Conditions to Obligations of the Seller. The obligation of the Seller to effect the transactions to be effected by
it at the Closing shall be subject to the satisfaction, or waiver, on or prior to the Closing Date of the following further conditions: 
 (a) The Buyer’s Obligations Performed. The Buyer shall have performed in all material respects its obligations under this Agreement required to be performed by them on or prior to the Closing
Date; 
 (b) The Buyer’s Representations and Warranties True. Each of the representations and warranties of the
Buyer contained in this Agreement which is qualified as to materiality shall be true and correct and each such representation and warranty that is not so qualified shall be true and correct in all material respects in each case as of the date hereof
and at and as of the Closing Date as if made at and as of such date (except for representations and warranties expressly stated herein to be applicable solely as to a specified date which were true and correct as of such date); and 
 (c) Payment of the Purchase Price. On the Closing Date, the Buyer shall have tendered delivery of the First Payment of the Purchase
Price as specified in Section 2.1 hereof. 
 ARTICLE VIII 
 INDEMNIFICATION 
 8.1 Indemnification by the Seller.
The Seller shall indemnify, defend and hold harmless the Buyer and its shareholders, directors, officers, employees, controlling persons, authorized agents, authorized representatives, successors and assigns (each an “Indemnified
Party”) from and after the Closing, from and against any and all losses, claims, damages, liabilities, obligations,

  

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penalties, judgments, awards, costs, reasonable expenses and disbursements as incurred (and any and all actions, suits, proceedings and investigations in respect thereof and any and all
reasonable legal and other costs, reasonable expenses or disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise), including, without limitation, the costs, reasonable expenses and disbursements, of
investigating, preparing or defending any such action, suit, proceeding or investigation (whether or not such Indemnified Party is a party) (together, “Losses”), directly or indirectly, caused by, relating to, based upon, arising
out of or in connection with: 
 (a) any breach by the Seller of any representation or warranty set forth in Article IV of this
Agreement (provided that the Seller is given written notice of such Loss); or 
 (b) any product shipped or manufactured by, or
any services provided by, any Acquired Company prior to the Closing Date. 
 The parties expressly agree that the Buyer’s
right to indemnification under this Section 8.1 shall not be limited by any knowledge obtained pursuant to any investigation conducted by or on behalf of the Buyer before or after the date of this Agreement. 
 8.2 Indemnification Procedures; Third Party Claims. An Indemnified Party shall give the Seller prompt written notice of any claim,
assertion, event or proceeding concerning any liability or damage as to which they may request indemnification from the Seller hereunder; provided, however, that any failure by an Indemnified Party to notify the Seller shall not
relieve the Seller from its obligations hereunder except to the extent the Seller is materially prejudiced by such failure and shall not relieve the Seller from any other obligation or liability that it may have to any Indemnified Party otherwise
than under this Article VIII. If the Seller so elects or is requested by an Indemnified Party, the Seller will assume the defense of such action or proceeding, including the employment of counsel reasonably satisfactory to such Indemnified Party and
the payment of the fees and expenses of such counsel. In the event, however, such Indemnified Party determines in the reasonable judgment of counsel that having common counsel would present such common counsel with a conflict of interest or
(i) other than in an action solely for monetary damages if the Seller fails to assume the defense of the action or proceed in a timely manner, (ii) if in the reasonable judgment of the Indemnified Party, the defense is being handled in
such a manner that Indemnified Party’s reputation or future business prospects will be materially damaged or (iii) if a court of competent jurisdiction rules that the Seller has failed or is failing to prosecute or defend vigorously such
claim, then such Indemnified Party may employ separate counsel to represent or defend it in any such action of proceeding and the Seller will pay the fees and expenses of such counsel. In any action or proceeding the defense of which the Seller
assumes, the Indemnified Party will have the right to participate in such litigation and to retain its own counsel at such Indemnified Party’s own expense. 
 The Seller agrees that, without the Buyer’s prior written consent, it will not settle, compromise or consent to entry of any judgment in any pending or threatened claim, action or proceeding in
respect of which indemnification could be sought under the indemnification provision of this Agreement (whether or not the Buyer or any other Indemnified Party is an actual or potential party to such claim, action or proceeding, so long as it is
reasonably likely that they could be named as a party), unless such settlement, compromise or consent includes and unconditional release of each Indemnified Party from all liability arising out of such claim, action or proceeding and does not
include a statement as to an admission of fault, culpability or a failure to act on behalf of an Indemnified Party. 
  

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 8.3 Limitation on Indemnification. The indemnification provided for in Sections 8.1
and 8.2 shall be subject to the following limitations: 
 (a) The Seller shall not be liable for breaches of the representations
and warranties contained herein if and to the extent that the facts or circumstances which cause any of such representation and warranties to be breached were disclosed or referred to in the Disclosure Schedules; 
 (b) The Seller shall not be obligated to pay any indemnification to an Indemnified Party until the aggregate amount of all amounts payable
to the Indemnified Parties in respect of indemnification exceeds RMB500,000.00 (the “Basket Amount”). For the avoidance of doubt, the Basket Amount is not a deductible and if the aggregate amount for any indemnification exceeds the
Basket Amount, the Seller shall be obligated to pay the full amount of such aggregated indemnification; 
 (c) Notwithstanding
anything to the contrary in this Agreement, the aggregate indemnification payable by the Seller for the Losses of all Indemnified Parties in respect of all breaches of the representations and warranties herein and of any other provisions of this
Agreement shall in any event not exceed 75% of the Purchase Price; and 
 (d) Indemnification as provided in this Agreement
shall be the exclusive remedy that may be available to the Buyer under this Agreement. 
 ARTICLE IX 
 MISCELLANEOUS 
 9.1
Survival of Representations and Warranties. All representations and warranties of the Seller and the Buyer contained in Articles IV and V of this Agreement and all unasserted claims and causes of action with respect thereto shall survive for
12 months after the Closing Date except for those designated in the following sentence, which shall survive for the respective periods designated therein. The Seller’s obligation under Section 4.14 shall survive the Closing until the
expiration of the statute of limitations (giving effect to any waiver, mitigation or extension thereof) on assessment of the relevant Tax. 
 9.2 Transfer Taxes. The Seller shall pay all sales, use, real property transfer, transfer, stamp, registration, documentary, recording, filing or similar transfer Taxes, if any, together with any
interest thereon, penalties, fines, costs, fees, additions to Tax or additional amounts with respect thereto (collectively, “Transfer Taxes”) incurred in connection with the issuance and sale of the Shares pursuant to this
Agreement. The Seller shall be responsible for preparing and timely filing any Tax Returns required with respect to any such Transfer Taxes. 
 9.3 [Reserved] 
  

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 9.4 Waivers and Amendments. This Agreement may only be modified with the written
consent of the parties hereto. Neither this Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, but only by a statement in writing signed by the party against which enforcement of the change, waiver, discharge
or termination is sought. 
 9.5 Notices, etc. Except as otherwise provided in this Agreement, all notices and other
communications pursuant to this Agreement shall be in writing and shall be delivered in person, by courier, by facsimile transmission (with oral confirmation of receipt), by e-mail (so long as the sender receives no notice of non-delivery and the
notice is followed by delivery in person, by courier or facsimile transmission) or by certified air mail (postage prepaid, return receipt requested, if available). All such notices shall be sent to the facsimile number, e-mail address or address (as
the case may be) specified for the intended recipient in Disclosure Schedule 9.5, or to such other number or address as such recipient may have last specified by notice to the other parties. All such notices shall be effective upon receipt.

 9.6 Dispute Resolution. 
 (a) Any dispute, controversy or claim arising out of or relating to this Agreement (including any provision of any Schedule or Exhibit thereto) or the interpretation, breach, termination or validity
hereof, shall be resolved through consultation. Such consultation shall begin immediately after one party hereto has delivered to the other parties hereto a written request for such consultation. If within 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 any party with written notice to the other parties. 
 (b) The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the “Centre”). There shall be three arbitrators. Each disputing
party shall select one arbitrator within 30 days after respectively 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
chairman of the Centre shall select a third arbitrator to serve as presiding arbitrator within 30 days of the selection of the second arbitrator. The third arbitrator shall be qualified to practice New York State law. If any arbitrator has not been
appointed within the time limits specified herein, such appointment shall be made by the chairman of the Centre upon the written request of either party. 
 (c) The arbitration proceedings shall be conducted and the award shall be rendered in the English language. The arbitration tribunal shall apply the Arbitration Rules of the Centre in effect at the time
of the arbitration. However, if such rules are in conflict with the provisions of this Section 9.6, including the provisions concerning the appointment of arbitrators, the provisions of this Section 9.6 shall prevail. 
 (d) The hearing shall commence no later than 90 days following the appointment of the last of the three arbitrators and the award shall be
rendered no later than 30 days following the close of the hearing. 
  

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 (e) The arbitrators shall decide any dispute submitted by the parties to the arbitration
strictly in accordance with the substantive law of the State of New York and shall not apply any other substantive law. 
 (f)
Consistent with the expedited nature of arbitration, each party will, upon the written request of the other party, provide the other with copies of documents relevant to the issue raised by any claim or counterclaim. Other discovery may be ordered
by the arbitrator to the extent the arbitrator deems additional discovery relevant and appropriate, and any dispute regarding discovery, relevance or scope thereof, shall be determined by the arbitrator, which determination shall be conclusive.

 (g) The parties hereby waive any rights of application or appeal to any court or tribunal of competent jurisdiction
(including without limitation the courts of the United States, the British Virgin Islands, Hong Kong and PRC) to the fullest extent permitted by law in connection with any question of law arising in the course of the arbitration or with respect to
any award made except for actions relating to enforcement of the arbitration agreement or an arbitral award and except for actions seeking interim or other provisional relief in any court of competent jurisdiction. 
 (h) By agreeing to arbitration, the parties do not intend to deprive any court of its jurisdiction to issue a pre-arbitral injunction,
pre-arbitral attachment or other order in aid of arbitration proceedings and the enforcement of any award. Without prejudice to such provisional remedies in aid of arbitration as may be available under the jurisdiction of a national court, the
arbitral tribunal shall have full authority to grant provisional remedies and to award damages for the failure of any party to respect the arbitral tribunal’s orders to that effect. 
 (i) The award shall be final and binding upon the parties, and shall be the sole and exclusive remedy between the parties regarding any
claims, counterclaims, issues, or accounting presented to the arbitral tribunal. Judgment upon any award may be entered in any court having jurisdiction thereof. 
 (j) Subject to the receipt of any applicable governmental approval, any monetary award shall be made and promptly payable in U.S. Dollars free of any tax, deduction or offset, and the arbitral tribunal
shall be authorized in its discretion to grant pre-award and post-award interest at commercial rates. Any costs, fees, or taxes incident to enforcing the award shall, to the maximum extent permitted by law, be charged against the party resisting
such enforcement. The arbitral tribunal shall have the authority to award any remedy or relief proposed by each party pursuant to this Agreement, including without limitation, a declaratory judgment, specific performance of any obligation created
under this Agreement or the issuance of an injunction. 
 (k) This Agreement and the rights and obligations of the parties shall
remain in full force and effect pending the award in any arbitration proceeding hereunder. 
 (l) All notices by one party to
the other in connection with the arbitration shall be in accordance with the provisions of Section 9.5 hereof. 
  

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 (m) This arbitration agreement set forth in Section 9.6 shall be binding upon the
parties, their successors and the permitted assigns in accordance with Section 9.8 hereof. 
 9.7 GOVERNING LAW.
THIS AGREEMENT AND, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ALL MATTERS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICT OF LAWS. 
 9.8 Successors and Assigns. (a) No party to this Agreement may assign any of its rights or
obligations under this Agreement, without the prior written consent of the other parties hereto, except that a Buyer may assign its rights and obligations to one or more Affiliates of such Buyer, which shall agree in writing to be bound by the terms
hereof. Any such assignment shall not relieve the assigning Buyer of its obligations hereunder. Any attempted assignment in contravention hereof shall be null and void. 
 (b) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto or their successors and permitted assigns. 
 9.9 No Third Party Beneficiaries. Except as otherwise expressly provided, nothing in this Agreement shall convey any rights upon any
person or entity which is not a party or permitted designee of a party to this Agreement. 
 9.10 Delays or Omissions. It
is agreed that no delay or omission to exercise any right, power or remedy on the part of any party upon any breach or default of any party to this Agreement shall impair any such right, power or remedy, nor shall it be construed to be a waiver of
any such breach or default, or any acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character on any party of any breach or default under this Agreement must be in writing and shall be effective only to the extent specifically set forth in
such writing and that all remedies either under this Agreement, or by law otherwise afforded to any party, shall be cumulative and not alternative. 
 9.11 Publicity. Any public announcement or similar publicity with respect to this Agreement or the transactions contemplated hereby will be issued, if at all, at such time and in such manner as the
Seller determines. Unless consented to by the Seller in advance or required by Applicable Law, the Buyer shall, prior to and after the Closing, and shall after the Closing, cause the Acquired Companies to, keep this Agreement strictly confidential
and may not make any disclosure of this Agreement to any Person. The Seller and the Buyer will consult with each other concerning the means by which the Acquired Companies’ employees, customers, and suppliers and others having dealings with the
Acquired Companies will be informed of the transactions contemplated by this Agreement, and the Buyer will have the right to be present for any such communication if it so elects by notifying the Seller in writing in advance. 
  

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 9.12 Expenses. Each party to this Agreement will bear all fees, costs and expenses
that are incurred by it in connection with the preparation, execution and delivery of this Agreement and the transactions contemplated hereby. 
 9.13 Currency. (a) Subject to the receipt of any applicable Governmental Approval, all payments due to any party hereunder, other than payment for the Shares, shall be made and promptly
payable in U.S. Dollars free of any tax, deduction or offset. If for the purposes of making a payment required to be made hereunder it is necessary to convert all or any part of a sum due hereunder in any currency (the “Original
Currency”) into U.S. Dollars, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which, in accordance with normal banking procedures, the Buyer could purchase the
Original Currency with U.S. Dollars, on the Business Day immediately preceding the day on which any such payment, or any relevant part thereof, is paid or otherwise satisfied. 
 (b) The obligation of the Seller in respect of any sum due hereunder in the Original Currency shall, notwithstanding any payment in U.S.
Dollars, be discharged only to the extent that on the Business Day following receipt by the Buyer of any sum adjudged to be so due in U.S. Dollars, the Buyer may, in accordance with normal banking procedures, purchase the Original Currency with U.S.
Dollars. If the amount of the Original Currency so purchased is less than the sum originally due to the Buyer in the Original Currency, the Seller shall, as a separate obligation and notwithstanding any such payment, indemnify the Buyer against such
loss, and if the amount of the Original Currency so purchased exceeds the sum originally due to the Buyer, the Buyer shall remit such excess to the Seller. 
 (c) All references to monetary amounts in this Agreement and the other transaction documents shall (unless specifically otherwise stated) mean such amounts as expressed in United States dollars.

 9.14 Specific Performance. Without limiting the rights of each party hereto to pursue all other legal and equitable
rights available to such party for the other parties’ failure to perform their obligations under this Agreement, the parties hereto acknowledge and agree that the remedy at law for any failure to perform their obligations hereunder would be
inadequate and that each of them, respectively, shall be entitled to specific performance, injunctive relief or other equitable remedies in the event of any such failure. 
 9.15 Entire Agreement. This Agreement, the Exhibits, Schedules and Disclosure Schedules to this Agreement and the other documents delivered pursuant hereto constitute the full and entire
understanding and agreement between the parties, and supersede all prior understandings, negotiations and prior agreements between the parties with regard to the subjects hereof and thereof. 
 9.16 Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any
circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the parties shall negotiate in good faith with a view to the substitution therefor of a suitable and equitable solution in order to carry out, so far as may be
valid and enforceable, the intent and purpose of such invalid provision, provided, however, that the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein
shall not be in any way impaired thereby, it being intended that all of the rights and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law. 
  

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 9.17 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original, but all of which together shall constitute one instrument. This Agreement may be executed in English. 
 9.18 Descriptive Headings; Interpretation. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a substantive part of this Agreement. The use of the word including in this Agreement shall
be by way of example rather than by limitation. 
 9.19 No Strict Construction. The parties hereto have participated
jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year
first written. 
  

			
	CMED ECLIA Diagnostic Technology Ltd
		
	By	 	 /s/ Sam Tsang

	Name:	 	Sam Tsang
	Title:	 	Director
	
	Chengxuan International Ltd.
		
	By	 	 /s/ Xiaodong Wu

	Name:	 	Xiaodong Wu
	Title:	 	Director

  

 28 

 DISCLOSURE SCHEDULES 
 [Attached Separately] 
  

 EXHIBIT 7.2(f) 
 Noncompetition Agreement 
 [Attached Separately]

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