Document:

SECURITIES
PURCHASE AGREEMENT

    

    This
Securities Purchase Agreement (this "Agreement") is dated
as of August 11, 2009 by and among Weikang Bio-Technology Group Company, Inc., a
Nevada corporation (the "Company"), ARC China,
Inc., a Shanghai corporation (the "Purchaser"), and for
purposes of Sections
2.1(b) and 2.1(c)
only, Corporate Stock Transfer, Inc. (the “Escrow
Agent”).

    

    WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to
Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act"), and
Rule 506 promulgated thereunder, the Company desires to issue and sell to the
Purchaser, and the Purchaser desires to purchase from the Company, up to an
aggregate of 4,768,877 shares of its newly-designated Series A Preferred Stock
and Warrants exercisable for up to 2,384,438 shares of its Common Stock for an
aggregate purchase price of up to $8,345,535 as more fully described in this
Agreement.

    

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

    

    ARTICLE
I

    DEFINITIONS

    

    1.1           Definitions. In
addition to the terms defined elsewhere in this Agreement: (a) capitalized terms
that are not otherwise defined herein have the meanings given to such terms in
the other Transaction Documents, and (b) the following terms have the meanings
indicated in this Section
1.1:

    

    "Affiliate"
means 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.

    

    "Business
Day" means any day other than a Saturday, Sunday or any day that is a
legal holiday or a day on which the New York Stock Exchange or commercial banks
located in New York, New York are permitted or required by law to
close.

    

    "Certificate
of Designation" means the Certificate of Designation of the preferences,
rights, limitations, qualifications and restrictions of the Preferred Shares
attached hereto as Exhibit
A.

    

    "Closing
Date" means the date on which a Closing occurs or is to occur as
described in Section
2.1.

    

    "Common
Stock" means the common stock of the Company, par value $0.00001 per
Share, and any securities into which such common stock shall hereinafter have
been reclassified into.

    

    "Exchange
Act" means the Securities Exchange Act of 1934, as
amended.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    "Person"
means 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.

    

    “Preferred
Shares” means the
4,768,877 shares of Series A Preferred Stock of the Company offered hereby to
the Purchaser.

    

    "Preferred
Stock" means the preferred stock of the Company, par value $0.01 per
share, and any securities into which such preferred stock shall hereinafter have
been reclassified into.

    

    "Registration
Rights Agreement" means the Registration Rights Agreement attached hereto
as Exhibit
B dated as of the date hereof by among the Purchaser and the
Company.

    

    “Securities”
means the Preferred Shares, Warrants and Warrant Shares.

    

    "Securities
Act" means the Securities Act of 1933, as amended.

    

    “Series A
Preferred Stock”
means the newly-designated Series A convertible preferred stock of the
Company, par value $0.01 per share.

    

    “Share” means a share of the Common
Stock of the Company.

    

    “Share
Certificate”
means any stock certificate representing some or all of the Preferred
Shares.

    

    "Purchase
Price" has the meaning set forth in Section
2.1(b).

    

    "Transaction
Documents" means this
Agreement, the Warrant Agreement, the Registration Rights Agreement and any
other documents or agreements executed in connection with the transactions
contemplated hereunder.

    

    "Warrants"
means the 2,384,438 warrants to purchase Shares at $2.75 per Share for a
three-year period, pursuant to the terms of the Warrant Agreement attached
hereto as Exhibit
C.

    

    "Warrant
Shares" means the 2,384,438 Shares underlying the Warrants.

    

    ARTICLE
II

    PURCHASE
AND SALE

    

    2.1           Closing.

    

    (a)           Upon
the terms and subject to the conditions set forth herein, the Company agrees to
sell, and the Purchaser agrees to purchase, up to an aggregate of 4,768,877
Units at a purchase price of $1.75 per Unit, for an aggregate purchase price of
up to $8,345,535 (the "Purchase Price”).
Each "Unit"
shall consist of (i) one Preferred Share and (ii) one-half Warrant to purchase
one Share of Common Stock at an exercise price of $2.75 per Share. For purposes
of clarity, the Purchaser shall receive one full Warrant for every two Units
purchased. The Purchaser must subscribe for Units in multiples of
two.

    
      
         

      

      
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    (b)           Subject
to the satisfaction or waiver of the conditions set forth in Section
2.2, the Purchaser may purchase up to an aggregate of 4,768,877 Units
pursuant to one or more closings (each, a "Closing"), on such
dates as determined by the Purchaser and upon three days notice to the Company,
from the date hereof until September 15, 2009. At each Closing, the Purchaser
shall deliver to the Escrow Agent the Purchase Price for the number of Units
being subscribed for via wire transfer in accordance with the wire instructions
set forth on Exhibit
D, and the Company shall deliver to the Purchaser a Share Certificate and
Warrants for the number of Units being subscribed for. Subject to the
satisfaction or waiver of the conditions set forth in Section
2.2, the Purchaser expects to close on up to $1,000,000 in Units on or
about August 15, 2009, and hopes to close upon additional Units up to an
aggregate of 4,768,877 Units on or before August 31, 2009, but no later than
September 15, 2009.

    

    (c)           The
Company agrees that an aggregate of $100,000 of the Purchase Price will be
retained by the Escrow Agent from the proceeds received in a second Closing (the
"IR Cash"),
which along with an aggregate of 700,000 Warrants (the "IR Warrants") may be
allocated and released to Investor Relations firms for marketing purposes at the
sole discretion of the Purchaser. In addition, the Purchaser hereby agrees that
it will escrow 3% of the Preferred Shares being purchased (the "IR Shares"), which
will be held in escrow for release to investor relations firms at the sole
discretion of the Purchaser. Upon the receipt of written instructions executed
by the Purchaser, the Escrow Agent will release all or any portion of the IR
Cash, the IR Warrants or the IR Shares as designated by the Purchaser in its
sole discretion. If any portion of the IR Cash, IR Warrants or IR Shares remain
in the escrow account after a period of 12 months from the date of this
Agreement, such IR Cash or IR Warrants, if any, shall be released to the
Company, and such IR Shares, if any, shall be released to the Purchaser, upon
receipt of written request from the Company or the Purchaser, as
applicable.

    

    2.2         Conditions to the
Closing. Each Closing shall be subject to the following conditions and
deliveries:

    

    (a)          At
or immediately following each Closing, unless otherwise indicated below, the
Company shall deliver or cause to be delivered to the Purchaser the
following:

    

    (i)           the
Share Certificate representing the number of Preferred Shares purchased pursuant
to such Closing;

    

    (ii)          Warrant
Agreements duly executed by the Company representing the appropriate number of
Warrants issued to the Purchaser at such Closing; and

    

    (ii)          the
Transaction Documents duly executed by the Company.

    

    (b)          At
or prior to each Closing, the Purchaser shall deliver or cause to be
delivered:

    
      
         

      

      
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    (i)           to
the Escrow Agent, the Purchase Price for the number of Units being purchased
pursuant to such Closing; and

    

    (ii)          to
the Company, the Transaction Documents, duly executed by each
Purchaser.

    

    (c)          The
obligations of the Purchaser to consummate the transactions to be effected at
each Closing and to pay the portion of the Purchase Price for the Units being
purchased pursuant to such Closing are subject to the fulfillment or waiver, on
or before each such Closing, of each of the conditions set forth
below:

    

    (i)           the
Company shall have adopted and filed the Certificate of Designation with the
Secretary of State of Nevada;

    

    (ii)          the
Company shall have authorized the issuance of (x) the Preferred Shares having
the rights, restrictions, privileges and preferences as set forth in the
Certificate of Designation and (y) the Warrants;

    

    (iii)         all
of the representations and warranties made by the Company in this Agreement,
shall be accurate in all material respects as of the date of this Agreement and
as of the Closing Date, and all covenants made by the Company and obligations of
the Company shall have been performed and complied with in all material respects
as of the Closing Date;

    

    (iv)         there
shall not be any existing or threatened action, proceeding or order, nor any
other material adverse change or event, involving the Company or the Purchaser
and which, in the reasonable opinion of the Purchaser, may have the effect of
preventing, limiting or delaying the transactions contemplated under this
Agreement; and

    

    (v)        
the Purchaser shall be satisfied in its sole discretion with the results of its
due diligence investigation of the Company, including, but not limited to, with
respect to the legal organization and good standing of the Company.

    

    (d)          The
obligations of the Company to consummate the transactions to be effected at each
Closing and to issue the Preferred Shares and the Warrants being purchased are
subject to the fulfillment or waiver, on or before each such Closing, of each of
the conditions set forth below:

    

    (i)           the
Escrow Agent shall have received the portion of the Purchase Price for the Units
being purchased pursuant to such Closing;

    

    (ii)          all
of the representations and warranties made by the Purchaser in this Agreement
shall be accurate in all material respects as of the date of this Agreement and
as of the Closing Date, and all covenants made by the Purchaser and obligations
of the Purchaser shall have been performed and complied with in  all
material respects as of the Closing Date; and

     

    
      
         

      

      
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    (iii)           there
shall not be any existing or threatened action, proceeding or order, nor any
other material adverse change or event, involving the Company or the Purchaser
and which, in the reasonable opinion of the Company, may have the effect of
preventing, limiting or delaying the transactions contemplated under this
Agreement.

    

    ARTICLE
III

    REPRESENTATIONS
AND WARRANTIES

    

    3.1           Representations and
Warranties of the Company. The Company hereby makes the representations
and warranties set forth below to the Purchaser.

    

    (a)           Organization and
Qualification. The Company is an entity duly incorporated, validly
existing and in good standing under the laws of the State of Nevada, with the
requisite power and authority to own and use its properties and assets and to
carry on its business as currently conducted. The Company is not in violation of
any of the provisions of its Articles of Incorporation or other organizational
or charter documents. The Company is duly qualified to do 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, individually or in the aggregate: (i)
adversely affect the legality, validity or enforceability of any Transaction
Document, (ii) have or result in or be reasonably likely to have or result in a
material adverse effect on the results of operations, assets, prospects,
business or condition (financial or otherwise) of the Company taken as a whole,
or (iii) adversely impair the Company's ability to perform fully on a timely
basis its obligations under any of the Transaction Documents.

    

    (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 or
thereunder. The execution and delivery of each of the Transaction Documents by
the Company and the consummation by it of the transactions contemplated hereby
or thereby have been duly authorized by all necessary action on the part of the
Company and no further consent or action is required by the Company, its Board
of Directors or its stockholders. Each of the Transaction Documents has been (or
upon delivery will be) duly executed by the Company and, when delivered in
accordance with the terms hereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in accordance with its
terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally and general principles of equity.

     

    
      
         

      

      
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    (c)           Capitalization of the
Company. The entire authorized capital stock and other equity securities
of the Company consist of 100,000,000 Shares and 50,000,000 shares of Preferred
Stock. As of the date of this Agreement, there are 25,479,800 Shares issued and
outstanding, no shares of Preferred Stock issued and outstanding and no warrants
to purchase Shares of Common Stock issued and outstanding. On the date of (and
after giving effect to) the Closing (assuming all Units have been purchased),
there shall be no more than 25,479,800 Shares issued and outstanding, 4,768,877
shares of Preferred Stock and warrants to purchase an aggregate of 3,084,438
Shares of Common Stock issued and outstanding. Except as set forth in this Section
3.1(c), there is as of the date of this Agreement, and there shall be on
the date of the Closing, no outstanding options, warrants, subscriptions,
conversion rights, or other rights, agreements, or commitments obligating the
Company to issue any additional Shares, shares of Preferred Stock or any other
securities convertible into, exchangeable for, or evidencing the right to
subscribe for or acquire from the Company any Shares, shares of Preferred Stock
or other securities of the Company.

    

    (d)           Issuance of
Securities. The issuance of the Securities is duly authorized and is free
from all taxes, pre-emptive rights, liens and charges with respect to the
issuance thereof. The Securities, when issued, sold and delivered in accordance
with the terms of this Agreement will be duly and validly issued, fully paid and
nonassessable, and will be free of liens, taxes, encumbrances, preemptive
rights, rights of first refusal, restrictions on voting or restrictions on
transfer, other than restrictions on transfer under this Agreement and under
applicable state and federal securities laws, and the Purchaser will be entitled
to all rights, privileges and preferences as set forth in the Certificate of
Designation in force as of the Closing Date. Upon conversion, the Preferred
Shares will convert into Shares entitled to the voting and other rights set
forth in the Articles of Incorporation. Upon exercise of the Warrants, the
Warrant Shares will be duly and validly issued, fully paid and nonassessable.
Assuming the accuracy of each of the representations and warranties set forth in
Section
3.2 of this Agreement, the offer and issuance by the Company of the
Preferred Shares and Warrants is exempt from registration under the Securities
Act.

    

    (e)           No General
Solicitation. Neither the Company, nor any of its Affiliates, nor any
Person acting on its or their behalf, including, without limitation, any Person
related to Purchaser, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D) in connection with the offer or
sale of the Preferred Shares and Warrants.

    

    (f)           No Conflicts. The
execution, delivery and performance of the Transaction Documents by the Company
and the consummation by the Company of the transactions contemplated thereby do
not and will not: (i) conflict with or violate any provision of the Company’s
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, 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 debt or otherwise) or other understanding to
which the Company is a party or by which any property or asset of the Company is
bound or affected, or (iii) 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 is subject (including federal and
state securities laws and regulations), or by which any property or asset of the
Company is bound or affected; except in the case of each of clauses (ii) and
(iii), such as could not, individually or in the aggregate, have or result in a
material adverse effect on the Company.

     

    
      
         

      

      
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    (g)           SEC Filings. The
Company has filed with the Securities and Exchange Commission (the "SEC") all forms and
reports required to be filed by it in accordance with the Securities Act (in
both form and substance), and no such form or report contains any untrue
statement of a material fact or omits 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.

    

    3.2           Representations and
Warranties of the Purchaser. The Purchaser hereby represents and warrants
to the Company as follows:

    

    (a)           Authority. This
Agreement has been duly executed by the Purchaser, and when delivered by the
Purchaser in accordance with the terms hereof, will constitute the valid and
legally binding obligation of the Purchaser, enforceable against it 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.

    

    (b)           Investment
Representation. The Purchaser is acquiring the Preferred Shares and the
Warrants (and upon conversion of the Preferred Shares, the Shares, and upon
exercise of the Warrants, the Warrant Shares) as principal for its own account
and not with a view to or for distributing or reselling such Securities or any
part thereof, subject, however, to the Purchaser's right (subject to the
provisions of this Agreement) at all times to sell or otherwise dispose of all
or any part of such Securities pursuant to an effective registration statement
under the Securities Act or under an exemption from such registration and in
compliance with applicable federal and state securities laws. Nothing contained
herein shall be deemed a representation or warranty by the Purchaser to hold the
Securities for any period of time or limit the Purchaser’s right to sell the
Securities pursuant to the Registration Statement (as defined in the
Registration Rights Agreement) or otherwise in compliance with applicable
federal and state securities laws. The Purchaser is acquiring the Securities
hereunder in the ordinary course of its business. The Purchaser does not have
any agreement or understanding, directly or indirectly, with any Person to
distribute any of the Securities.

    

    (c)           Purchaser Status. At
the time the Purchaser was offered the Securities, it was, and as of the date
hereof it is, and on each date on which it exercises any Warrants it will be, an
"accredited investor" as defined in Rule 501(a) under the Securities Act. The
Purchaser has not been formed solely for the purpose of acquiring the
Securities. The Purchaser is not a registered broker-dealer under Section 15 of
the Exchange Act.

    

    (d)           Experience of
Purchaser. The Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Securities, and has so evaluated the merits
and risks of such investment. The Purchaser is able to bear the economic risk of
an investment in the Securities and, at the present time, is able to afford a
complete loss of such investment.

     

    
      
         

      

      
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    (e)           General Solicitation.
The Purchaser is not purchasing the Securities as a result of any advertisement,
article, notice or other communication regarding the Securities published in any
newspaper, magazine or similar media or broadcast over television or radio or
presented at any seminar or any other general solicitation or general
advertisement.

    

    ARTICLE
IV

    OTHER
AGREEMENTS OF THE PARTIES

    

    4.1           Transfer
Restrictions. The Securities may only be disposed of in compliance with
state and federal securities laws. Until the Registration Statement (as defined
in the Registration Rights Agreement) becomes effective, and at any time that
the Registration Statement is not effective thereafter for any reason, the
Company shall take all steps necessary to enable the Purchaser to rely on Rule
144 promulgated under the Securities Act ("Rule 144") to sell
the Securities when Rule 144 is available to the Purchaser, including, but not
limited to, providing upon the request of the Purchaser a legal opinion at the
Company's expense and maintaining current information on file with the
SEC.

    

    4.2           Indemnification of the
Purchaser. The Company shall indemnify, defend, and hold harmless, to the
full extent of the law, the Purchaser and its directors, officers, stockholders,
employees, Affiliates and agents from, against, and in respect of any and all
Losses (as defined below) asserted against, relating to, imposed upon, or
incurred by the Purchaser or its directors, officers, stockholders, employees,
Affiliates and agents by reason of, resulting from, based upon or arising out
of:

    

    (a)           a
breach by the Company of any representation or warranty of the Company contained
in or made pursuant to any Transaction Document; or

    

    (b)           a
breach by the Company of any covenant or agreement of the Company made in or
pursuant to any Transaction Document.

    

    For the
purposes of this Agreement, the terms “Loss” and “Losses” mean any and all
demands, claims, actions, losses, damages, liabilities (including any direct or
indirect indebtedness, guaranty, obligation or responsibility), costs, and
expenses, including without limitation, interest, penalties, fines and
reasonable attorneys fees (but excluding any and all punitive damages, and
consequential costs, liabilities, losses, judgments, penalties, fines or
expenses).

    

    4.3          Covenants of the
Company.

    

    (a)           SEC Filings. The
Company hereby covenants and agrees that it will file with the SEC on Form 8-K
an announcement that it has entered into this Agreement within one day of its
execution, and further covenants and agrees that it will file with the SEC
additional Form 8-K's disclosing each Closing upon Units purchased hereunder
within one Business Day of each such Closing.

     

    
      
         

      

      
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    (b)           Funding Heilongjiang
Transaction. The Company hereby acknowledges and agrees that its
wholly-owned subsidiary, Sinary Bio-Technology Holdings Group, Inc. ("Sinary"), has not
paid in full the purchase price of 57 million Renminbi (the "Purchase Price") in
connection with the acquisition of Heilongjiang Weikang Biotechnology Group Co.,
Ltd. ("Heilongjiang"), which
must be paid on or before June 30, 2010 (such period, including any further
extensions, the "Extension Period").
The Company hereby covenants that it will use its best efforts and all available
resources to pay, or cause Sinary to pay, the Purchase Price before the end of
the Extension Period, which payment may only be made with the approval of the
Purchaser.

    

    ARTICLE
V

    MISCELLANEOUS

    

    5.1           Entire Agreement. The
Transaction Documents and the LOI, together with the exhibits and schedules
hereto and thereto, contain the entire understanding of the parties with respect
to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and
schedules.

    

    5.2           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 or email (if designated) prior to 5:00 p.m. (Los
Angeles local time) on a Business Day with electronic confirmation of delivery,
(b) the next Business Day after the date of transmission, if such notice or
communication is delivered via facsimile or email (if designated) on a day that
is not a Business Day or later than 5:00 p.m. (Los Angeles local time) on any
Business Day, (c) one Business Day following the date of overnight delivery, 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 (or actual
delivery to such person’s address of record). The addresses for such notices and
communications are those set forth on the signature pages hereof, or such other
address as may be designated in writing hereafter, in the same manner, by such
Person.

    

    5.3           Amendments; Waivers.
No provision of this Agreement may be waived or amended except in a written
instrument signed, in the case of an amendment, by the Company and the Purchaser
or, in the case of a waiver, by the party against whom enforcement of any such
waiver is sought. No waiver of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or
omission of either party to exercise any right hereunder in any manner impair
the exercise of any such right.

    

    5.4           Headings. 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. The language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

    

    5.5           Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and permitted assigns. The Company may not
assign or transfer its rights and obligations hereunder without the prior
written consent of the Purchaser.

     

    
      
         

      

      
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    The
Purchaser may freely assign and transfer its rights and obligations hereunder,
including its right to purchase the Units, without the prior written consent of
the Company.

    

    5.6           No Third-Party
Beneficiaries. This Agreement is intended solely for the benefit of the
parties hereto and their respective successors and permitted
assigns.

    

    5.7           Governing Law; Venue; Waiver
of Jury Trial. All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the State of
Nevada, without regard to the principles of conflicts of law thereof. Each party
agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other
Transaction Documents (whether brought against a party hereto or its respective
affiliates, directors, officers, stockholders, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in Las Vegas,
Nevada. Each party hereby irrevocably submits to the exclusive jurisdiction of
the state and federal courts sitting in Las Vegas, Nevada for the adjudication
of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the
enforcement of any of the Transaction Documents), and hereby irrevocably waives,
and agrees not to assert in any suit, action or proceeding, any claim that it is
not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is improper or inconvenient venue for such proceeding. Each
party hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or 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.
The parties hereby waive all rights to a trial by jury. If any party shall
commence an action or proceeding to enforce any provisions of the Transaction
Documents, 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.

    

    5.8           Survival. The
representations and warranties contained herein shall survive the Closings and
the delivery of the Securities for the applicable statue of limitations. The
covenants set forth in Section
4.3 and the indemnification provisions set forth in Section
4.2 shall survive for a period of one year past the termination of the
Extension Period.

    

    5.9           Execution. 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, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) such document
with the same force and effect as if such facsimile signature page were an
original thereof.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    5.10           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 and the
parties will attempt to agree upon a valid and enforceable provision that is a
reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement.

    

    5.11           Replacement of Certificates
or other Instruments. If any certificate or instrument evidencing any
Securities is mutilated, lost, stolen or destroyed, the Company shall issue or
cause to be issued in exchange and substitution for and upon cancellation
thereof, or in lieu of and substitution therefor, a new certificate or
instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested.

    

    5.12           Remedies. In addition
to being entitled to exercise all rights provided herein or granted by law,
including recovery of damages, the Purchaser and the Company will be entitled to
specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by
reason of any breach of obligations described in the foregoing sentence and
hereby agrees to waive in any action for specific performance of any such
obligation the defense that a remedy at law would be adequate.

    

    5.13           Fees and Expenses.
Each party shall pay the fees and expenses of its advisers, counsel, accountants
and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of
this Agreement. The Company shall pay all transfer agent fees, stamp taxes and
other taxes and duties levied in connection with the issuance of any Securities
including fees associated with filling the Registration Statement.

    

    [Remainder
of This Page Intentionally Left Blank; Signature Page to
Follow]

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement
to be duly executed by their respective authorized signatories as of the date
first set forth above.

    

    
      	 
      	
              WEIKANG
      BIO-TECHNOLOGY GROUP

              COMPANY,
      INC.

            
	 
      	 
      
	 
      	
              By:

            	
                

            
	 
      	
              Name: 
      Yin Wang

            
	 
      	
              Title:   
      Chief Executive Officer

            
	 
      	 
      
	 
      	
              With
      respect to Sections 2.1(b) and 2.1(c)
    only:

            
	 
      	 
      
	 
      	
              CORPORATE
      STOCK TRANSFER, INC.

            
	 
      	 
      
	 
      	
              By:

            	
                

            
	 
      	
              Name: 
      Carylyn Bell

            
	 
      	
              Title:   
      President

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    PURCHASER
SIGNATURE PAGE TO

    WEIKANG
BIO-TECHNOLOGY GROUP COMPANY, INC.

    SECURITIES
PURCHASE AGREEMENT

    

    IN
WITNESS WHEREOF, the undersigned has caused this Securities Purchase Agreement
to be duly executed by its authorized signatory as of the date first set forth
above.

    

    
      	
              Name
      of Purchaser:

            	
              ARC China,
Inc.

            

    

    

    
      
        
          
            	
                    Signature of Authorized
      Signatory of Purchaser:

                  	 
      

          

        

      

    

    

    
      	
              Name
      of Authorized Signatory:

            	
              Adam M.
Roseman

            

    

    

    
      	
              Title
      of Authorized Signatory:

            	
                  Founder & Chief Executive
      Officer

            

    

    

    
      
        	
                Email
      Address:

              	
                ar@arcinvestmentpartners.com

              

      

    

    

    
      	
              Telephone
      Number:

            	
               (310)
  402-5901

            

    

    

    
      	
              Facsimile
      Number:

            	
                 +86 (21) 6323
    1717

            

    

    

    Address
of Purchaser:

    

    
      
        	
                23 on the Bund

              	 
      
	
                The Bank of China Building, 14th
      Floor

              	 
      
	
                23 Zhongshan East No. 1
Road

              	 
      
	
                Shanghai 200002, P.R. China

              	 
      
	
                   

              	 
      

      

    

    

    Today’s
Date: ____________________

    

    
      
        	
                Number
      of Units Subscribed for (subscribed for in multiples of
    two):

              	
                    

              

      

    

    

    
      
        	
                Total
      Purchase Price (US $1.75 per Unit):

              	
                   

              

      

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    Exhibit
A

    

    Certificate
of Designation

    

    Attached
hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
B

    

    Registration
Rights Agreement

    

    Attached
hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
C

    

    Warrant
Agreement

    

    Attached
hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
D

    

    Company
Wire Instructions

    

    [To
be provided.]REGISTRATION
RIGHTS AGREEMENT

    

    This
Registration Rights Agreement (the "Agreement") is made
as of August 11, 2009 by and between Weikang Bio-Technology Group Company, Inc.,
a Nevada corporation (the "Company"), and ARC
China, Inc., a Shanghai corporation (the "Investor"), pursuant
to a Securities Purchase Agreement dated as of the date hereof by and among the
Company, the Investor and Corporate Stock Transfer, Inc., as escrow agent (the
"Securities Purchase
Agreement"). Capitalized terms used and not defined herein shall have the
respective meanings ascribed to them in the Securities Purchase
Agreement.

    

    RECITALS

    

    WHEREAS,
the Company sold up to an aggregate of 4,768,877 shares (the "Preferred Shares") of
its newly-designated Series A Convertible Preferred Stock of the Company, par
value $0.01 per share, convertible into shares ("Shares") of the
Company's common stock, par value $0.00001 per share (the "Common Stock"), and
warrants (the "Warrants") to
purchase 2,384,438 Shares, at an exercise price of $2.75 per share (the "Warrant Shares," and
together with the Shares, the "Securities"), to the
Investor in a series of private placement offerings pursuant to the terms of the
Securities Purchase Agreement (collectively, the "Offering");
and

    

    WHEREAS,
the execution and delivery of this Agreement by the Company is a condition to
the completion of the Offering.

    

    NOW,
THEREFORE, the parties hereto agree as follows:

    

    
      	
              1.

            	
              Registration
      Procedures and Expenses. The Company
  shall:

            

    

    

    (a)     
subject to receipt of necessary information from the Investor, use its
commercially reasonable efforts to cause a Registration Statement on Form S-3,
or on such other form as is available to the Company (the "Initial Registration
Statement"), to be filed with the Securities and Exchange Commission
("SEC"), within
30 calendar days following the last Closing Date of the Offering (the "Trigger Date"), to
enable the resale of the Securities by the Investor from time to time.
Notwithstanding the registration obligations set forth in the first sentence of
this Section
1(a), in the event the SEC informs the Company that all of the Securities
cannot, as a result of the application of Rule 415 under the Securities Act of
1933, as amended (the "Securities Act"), be
registered for resale as a secondary offering on a single registration
statement, the Company agrees to promptly (i) inform each of the holders
thereof, (ii) use its best efforts to file amendments to the Initial
Registration Statement as required by the SEC, or (iii) withdraw the Initial
Registration Statement and file a new registration statement (a "New Registration
Statement," and together with the Initial Registration Statement, the
"Registration
Statement"), in either case covering the maximum number of Securities
permitted to be registered by the SEC on Form S-3 or such other form available
to register for resale the Securities as a secondary offering, with the number
of Securities included on such amendment or the New Registration Statement cut
back proportionally for the Investor; provided, however, that prior to filing
such amendment or New Registration Statement, the Company shall be obligated to
use its best efforts to advocate with the SEC for the registration of all of the
Securities in accordance with SEC policies. In the event the Company amends the
Initial Registration Statement or files a New Registration Statement, as the
case may be, under clauses (ii) or (iii) above, the Company will use its
commercially reasonable efforts to file with the SEC, as promptly as allowed by
the SEC, one or more registration statements on Form S-3 or such other form
available to register for resale those Securities that were not registered for
resale on the Initial Registration Statement, as amended, or the New
Registration Statement;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)     
subject to receipt of necessary information from the Investor, use its
commercially reasonable efforts to cause the Registration Statement to become
effective no later than the date that is the earlier of 90 calendar days after
the Trigger Date (or, in the event of a "full review" of the Registration
Statement by the SEC, 150 calendar days after the Trigger Date) or five days
after the SEC declares the Registration Statement effective (the "Required Effective
Date"). If the Registration Statement (i) has not been filed by the
Required Filing Date or (ii) has not been declared effective by the SEC on or
before the Required Effective Date, the Company shall, on the Business Day
immediately following the Required Filing Date or the Required Effective Date,
as the case may be, and each 30th day thereafter, make a payment to the Investor
as partial compensation for such delay (the "Late Registration
Payments") equal to one percent of the purchase price paid for the
Preferred Shares purchased by the Investor and not previously sold by the
Investor until the Registration Statement is filed or declared effective by the
SEC, as the case may be; provided, however, that in no event shall the payments
made pursuant to this Subsection (b) if
any, exceed in the aggregate 10% of the purchase price. Late Registration
Payments will be prorated on a daily basis during each 30-day period and will be
paid to the Investor either (at the election of the Company) (i) in Preferred
Shares, or (ii) by wire transfer or check, within five Business Days after the
earlier of (x) the end of each 30-day period following the Required Effective
Date or (y) the effective date of the Registration Statement;

    

    (c)     
subject to a Suspension (as defined in Section 2(c)) being
in effect, use its commercially reasonable efforts to prepare and file with the
SEC such amendments and supplements to the Registration Statement and the
related prospectus (the "Prospectus") as may
be necessary to keep the Registration Statement current and effective for a
period ending on the earlier of (i) the second anniversary of the Trigger Date,
(ii) the date on which the Investor may sell the Securities pursuant to Rule 144
under the Securities Act or any successor rule ("Rule 144") without
volume or manner of sale restrictions, or (iii) such time as all Securities
purchased by the Investor in the Offering have been sold (A) pursuant to a
registration statement, (B) to or through a broker, dealer or underwriter in a
public distribution or a public securities transaction, or (C) in a transaction
exempt from the registration and prospectus delivery requirements of the
Securities Act under Section 4(1) thereof so that all transfer restrictions and
restrictive legends with respect thereto, if any, are removed upon the
consummation of such sale, and to notify the Investor promptly upon the
Registration Statement and each post-effective amendment thereto, being declared
effective by the SEC;

    

    (d)     
furnish to the Investor such number of copies of the Registration Statement and
the Prospectus (including supplemental prospectuses) (collectively, the "Prospectuses") as the
Investor may reasonably request, in order to facilitate the public sale or other
disposition of all or any of the Securities by the Investor;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (e)     
file documents required of the Company for customary blue sky clearance in
states specified in writing by the Investor; provided, however, that the Company
shall not be required to qualify to do business or consent to service of process
in any jurisdiction in which it is not now so qualified or has not so
consented;

    

    (f)     
bear all expenses (other than underwriting discounts and commissions, if any) in
connection with the procedures in paragraph (a) through (e) of this Section 1 and the
registration of the Securities pursuant to the Registration
Statement;

    

    (g)     
advise the Investor, promptly after it shall receive notice or obtain knowledge
of the issuance of any stop order by the SEC delaying or suspending the
effectiveness of the Registration Statement or of the initiation of any
proceeding for that purpose; and it will promptly use its commercially
reasonable efforts to prevent the issuance of any stop order or to obtain its
withdrawal at the earliest possible moment if such stop order should be issued;
and

    

    (h)     
with a view to making available to the Investor the benefits of Rule 144 and any
other rule or regulation of the SEC that may at any time permit the Investor to
sell Securities to the public without registration, the Company covenants and
agrees to use its commercially reasonable efforts to: (i) make and keep public
information available, as those terms are understood and defined in Rule 144,
until the earlier of (A) such date as all of the Investor's Securities may be
resold pursuant to Rule 144 or any other rule of similar effect or (B) such date
as all of the Investor's Securities shall have been resold; (ii) file with the
SEC in a timely manner all reports and other documents required of the Company
under the Securities Act and under the Securities Exchange Act of 1934, as
amended (the "Exchange
Act"); and (iii) furnish to the Investor upon request, as long as the
Investor owns any Securities, (A) a written statement by the Company that it has
complied with the reporting requirements of the Securities Act and the Exchange
Act, (B) a copy of the Company's most recent Annual Report on Form 10-K or
Quarterly Report on Form 10-Q, and (C) such other information as may be
reasonably requested in order to avail the Investor of any rule or regulation of
the SEC that permits the selling of any such Securities without
registration.

     

    It shall
be a condition precedent to the obligations of the Company to take any action
pursuant to this Section 1 that the
Investor shall furnish to the Company such information regarding itself, the
Securities to be sold by the Investor, and the intended method of disposition of
such securities as shall be required to effect the registration of the
Securities.

     

    The
Company understands that the Investor disclaims being an underwriter, but
acknowledges that a determination by the SEC that the Investor is deemed an
underwriter shall not relieve the Company of any obligations it has
hereunder.

    

    
      	
              2.

            	
              Transfer of Shares
      After Registration;
Suspension.

            

    

    

    (a)     
The Investor agrees that it will not effect any disposition of the Securities or
its right to purchase the Securities that would constitute a sale within the
meaning of the Securities Act other than transactions exempt from the
registration requirements of the Securities Act, as contemplated in the
Registration Statement and as described below, and that it will promptly notify
the Company of any material changes in the information set forth in the
Registration Statement regarding the Investor or its plan of
distribution.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (b)     
Except in the event that Subsection (c) below
applies, the Company shall: (i) if deemed necessary by the Company, prepare and
file from time to time with the SEC a post-effective amendment to the
Registration Statement or a supplement to the related Prospectus or a supplement
or amendment to any document incorporated therein by reference or file any other
required document so that such Registration Statement will not contain an 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, and
so that, as thereafter delivered to purchasers of the Securities being sold
thereunder, such Prospectus will not contain an 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, in light of the circumstances under which they
were made, not misleading; (ii) provide the Investor copies of any documents
filed pursuant to Section 2(b)(i); and
(iii) upon request, inform the Investor that the Company has complied with its
obligations in Section
2(b)(i) (or that, if the Company has filed a post-effective amendment to
the Registration Statement which has not yet been declared effective, the
Company will notify the Investor to that effect, will use its commercially
reasonable efforts to secure the effectiveness of such post-effective amendment
as promptly as possible and will promptly notify the Investor pursuant to Section 2(b)(i)
hereof when the amendment has become effective).

    

    (c)     
Subject to Subsection
(d) below, in the event: (i) of any request by the SEC or any other
federal or state governmental authority during the period of effectiveness of
the Registration Statement for amendments or supplements to the Registration
Statement or related Prospectus or for additional information; (ii) of the
issuance by the SEC or any other federal or state governmental authority of any
stop order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose; (iii) of the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Securities for sale in any
jurisdiction or the initiation of any proceeding for such purpose; or (iv) of
any event or circumstance which necessitates the making of any changes in the
Registration Statement or Prospectus, or any document incorporated or deemed to
be incorporated therein by reference, so that, in the case of the Registration
Statement, it 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, and that in the case of the Prospectus, it
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, in the light of the circumstances under which they were made, not
misleading; then the Company shall promptly deliver a certificate in writing to
the Investor (the "Suspension Notice")
to the effect of the foregoing and, upon receipt of such Suspension Notice, the
Investor will refrain from selling any Securities pursuant to the Registration
Statement (a "Suspension") until
the Investor is advised in writing by the Company that the current Prospectus
may be used, and has received copies of any additional or supplemental filings
that are incorporated or deemed incorporated by reference in any such
Prospectus. In the event of any Suspension, the Company will use its
commercially reasonable efforts to cause the use of the Prospectus so suspended
to be resumed as soon as reasonably practicable after delivery of a Suspension
Notice to the Investor. In addition to and without limiting any other remedies
(including, without limitation, at law or at equity) available to the Investor,
the Investor shall be entitled to specific performance in the event that the
Company fails to comply with the provisions of this Section 2(c). The
Investor covenants that from the date hereof it will maintain in confidence the
receipt and content of any Suspension Notice provided in accordance with this
Section 2(c) in
accordance with and subject to the Securities Purchase Agreement.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d)     
Notwithstanding the foregoing paragraphs of this Section 2, the
Company shall use its commercially reasonable efforts to ensure that (i) a
Suspension shall not exceed 60 days individually and (ii) no more than two
Suspensions shall occur during any 12-month period.

     

    (e)     
If a Suspension is not then in effect, the Investor may sell Securities under
the Registration Statement, provided that it complies with any applicable
prospectus delivery requirements. Upon receipt of a request therefor, the
Company will provide an adequate number of current Prospectuses to the Investor
and to any other parties requiring such Prospectuses.

    

    (f)     
In the event of a sale of Securities by the Investor, unless such requirement is
waived by the Company in writing, the Investor must also deliver to the
Company's transfer agent, with a copy to the Company, a certificate of
subsequent sale substantially in the form attached hereto as Exhibit A (a "Certificate of Subsequent
Sale"), so that the Securities may be properly transferred.

    

    (g)     
The Company agrees that it shall, immediately prior to the Registration
Statement being declared effective, deliver to its transfer agent an opinion
letter of counsel, opining that at any time the Registration Statement is
effective, the transfer agent shall issue, in connection with the sale of the
Securities, certificates representing such Securities without restrictive
legends, provided the Securities are to be sold pursuant to the Prospectus
contained in the Registration Statement and the transfer agent receives a
Certificate of Subsequent Sale. Upon receipt of such opinion, the Company shall
cause the transfer agent to confirm, for the benefit of the Investor, that no
further opinion of counsel is required at the time of transfer in order to issue
such Securities without restrictive legends.

     

    The
Company shall cause its transfer agent to issue a certificate without any
restrictive legend to a purchaser of any Securities from the Investor, if (a)
the sale of such Securities is registered under the Registration Statement
(including registration pursuant to Rule 415 under the Securities Act) and the
Investor has delivered a Certificate of Subsequent Sale to the transfer agent;
(b) the holder has provided the Company with an opinion of counsel, in form,
substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such Securities
may be made without registration under the Securities Act; or (c) such
Securities are sold in compliance with Rule 144 under the Securities
Act.

    

    
      	
              3.

            	
              Indemnification.
      For the purpose of this Section
      3:

            

    

    

    (a)     
the term "Selling
Stockholder" shall mean the Investor and each person, if any, who
controls the Investor within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act;

    

    (b)     
the term "Registration
Statement" shall include any final Prospectus, exhibit, supplement or
amendment included in or relating to, and any document incorporated by
reference
in, the Registration Statement (or deemed to be a part thereof) referred to in
Section 1;
and

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c)     
the term "untrue
statement" shall mean any untrue statement or alleged untrue statement,
or any omission or alleged omission to state in the Registration Statement a
material fact required to be stated therein or necessary to make the statements
therein, not misleading.

     

    (d)     
(i)      The Company agrees to indemnify and hold
harmless each Selling Stockholder from and against any losses, claims, damages
or liabilities to which such Selling Stockholder may become subject (under the
Securities Act or otherwise) insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of, or are
based upon (i) any untrue statement of a material fact contained in the
Registration Statement, (ii) any inaccuracy in the representations and
warranties of the Company contained in the Agreement or the failure of the
Company to perform its obligations hereunder, or (iii) any failure by the
Company to fulfill any undertaking included in the Registration Statement, and
the Company will reimburse such Selling Stockholder for any reasonable legal
expense or other actual accountable out of pocket expenses reasonably incurred
in investigating, defending or preparing to defend any such action, proceeding
or claim; provided, however, that the Company shall not be liable in any such
case to the extent that such loss, claim, damage or liability arises out of, or
is based upon, an untrue statement made in such Registration Statement in
reliance upon and in conformity with written information furnished to the
Company by or on behalf of such Selling Stockholder specifically for use in
preparation of the Registration Statement, or any inaccuracy in representations
made by such Selling Stockholder in the Securities Purchase Agreement or the
failure of such Selling Stockholder to comply with its covenants and agreements
contained in the Securities Purchase Agreement or Section 2 hereof or
any statement or omission in any Prospectus that is corrected in any subsequent
Prospectus that was delivered to the Selling Stockholder prior to the pertinent
sale or sales by the Selling Stockholder.

     

    (ii)     
The Investor agrees to indemnify and hold harmless the Company (and each person,
if any, who controls the Company within the meaning of Section 15 of the
Securities Act, each officer of the Company who signs the Registration Statement
and each director of the Company) from and against any losses, claims, damages
or liabilities to which the Company (or any such officer, director or
controlling person) may become subject (under the Securities Act or otherwise),
insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) arise out of, or are based upon, (i) any failure
to comply with the covenants and agreements contained in the Securities Purchase
Agreement or Section
2 hereof, or (ii) any untrue statement of a material fact contained in
the Registration Statement if, and only if, such untrue statement was made in
reliance upon and in conformity with written information furnished by or on
behalf of the Investor specifically for use in preparation of the Registration
Statement, and the Investor will reimburse the Company (or such officer,
director or controlling person), as the case may be, for any reasonable legal
expense or other actual accountable out-of-pocket expenses reasonably incurred
in investigating, defending or preparing to defend any such action, proceeding
or claim. The obligation to indemnify shall be limited to the net amount of the
proceeds received by the Investor from the sale of the Securities pursuant to
the Registration Statement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (iii)     
Promptly after receipt by any indemnified person of a notice of a claim or the
beginning of any action in respect of which indemnity is to be sought against an
indemnifying person pursuant to this Section 3, such
indemnified person shall notify the indemnifying person in writing of such claim
or of the commencement of such action, but the omission to so notify the
indemnifying party will not relieve it from any liability which it may have to
any indemnified party under this Section 3 (except to
the extent that such omission materially and adversely affects the indemnifying
party's ability to defend such action) or from any liability otherwise than
under this Section
3. Subject to the provisions hereinafter stated, in case any such action
shall be brought against an indemnified person, the indemnifying person shall be
entitled to participate therein, and, to the extent that it shall elect by
written notice delivered to the indemnified party promptly after receiving the
aforesaid notice from such indemnified party, shall be entitled to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified
person. After notice from the indemnifying person to such indemnified person of
its election to assume the defense thereof (unless it has failed to assume the
defense thereof and appoint counsel reasonably satisfactory to the indemnified
party), such indemnifying person shall not be liable to such indemnified person
for any legal expenses subsequently incurred by such indemnified person in
connection with the defense thereof; provided, however, that if there exists or
shall exist a conflict of interest that would make it inappropriate, in the
reasonable opinion of counsel to the indemnified person, for the same counsel to
represent both the indemnified person and such indemnifying person or any
affiliate or associate thereof, the indemnified person shall be entitled to
retain its own counsel at the expense of such indemnifying person; provided,
however, that no indemnifying person shall be responsible for the fees and
expenses of more than one separate counsel (together with appropriate local
counsel) for all indemnified parties. In no event shall any indemnifying person
be liable in respect of any amounts paid in settlement of any action unless the
indemnifying person shall have approved the terms of such settlement; provided
that such consent shall not be unreasonably withheld. No indemnifying person
shall, without the prior written consent of the indemnified person, effect any
settlement of any pending or threatened proceeding in respect of which any
indemnified person is or could reasonably have been a party and indemnification
could have been sought hereunder by such indemnified person, unless such
settlement includes an unconditional release of such indemnified person from all
liability on claims that are the subject matter of such proceeding.

     

    (iv)     
If the indemnification provided for in this Section 3 is
unavailable or insufficient to hold harmless an indemnified party under Subsections 3(d)(i)
or 3(d)(ii)
above in respect of any losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) referred to therein, then each indemnifying
party shall contribute to the amount paid or payable by such indemnified party
as a result of such losses, claims, damages or liabilities (or actions in
respect thereof) in such proportion as is appropriate to reflect the relative
fault of the Company, on the one hand, and the Investor, on the other hand, in
connection with the statements or omissions or other matters which resulted in
such losses, claims, damages or liabilities (or actions in respect thereof), as
well as any other relevant equitable considerations. The relative fault shall be
determined by reference to, among other things, in the case of an untrue
statement, whether the untrue statement relates to information supplied by the
Company, on the one hand, or the Investor, on the other hand, and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such untrue statement. The Company and the Investor agree that it would
not be just and equitable if contribution pursuant to this Section 3(d) were
determined by pro rata allocation or by any other method of allocation which
does not take into account the equitable considerations referred to above in
this Section
3(d). The amount paid or payable by an indemnified party as a result of
the losses, claims, damages or liabilities (or actions in respect thereof)
referred to above in this Section 3(d) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 3(d), the
Investor shall not be required to contribute any amount in excess of the amount
by which the gross amount received by the Investor from the sale of the
Securities to which such loss relates exceeds the amount of any damages which
the Investor has otherwise been required to pay by reason of such untrue
statement. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    The
parties to this Agreement hereby acknowledge that they are sophisticated
business persons who were represented by counsel during the negotiations
regarding the provisions hereof including, without limitation, the provisions of
this Section 3,
and are fully informed regarding said provisions. They further acknowledge that
the provisions of this Section 3 fairly
allocate the risks in light of the ability of the parties to investigate the
Company and its business in order to assure that adequate disclosure is made in
the Registration Statement as required by the Securities Act and the Exchange
Act.

    

    4.            Termination of Conditions
and Obligations. The conditions precedent imposed by the Securities
Purchase Agreement or this Agreement upon the transferability of the Securities
shall cease and terminate as to any particular number of the Securities when
such Securities shall have been effectively registered under the Securities Act
and sold or otherwise disposed of in accordance with the intended method of
disposition set forth in the Registration Statement covering such Securities or
at such time as an opinion of counsel satisfactory to the Company shall have
been rendered to the effect that such conditions are not necessary in order to
comply with the Securities Act.

    

    5.            Information
Available. So long as the Registration Statement is effective covering
the resale of Securities owned by the Investor, the Company will furnish (or, to
the extent such information is available electronically through the Company's
filings with the SEC, the Company will make available) to the
Investor:

    

    (a)     
as soon as practicable after it is available, one copy of (i) its most recent
Annual Report to Stockholders (which Annual Report shall contain financial
statements audited in accordance with generally accepted accounting principles
by an independent registered public accounting firm, and (ii) if not included in
substance in the Annual Report to Stockholders, its most recent Annual Report on
Form 10-K (the foregoing, in each case, excluding exhibits);

    

    (b)     
upon the reasonable request of the Investor, all exhibits excluded by the
parenthetical to Subsection (a)(ii) of
this Section 5
as filed with the SEC and all other information that is made available to
shareholders; and

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (c)     
upon the reasonable request of the Investor, an adequate number of copies of the
Prospectuses to supply to any other party requiring such Prospectuses; and the
Company, upon the reasonable request of the Investor, will meet with the
Investor or a representative thereof at the Company's headquarters during the
Company's normal business hours to discuss all information relevant for
disclosure in the Registration Statement covering the Securities and will
otherwise reasonably cooperate with the Investor conducting an investigation for
the purpose of reducing or eliminating the Investor's exposure to liability
under the Securities Act, including the reasonable production of information at
the Company's headquarters; provided, that the Company shall not be required to
disclose any confidential information to or meet at its headquarters with the
Investor until and unless the Investor shall have entered into a confidentiality
agreement, in form and substance reasonably satisfactory to the Company, with
the Company with respect thereto.

     

    6.            Limits on Additional
Issuances. Except for the issuance of stock options, restricted stock and
stock appreciation rights under the Company's long term incentive plans, if any,
the issuance of Common Stock purchase warrants, or the issuance of Common Stock
upon the conversion of preferred stock or upon exercise of outstanding options,
warrants and other equity-based rights and the offering contemplated hereby, the
Company will not, for a period of six months following the Trigger Date, offer
for sale or sell any securities unless, in the opinion of the Company's counsel,
such offer or sale does not jeopardize the availability of exemptions from the
registration and qualification requirements under applicable securities laws
with respect to the Offering. The foregoing shall not apply to securities issued
in connection with any acquisition, including by way of merger, or purchase of
stock or all or substantially all of the assets of any third party. Except for
the issuance of stock options, restricted stock and stock appreciation rights
under the Company's long term incentive plans, the issuance of Common Stock
purchase warrants, or the issuance of Common Stock upon the conversion of
preferred stock or upon exercise of outstanding options, warrants and other
equity-based rights and the offering contemplated hereby, the Company has not
engaged in any such offering during the six-month period prior to the date of
this Agreement. The foregoing provisions shall not prevent the Company from
filing a "shelf" registration statement pursuant to Rule 415 under the
Securities Act, but the foregoing provisions shall apply to any sale of
securities thereunder.

    

    7.            Notices. All notices,
requests, consents and other communications hereunder shall be in writing, shall
be delivered (A) if within the United States, by first-class registered or
certified airmail, or nationally recognized overnight express courier, postage
prepaid, or by facsimile, or (B) if from outside the United States, by
International Federal Express (or comparable service) or facsimile, and shall be
deemed given (i) if delivered by first-class registered or certified mail
domestic, upon the Business Day received, (ii) if delivered by nationally
recognized overnight carrier, one Business Day after timely delivery to such
carrier, (iii) if delivered by International Federal Express (or comparable
service), two Business Days after timely delivery to such carrier, (iv) if
delivered by facsimile, upon electric confirmation of receipt and shall be
addressed as follows, or to such other address or addresses as may have been
furnished in writing by a party to another party pursuant to this
paragraph:

    

    if to the
Company, to:

     

    Weikang
Bio-Technology Group Company, Inc.

    No. 365
Chengde Street, Daowai District, Harbin

    Heilongjiang
Province, P.R. China 150020

    Attention:
Yin Wang

    Facsimile:
[_________________________________]

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    with a
copy to:

     

    [________________________________________]

    [________________________________________]

    [________________________________________]

    Attention:
[_________________ ______________]

    Facsimile:
[________________________________]

     

    if to the
Investor, at the address set forth on the signature page hereto.

    

    8.            Amendments; Waiver.
This Agreement may not be modified or amended except pursuant to an instrument
in writing signed by the Company and the Investor. Any waiver of a provision of
this Agreement must be in writing and executed by the party against whom
enforcement of such waiver is sought.

    

    9.            Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and permitted assigns. The Company may not
assign or transfer its rights and obligations hereunder without the prior
written consent of the Investor. The Investor may freely assign and transfer its
rights and obligations hereunder without the prior written consent of the
Company.

    

    10.            Headings. The
headings of the various sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed to be part of this
Agreement.

    

    11.            Entire Agreement;
Severability. This Agreement sets forth the entire agreement and
understanding of the parties relating to the subject matter hereof and
supersedes all prior and contemporaneous agreements, negotiations and
understandings between the parties, both oral and written relating to the
subject matter hereof. If any provision contained in this Agreement is
determined to be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall
not in any way be affected or impaired thereby.

    

    12.            Governing Law. This
Agreement shall be governed by, and construed in accordance with, the internal
laws of the State of Nevada, without giving effect to the principles of
conflicts of law.

    

    13.            Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall
constitute an original, but all of which, when taken together, shall constitute
but one instrument, and shall become effective when one or more counterparts
have been signed by each party hereto and delivered to the other
parties.

    

    [Remainder
of This Page Intentionally Left Blank; Signature Page to Follow]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Please
confirm that the foregoing correctly sets forth the agreement between us by
signing in the space provided below for that purpose.

     

    Dated as
of: August 11, 2009

    

    
      
        
          	
                  THE
      INVESTOR:

                
	 
      
	
                  ARC
      China, Inc.

                
	 
      	 
      
	
                  By:

                	 
      
	
                  Name:
      Adam M. Roseman

                
	
                  Title:
      Chief Executive Officer

                
	 
      
	
                  Address:

                
	 
      
	
                  23
      on the Bund

                
	
                  The
      Bank of China Building, 14th
      Floor

                
	
                  23
      Zhongshan East No. 1 Road

                
	
                  Shanghai
      200002, P.R. China

                
	
                  Fax:
      +86 (21) 63231717

                

        

      

    

    

    
      
        
          	
                  AGREED
      AND ACCEPTED BY THE COMPANY:

                
	 
      
	
                  Weikang
      Bio-Technology Group Company, Inc.

                
	 
      	 
      
	
                  By:

                	 
      
	
                  Name:

                	
                  Yin
      Wang

                
	
                  Title:

                	
                  Chief
      Executive Officer

                

        

      

    

    

    [Signature
Page to Registration Rights Agreement]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    WEIKANG
BIO-TECHNOLOGY GROUP COMPANY, INC.

    CERTIFICATE
OF SUBSEQUENT SALE

     

    Corporate
Stock Transfer, Inc.

    3200
Cherry Creek South Drive, Suite 430

    Denver,
Colorado 80209

    Attention:
Carylyn Bell

    

    
      	
            	
              RE:

            	
              Sale
      of shares of Common Stock of Weikang Bio-Technology Group Company, Inc.
      (the "Company")
      pursuant to the Company's Prospectus dated _______________, 2009 (the
      "Prospectus").

            

    

    

    Dear
Sir/Madam:

    

    The
undersigned hereby certifies, in connection with the sale of shares of Common
Stock of the Company included in the table of Selling Stockholders in the
Prospectus, that the undersigned has sold the shares pursuant to the Prospectus
and in a manner described under the caption "Plan of Distribution"
in the Prospectus and that such sale complies with all applicable securities
laws, including, without limitation, the Prospectus delivery requirements of the
Securities Act of 1933, as amended.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Selling
      Stockholder (the beneficial owner):

                                            	 
      
	 	 
	
                                              Record
      Holder (e.g., if held in name of nominee):

                                            	 
      
	 	 
	
                                              Restricted
      Stock Certificate No.(s):

                                            	 
      
	 	 
	
                                              Number
      of Shares Sold:

                                            	 
      
	 	 
	
                                              Date
      of Sale:

                                            	 
      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    In the
event that you receive a stock certificate(s) representing more shares of Common
Stock than have been sold by the undersigned, then you should return to the
undersigned a newly issued certificate for such excess shares in the name of the
Record Holder and BEARING A RESTRICTIVE LEGEND. Further, you should place a stop
transfer on your records with regard to such certificate.

     

    
      
        
          
            
              
                	
                        Dated:_____________

                      	
                        Very
      truly yours,

                      
	 	 	 
	 
      	
                        By:

                      	 
      
	 
      	
                        Name:

                      	 
      
	 
      	
                        Title:

                      	 
      

              

            

          

        

      

    

     

    
      
         

      

      
        12

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