Document:

Placement Agent Agreement

 Exhibit 10.2 
 August 21, 2009 
 Mr. Richard A. Franco, Sr. 
 Chief Executive Officer 
 DARA BioSciences, Inc. 
 8601 Six Forks Road 
 Suite 160 
 Raleigh, NC 27615 
 Dear Richard: 
 This letter (the “Agreement”) constitutes the agreement between Moody Capital Solutions, Inc. (“Moody” or the “Placement Agent”) and DARA BioSciences, Inc. (the “Company”),
that Moody shall serve as the non-exclusive placement agent for the Company, on a “reasonable best efforts” basis, in connection with the proposed placement (the “Placement”) of registered securities (the
“Securities”) of the Company, including shares (the “Shares”) of the Company’s common stock, par value $0.01 per share (the “Common Stock”) and warrants to purchase shares of Common Stock. With
the agreement of the Company, the Securities may include convertible preferred stock instead of Common Stock. The terms of such Placement and the Securities shall be mutually agreed upon by the Company and the purchasers (each, a
“Purchaser” and collectively, the “Purchasers”) and nothing herein constitutes that Moody would have the power or authority to bind the Company or any Purchaser or an obligation for the Company to issue any
Securities or complete the Placement. This Agreement and the documents executed and delivered by the Company and the Purchasers in connection with the Placement shall be collectively referred to herein as the “Transaction
Documents.” The date of the closing of the Placement shall be referred to herein as the “Closing Date.” The Company expressly acknowledges and agrees that Moody’s obligations hereunder are on a reasonable best efforts
basis only and that the execution of this Agreement does not constitute a commitment by Moody to purchase the Securities and does not ensure the successful placement of the Securities or any portion thereof or the success of Moody with respect to
securing any other financing on behalf of the Company. 
 SECTION 1. COMPENSATION. 
 As compensation for the services provided by Moody hereunder, the Company agrees to pay to Moody a cash fee payable immediately upon the closing of the
Placement equal to 8% of the aggregate gross proceeds raised by Moody in the Placement, provided such closing occurs within 120 days of the date of this Agreement. 
 SECTION 2. REGISTRATION STATEMENT. 
 The Company represents and warrants to, and agrees with, the Placement Agent
that: 
 (A) The Company has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form
S-3 (Registration File No.333-150150) under 

 
the Securities Act of 1933, as amended (the “Securities Act”), which became effective on April 18, 2008, for the registration under the
Securities Act of the Shares. At the time of such filing, the Company met the requirements of Form S-3 under the Securities Act. Such registration statement meets the requirements set forth in Rule 415(a)(1)(x) under the Securities Act and complies
with said Rule. The company will file with the Commission pursuant to Rule 424(b) under the Securities Act, and the rules and regulations (the “Rules and Regulations”) of the Commission promulgated thereunder, a supplement to the form of
prospectus included in such registration statement relating to the placement of the Shares and the plan of distribution thereof and has advised the Placement Agent of all further information (financial and other) with respect to the Company required
to be set forth therein. Such registration statement, including the exhibits thereto, as amended at the date of this Agreement, is hereinafter called the “Registration Statement”; such prospectus in the form in which it appears in the
Registration Statement is hereinafter called the “Base Prospectus”; and the supplemented form of prospectus, in the form in which it will be filed with the Commission pursuant to Rule 424(b) (including the Base Prospectus as so
supplemented) is hereinafter called the “Prospectus Supplement.” Any reference in this Agreement to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and include the documents
incorporated by reference therein (the “Incorporated Documents”) pursuant to Item 12 of Form S-3 which were filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on or before the date of this
Agreement, or the issue date of the Base Prospectus or the Prospectus Supplement, as the case may be; and any reference in this Agreement to the terms “amend,” “amendment” or “supplement” with respect to the
Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and include the filing of any document under the Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus or the
Prospectus Supplement, as the case may be, deemed to be incorporated therein by reference. All references in this Agreement to financial statements and schedules and other information which is “contained,” “included,”
“described,” “referenced,” “set forth” or “stated” in the Registration Statement, the Base Prospectus or the Prospectus Supplement (and all other references of like import) shall be deemed to mean and include
all such financial statements and schedules and other information which is or is deemed to be incorporated by reference in the Registration Statement, the Base Prospectus or the Prospectus Supplement, as the case may be. No stop order suspending the
effectiveness of the Registration Statement or the use of the Base Prospectus or the Prospectus Supplement has been issued, and no proceeding for any such purpose is pending or has been initiated or, to the Company’s knowledge, is threatened by
the Commission. For purposes of this Agreement, “free writing prospectus” has the meaning set forth in Rule 405 under the Securities Act and the “Time of Sale Prospectus” means the preliminary prospectus, if any, together with
the free writing prospectuses, if any, used in connection with the Placement, including any documents incorporated by reference therein. 
 (B) The Registration Statement (and any further documents to be filed with the Commission) contains all exhibits and schedules as required by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto,
at the time it became effective, complied in all material respects with the Securities Act and the Exchange Act and the applicable Rules and Regulations and did not and, as amended or supplemented, if applicable, will not, contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Base 

  

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Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement, each as of its respective date, comply in all material respects with the
Securities Act and the Exchange Act and the applicable Rules and Regulations. Each of the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement, as amended or supplemented, did not and will not contain as of the date
thereof any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Incorporated Documents, when they were
filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and the applicable Rules and Regulations, and none of such documents, when they were tiled with the Commission, contained any untrue statement of a
material fact or omitted to state a material fact necessary to make the statements therein (with respect to Incorporated Documents incorporated by reference in the Base Prospectus or Prospectus Supplement), in light of the circumstances under which
they were made not misleading; and any further documents so filed and incorporated by reference in the Base Prospectus, the Time of Sale Prospectus, if any, or Prospectus Supplement, when such documents are filed with the commission, will conform in
all material respects to the requirements of the Exchange Act and the applicable rules and Regulations, as applicable, and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading. No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date thereof which represent, individually or in the
aggregate, a fundamental change in the information set forth therein is required to be filed with the Commission. There are no documents required to be filed with the Commission in connection with the transaction contemplated hereby that
(x) have not been filed as required pursuant to the Securities Act or (y) will not be filed within the requisite time period. There are no contracts or other documents required to be described in the Base Prospectus, the Time of Sale
Prospectus, if any, or Prospectus Supplement, or to be filed as exhibits or schedules to the Registration Statement, which have not been described or filed as required. 
 (C) The Company is eligible to use free writing prospectuses in connection with the Placement pursuant to Rules 164 and 433 under the Securities Act. Any free writing prospectus that the Company is required to file
pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. Each free writing
prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or behalf of or used by the Company complies or will comply in all material respects with the requirements of the
Securities Act and the applicable rules and regulations of the Commission thereunder. The Company will not, without the prior consent of the Placement Agent, prepare, use or refer to, any free writing prospectus. 
 (D) The Company has delivered, or will as promptly as practicable deliver, to the Placement Agent complete conformed copies of the Registration Statement
and of each consent and certificate of experts, as applicable, filed as a part thereof, and conformed copies of the Registration Statement (without exhibits), the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement,
as amended or supplemented, in such quantities and at such places as the Placement Agent reasonably requests. Placement Agent acknowledges that all such materials as exist on the date of this letter are available on EDGAR. Neither the Company nor

  

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any of its directors and officers has distributed and none of them will distribute, prior to the Closing Date, any offering material in connection with the
offering and sale of the Shares pursuant to the Placement other than the Base Prospectus, the Time of Sale Prospectus, if any, the Prospectus Supplement, the Registration Statement, copies of the documents incorporated by reference therein and any
other materials permitted by the Securities Act. 
 SECTION 3. REPRESENTATIONS AND WARRANTIES. 
 Except as set forth under the corresponding section of the Disclosure Schedules (it being agreed that disclosure of any item in any section or subsection
of the Disclosure Schedules shall be deemed to be disclosed with respect to any other section or subsection thereof or hereof to which the relevance of such disclosure is readily apparent), which Disclosure Schedules shall be deemed a part hereof,
and except as otherwise disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, any company Quarterly Report on Form 10-Q filed since the filing date of such Annual Report, or any of the Company’s
Current Reports on Form 8-K filed since the filing date of such Annual Report (including any exhibit thereto and document incorporated by reference therein), the Company hereby makes the representations and warranties set forth below to the
Placement Agent. 
 (A) Organization and Qualification. All of the direct and indirect subsidiaries (individually, a
“Subsidiary”) of the Company are set forth on Schedule 3(A). Except as set forth on Schedule 3(A), the Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any
“Liens” (which for purposes of this Agreement shall mean a lien, charge, Security interest, encumbrance, right of first refusal, preemptive right or other restriction), and all the issued and outstanding shares of capital stock of
each Subsidiary are validly issued and arc fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently
conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the
Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document,
(ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no “Proceeding” (which for purposes of
this Agreement shall mean any action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened) has been instituted in any 

  

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such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. 
 (B) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions
contemplated thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, its board of directors or its stockholders in connection therewith other than in connection with the
“Required Approvals” (as defined in subsection 3(D) below). Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will
constitute the valid and binding obligation of he Company enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency. reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 
 (C) No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company, the issuance and sale of the Securities and
the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the
properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument
(evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any subsidiary is bound or affected, or (iii) subject to the
Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including
federal and state securities laws and regulations), or by which all property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to
result in a Material Adverse Effect. 
 (D) Filings, Consents and Approvals. The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other “Person” (defined as an individual or corporation,
partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind, including, without limitation, any Trading
Market) in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than such filings as are required to be made under applicable 

  

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Federal and state securities laws and a Listing of Additional Shares application with the Nasdaq Stock Market, Inc. (collectively, the “Required
Approvals”). 
 (E) Issuance of the Securities; Registration. The Securities are duly authorized and, when issued and paid
for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction
Documents. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to the Transaction Document. The issuance by the Company of the Securities has been registered under the
Securities Act and all of the Securities are freely transferable and tradable by the Purchasers without restriction (other than any restrictions arising solely from an act, omission or status of a Purchaser). The Securities are being issued pursuant
to the Registration Statement and the issuance of the Securities has been registered by the Company under the Securities Act. The Registration Statement is effective and available for the issuance of the securities thereunder and the Company has not
received any notice that the Commission has issued or intends to issue a stop-order with respect to the Registration Statement or that the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either
temporarily or permanently, or intends or has threatened in writing to do so. The “Plan of Distribution” section under the Registration statement permits the issuance and sale of the Securities hereunder. Upon receipt of the Securities,
the purchasers will have good and marketable title to such Securities and the Securities will be freely tradable on the Trading Market” (which, for purposes of this Agreement shall mean means the following markets or exchanges on which the
Common Stock is listed or quoted for trading on the date in question: the Nasdaq Capital Market, the NYSE Amex, the New York Stock Exchange, the Nasdaq National Market or the OTC Bulletin Board). 
 (F) Capitalization. The capitalization of the Company is as set forth on Schedule 3(F). [Except as set forth on Schedule 3(F)], the Company has
not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock plans, the issuance of shares of Common Stock to
employees pursuant to the Company’s employee stock plan and pursuant to the conversion or exercise of securities exercisable, exchangeable or convertible into Common Stock (“Common Stock Equivalents”). No Person has any right
of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the securities, there are no outstanding
options (other than employee, director and consultant stock options), warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or
exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional
shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of
any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in
compliance with all federal and state securities 

  

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laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No
further approval or authorization of any stockholder, the Board of Directors of the Company or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with
respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders. 
 (G) SEC Reports: Financial Statements. The Company has complied in all material respects with requirements to file all reports, schedules, forms, statements and other documents required to be filed by it under
the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, since February 12, 2008) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being
collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated
subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 
 (H) Material Changes: Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included within
the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not
incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the
Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or
“Affiliate” (defined as any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144 under
the Securities Act), except pursuant to existing Company stock plans. The Company does not have 

  

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pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement
or as set forth on Schedule 3( H), no event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that would be required to be
disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed 1 Trading Day prior to the date that this representation is made. 
 (I) Litigation. There is no action, suit, inquiry, notice of violation, Proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision,
have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal
or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former
director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. None of
the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company, and neither the Company or any of its Subsidiaries is a party to a collective bargaining agreement, and
the Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company
or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment
practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (J) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the
Company which could reasonably be expected to result in a Material Adverse Effect. 
 (K) Compliance. Except as set forth on Schedule
3(K), neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or
any of its properties is 

  

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bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or
(iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the
environment, except in each case as could not have a Material Adverse Effect. 
 (L) Regulatory Permits. The Company and the
Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the
failure to possess such permits could not have or reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the
revocation or modification of any Material Permit. 
 (M) Title to Assets. The Company and the Subsidiaries have good and marketable
title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiaries and good and marketable title in all personal property owned by them that is material to the business of the Company and the
Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the
Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them
under valid, subsisting and enforceable leases of which the Company and the Subsidiaries are in compliance. 
 (N) Patents and
Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar
intellectual property rights necessary or material for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). Neither the Company nor any Subsidiary has received a notice (written or otherwise) that the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To the
knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights of others. The Company and its Subsidiaries have taken reasonable
security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 (O) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance. Neither the Company nor any Subsidiary has any
reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in
cost. 
  

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 (P) Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, none of
the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or
such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, other than (i) for payment of salary or consulting
fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) for other employee benefits, including stock option or equity purchase agreements or arrangements under any stock plan of the Company.

 (Q) Sarbanes-Oxley. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are
applicable to it as of the date hereof and of the Closing Date. 
 (R) Certain Fees. Except as otherwise provided in this Agreement or
the Prospectus Supplement, no brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the
transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be
due in connection with the transactions contemplated by the Transaction Documents. 
 (S) Trading Market Rules. The issuance and sale
of the Securities hereunder does not contravene the rules and regulations of the Trading Market. 
 (T) Investment Company. The
Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The
Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act. 
 (U) Registration
Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. 
 (V) Registration. The Company’s Common Stock is registered pursuant to Section 12(b) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. 
 (W) Application of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share 

  

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acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the
Company’s Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or
exercising their rights under the Transaction Documents, including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities. 
 (X) Solvency. Based on the financial condition of the Company as of the Closing Date after giving effect to the receipt by the Company of the
proceeds from the sale of the Securities hereunder, (i) the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature; (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including
its capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability thereof; and (iii) the current cash flow of the Company, together
with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be
paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or
circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. For the purposes of this Agreement,
“Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements and
other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit
or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any
Subsidiary is in default with respect to any Indebtedness. 
 (Y) Tax Status. Except for matters that would not, individually or in
the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due
thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or any Subsidiary. 
 (Z) Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political 

  

 - 11 - 

 
parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its
behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
 (AA) Accountants. The Company’s accountants are set forth on Schedule 3(AA) of the Disclosure Schedule. To the knowledge of the Company, such
accountants, who the Company expects will express their opinion with respect to the financial statements to be included in the Company’s next Annual Report on Form 10-K, are a registered public accounting firm as required by the Securities Act.

 (BB) Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any
compensation for soliciting purchases of, any of the Securities (other than for the placement agent’s placement of the Securities), or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other
securities of the Company. 
 (CC) Approvals. The issuance and listing on the Nasdaq Capital Market of the Shares requires no further
approvals, including but not limited to, the approval of shareholders. 
 (DD) FINRA Affiliations. There are no affiliations with any
FINRA member firm among the Company’s officers, directors or, to the knowledge of the Company, any five percent (5%) or greater stockholder of the Company, except as set forth in the Base Prospectus. 
 SECTION 4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLACEMENT AGENT. 
 The Placement Agent represents, warrants and covenants with the Company as follows: 
 (A) Authorization of Agreement, Etc.
This Agreement has been duly and validly authorized, executed and delivered by or on behalf of the Placement Agent. 
 (B)
Broker-Dealer. The Placement Agent represents and warrants that it is (i) a member in good standing of FINRA, (ii) is registered as a broker/dealer under the Exchange Act and (iii) is licensed as a broker/dealer under the laws
of the State of Georgia and any other state applicable to the offers and sales of Securities by the Placement Agent. The Placement Agent will immediately notify the Company in writing of any change in its status as such 
 (C) Compliance with Applicable Law. The Placement Agent will not knowingly take any action that will result in the Securities being offered or
sold in a manner that does not comply with applicable law, including, without limitation, the provisions of the Securities Act, or the rules and regulations of the Commission, any Trading Market or FINRA. The Placement Agent shall file for a
pre-clearance of this Agreement with FINRA prior to the sale of any Securities in the Offering. 
  

 - 12 - 

 (D) Compliance with Offering Documents. The Placement Agent will offer the Securities in
accordance with the Registration Statement, the Base Prospectus and the Prospectus Supplement and will deliver such documents to each Purchaser before accepting a signed copy of the purchase agreement or payment for any Securities. 
 (E) Compliance with Laws of Jurisdictions. The Placement Agent will offer the Securities only in those jurisdictions in which it is permitted to
sell the Securities pursuant to the laws of said jurisdiction, and the Placement Agent may arrange for the Securities to be offered by a broker/dealer properly licensed to do so in the state where any such offer is made. 
 (F) Confidentiality. The Placement Agent shall obtain a written or oral confidentiality agreement from each prospective Purchaser to disclosing to
such prospective Purchaser any information regarding the Company or the Placement, including the existence of the Placement (such confidentiality agreement shall expressly prohibit the prospective Purchaser from trading in the Company’s
securities based on any information provided by Placement Agent or the Company while such information constitutes material non-public information). 
 SECTION 5. INDEMNIFICATION. The Company agrees to the indemnification and other agreements set forth in the Indemnification Provisions (the “Indemnification”) attached hereto as Addendum A, the provisions of
which are incorporated herein by reference and shall survive the termination or expiration of this Agreement. 
 SECTION 6. ENGAGEMENT TERM.
Moody’s engagement hereunder will be for the period of 120 days. The engagement may be terminated by either the Company or Moody at any time upon 10 days’ written notice. Notwithstanding anything to the contrary contained herein, the
provisions concerning the Company’s obligation to pay any fees actually earned, and the confidentiality, indemnification, contribution provisions contained herein and the Company’s obligations contained in the Indemnification Provisions
will survive any expiration or termination of this Agreement. Moody agrees not to disclose or use any confidential information concerning the Company provided to it by the Company for any purposes other than those contemplated under this Agreement.

 SECTION 7. MOODY INFORMATION. The Company agrees that any information or advice rendered by Moody in connection with this engagement is for
the confidential use of the Company only in their evaluation of the Placement and, except as otherwise required by law, the Company will not disclose or otherwise refer to the advice or information in any manner without Moody’s prior written
consent. 
 SECTION 8. NO FIDUCIARY RELATIONSHIP. This Agreement does not create, and shall not be construed as creating rights enforceable by
any person or entity not a party hereto, except those entitled hereto by virtue of the Indemnification Provisions hereof. The Company acknowledges and agrees that Moody is not and shall not be construed as a fiduciary of the Company and shall have
no duties or liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention of Moody hereunder, all of which are hereby expressly waived. 
  

 - 13 - 

 SECTION 9. CLOSING. The obligations of the Placement Agent, and the closing of the sale of the Securities
hereunder are subject to the accuracy, when made and on the Closing Date, of the representations and warranties on the part of the Company and its Subsidiaries contained herein, to the accuracy of the statements of the Company and its Subsidiaries
made in any certificates pursuant to the provisions hereof, to the performance by the Company and its Subsidiaries of their obligations hereunder, and to each of the following additional terms and conditions: 
 (A) No stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purpose shall have been
initiated or threatened by the Commission, and any request for additional information on the part of the Commission (to be included in the Registration Statement, the Base Prospectus or the Prospectus Supplement or otherwise) shall have been
complied with to the reasonable satisfaction of the Placement Agent. 
 (B) The Placement Agent shall not have discovered and disclosed to
the Company on or prior to the Closing Date that the Registration Statement, the Base Prospectus or the Prospectus Supplement or any amendment or supplement thereto contains an untrue statement of a fact which, in the opinion of counsel for the
Placement Agent, is material or omits to state any fact which, in the opinion of such counsel, is material and is required to be stated therein or is necessary to make the statements therein not misleading. 
 (C) All corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each of this Agreement,
the Securities, the Registration Statement, the Base Prospectus and the Prospectus Supplement and all other legal matters relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all material respects
to counsel for the Placement Agent, and the Company shall have furnished to such counsel all documents and information that they may reasonably request to enable them to pass upon such matters. 
 (D) The Placement Agent shall have received from outside counsel to the Company such counsel’s written opinion, addressed to the Placement Agent and
the Purchasers dated as of the Closing Date, in form and substance reasonably satisfactory to the Placement Agent, which opinion shall include a “10b-5” negative assurance from such counsel. 
 (E) Neither the Company nor any of its Subsidiaries shall have sustained since the date of the latest audited financial statements included or
incorporated by reference in the Base Prospectus, any loss or interference with its business from fire, explosion, flood, terrorist act or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental
action, order or decree, otherwise than as set forth in or contemplated by the Base Prospectus and (ii) since such date there shall not have been any change in the capital stock or long-term debt of the Company or any of its Subsidiaries or any
change, or any development involving a prospective change, in or affecting the business, general affairs, management, financial position, stockholders’ equity, results of operations or prospects of the Company and its Subsidiaries, otherwise
than as set forth in or contemplated by the Base Prospectus, the effect of which, in any such case described in clause (i) or (ii), is, in the judgment of the Placement Agent, 

  

 - 14 - 

 
so material and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner
contemplated by the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement. 
 (F) The Common Stock is
registered under the Exchange Act and, as of the Closing Date, the Shares shall be listed and admitted and authorized for trading on the Nasdaq Capital Market, and satisfactory evidence of such actions shall have been provided to the Placement
Agent. The Company shall have taken no action designed to, or likely to have the effect of terminating the registration of the Common Stock under the Exchange, nor has the Company received any information suggesting that the Commission is
contemplating terminating such registration. 
 (G) Subsequent to the execution and delivery of this Agreement, there shall not have occurred
any of the following: (i) trading in securities generally on the New York Stock Exchange or the Nasdaq National Market, or trading in any securities of the Company on any exchange or in the over-the-counter market, shall have been suspended or
minimum or maximum prices or maximum ranges for prices shall have been established on any such exchange or such market by the Commission, by such exchange or by any other regulatory body or governmental authority having jurisdiction, (ii) a
banking moratorium shall have been declared by federal or state authorities or a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States, (iii) the United States shall have
become engaged in hostilities in which it is not currently engaged, the subject of an act of terrorism, there shall have been an escalation in hostilities involving the United States, or there shall have been a declaration of a national emergency or
war by the United States, or (iv) there shall have occurred any other calamity or crisis or any change in general economic, political or financial conditions in the United States or elsewhere, if the effect of any such event in clause
(iii) or (iv) makes it, in the sole judgment of the Placement Agent, impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner contemplated by the Base Prospectus and the Prospectus
Supplement. 
 (H) No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by
any governmental agency or body which would, as of the Closing Date, prevent the issuance or sale of the Securities or materially and adversely affect or potentially and adversely affect the business or operations of the Company; and no injunction,
restraining order or order of any other nature by any federal or state court of competent jurisdiction shall have been issued as of the Closing Date which would prevent the issuance or sale of the Securities or materially and adversely affect or
potentially and adversely affect the business or operations of the Company. 
 (I) The Company shall have prepared and filed with the
Commission a Current Report on Form 8-K with respect to the Placement, including as an exhibit thereto this Agreement. 
 (J) The Company
shall have entered into subscription agreements with each of the Purchasers and such agreements shall be in full force and effect and shall contain 

  

 - 15 - 

 
representations, warranties and covenants of the Company as agreed between the Company and the Purchasers. 
 (K) FINRA shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement. In addition, the Company
shall, if requested by the Placement Agent, make or authorize Placement Agent’s counsel to make on the Company’s behalf, an Issuer Filing with FINRA pursuant to FINRA Rule 5110 with respect to the Registration Statement and pay all filing
fees required in connection therewith. 
 (L) Prior to the Closing Date, the Company shall have furnished to the Placement Agent such further
information, certificates and documents as the Placement Agent may reasonably request. 
 All opinions, letters, evidence and certificates
mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Placement Agent. 
 SECTION 10. GOVERNING LAW. This Agreement will be governed by, and construed in accordance with, the laws of the State of Georgia applicable to agreements
made and to be performed entirely in such State. This Agreement may not be assigned by either party without the prior written consent of the other party. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their
respective successors and permitted assigns. Any right to trial by jury with respect to any dispute arising under this Agreement or any transaction or conduct in connection herewith is waived. Any dispute arising under this Agreement may be brought
into the courts of the State of Georgia or into the Federal Court located in Atlanta, Georgia and, by execution and delivery of this Agreement, the Company hereby accepts for itself and in respect of its property, generally and unconditionally, the
jurisdiction of aforesaid courts. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by delivering a copy thereof via overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of a Transaction Document, then the prevailing party in such action or proceeding shall be reimbursed
by the other party for its attorneys fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
 SECTION 11. ENTIRE AGREEMENT / MISC. This Agreement (including the attached Indemnification Provisions) embodies the entire agreement and understanding between the parties hereto, and supersedes all prior agreements and
understandings, relating to the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect or any other provision of
this Agreement, which will remain in full force and effect. This Agreement may not be amended or otherwise modified or waived except by an instrument in writing signed by both Moody and the Company. The representations, warranties, agreements and
covenants contained 

  

 - 16 - 

 
herein shall survive the closing of the Placement and delivery and/or exercise of the Securities, as applicable. This Agreement may be executed in two or
more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties
need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or a .pdf format file, such signature shall create a valid and binding obligation of the party executing (or all whose behalf such signature
is executed) with the same force and effect as if such facsimile or .pdf signature page were an original thereof. 
 SECTION 12. NOTICES. Any
and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a business day, (b) the next business day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number on the signature pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any business day, (c) the business day following the
date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the
signature pages hereto. Please confirm that the foregoing correctly sets forth our agreement by signing and returning to Moody the enclosed copy of this Agreement. 
  

			
	Very truly yours,
	
	MOODY CAPITAL SOLUTIONS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Address for notice:

  

			
	Accepted and Agreed to as of
	the date first written above:
	
	DARA BioSciences, Inc.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Address for notice:

  

 - 17 - 

 ADDENDUM A 
 INDEMNIFICATION PROVISIONS 
 In connection with the engagement of Moody Capital Solutions, Inc.
(“Moody”) by DARA BioSciences, Inc. (the “Company”) pursuant to a letter agreement dated August 21, 2009, between the Company and Moody, as it may be amended from time to time in writing (the
“Agreement”), the Company hereby agrees as follows: 
  

	1.	To the extent permitted by law, the Company will indemnify Moody and its affiliates, stockholders, directors, officers, employees and controlling persons (within the meaning of
Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as amended) against all losses, claims, damages, expenses and liabilities, as the same are incurred (including the reasonable fees
and expenses of counsel), relating to or arising out of its activities hereunder or pursuant to the Agreement, except to the extent that any losses, claims, damages, expenses or liabilities (or actions in respect thereof) are found in a final
judgment (not subject to appeal) by a court of law to have resulted primarily and directly from Moody’s willful misconduct or gross negligence in performing the services described herein. 

  

	2.	Promptly after receipt by Moody of notice of any claim or the commencement of any action or proceeding with respect to which Moody is entitled to indemnity hereunder, Moody will
notify the Company in writing of such claim or of the commencement of such action or proceeding, and the Company will assume the defense of such action or proceeding and will employ counsel reasonably satisfactory to Moody and will pay the fees and
expenses of such counsel. Notwithstanding the preceding sentence, Moody will be entitled to employ counsel separate from counsel for the Company and from any other party in such action if counsel for Moody reasonably determines that it would be
inappropriate under the applicable rules of professional responsibility for the same counsel to represent both the Company and Moody. In such event, the reasonable fees and disbursements of no more than one such separate counsel will be paid by the
Company. The Company will have the exclusive right to settle the claim or proceeding provided that the Company will not settle any such claim, action or proceeding without the prior written consent of Moody, which will not be unreasonably withheld.

  

	3.	The Company agrees to notify Moody promptly of the assertion against it or any other person of any claim or the commencement of any action or proceeding relating to a transaction
contemplated by the Agreement. 

  

	4.	 If for any reason the foregoing indemnity is unavailable to Moody or insufficient to hold Moody harmless, then the Company shall contribute to the amount paid or
payable by Moody as a result of such losses, claims, damages or liabilities in such proportion as is appropriate to reflect not only the relative benefits received by the Company on the one hand and Moody on the other, but also the relative fault of
the Company on the one hand and Moody on the other that resulted in such losses, claims, damages or liabilities, as well as any relevant equitable considerations. The amounts paid or payable by a party in respect of losses, claims, damages and
liabilities referred to above shall be deemed to 

  

 - 18 - 

	 	 
include any legal or other fees and expenses incurred in defending any litigation, proceeding or other action or claim. Notwithstanding the provisions
hereof, Moody’s share of the liability hereunder shall not be in excess of the amount of fees actually received, or to be received, by Moody under the Agreement (excluding any amounts received as reimbursement of expenses incurred by Moody).

  

	5.	These Indemnification Provisions shall remain in full force and effect whether or not the transaction contemplated by the Agreement is completed and shall survive the termination of
the Agreement, and shall be in addition to any liability that the Company might otherwise have to any indemnified party under the Agreement or otherwise. 

  

			
	MOODY CAPITAL SOLUTIONS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	Accepted and Agreed to as of
	The date first written above:
	
	DARA BioSciences, Inc.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 - 19 -China TransInfo Technology Corp.: Exhibit 10.1 - Prepared by TNT Filings
Inc.

Exhibit 10.1

English Translation of  

Equity Transfer Agreement

Transferor :Unisplendour Corporation Limited

 

Transferee: Shudong Xia

 

Signed on: September 8,2009

 

Signed at: Haidian District, Beijing

 

Equity Transfer Agreement

Transferor :Unisplendour Corporation Limited

Legal Representative: Jinhong Xu

Domicile: Ziguang Building, East Gate of Tsinghua University, Haidian District, Beijing

Transferee: Shudong Xia

ID No: 422125197210205616

Domicile: Room 717, E-wing Centre No.113 Zhichunlu, Haidian District, Beijing

WHEREAS:

 

1. Beijing UNISITS Technology Co. Ltd. is a  corporation that lawfully exists(“the Target Company”), and  is planning to pursue public listing. The Target Company’s shareholders and their ownership information on or before the execution date of this Agreement are listed as below:
 

	
  
  Shareholders

	
  
  the numbers of shares held

(million shares)

	
  
  shareholding proportion(%)

	
  
  Unisplendour Corporation Limited

	
  
  32.50

	
  
  61.79%

	
  
  Shan Qu

	
  
  3.8575

	
  
  7.33%

	
  
  Qidi Holding Co., Ltd.

	
  
  2.60

	
  
  4.94%

	
  
  Wuhai and other Management Team Members

	
  
  13.6425

	
  
  25.94%

	
  
  Total

	
  
  52.60

	
  
  100.00%

 

1.      The Transferor is a joint stock company that was established legally on and has been validly existing since March 18th, 1999.  The registration certificate number is :1100001027456;

 

2.      The Transferee is a natural person whose ID No. is 422125197210205616;

 

3.      The Transferor desires to transfers its legally held 18.50 million shares of the Target Company, the Transferee desires to acquire the 18.50 million shares and thereby become the largest shareholder of the Target Company to promote the Target Company’ s listing process.

 

1

 

The Target Company’s shareholders and their ownership information after the equity transfer referred herein are listed as below: Target

 

	
  
  Shareholders

	
  
  the numbers of shares held

(million shares )

	
  
  shareholding proportion(%)

	
  
  Shudong Xia

	
  
  18.50

	
  
  35.17%

	
  
  Unisplendour Corporation Limited

	
  
  14.00

	
  
  26.62%

	
  
  Shan Qu

	
  
  3.8575

	
  
  7.33%

	
  
  Qidi Holding Co., Ltd.

	
  
  2.60

	
  
  4.94%

	
  
  Wuhai and other Management Team Members

	
  
  13.6425

	
  
  25.94%

	
  
  Total

	
  
  52.60

	
  
  100.00%

According to “Contract Law of the People's Republic of China”and related laws and regulations, and through amicably negotiations, the parties of this Agreement have reached agreement on the transfer of Beijing UNISITS Technology Co. Ltd.’s 18.50 million shares from the Transferor to the Transferee,   and enter into this equity transfer agreement (this “Agreement”) as below:

ARTICLE ONE - DEFINITION

 

1.      The following words and expressions are construed as bellows during the Agreement notwithstanding any reference or supplementary hereto:

	
  
  “the Agreement”

	
  
  this equity transfer agreement

	
  
  “the Target Company”

	
  
  Beijing UNISITS Technology Co. Ltd.

	
  
  “the Transferor”

	
  
  Unisplendour Corporation Limited

	
  
  “the Transferee”

	
  
  Shudong Xia

	
  
  “target shares”

	
  
  The 18.50 million shares of the Target Company which is transferred by the Transferor to the Transferee in accordance with the Agreement

	
  
  “this equity transfer”、“this transfer”、“equity transfer”

	
  
  Terms and provisions of the transfer referred herein

	
  
  “the equity transfer price ”

	
  
  Consideration paid herein by the Transferee for the target shares

	
  
  “the closing date”

	
  
  The closing date of the target shares referred in Article Six. Subject to the Agreement, it is the same day on which completing registration of Trade and Industry for the stock transfer

	
  
  “preconditions”

	
  
  The necessary and preconditions by which the Agreement come into force and effective referred in Article Four

	
  
  “the effective date”

	
  
  the day on which all the preconditions are implemented referred in Article Four

	
  
  “transition”

	
  
  the Transferor transfers the first majority shareholder of the Target Company to Transferee in Article Five

	
  
  “transition period”

	
  
  The day on which between Agreement signing and the closing date

	
  
  “the company’s charter”

	
  
  The Target Company’ s current effective charter

	
  
  “ new charter”

	
  
  The Target Company’ s charter which is to be modified by virtue of the equity transfer

	
  
  “working day”

	
  
  Any day on which the banks within the territory of China serve for corporate and customers, exclusive of the legal festivals and holidays

	
  
  “Day”

	
  
  calendar day

	
  
  “Yuan”

	
  
  Renminbi

	
  
  “significant impact”

	
  
  The cumulative effect is above 3,000,000 Yuan

 

2

 

 

2.      Any laws, rules and/or regulations herein shall include any currently effective laws, rules and/or regulations, and  any and all amendments, supplements or reenactments hereof from time to time. 

 

3.      The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.  

 

4.      All the date, month, year referred hereof, the commencement day shall commence from the next day.  If the last day of any term herein is not a working day, then the term shall cease on the next working day. “Within” hereof includes the day, “prior to the day” hereof does not include the day. “Either party” herein referred refers to the Transferor or the Transferee, “both parties” or “the parties” herein referred refers to both the Transferor and the Transferee.

ARTICLE TWO - TARGET SHARES

 

1. The target share refers to the 18.50 million shares legally held by the transferor after completing the Target Company’ s distribution of dividends for the first half of 2009; 

 

2. Subject to the terms and conditions herein, the Transferor agrees to transfer the 18.50 million shares of the Target Company to the Transferee, and the Transferee agrees to purchase the 18.50 million shares of the Target Company held by the Transferor.  

ARTICLE THREE - THE EQUITY TRANSFER PRICE AND PAYMENT

 

1.      The equity transfer price

 

As a result of both parties’ negotiation, the transfer price of the target share is 44.40 million Yuan (FORTY FOUR MILLION FOUR HUNDRED THOUSAND YUAN ONLY).  

 

2.      Payment of the equity transfer Price

 

(1) Within five days after the Agreement become effective, the Transferee shall make one time payment which equals to 50% of the equity transfer price from its designated bank account to the Transferor’s designated bank account , the basic of information of the Transferor’s designated bank is referred in Article Three Clause 3,  

 

3

 

(2) Within 45 working days after the change of the registration of the target shares, the Transferee shall make one time payment of the rest 50% of the equity transfer price from its designated bank account to the Transferor’s designated bank account,  

 

(3) The Transferor shall issue a legally binding receipt to the transferee within three days after the receipt of Transferee’s each payment.  

 

3.       The basic information of the Transferor’s designated bank account:

 

Bank of Deposit: China Merchants Bank Zhongguancun Branch

 

Account Name: Unisplendour Corporation Limited

 

Banking Account Number: 860385181510001

ARTICLE FOUR - PRECONDITIONS AND THE EFFECTIVE DATE

 

1.     The Agreement will become effective if all preconditions listed below are fulfilled: 

 

1.1.  The Agreement is signed by both parties;

 

1.2.  The board of directors of the Transferor has adopted board resolution to approve the transfer of the target shares;  

 

2.      The Agreement will come into effective only if the preconditions set forth in Article 4.1 herein are fulfilled, and such effectiveness will commence on the date when the last precondition is fulfilled. 

ARTICLE FIVE - THE TRANSITION AND THE TRANSITION PERIOD

 

1.     Both parties further agree:

 

Transfer of the Target Company’ s shareholders’ rights and obligations. Upon the effectiveness of the Agreement and the receipt of the Transferee’s first payment, such equity transfer shall be recorded into Target Company’ s shareholder list.  Except for the Transferor’s obligations during the transitional period as set forth in this Agreement, the Transferor shall transfer all the shareholder’s rights, obligations as well as responsibilities in connection with the target shares to the Transferee upon the Agreement comes into force and the Transferee has paid the first half of the equity transfer price.  The Transferor shall assist the Transferee in carrying out such rights, obligations, and responsibilities.
 

The abovementioned rights and obligations include, but not limited to, attending the Target Company's shareholders meeting, exercising shareholder voting rights, the nomination and appointment of directors based on the target shares, participating in the Target Company’s profit distribution/conversion or addition to the share capital/replenishment or participating in the distribution of surplus assets, or any other rights in compliance with the laws, regulations and the Target Company charter and obligations in connection with the target shares;
 

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2.     The period between the effectiveness of the Agreement and the payment of the first half of equity transfer price and the closing date  is the transition period;  

 

3.     Upon the completion of the equity transfer, as given that such transaction is completed within the transition period, the Transferee shall take rights, obligations and responsibility as the Target Company’ s largest shareholder in compliance with the “Contract Law of the People's Republic of China” and the Target Company’s charter;  

 

4.     During the transition period, given that the actual share transaction is yet to be completed, the Transferor shall provide necessary assistance and cooperation to the Transferee in exercising its rights and fullfiling its obligations as the shareholder, including providing related stamps, documents and other necessary convenience.  

ARTICLE SIX – REGISTRATION WITH ADMINISTRATION OF INDUSTRY AND COMMERCE AND EQUITY TRANSFER
 

 

1.    The Transferor and Transferee shall cooperate to complete the documentation preparation for the registration with Administrative of Industry and Commerce within 10 days after the Agreement comes into force and the Transferee makes the first payment, such documentation includes, but not limited to, holding a shareholders meeting of the Target Company for the transfer of the target shares, modifying and executing the Target Company charter, electing new board of directors and board of supervisors. Both parties agreed that that the amended charter of the Target Company provide that the board of directors shall consist of five members and two of which shall be recommended by the Transferee.

 

2.     The closing date will be the date on which the Target Company receives the amended registration documents from the Administration of Industry and Commerce in which the transferee is recorded as its shareholder.  This is the date  when the change of registration with the Administration of Industry and Commerce is completed;   

 

3.     The closing date also signifies the completion of the works below:  

 

a)     The Transferor shall delivery all documents about the change of registration with the Administration of Industry and Commerce to the Transferee; 

 

b)     after the transition period, the Transferee will become the Target Company’s  shareholder as registered wit the Administration of Industry and Commerce, thereafter the Transferor ceases to have the obligation and responsibility to provide necessary assistance and cooperation to the Transferee in exercising its rights and fulfilling its obligations as a shareholder.

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ARTICLE SEVEN - TAXES  

 

Both parties shall bear the taxes related to the  registration with the Administration of Industyr and Commerce in accordance with laws, regulations, or rules of relevant authorities.  In case such taxes are not clearly stipulated by the relevant laws, regulations, or rules of authorities, each party shall bear 50% of such  relevant expenses incurred.  

ARTICLE EIGHT - PROFIT AND LOSS DURING TRANSITION PERIOD

Both parties agree that the Transferee shall bear all the profits and losses of the target company during the transition period;  

ARTICLE NINE – REPRESENTATIONS AND WARRANTIES OF THE TRANSFEROR

 

The Transferor hereby makes the following representations and warranties:

 

1.     The Transferor is a company duly formed,validly existing and in good standing as a legal person under the laws of the PRC, and has the right to conduct the ongoing business activities;

 

2.     to the knowledge of the Transferor, the Target Company is a limited liability company duly organized,validly existing and in good standing as a legal person under the laws of the PRC;

 

3.     The Transferor has legal, complete and full ownership of the target shares, free and clear of all liens, ownership disputes over the target shares or seizure or other property perseveration or enforcement measures by the judiciaries over the target shares. 

 

4.     The Transferor will provide necessary and true description of the Target Company to the Transferee in accordance with its knowledge of the Target Company as its shareholder;  

 

5.     The Transferor will truthfully disclose the information about the assets, liabilities, or materials, information and debts about liabilities, litigation, material contracts, arbitration of the Target Company prior to the date of the Agreement to the Transferee, all the disclosure shall be true, complete and non-misleading. During the transition period and within 24 months after the  closing date, any deficiencies in connection with the above-mentioned disclosures will not cause the substantive, material impact on the transaction herein. (including but limited to the undisclosed Target Company guarantees, litigation, non-real assets, significant business risk).

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ARTICLE TEN - FURTHER COVENANT OF THE TRANSFEROR

 

1.     The Transferor will timely fulfill and/or assist and cooperate with the Target Company and the Transferee to complete relevant share transfer procedures, including but not limited to procedures for registration with the Administration of Industry and Commerce and executing necessary legal documents.

 

2.     The Transferor will timely fulfill and/or assist and cooperate with the Transferee and/or the Target Company to fulfill its obligations to disclose relevant information related to the equity transfer;  

 

3.     The Transferor will fulfill its obligations related to the arrangement during the transition period referred in Article Five herein in good faith  

 

4.     The Transferor will take legal responsibility for any problems (if any) prior to the equity transfer and guarantee that such legal issues will not cause any losses or additional burdens on the Transferee. 

 

5.     Unless agreed by the Transferee in written in advance, the Transferor will, during the transition period, ensure that the Target Company:

 

(1)     maintain its normal operational activities;

 

(2)     that its assets and financial situation not incur material changes; 

 

(3)     not distribute return on its investment to the Transferor;

 

(4)     not change its shareholding structure and charter of the Target Company except for the modification related to the equity transfer transaction hereunder;

 

(5)     not materially change the volume and the structure of its assets;

 

The Transferor shall, in the best efforts, protect the Target Company’s normal operation against adverse impact.

ARTICLE ELEVEN – REPRESENTATIONS AND WARRANTIES OF THE TRANSFEREE

 

The Transferee hereby makes the following representations and warranties:

 

1.     The Transferee is a natural person who has full capacity for civil conduct,and has the right to perform the ongoing business activities;  

 

2.     The Transferee has the ability to execute and perform the Agreement on the signing day; 

 

3.     The Transferee shall hold the target shares for no less than five years (60 calendar months); within such period the transferee shall not transfer the target shares to a third party, unless one of the following circumstance has incurred:  

 

(1)     The Target Company can not meet the requirements for listing on China's capital market, or the changes of the laws or regulations results in that the Target Company does not meet the requirements for listing on China's capital market within 36 calendar months after the closing date;  

 

(2)     The Transferee discovers and proves that the Target Company has any material illegal behaviors in its operational activities and there is any material false record in its financial statements prior to the closing date; or any intentional non-disclosure or fraud that caused material adverse impact on the Transferee; 

 

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(3)     The Target Company is incapable to meet the operational targets established by  the board of directors of the Target Company  for 3 consecutive calendar years after the closing date;  

 

4.     The Transferee shall not alter or
agree to alter, in any form, the status of its largest shareholder of the Target
company;  

 

5.     The Transferee shall ensure the
legitimacy and sufficiency of the funds to be used to pay the equity transfer
price hereunder on time;  

 

6.     The Transferee has fullyand independently studied and understood the present status of the Target Company and the target shares prior to the signing day, and has reviewed independently the target shares’ s validity, legality, risks, deficiencies as well as the share value and  completely understands the transacting background and conditions. The Transferee agrees to sign and perform the Agreement and is willing to bear the associated risks and responsibilities on the basis of abovementioned independent judgment , exclusive of abovementioned conditions referred in Article eleven Clause 3 term (2) are found after the closing date. 

ARTICLE TWELVE - FURTHER COVENANTS OF THE TRANSFEREE

 

1.     The Transferee will timely fulfill and/or assist and cooperate with the Target Company and the Transferor to complete relevant equity transfer procedures, including but not limited to procedures for registration with the Administration of Industry and Commerce; T 

 

2.     Target The Transferee will timely fulfill and/or assist and cooperate with the Transferor and/or the Target Company to fulfill its obligation to disclose relevant information related to the equity transfer;  

 

3.     The Transferee will ensure that the Target Company’ s normal production and operation and protect the employees’ legal rights from adverse impact as a result of the share transaction herein; 

 

4.     The Transferee will fulfill its obligation related to the arrangement during the transition period referred in Article Five herein in good faith  

ARTICLE THIRTEEN - LIABILITY FOR BREACH

 

1.     Either party’s violation of any representations, warranties, or covenants herein will result in the breach of the Agreement; 

 

2.     Special provisions on the Transferor’ s breach:

 

(1)     The Transferor fails to transfer the target shares as required herein after receipt of the initial payment of the equity transfer price.  the Transferor shall pay a penalty equals to 0.01% of the total share transfer price to the Transferee on a daily basis; 

 

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(2)     The Transferor fails to timely transfer the target shares as required herein after receipt of the initial payment of the equity transfer price, and such delay has lasted for over 30 working days.  The Transferee has the right to unilaterally terminate the Agreement. In case that the Transferee agrees to continue to perform the Agreement, the Transferor shall take responsibility for breach of the Agreement in accordance with Article Thirteen Clause 2 Term(1) and continue to perform the Agreement. In case the Transferee terminates the Agreement, the Transferor shall return full amount of the paid equity transfer price to the Transferee and pay an additional 0.3% of the total equity transfer price as a penalty.

 

(3)     In case the Transferor causes the target shares herein cannot be transferred , the Transferor shall return full amount of paid equity transfer price to the Transferee and pay an additional 0.3% of the total equity transfer price as a penalty.  

 

(4)     In terms that after the transfer of the target shares, the Transferee discovers and proves that the Target Company has any material illegal behaviors in its operational activities and there is any false record in its financial statements or any intentional non-disclosure or fraud that are adverse to the Transferee, the Transferee has the right to terminate the Agreement, and the Transferor shall return full amount of paid payment and pay 0.3% of the total transfer price as a penalty to the Transferee;  

 

(5)     The Transferor shall pay the penalty and return the paid transfer price to designated bank account as required by the Transferee due to the breach of the Transferor;

 

3.     Special provisions on the Transferee’ s breach of the Agreement:

 

(1)     In case the Transferee delays payment hereof, the Transferee shall pay 0.01% of the total stock transfer price as the penalty to the Transferor on a daily basis, the Transferee shall pay the penalty together with the stock transfer price; 

 

(2)     In case the Transferee delays payment hereof over  30 working days, the Transferor has the right to unilaterally terminate the Agreement; In case that the Transferor agrees to continue to perform the Agreement, the Transferee shall take responsibility for breach of the Agreement in accordance with Article Thirteen Clause 3 Term(1) and continue to perform the Agreement. In case the Transferor terminates the Agreement, the Transferee shall pay 0.3% of the total equity transfer price as a penalty to the designated bank account referred in Article Three Clause 3 herein. The Transferee shall assist and coordinate with the Target Company and the Transferor to return the transferred share to the Transferor , including but not limited to procedures for the registration of the change of shareholder with the Administration of Industry and Commerce. 

 

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(3)     In case the Transferee causes the target shares herein can not be transferred , the Transferee shall pay an additional 0.3% of the total equity transfer price as a penalty.

 

(4)     The Transferee shall pay the penalty to the designated bank account subject to the Transferor’ s requirement;

 

(5)     With the exceptions set forth in Article Eleven Clause 3, in case that the Transferee transfers any of the target shares or conduct any other activities which change its status as the largest shareholder of the Target Company within five years after the equity transfer, the transferee shall pay 67% of the total stock transfer price as a penalty to the Transferor; 

ARTICLE FOURTEEN - CONFIDENTIALITY

 

1.     Unless otherwise specified in the Agreement, the terms and conditions hereunder in respect of Equity Transfer (including all terms and conditions hereunder, the Exhibits and any other relevant documents relating to investment) are confidential and shall not be disclosed to any third party. 

 

2.     Under any of the following circumstance, the confidential information may be disclosed with written notification to other party two days prior to the disclosure: 

 

(1)     If required by relevant law or required by any legal proceedings;

 

(2)     If required by various regulators or government departments with jurisdiction over the party;

 

(3)     If required by various professional consultants, lawyers, auditors or its associated companies with legal rights, the disclosing party shall bear the responsibility for violations of the abovementioned professionals or bodies;

 

(4)     The other party has issued written consent on the disclosure matters.

 

3.     This Article is and remains effective for an indefinite period after the Agreement expires or terminates.

ARTICLE FIFTEEN - MODIFICATION, DISSOLUTION AND TERMINATION
 

 

1.     General Provision

 

Neither party may unilaterally modify, rescind or terminate the Agreement without negotiation and agreement by both parties, except it is otherwise prescribed under laws or regulations or provisions herein. The modification, rescinding, and termination of the Agreement by one party will only be effective upon the receipt of the written consent by the other party.
 

 

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2.     In case that any of the following conditions is met, either or both parties may notify the other party to terminate the Agreement:

 

(1)     Null performance of the Agreement by virtue of Force Majeure, either party may terminate the Agreement;

 

(2)     In case that one party seriously violates the terms or provisions, which results in null performance of the Agreement, the other party has the right to unilaterally terminate the Agreement;

 

(3)     In case of either party’s bankruptcy, dissolution or revocation by laws, the other party has the right to unilaterally terminate the Agreement;

 

(4)     Pursuant to any other unilateral termination clauses of the Agreement herein;

 

3.     In case that any of the following conditions is met, the Agreement is terminated:

 

(1)     All the rights and obligations are fulfilled completely pursuant to the Agreement;

 

(2)     The Agreement is terminated;

ARTICLE SIXTEEN - FORCE MAJEURE

 

1.     General Provision

 

Force majeure referred herein means the objective circumstances that are unforeseeable, unavoidable and insurmountable which incurs and prevent either party’s partial or full execution of the Agreement and after the signed date. The above mentioned matters include , earthquake, typhoon, flood, fire, war and other unforeseeable, unavoidable and insurmountable matters;

 

2.     Notification Obligation

 

Either party affected by the event of Force Majeure shall inform the other party of its occurrence in written form as soon as practical and thereafter send a certificate of the event issued by the relevant authorities to the other party within 10 days after its occurrence to explain the details and reasons which results in partial or null performance or delay performance of the Agreement. The certificate shall be issued by public notary bodies from where Force Majeure occurs.
 

 

3.     Remedy, release and waiver of liability

 

(1)     Either party shall negotiate with the other party to find a solution of the disagreement in case of any Force Majeure

 

(2)     Both parties shall try their best to remedy the adverse impact of the event of Force Majeure;

 

(3)     In case that the event of Force Majeure causes either party’s partial or null performance of the Agreement, the party in question shall not take the responsibility for the delay or termination of the Agreement caused by  Force Majeure, and its obligation term should be extended correspondingly but should be the same as the terminating time. 

 

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ARTICLE SEVENTEEN - APPLICABLE LAWS

 

The formation of the Agreement, its validity, interpretation, execution and settlement of the disputes shall be governed by the related laws of the People's Republic of China.

In case there is no law in China applicable to the certain matters herein, regulatory documents issued by competent government authorities should be applied first before the application of common commercial usage.

 

ARTICLE EIGHTEEN - DISPUTE RESOLUTION

 

1.     Consultation

 

All disputes arising from or in connection with the Agreement shall be settled amicably through negotiation by both parties.
 

 

2.     Litigation 

 

(1)     In case no agreement can be reached through consultation, either party may bring the dispute to the People's Court of Beijing Haidian District.

 

(2)     All expenses in connection with the litigation(including but not limited to legal fees, a retainer fee, preservation costs, and execution fees) shall be borne by the losing party unless otherwise awarded by the decisions of the court

 

3.     This Article is independent and any modification, revocation, termination or null of the Agreement shall not affect this legal force of this Article.

 

4.     Before the time when a dispute is being resolved, the Parties shall continue to perform this Agreement in all respects other than the issue in dispute.

 

ARTICLE NINETEEN – NOTICE AND DELIVERY

 

1.     Notice 

 

(1)     Any notice shall be delivered by hand, by fax, or by express mail to : 

 

The Transferor:Unisplendour Corporation Limited

Address:9th Floor Ziguang Building, East Gate of Tsinghua University, Haidian District, Beijing

Post Code:100084

Phone No:010-62789898

Fax:010-62770880

Receiver:Lian Qi

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The Transferee:Shudong Xia

Address:Room 717, E-wing Centre No.113 Zhichunlu, Haidian District, Beijing

Post Code:100086

Phone No:010-82671299

Fax:010-62638381

Receiver:Shudong, Xia

 

(2)     In case any alternation of the
abovementioned communication manners, either party shall inform the other party
with prior written notification.

 

2.     Delivery

 

Pursuant to the communication manners set forth above, the notice
shall be deemed given and effective as follows (a) the date of transmission, if
such notice or communication is delivered via facsimile (provided the sender
receives a machine-generated confirmation of successful transmission), (b) the
next working day after the date of transmission, if such notice or communication
is delivered via express mail, or (c) upon actual receipt by the party to whom
such notice is required to be given, if sent by personal delivery.

 

ARTICLE TWENTY - MISCELLANEOUS

 

1.     Signing and execution of the Agreement

 

The Agreement will come into force in case of the execution of the parties as well as fulfilling all the preconditions referred to in Article Four;  

 

2.     Execution

 

The Agreement is made in Chinese in five copies. Each party holds one copy, the Target Company holds one copy, the other two copies are used for the relative regulators for application and filing; each copy has the same legal effectiveness;

 

3.     Severability

 

If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby.
 

 

4.     Disclaimer

 

The waiver or failure of either party to exercise in any respect of any right provided for herein will not be deemed a waiver of any further right hereunder, exclusive of the party’s written indication;

 

5.     Non-negotiable of the rights and obligations

 

Either party shall not transfer the rights and obligations to any third party subject to the Agreement without the other party’ s written consent;

 

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6.     Other Matters

 

Supplement agreement may be entered into by and between the parties through consultation for issues not covered in this Agreement as appendix thereof, which shall have the same legal force with the Agreement.

The Transferor(seal):Unisplendour Corporation Limited

Legal Representative/Superintendent/Authorized Representative(Signature):

Title:  

The Transferee(finger mark): Shudong, Xia

The Transferee(Signature):

ID No:422125197210205616

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