Document:

Exhibit
10.1

    

    Purui
Xinheng Baide Shengwu Keji (Nei Menggu) Youxian Gongsi

     

    (普瑞欣衡柏德生物科技(内蒙古)有限公司)

     

    Equity
Interest Transfer Contract

     

    Between

     

    Bio
Bridge Science (HK) Co., Ltd

     

    China
Diamond Co., Ltd

     

    And

     

    China
Vaccine Corporation, Limited,

     

    December
11, 2010

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Contents

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Article
      I.

                                            	 
      	
                                              Definition

                                            	 
      	
                                              3

                                            
	 	 	 	 	 
	
                                              Article
      II.

                                            	 
      	
                                              Object
      Equity Interest

                                            	 
      	
                                              5

                                            
	 	 	 	 	 
	
                                              Article
      III.

                                            	 
      	
                                              Price
      of Equity Interest Transfer

                                            	 
      	
                                              5

                                            
	 	 	 	 	 
	
                                              Article
      IV.

                                            	 
      	
                                              Payment
      of the Equity Interest Transfer Price

                                            	 
      	
                                              6

                                            
	 	 	 	 	 
	
                                              Article
      V.

                                            	 
      	
                                              Approval
      and Handover

                                            	 
      	
                                              6

                                            
	 	 	 	 	 
	
                                              Article
      VI.

                                            	 
      	
                                              Rights,
      Obligations and Guarantees of Transferors

                                            	 
      	
                                              7

                                            
	 	 	 	 	 
	
                                              Article
      VII.

                                            	 
      	
                                              Rights,
      Obligations and Guarantees of Party A

                                            	 
      	
                                              9

                                            
	 	 	 	 	 
	
                                              Article
      VIII.

                                            	 
      	
                                              Fulfillment,
      Wind-up and Termination

                                            	 
      	
                                              9

                                            
	 	 	 	 	 
	
                                              Article
      IX.

                                            	 
      	
                                              Confidentiality

                                            	 
      	
                                              10

                                            
	 	 	 	 	 
	
                                              Article
      X.

                                            	 
      	
                                              Liability
      for Breach of Contract

                                            	 
      	
                                              10

                                            
	 	 	 	 	 
	
                                              Article
      XI.

                                            	 
      	
                                              Force
      Majeure.

                                            	 
      	
                                              12

                                            
	 	 	 	 	 
	
                                              Article
      XII.

                                            	 
      	
                                              Disputes
      Settlement

                                            	 
      	
                                              12

                                            
	 	 	 	 	 
	
                                              Article
      XIII.

                                            	 
      	
                                              Applicable
      Law

                                            	 
      	
                                              13

                                            
	 	 	 	 	 
	
                                              Article
      XIV.

                                            	
                                                

                                            	
                                              Miscellaneous

                                            	
                                                

                                            	
                                              13

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Equity
Interest Transfer Contract

     

    This
equity interest transfer contract (hereinafter referred to as the “Contract”) is
entered into on December 11, 2010, by and among

     

    
      	
              Party A:

            	
              China
      Vaccine Corporation, Limited, a company organized under the law of Hong
      Kong, SAR, China;

            

    

     

    
      	
              Party B:

            	
              Bio
      Bridge Science (HK) CO., LTD, a company organized under the law of Hong
      Kong, SAR, China;

            

    

     

    
      	
              Party C:

            	
              China
      Diamond CO., LTD, a company organized under the law of Hong Kong, SAR,
      China;

            

    

    

    (Party A,
Party B and Party C are hereinafter referred individually as a “Party” and collectively as the
“Parties”. Party B and
Party C are hereinafter collectively referred to as “Transferors”.)

    

    WHEREAS:

     

    
      	
              1.

            	
              Purui
      Xinheng Baide Shengwu Keji (Nei Menggu) Youxian Gongsi (hereinafter
      referred to as “Object Company”) is a Sino-Foreign joint venture
      registered with Hohhot Industrial and Commercial Administration of Inner
      Mongolia Province.

            

    

     

    
      	
              2.

            	
              Party
      B is holding 51% share of Object Company and Party C is holding 14% share
      of Object Company; Party B and Party C collectively own 65% of Object
      Company.

            

    

     

    
      	
              3.

            	
              The
      Transferors will transfer to Party A all of their respective equity
      interest of the Object Company and Party A will accept such equity
      interest.

            

    

     

    Upon
friendly consultations according to the principle of equality and mutual
benefit, Party A, Party B and Party C have agreed on the following terms and
conditions in accordance with the relevant laws, regulations and policies of the
People's Republic of China and Hong Kong SAR. The parties will abide by and
perform the Contract in good faith.

    

    Definition

     

    The terms
used in this Contract shall have the meanings set forth as
follows:

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              1.1

            	
              “Industrial and commercial
      administration” (AIC) means the Administration of Industrial and
      Commercial which takes charge of issuing business license and
      registration.

            

    

     

    
      	
              1.2

            	
              “Examination and Approval
      Authority” referred to the competent Ministry of Commerce (MOC)
      which has authority to examine and approve the Contract, the equity
      interest transfer according to relevant Chinese laws, regulations,
      regulatory rules and policies.

            

    

     

    
      	
              1.3

            	
              “Encumbrance” shall mean
      any mortgage, pledge, other security interest, title retention,
      assignment, lien, charge, option, trust interest, pre-emptive right, and
      restrictions caused by other
conditions.

            

    

     

    
      	
              1.4

            	
              “Closing Date” means the
      date on which the Object Equity Interest Transfer has performed the
      formality of alteration registration with the Administration of Industrial
      and Commercial, subject to the date on which the Administration of
      Industrial and Commercial has performed examination and approval procedure
      and issued new business license to the Object
  Company.

            

    

     

    
      	
              1.5

            	
              “Disclosed Information”
      means the related materials, explanation, statement and other information
      disclosed or made by the Transferors to Party A and Party A’s retained
      intermediaries during Party A’s due diligence investigation of the power
      plant and the equity interests contemplated to be transferred in
      accordance with the Letter of Intent; or the information disclosed by the
      Transferors to Party A in relation to the Object Company, the power plant
      and the equity interests contemplated to be transferred before the
      contract is executed.

            

    

     

    
      	
              1.6

            	
              “Force Majeure” means
      special events such as earthquake, typhoon, flood disaster, fire disaster,
      war, political disturbance, etc., or the events defined by Chinese laws
      and regulations as Force Majeure.

            

    

     

    
      	
              1.7

            	
              “Tax” means the state or
      local taxes defined by Chinese laws and regulations, including relevant
      interest, fine or any other burden imposed by any government authorities
      in relation to such taxes.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Object Equity
Interest

     

    
      	
              2.1

            	
              According
      to the Contract, the Transferors shall sell to Party A their respective
      equity interest of the Object Company and all the related rights and
      interests in a way free of any encumbrance. Party A shall pay the
      equity interest transfer price.

            

    

     

    
      	
              2.2

            	
              The
      Transferors guarantee that the other shareholders besides the Transferors
      of the Object Company agree that the Transferors can sell the object
      equity interest held by the Transferors to Party A and agree to waive
      their pre-emptive purchase right to the object equity
      interest.

            

    

     

    
      
        	
                2.3

              	
                Each
      Transferor hereby gives the other transferor a permission to sell its
      equity interest of the Object Company to Party A as per the Contract and
      mutually agrees to waive its pre-emptive purchase right to the equity
      interest of the Object Company to be sold by the other
      Transferor.

              
	 	 

      

    

    After the
transfer of the equity interest is completed as per the Contract, Party A will
hold 65% equity interest of the Object Company.

    

    Price of Equity Interest
Transfer

     

    
      
        	
                3.1

              	
                The
      price of the equity interest transfer will be based on the evaluation of
      the object equity interest by the assets evaluation agency using the
      international general appraisal method and the three parties shall give
      confirmation of the price: the price of the equity interest transfer
      is US$342,772 (or RMB2.3 million based on the exchange rate on
      9/30/2010). The amount to be paid to each transferor is as
      follows:

              

      

    

     

    Party
B:  US$268,944

     

    Party
C:  US$73,828.

     

    The
equity transfer price can be paid in either U.S. dollar or RMB based on the
above exchange rate.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Payment of the Equity
Interest Transfer Price

     

    
      	
              4.1

            	
              Party
      A agrees to pay an earnest money of US$ 50,000 within 5 days of the
      execution of this agreement to the bank account designated by Party B and
      Party C. Party B and Party C will organize any further disbursements
      between themselves.

            

    

     

    
      	
              4.2

            	
              Party
      A will pay the second installment of US$ 146,386 within 6 months of the
      execution of this agreement directly to the designated party in Hong Kong
      specified by Party B and Party C. Party B and Party C will organize any
      further disbursements between
themselves.

            

    

     

    
      	
              4.3

            	
              Party
      A will the final installment of US$ 146,386 within 12 months of the
      execution of this agreement provided the following conditions are
      met:

            

    

     

    
      	
              (1)

            	
              Sales
      from pre-acquisition inventories reach or exceed 5 million; should such
      sales is less than 5 million, the final installment of US$ 146,486 shall
      be reduced by the 20% of the difference between the final sales amount and
      5 million should sales from existing inventory is taking longer to
      complete, the final installment payment date could be delayed until such
      sales is complete based on mutual
consent;

            

    

     

    
      	
              (2)

            	
              8.3
      is met.

            

    

     

    
      	
              4.4

            	
              The
      parties to the Contract shall follow the relevant laws, administrative
      regulations, rules and normative documents and bear their respective
      payable taxes arising from the revenue or activity under the
      Contract.

            

    

    

    Approval and
Handover

     

    
      	
              5.1

            	
              After
      the approval of the Contract by the Examination and Approval Authority,
      the Transferors and Party A shall cooperate and immediately perform
      procedures relating to the industrial and commercial alteration
      registration of the object equity interest transfer and application for
      the new business license.

            

    

     

    
      	
              5.2

            	
              The
      Transferors promise that, after the Contract is executed, all assets or
      any documents (including electronic data and written materials) of the
      Object Company, shall be kept in full and safe condition, and shall be
      checked and counted or handed over to Party
A.

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              5.3

            	
              Upon
      the closing date of the Contract, Transferors and Party A shall form a
      check team and work together to do the check and handover work relating to
      the Object Company and power plant.

            

    

     

    
      	
              5.4

            	
              The
      check and handover work shall include but is not limited
    to:

            

    

    
      	
               
      

            	
              (1)

            	
              All
      the official seals, financial seals and contract seals and other seals of
      the Object Company;

            

    

    
      	
               
      

            	
              (2)

            	
              All
      certificates and licenses of the Object
Company;

            

    

    
      	
               
      

            	
              (3)

            	
              The
      Transferors and the Transferee shall check and verify the assets of the
      Object Company and compile the assets inventory of the Object Company.
      After the representatives of both parties confirm the assets inventory by
      signatures, the assets shall be handed over to Party
  A;

            

    

    
      	
               
      

            	
              (4)

            	
              The
      financial books and the accounting
records;

            

    

    
      	
               
      

            	
              (5)

            	
              All
      documents on the archives of the power
plant;

            

    

    
      	
               
      

            	
              (6)

            	
              Other
      check and handover procedures reasonably required by Party
    A.

            

    

     

    
      	
              5.5

            	
              The
      check and handover work shall be completed within seven days after the
      closing day. The completion of the check and handover work shall be
      confirmed by the representatives of both parties in
    writing.

            

    

     

    
      	
              5.6

            	
              The
      Transferors shall make sure that in the course of the handover, the power
      plant is in continuous, steady and safe
  operation.

            

    

     

    
      	
              5.7

            	
              The
      Transferors shall provide full cooperation in completing the check and
      handover work. If Party A or the Object Company suffers any damage due to
      the Transferors’ non-cooperation, the Transferors shall bear the
      compensation liability.

            

    

    

    Rights, Obligations and
Guarantees of Transferors

     

    
      
        	
                6.1

              	
                Upon
      execution of the Contract, except the Contract agrees otherwise, no act
      shall be performed by the Transferors intentionally which leads to or may
      lead to loss or damage of the assets, rights and interests of the Object
      Company.

              

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
              6.2

            	
              Upon
      execution of the Contract, the Transferors shall not pledge, transfer or
      put into trusteeship their respective equity interest of the Object
      Company or have any other act which may affect Party A’s procurement of
      the object equity interest

            

    

     

    
      	
              6.3

            	
              Upon
      execution of the Contract, the Transferors shall guarantee: they will use
      due care of a good faith manager to manage and operate the Object Company
      in normal manner, including but not limited to: ( 1)
      not to change the financial policies of the Object Company; (2) when
      disposing of the assets, the credits and debts and other rights and
      obligations of the Object Company, the Transferors shall procure advance
      approval from Party A.

            

    

     

    
      	
              6.4

            	
              The
      Transferors shall cooperate with Party A in order to complete the approval
      and record-keeping procedures necessary for the equity interest
      transfer.

            

    

     

    
      	
              6.5

            	
              The
      Transferors shall assist Party A to perform the industrial and commercial
      registration alteration procedure necessary for the equity interest
      transfer.

            

    

     

    
      	
              6.6

            	
              The
      Transferors shall not carry out any act which is adverse to the interest
      of the Object Company.

            

    

     

    
      	
              6.7

            	
              The
      Transferors shall give necessary assistance to Party A when Party A
      performs its obligations under the Contract or exercise its rights under
      the Contract.

            

    

     

    
      	
              6.8

            	
              The
      Transferors shall give timely written notice to Party A when the
      Transferors are in knowledge of any act, event and situation which may
      lead to failure in fulfilling all or any part of the
    Contract.

            

    

     

    
      	
              6.9

            	
              The
      Transferors are entitled to receive the equity interest transfer price as
      per the Contract.

            

    

     

    
      	
              6.10

            	
              Each
      party of the Transferors shall bear joint liability in respect of the
      Transferor’s or Transferors’ Contract obligations, guarantees,
      representations and statements. Each party of the Transferors shall bear
      joint liability in respect of breach of contract liability on part of the
      Transferor or Transferors.

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    Rights, Obligations and
Guarantees of Party A

     

    
      	
              7.1

            	
              Party
      A and the Transferors shall mutually cooperate to perform all approval
      procedures in relation to the equity interest
  transfer.

            

    

     

    
      	
              7.2

            	
              Party
      A and the Transferors shall mutually cooperate to perform all industrial
      and commercial registration alteration procedures in relation to the
      equity interest transfer.

            

    

     

    
      	
              7.3

            	
              Party
      A shall pay the equity interest transfer price to the Transferors as per
      the Contract.

            

    

     

    
      	
              7.4

            	
              Party
      A shall provide Transferors with necessary cooperation when the
      Transferors perform their obligations under the Contract or exercise their
      rights under the Contract.

            

    

     

    
      	
              7.5

            	
              Party
      A shall give timely written notice to the Transferors when Party A is in
      knowledge of .any situation which may lead to failure in fulfilling all or
      any part of the Contract.

            

    

    

    Fulfillment, Wind-up and
Termination

     

    
      	
              8.1

            	
              The
      parties shall fulfill their contractual obligations fully and completely
      as per the provisions of the
Contract.

            

    

     

    
      	
              8.2

            	
              The
      Transferors and Party A shall work well together, give mutual cooperation,
      prepare all necessary application documents and complete all procedures
      relating to the equity interest transfer under the Contract, including but
      not limited to examination and approval, record-keeping, industrial and
      commercial registration. The costs and expenses incurred therefrom shall
      be borne by each party respectively according to
  laws.

            

    

     

    
      	
              8.3

            	
              The
      Transferors have a duty to disclose any information known by them that has
      a material and adverse impact on the normal operation of the Object
      Company before the delivery date. If there are any undisclosed facts or
      circumstances relating to the Object Company which the Transferors do know
      before the Contract is executed, which have material and adverse impact on
      the legal and normal operation of the Object Company, Party A is entitled
      to terminate the Contract before the delivery date. The Transferors have
      listed the major disclosures they have made in Appendix A to this
      contract.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
              8.4

            	
              If
      Party A terminates the Contract as per Article 8.3 of the Contract, it
      shall give written termination notice to the Transferors and the
      Transferors shall bear the breach of contract liability as per the
      Contract.

            

    

     

    
      	
              8.5

            	
              If
      the Contract and the equity interest transfer fail to be approved by the
      examination and approval authority and such failure is not caused by Party
      A or the Transferors, the Contract shall be automatically terminated and
      no parties to the Contract shall bear breach of contract
      liability.

            

    

     

    
      	
              8.6

            	
              Any
      Taxes arising out of execution and fulfillment of the Contract shall be
      borne by the Transferors and Party A according to the tax laws of
      PRC.

            

    

    

    Confidentiality

     

    The party
which receives the disclosed information as per the Contract,
shall:

     

    
      
        	
                (1)

              	
                Keep
      the disclosed information confidential within five years upon execution of
      the Contract;

              
	 	 

      

    

    
      	
              (2)

            	
              Except
      that the above materials and information are disclosed to the employees or
      consultants on need-to-know basis, or as required by law for any
      government or statutory authority, any party to the Contract shall not
      disclose the above materials and information to any third
      party.

            

    

    

    Liability for Breach of
Contract

     

    
      	
              10.1

            	
              If
      Party A, any Transferor fails to obtain internal authorization to execute
      and fulfill the Contract, or, the execution and fulfillment of the
      Contract contradicts or contravenes other contracts, documents, articles
      of association, internal rules, government authorization or approval
      executed by Party A or the Transferors, or due to something one party
      shall take blame for, the Contract is invalidated or becomes impossible to
      be fulfilled or fully fulfilled, the Contract may be terminated by the
      abiding party and the breaching party shall be deemed to have breached the
      Contract. The breaching party shall pay the abiding party 1% of the Equity
      Interest Transfer Price as
penalty.

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
              10.2

            	
              If
      the Transferors, before this Contract is executed, have not disclosed the
      facts which may impact the legal existence of the Object Company and the
      power plant, thus the legal existence of the Object Company or the power
      plant is impacted after the Equity Interest Transfer is completed, Party A
      is entitled to terminate this Contract and the Transferors shall
      immediately repay all payments received as per the Contract. In the mean
      time, the Transferors shall pay interest on the payments in the occupation
      period as per the interest rate of the concurrent bank loan and shall pay
      1% of the Equity Interest Transfer Price as
  penalty.

            

    

     

    
      	
              10.3

            	
              The
      Transferors have a duty to disclose any information known by them
      that has a material and adverse impact on the operation of the Object
      Company. If in the period from the delivery date up to six months after
      the delivery date information that has a material and adverse impact
      on the operation of the Object Company can be shown by Party A to have
      been known by the Transferors before the delivery date and not disclosed,
      Party A is entitled to compensation commensurate with the impact on the
      operation of the Object Company as assessed by the relevant authorities.
      The Transferors shall immediately make arrangements to pay such
      compensation, and pay interest as per the interest rate of the concurrent
      bank loan backdated to the delivery date. The Transferors have listed the
      major disclosures they have made in Appendix A to this
      contract.

            

    

     

    
      	
              10.4

            	
              In
      case Party A fails to pay the price of equity interest transfer, and
      postpone to pay off the debts for which Party A shall take the
      responsibility according to this Contract, Party A shall pay a penalty for
      breach of contract, the amount of the penalty is 0.08% of the total
      payment multiplied the days that have been delayed. In case any delay has
      been over 30 days, the Transferors have right to terminate this Contract.
      Party A takes the transferred equity interest of Object Company as the
      guarantee for performing the obligation of payment under this
      contract.

            

    

     

    
      	
              10.5

            	
              If
      either the Transferors or Party A violates the obligations under the
      Contract or the representations or statements are false, or the guarantee
      responsibilities are not fulfilled, it shall constitute a breach of
      contract. The breaching party shall pay the abiding party 1% of the equity
      interest transfer price as penalty. If the penalty is not sufficient to
      cover the financial losses suffered by the abiding party in executing and
      fulfilling the Contract, the breaching party shall make up the losses
      suffered by the abiding party.

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
              10.6

            	
              During
      the period from the Contract execution date to the delivery date of the
      equity interest, if the Transferors commit any act intentionally which
      causes damage to the assets, rights and interests of the Object Company or
      the Object Equity Interest, it shall constitute a breach of the Contract.
      The Transferors shall be liable to make compensation to Party A or the
      Object Company for any damages arising from the breach of the
      Contract.

            

    

     

    
      	
              10.7

            	
              If
      any of the Transferors breaches the Contract, it shall be deemed that all
      the Transferors have breached the Contract collectively and all the
      Transferors shall bear joint liability for the breach of the Contract by
      any single party of the
Transferors.

            

    

    

    Force
Majeure.

     

    
      	
              11.1

            	
              In
      case Force Majeure event occurs, the obligations of the affected party and
      any time period binding on such affected party shall be suspended and
      extended automatically during the period of the Force Majeure event. In
      such case, the affected party shall not bear any liability for breach of
      the Contract as provided in the
Contract.

            

    

     

    
      	
              11.2

            	
              The
      Party alleging the occurrence of a Force Majeure event shall inform the
      other Party in writing within seven days
      after the Force Majeure event, and shall provide sufficient evidence
      issued by competent authority proving the occurrence and the continuation
      of the Force Majeure event. The party
      alleging Force Majeure shall do its best to eliminate the adverse effect
      of the Force Majeure event on the fulfillment of the
    Contract.

            

    

    

    Disputes
Settlement

     

    
      	
              12.1

            	
              If
      the Parties have any disputes arising from the Contract, it shall be
      resolved firstly through friendly consultation. If the dispute cannot be
      resolved through friendly consultation, any Party may submit the dispute
      to China International Economic and Trade Arbitration Commission
      (hereinafter referred to as “CIETAC”) for arbitration
      pursuant to the prevailing CIETAC arbitration
  rules.

            

    

     

    
      	
              12.2

            	
              The
      arbitration award issued by CIETAC shall be final and binding on each
      party. Each party to this Contract agrees to be bound by the said award,
      and to act as per the award.

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    Applicable
Law

     

    The
establishment, validity, interpretation and implementation of the Contract shall
be governed and bound by the laws and regulations of the People's Republic of
China.

    

    Miscellaneous

     

    
      	
              14.1

            	
              Amendment

            

    

    An
Amendment of the Contract is only effective upon executing written document by
all Parties. If the amendment is only effective upon any approval of the
amendment by relevant administrative departments according to Chinese laws, it
shall be approved by such competent administrative departments

     

    
      	
              14.2

            	
              Severability

            

    

    The
invalidity of any article in the Contract shall not affect the validity of the
other articles in the Contract.

     

    
      	
              14.3

            	
              The
      Contract is written and executed in Chinese and English, the Chinese
      version will prevail in case of any
discrepancy.

            

    

     

    
      	
              14.4

            	
              The
      Contract has eight copies in duplicate. Each party keeps two copies. The
      other four copies shall be submitted for
  approval.

            

    

     

    
      	
              14.5

            	
              The
      Contract shall be effective upon seals of both parties and the date when
      the examination and approval authority gives approval. All preceding
      contracts or documents inconsistent with the Contract and executed by the
      parties in relation to the Object Equity Interest Transfer shall be
      subject to the Contract.

            

    

    

    Party
A: China Vaccine Corporation Co., Ltd

     

    
      	
              Authorized
      representative:

            	
              Date:

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    Party
B: Bio Bridge Science (HK) Co., Ltd

     

    
      	
              Authorized
      representative:

            	
              Date:

            

    

    

    Party
C: China Diamond (HK) Co., Ltd

     

    
      	
              Authorized
      representative:

            	
              Date:

            

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    Appendix
A: Disclosures

    

    
      
        	
                1.

              	
                This
      appendix details the major disclosures that the Transferors have made
      regarding the Object Company to Party A.

              
	 	 

      

    

    
      
        	
                2.

              	
                In
      this Appendix the Object Company will be referred to as “XB” for
      clarity.

              
	 	 

      

    

    
      
        	
                3.

              	
                This
      is not an exhaustive list of all disclosures made by the Transferors to
      the buyer.

              
	 	 

      

    

    
      
        	
                4.

              	
                Herein
      mentioned disclosures have been made in a variety of ways, including
      verbally in person and via telephone, and in written form both hard copy
      and via email and documents attached to email messages.

              
	 	 

      

    

    
      
        	
                5.

              	
                The
      buyer shall not interpret the fact of the existence of any information
      that is not listed in this Appendix as a breach of contract by the
      Transferors, as the Transferors and the buyer stipulate that significant
      and material information will be discovered in the XB hand-over process,
      and such information’s non-inclusion in this Appendix is therefore
      expected.

              
	 	 

      

    

    
      
        	
                6.

              	
                Disclosures
      Regarding Impairment of Ongoing Business

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                The
      Transferors have disclosed that the ongoing sales of the products of XB
      may be significantly impaired (compared to past sales) by the resignation
      of Li Yongsheng, the former General Manager of XB

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                The
      Transferors have disclosed that the staff at XB may have significant
      personal loyalty to Li Yongsheng, that this has already caused problems
      for the Transferors and may be an ongoing issue

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                c.

              	
                The
      Transferors have disclosed that there is material evidence that Li
      Yongsheng may have provided otherwise undocumented cash incentives to
      buyers of XB’s products in the past

              
	 	 	 

      

    

    
      
        	
                7.

              	
                Disclosures
      Regarding XB’s Tax Liabilities

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                The
      Transferors have disclosed that owing to the high ratio of entertainment
      costs in previous costs-of-sale, that there may be additional tax
      liabilities in line with Chinese company law

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                The
      Transferors have disclosed the status of XB’s Land Usage taxes and other
      business taxes through provision of the company accounts of XB to the
      buyer

              
	 	 	 

      

    

    
      
        	
                8.

              	
                Disclosures
      Regarding XB’s Inventory

              
	 	 

      

    

    
      	
               
      

            	
              a.

            	
              The
      Transferors have disclosed that the accounting value of the inventory held
      by XB may not completely reflect its sales value, for the following
      reasons:

            

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    
      
        	
                 
      

              	
                  i.

              	
                Natural
      spoilage rates of biological products in long-term cold
      storage

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                 ii.

              	
                Non-substitutability
      of bovine serum in certain industrial applications (e.g. clients of XB
      wanting to purchase only serum from the same “production
      batch”)

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                iii.

              	
                Applicable
      use-by-dates for bovine serum means that the accounting value of such
      inventory is written down over time and is not static

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                The
      buyers stipulate that they are aware of use-by, spoilage, and
      non-substitutability issues in making their own assessment of the sales
      value of XB’s major inventory constituents over time

              
	 	 	 

      

    

    
      
        	
                9.

              	
                Disclosures
      Regarding XB’s Land Usage Rights

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                The
      Transferors have disclosed that the land adjacent to the facility was
      secured by a leasing type from the local government that requires building
      works to commence within a certain time

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                The
      Transferors have disclosed that no plan of works has been lodged with the
      local government and that the usage rights may therefore be
      impaired

              
	 	 	 

      

    

    
      
        	
                10.

              	
                Disclosures
      Regarding the Facility in which XB operates

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                The
      Transferors have disclosed that the leasing/renting agreements between XB
      and the companies that own the land and facilities on/in which XB operates
      are renewed yearly on independent schedules

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                The
      Transferors therefore cannot guarantee that leasing/renting costs will not
      increase, and have further disclosed that they are aware of a stated
      desire by one of the companies mentioned in 9a. to increase their
      rental/leasing charges in the near future

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                c.

              	
                The
      Transferors have disclosed that the company that leases the current cold
      storage to XB has expressed a desire to terminate that arrangement, and
      other premises may therefore need to be found for XB’s inventory in the
      near future

              
	 	 	 

      

    

    
      
        	
                11.

              	
                General
      Disclosures

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                The
      Transferors have disclosed that their primary reasons for sale
      are:

              
	 	 	 

      

    

    
      	
               
      

            	
                i.

            	
              A
      difference of opinion with the former General Manager Li Yongsheng in the
      level of accounting and contractual documentation required to control (in
      particular) accounts receivable and payable, and the level of risk that
      the Transferors perceived in continuing with the accounting and
      contractual documentation policies that had been laid down by Li
      Yongsheng

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    
      
        	
                 
      

              	
                 ii.

              	
                The
      inability of the Transferors to recruit highly skilled management and
      sales personnel in Inner Mongolia

              
	 	 	 

      

    

    
      	
               
      

            	
              iii.

            	
              The
      Transferors desire to move away from animal-based serums in their other
      businesses

            

    

    
      
         

      

      
        17TERNES CAPITAL LTD.

      P.O. BOX
957, OFFSHORE INCORPORATIONS CENTRE ROAD TOWN TORTOLA

      BRITISH
VIRGIN ISLANDS

      

      November
15, 2010

      

      TechMedia
Advertising, Inc.

      c/o 62
Upper Cross Street, #04-01

      Singapore  058353

      

      Attention: Mr. Johnny Lian,
President and CEO

      

      Dear
Sir:

      

      
        	
                Re:

              	
                Settlement
      of US$300,000 owing from TechMedia Advertising, Inc. to Ternes Capital
      Ltd.

              

      

      

      Ternes
Capital Ltd. (“Ternes”) hereby agrees to settle the US$300,000 loan that was
provided by Ternes to TechMedia Advertising, Inc. (“TechMedia”) in accordance
with the Amended Loan Agreement entered into between the parties on August 4,
2010 with an effective date of July 29, 2010 (the “Loan”), without the payment
of any interest on such Loan in exchange for the payment of US$300,000 from
TechMedia to Ternes, or its nominee as instructed by Ternes, on or before
November 30, 2010.

      

      Details
of Ternes’ joint nominees to whom the said payment of USD300,000.00 is to be
made is annexed to this letter marked “TCL-1”.

      

      If the
foregoing is satisfactory, please indicate your agreement by executing a copy of
this letter where indicated below and returning an originally signed copy to the
undersigned on or before November 23, 2010.

      

      We
appreciate your prompt response and action in settling the above
matter.

      

      Yours
truly,

      TERNES
CAPITAL LTD.

      Per:

       

      
        
          	
                  /s/ Ratner Vellu

                
	
                  Authorized
      Signatory

                

        

      

      

      The above
terms and conditions are acknowledged and agreed to this 19th day of
November, 2010.

      

      TECHMEDIA
ADVERTISING, INC.

      Per:

      

      
        
          	
                  /s/ Johnny Lian

                
	
                  Johnny
      Lian, President and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]