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Exhibit 10.18    
    

ADAMSON BROTHERS, INC.
  Paramus Plaza IV, 12 Route 17 North

Paramus, New Jersey 07652  

December 1,
2003 

Dr. Frank
Hu

Chief Executive Officer

China Hospitals, Inc.

50 Airport Parkway

San Jose, California 

	Re:
	Placement of Common Stock of

CHINA HOSPITALS, INC.  

Dear Dr. Hu: 

        Adamson
Brothers, Inc. ("Adamson") is pleased to act as exclusive placement agent to CHINA HOSPITALS, INC. (the "Company") in connection with the sale of securities of the
Company pursuant to the Private Placement, as hereinafter defined, from the date of this letter agreement (the
"Agreement") through the end of the Engagement Period (as in hereafter defined). In such capacity Adamson shall act as an independent contractor, and any duties of Adamson arising out of its
engagement pursuant to this Agreement shall be solely to the Company. 

	1.
	The Engagement Period.

        (a)   The
"Engagement Period" shall mean that period commencing on the date hereof and continuing through the date of the final Closing of the Private Placement, unless
terminated at an earlier date pursuant to section 12 of this Agreement. 

	2.
	The Private Placement

        (a)   It
is contemplated that the Company will issue a minimum aggregate principal amount of $777,777 and a maximum aggregate principal amount of $2,000,000 of the Company's
common stock (the "Common Stock"), in a transaction (the "Private Placement") that is intended to be exempt from registration under Section 4(2) of the Securities Act of 1933, as amended (the
"Securities Act") and Rule 506 of Regulation D promulgated thereunder, and otherwise to comply with the applicable laws and regulations of any jurisdictions in which the Common Stock is
offered or sold. The Company, with the consent of Adamson, may offer an additional $500,000 of the Common Stock (the "Over-Allotment Option") if the Maximum Offering is sold. The
Over-Allotment Option shall be governed by the terms of this Agreement and the Memorandum (as defined below). 

        (b)   In
acting as the placement agent for the Private Placement, Adamson will seek to complete the financing of the first $777,777 of Common Stock on a "best efforts all or
none" basis (the "Minimum Offering") and the remaining $1,222,223 of Common Stock on a "best efforts" basis (the "Maximum Offering"), acting as the Company's agent and not as a principal in the sale
and placement of the Common Stock. Adamson may separately engage, at its own expense and without prior approval of the Company, such sub-agents as it may deem necessary or appropriate. 

        (c)   The
Company and Adamson each will reasonably believe at the time of any sale of the Common Stock as part of the Private Placement (a "Closing") that each purchaser of
the Common Stock is an "accredited investor", as such term is defined in Rule 501(a) of Regulation D under the Securities Act, and has, either alone, or with his or her "purchaser
representative," as defined in Regulation D, the knowledge and experience to evaluate the merits and risks of the investment. The Company and Adamson shall have the right to reject any proposed
purchaser of Common Stock. 

 

	3.
	Description of Securities

        (a)   The
Company is offering for sale shares of the Company's Common Stock, $0.001 par value per share. Each share of Common Stock sold shall have a purchase price (the
"Purchase Price") of $3.50 per share. 

        (b)   If
at any time, on one or more occasions, the Company shall determine to register any shares of its Common Stock (or securities convertible into or exchangeable or
exercisable for shares of its Common Stock, collectively the "Registrable Securities") for its own account or for the account of any of its stockholders (a "Piggyback Registration Statement"), other
than a registration relating (y) to employee benefit plans or (z) to a registration relating solely to a SEC Rule 145 transaction or any Rule adopted by the SEC in substitution
thereof or in amendment thereto, or a registration on any registration form which does not include substantially the same information as would be required to be included in a Registration Statement
covering the sale of Registrable Securities, Investors in the Private Placement shall be entitled to include their shares of Common Stock purchased in the Private Placement in such registration (and
related Underwritten Offering, if any) in accordance with the terms of the Registration Rights Agreement, a copy of which is attached as Exhibit B to the Memorandum (as defined below). In
addition, holders of the Investment Banking Warrants (as defined below) shall be entitled to have the shares of Common Stock underlying such warrants included in any registration statement covering
the Registrable Securities for a period of five years from the final Closing, or for the Warrant Exercise Term, whichever is longer. 

	4.
	Specified Events

        Notwithstanding
anything to the contrary herein, should Adamson be unable to place the minimum aggregate principal amount of $777,777 prior to the Termination Date (as defined below),
Adamson or the Company shall have the right to elect not to proceed with the Private Placement proposed by this Agreement. 

	5.
	Information to be Supplied

        The
Company will furnish or cause to be furnished to Adamson such information as Adamson reasonably believes appropriate to its assignment or necessary in connection with its assistance
in the preparation of, or inclusion in, a Confidential Private Placement Memorandum (as supplemented and amended from time to time, being hereinafter referred to as the "Memorandum") to the extent
such information can be obtained without unreasonable effort or expense (all such information so furnished being hereinafter referred to as the "Information"). It is also understood that the Company
may make available to offerees of the Common Stock additional material, data or other information relating to the Company (the "Company Data"). The Company recognizes and confirms that (a) in
performing the services contemplated by this Agreement, Adamson will use and rely primarily on the Memorandum, the Information and Company Data made available to Adamson and on other information
available from generally recognized public sources without having independently verified the same; (b) The contents of the Memorandum, the Information and the Company Data are the sole
responsibility of the Company, and Adamson does not assume any responsibility for the accuracy or completeness of the Memorandum, the Information or the Company Data, and will not undertake to verify
independently any of their accuracy or completeness; and (c) Adamson will furnish a copy of the Memorandum, and each supplement or amendment thereto, to each purchaser of Common Stock, and in
the offering the Common Stock, Adamson will not employ any written material other than the /memorandum, each supplement and amendment thereto, the Information and the Company Data. 

	6.
	Covenants, Representations and Warranties

        In
connection with the Private Placement, the Company and Adamson each agree as follows: 

        (a)   The
Common Stock will be offered and sold pursuant to the registration exemption provided by Section 4(2) of the Securities Act and Rule 506 of
Regulation D promulgated thereunder as a 

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transaction
not involving a public offering and will otherwise comply with the applicable laws and regulations of any jurisdictions in which the Common Stock is offered or sold. Neither the offer,
sale or delivery of the Common stock in Conformity with the terms hereof will violate Section 5 of the Securities Act, as presently in effect. Neither the Company nor Adamson has taken, nor
will either party take any action which conflicts with the conditions and requirements of, or which would make unavailable with respect to the Private Placement, the exemptions from registration
available pursuant to Regulation D or Section 4(2) of the Securities Act and neither the Company nor Adamson knows of any reason why any such exemption would be otherwise unavailable to
it. 

        In
connection with the Private Placement, Adamson represents and warrants as follows: 

        (b)   Adamson
is duly registered with the Securities and Exchange Commission ("SEC") pursuant to the provisions of the Securities Exchange Act of 1934 as a broker-dealer and
is duly registered as a broker-dealer in those states where required and Adamson agrees to comply with all statutes and other requirements applicable to Adamson as a broker-dealer pursuant to those
registrations and is legally authorized under all applicable laws to engage in the activities contemplated hereby and receive compensation therefor as herein contemplated. 

        (c)   Adamson
is a member in good standing of the National Association of Securities Dealers, Inc. 

        (d)   This
Agreement, when accepted and approved by Adamson, will be duly authorized, executed and delivered by Adamson and is a valid and binding agreement on Adamson's part. 

        In
connection with the Private placement, the Company agrees as follows: 

        (e)   None
of the Company, its predecessors or affiliates has been subject to any order, judgement or decree of any court of competent jurisdiction temporarily, preliminary or
permanently enjoining such person for failing to comply with Section 503 of Regulation D. 

        (f)    The
Company represents and warrants that, at all times from the respective dates that the Memorandum (including, without limitation, any supplement or amendment
thereto), the Information and the Company Data are furnished or made available by the Company to Adamson or, either directly or through Adamson, to offerees of the Units or any of their
representatives, such Memorandum (including, without limitation, any supplement or amendment thereto), Information and Company Data will not, taken separately or in any combination as provided to
Adamson or any offeree or its representatives, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. 

        (g)   The
Company will furnish Adamson from time to time, such number of copies of the /memorandum, any exhibits thereto and agreements and documents referred to therein, as
Adamson may reasonably request. 

        (h)   If
any event shall occur or condition exist as a result of which it is necessary or advisable, in the opinion of the Company or Adamson, to amend or supplement the
/memorandum in order that the memorandum will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in
light of the circumstances existing at the time it is delivered to prospective purchasers, the Company will forthwith prepare and furnish to Adamson such number of copies as Adamson may reasonably
request of an amendment or supplement to the Memorandum (in form and substance satisfactory to Adamson and its counsel) that will ensure that the Memorandum does not contain any misstatements or
omissions and is not in any respect misleading. 

        (i)    The
Company will advise Adamson promptly of (i)(i) the occurrence of any event or the existence of any condition known to the Company referred to in subsection
6(d) hereof;(ii) such other publicly available information concerning the business and financial condition of the Company as 

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Adamson
may from time to time reasonably request;(iii) the receipt by the Company of any communication from the SEC, any state securities commissioner or any other domestic or foreign
securities or financial regulatory authority or self-regulatory organization concerning the offering of the Common Stock; and (iv)the commencement of any lawsuit or proceeding to which the
Company is a party relating to the shares of Common Stock. 

        (j)    The
Company will (i)(i) make available to each offeree of the Common Stock such Information and Company Data (in addition to that contained in the Memorandum)
concerning the offering of the Common Stock, the Company and any other relevant matters as the Company possesses or can acquire without unreasonable effort or expense; and (ii) provide each
offeree the opportunity to ask questions of, and receive answers from, the officers and employees of the Company concerning the terms and conditions of the offering and to obtain any other additional
information about the Company and the Common Stock to the extent the officers and employees of the Company possess the same or can acquire it without unreasonable effort or expense. 

        (k)   The
Company is not in default in the performance or observance of any material obligation(i)(i) under its charter or its by-laws, or any indenture,
mortgage, contract, purchase order or other agreement or instrument to which the Company is a party or by which it or any of its property is bound or affected; or (ii) with respect to any
order, writ injunction or decree of any court of any Federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, and there
exists no condition, event or act which constitutes, nor which after notice, the lapse of time or both, could constitute a default under any of the foregoing, which in either case would have a
material adverse effect on the business of the Company. 

        (l)    (i) The
Company has full right, power and authority to execute and deliver this Agreement and any document, certificate or instrument required hereunder or to be
executed or delivered at any Closing (collectively, the "Documents"), and to perform all of its obligations hereunder and thereunder or contemplated hereby or thereby. The Documents have been, or will
be, duly executed and delivered by the Company and the execution and delivery by the Company of the Documents and the performance of all of its obligations have been duly authorized by all requisite
corporate action by the Company, and each Document executed and delivered and obligation performed constitutes, or will constitute, the legal, valid and binding obligation of the Company enforceable
in accordance with its respective terms. 

         (ii)
The (A) authorization, execution, delivery and performances of the Documents; and (B) authorization, issuance, sale and delivery of the
shares of Common Stock, the Investment Banking Warrants, and the shares of Common Stock issuable upon exercise of the Investment Banking Warrants (the "Issuable Shares") will not (i) violate
any provision of law or statute or any order of any court or other governmental agency; or (ii) conflict with or result in any breach of any of the terms, conditions or provisions of, or
constitute (with due notice or lapse of time or both) a default under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the properties or assets of the
Company under its charter or by-laws, or any indenture, mortgage, lease agreement or other agreement or instrument to which the Company is a party or by which it or any of its property is
bound or affected in any material respect. 

        (m)  The
Company has all requisite corporate power and authority to issue, sell and deliver the shares of Common Stock, the Investment Banking Warrants and the Issuable
Shares (collectively, the "Securities") and such issuances, sales and deliveries have been duly authorized by all requisite corporate action of the Company and when so issued, sold and delivered
(i) the shares of Common Stock purchased by each investor in the Private Placement and the Issuable Shares each will be duly and validly issued and outstanding, fully paid and nonassessable
with no personal liability attaching to the ownership thereof and will be free and clear of all liens, charges, claims, encumbrances, restrictions or preemptive or any other similar rights imposed by
or through the Company, except as waived prior 

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to
the initial Closing or as disclosed herein and as shall be disclosed in the Memorandum, and the Company shall have paid all taxes, if any, in respect of the issuance thereof; and (ii) the
Investment Banking Warrants will be duly executed and delivered, binding obligations of the Company, validly issued and outstanding. The offer and sale of the shares of Common Stock is exempt from the
registration requirements of the Securities Act and the rules and regulations promulgated thereunder and the shares of Common Stock will be issued in compliance with all applicable Federal, state and
foreign securities laws. 

        (n)   The
issuable Shares have been duly and validly reserved for issuance upon the exercise of the investment Banking Warrants. The Company shall use its best efforts to
obtain any authorization, consent or approval or other action by or make any filing with any court or administrative body that may be required under the applicable state securities laws in connection
with the exercise of any of the Investment Banking Warrants. The Issuable Shares will be issued in compliance with all applicable Federal, state and foreign securities laws. 

        (o)   No
permit, consent, approval, authorization, order of, or filing with, any court or governmental authority is required in connection with the execution and delivery by
the Company of this Agreement or to consummate the Private Placement, except that the offer and sale of the shares of Common Stock in certain jurisdictions may be subject to the provisions of the
securities or "blue sky" laws of such jurisdictions. 

        (p)   There
is no action suit proceeding before or by any court or governmental agency or body, domestic or foreign, now pending or, to the knowledge of the Company,
threatened, against or affecting the Company, or any of its properties, which would reasonably be anticipated to result in any material adverse change in the condition (financial or otherwise) or in
the earnings, business affairs, business prospects, properties or assets of the Company and its subsidiaries, taken as a whole (a "Material Adverse Effect"). 

        (q)   The
Company has (i) duly and timely filed all tax returns required to be filed by the Company under applicable law that include or relate to the Company, its
income, assets, payroll, operations or business, which tax returns, to the best of the Company's knowledge, are true, correct and complete in all material respects; and (ii) duly and timely
paid, in full, all taxes which are currently due and payable and for which the Company is liable, except, in each case, where the failure to do so is not reasonably anticipated to result in a Material
Adverse Effect. 

        (r)   The
Company is not in default under any material agreement, lease, license contract or commitment, whether oral or written including, without limitation, those with
employees and consultants ("Material Agreements") to which the Company is a party or by which any of its material assets are bound, and there is no event known to the Company that, with notice, or
lapse of time, or both, would constitute a default by any party to any Material /agreement or give them any right to terminate or modify any of the same and its has not received notice that any party
to any Material Agreement intends to cancel or terminate any Material Agreement or to exercise or not to exercise any renewal or extension options under any Material Agreement; 

        (s)   The
Company holds, and is in compliance with, all permits, licenses, registrations and authorizations required by it in connection with the conduct of the business of
the Company under all Federal, state and local laws, rules and regulations (the "Permits"), except where the failure to be in compliance has not had, and is not reasonably expected to have, a Material
Adverse Effect; 

        (t)    The
Company's financial statements for periods ending December 31, 2002 and September 30, 2003, copies of which are included in the Memorandum, are true
and correct and fairly present, in all material respects, the financial condition of the Company as of the dates set forth therein; 

        (u)   Since
December 2, 2002, the Company has conducted its business in the ordinary course and has not suffered any Material Adverse Effect. The Company does not have
any liabilities or obligations 

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(whether
actual or accrued, accruing or contingent, or otherwise) which, individually or in aggregate, would be deemed material, other than those set forth in the balance sheet included within the
financial statements for the period ended September 30, 2003, and those incurred, in the ordinary course of its business, since December 2, 2002. 

        (s)   At
the final Closing of shares of Common /stock placed hereunder, the Company will deliver, or cause to be delivered, to Adamson, in each case in form and substance
satisfactory to Adamson and its counsel: (i) a certificate of the Company signed by the Chief Executive Officer and the Chief Financial Officer thereof certifying (A) that the
representations and warranties of the Company contained in this Agreement are true and accurate in all material respects as of each Closing date; and, (B) representing and warranting to Adamson
that the representations and warranties of the Company contained in each purchase, subscription or other similar agreement entered into with a prospective purchaser of the shares of Common Stock are
true and correct in all material respects as of the date of such letter, except to the extent any such representation or warranty was expressly made as of any other date, in which case such
representation and warranty was true and correct in all material respects as of such other date; (ii) copies of all certificates and other documents (other than the shares of Common Stock)
delivered to each prospective purchaser at such Closing; and (iii) a signed opinion of Oswald & Yap, counsel to the Company, dated as of each Closing Date, in form and substance
satisfactory to counsel to the Placement Agent. 

        (t)    The
Company further agrees that it will not consummate the sale of the shares of Common Stock unless it delivers or causes to be delivered the items described in this
subsection 6(s) to Adamson at the final Closing. 

        (u)   The
Company will be responsible for and comply with all applicable notification and fee requirements to qualify the shares of Common Stock for offering and sale under
the state securities or "blue sky" laws of such jurisdiction in which any sales of the Common Stock may be transacted and as may otherwise be required or as requested by Adamson provided that, in
connection therewith, the Company shall not be required to qualify as a foreign corporation. 

	7.
	Fees and Expenses

        (a)   The
Company shall pay Adamson a cash commission for introducing prospective investors equal to 8% of the aggregate purchase price of the shares of Common Stock sold in
the Private Placement (the "Placement Agent Fee"). The Company also shall pay Adamson a management fee equal to 2% of the aggregate purchase price of the shares of Common Stock sold in the Private
Placement ("Management Fee"), plus the reasonable professional fees, anticipated to be no more than $10,000, and the actual disbursements of counsel to Adamson ("Counsel Fees"). 

        (b)   In
addition, the Company shall issue to Adamson for an aggregate purchase price of $1, as an incentive, warrants ("Investment Banking Warrants") in an amount equal to
10% of the shares of Common Stock sold in the Offering. The Investment Banking Warrants shall entitle Adamson to purchase one share of the Company's Common Stock at an exercise price per share equal
to $3.50 per share of Company's Common Stock and shall be exercisable at anytime for five years from the date of the final Closing. 

        (c)   The
Placement Agent Fee, the Management Fee, Counsel Fees, and the Investment Banking Warrants are sometimes hereinafter collectively referred to as "Fees". The
Placement Agent Fee, the Management Fee and Counsel Fees shall be payable at each Closing of the Private Placement, and shall be paid by certified or official bank check, or by wire transfer in
immediately available funds to a bank account designed by Adamson. The Investment Banking Warrants issuable to Adamson shall be issued to Adamson at the final Closing of the Private Placement. 

        (d)   The
Company shall have at least a majority of "independent" members of its Board of Directors who meet the requirements of independent directors of a national stock
exchange such as 

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NASDAQ.
For a period of two years following the first Closing of the Private Placement, Adamson will be entitled to appoint one member to the Company's Board of Directors (the "Adamson Designee"). The
Company agrees that it shall cause all of the shares owned or controlled by it to be voted in favor of the /Adamson Designee. In the event that the board seat held by the Adamson /designee becomes
vacant, for any reason, Adamson shall be entitled to designate a successor director, and the Company shall cause all of the shares owned or controlled by it to be voted in favor of such successor. 

        (e)   On
or prior to the first Closing, the Company shall enter into a Finder's Agreement with Adamson (the "Finder's Agreement"), which will provide (i) that, in the
event that at any time prior to the fifth anniversary of the final Closing the Company or any of its affiliates shall enter into any transaction (including, without limitation, any merger,
consolidation, acquisition, financing, joint venture or other arrangement) with any party introduced to the Company by Adamson, directly or indirectly, during such period, Adamson will be paid a
transaction fee, payable at the closing thereof, equal to a percentage of the consideration or value received by the Company and/or its stockholders as follows: (a) 5% of the first $1,000,000,
(b) 4% of the next $1,000,000, (c) 3% of the next $1,000,000, (d) 2% of the next $1,000,000, and (e) 1% of all amounts in excess of $4,000,000. In no event shall the fees
payable pursuant to this paragraph 3(g) exceed the maximum finder's fee allowed by the National Association of Securities Dealers, Inc. at the time of such transaction. 

        (f)    The
Company shall be responsible for, and shall bear, all expenses directly and necessarily incurred in connection with the Private Placement, including, without
limitation, the costs of preparing, printing, mailing and filing the Memorandum and all amendments and supplements thereto; preparing, printing, and delivering all exhibits to the Memorandum;
registrar and transfer taxes, if any, preparing, printing, and delivering any other Information or Company Data; blue sky fees, filing fees and the fees and disbursements of Adamson's counsel in
connection with blue sky matters; and the fees and disbursements of counsel to any investor in connection with the preparation of any opinion of counsel required pursuant to the Memorandum, or any
amendment or supplement thereto. Legal fees, excluding blue sky work and actual disbursements of counsel shall not exceed $10,000. Legal fees for blue sky work shall not exceed $500 per state,
exclusive of state filing fees and expenses. 

        (g)   The
Company shall, whether or not the Offering is consummated, reimburse Adamson for its reasonable out-of-pocket expenses, including, but not
limited to, travel, legal fees up to $10,000 (exclusive of counsel fees related to Blue Sky qualification), and communication expenses incurred in connection with, or arising out of, the activities of
the Adamson under or contemplated by this Agreement. Such reimbursements shall be made promptly upon submission by the Placement Agent of its statements therefor. Adamson's statement for its legal
fees and expenses shall be submitted for reimbursement on a monthly basis. 

        (h)   For
a period of two years from the final Closing, Adamson shall have an irrevocable preferential right of first refusal to purchase for our account (subject to the
rights of investors in the Offering) or to act as underwriter or agent for any proposed private offering of the Company's securities by the Company or any stockholders of the Company who are officers
or directors or who own, beneficially or of record, at least 5% of the Company's common stock outstanding immediately preceding the first Closing ("Principal Stockholders") and in any public offering
of the Company's securities by the Company or any of its Principal Stockholders; 

        (i)    On
the closing of the Minimum Offering, the Company agrees to hold $100,000 of the Offering proceeds in an escrow account for expenses related to future financings for
one year following the date of the final Closing. 

	8.
	Indemnification Contribution and Limit on Liability

        (a)   The
Company agrees that it will indemnify and hold harmless Adamson and its affiliates, and its and their respective directors, officers, employees, agents and
controlling persons (Adamson and each such person being an "Indemnified Party") from and against any and all losses, claims, damages 

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and
liabilities, joint or several, as incurred, to which such Indemnified Party may become subject under any applicable United States Federal or state law or the laws of any other domestic or foreign
jurisdiction, or otherwise, and related to or arising out of (i)the Memorandum, the contents of which shall be the sole responsibility of the Company; (ii) any untrue statement or alleged
untrue statement of material fact contained in any information (whether oral or written) or documents, including, without limitation, the Memorandum, Information, Company Data and public information,
furnished or made available by the Company to Adamson, or either directly, through Adamson or otherwise, to any offeree of the shares of Common Stock or any of their representatives or the omission or
the alleged omission to state therein a material fact necessary in order to make the statements therein mot misleading, in the light of the circumstances under which they were made; (iii) the
engagement by the Company of other advisors, finders placement agents or any other agents or any activities of any such other agents and controlling persons, in connection with or related to the
shares of Common Stock or the placement thereof; (iv) any order made by any competent governmental, regulatory or self-regulatory authority, based upon an allegation that any such
untrue statement or omission exists (except information and statements approved by and referring solely to Adamson), that trading in or distribution of the shares of Common Stock is to cease;
(v) the Company's failure to obtain any requisite governmental, regulatory or self-regulatory authority's approval of the Private Placement or the Memorandum; (vi) the breach
by the Company of any of the representations, warranties, indemnities, covenants, obligations, agreements, conditions or terms of this Agreement; (vii) any representation or warranty made by
the Company herein not being true, ceasing to be true, or being incomplete or inaccurate in any respect; (vii) the failure by the Company to issue and deliver the shares of Common Stock in the
form and denominations satisfactory to Adamson and at the time and place required by Adamson with the result that the completion of the sale of the Common Stock does not take place timely; or
(ix) following the completion of a sale of any of the shares of Common Stock, a determination is made by any competent governmental, regulatory or self-regulatory authority setting
aside the sale, unless that determination arises out of a related finding by such authority that Adamson acted or omitted to act in bad faith or was grossly negligent in the performance of its
obligations hereunder. 

        (b)   Adamson
agrees that it will indemnify and hold harmless the Company and its directors, officers, employees, agents and controlling persons from and against any and all
losses, claims, damages and liabilities, joint or several, as incurred, to which the Company may become subject, related to or arising out of the breach by Adamson of any of its representations,
warranties, or covenants under this Agreement. 

        (c)   If
the indemnification provided for in this Agreement is for any reason held unenforceable, the indemnifying party to contribute to the losses, claims, damages and
liabilities, as incurred, for which such indemnification is held unenforceable in such proportion as is appropriate to reflect the relative benefits to the indemnifying party, on the one hand, and
indemnified party on the other hand, of the placement of the shares of Common Stock as contemplated (whether or not the placement is consummated), provided, however, that 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. The Company agrees that for the purposes of this section 8, the relative benefits to the Company and Adamson of the placement of Common Stock as contemplated shall be deemed
to be in the same proportion that the total value of Common Stock sold or contemplated to be sold by the Company as a result of or in connection with the proposed Private Placement bears to the
Placement Agent Fee paid or to be paid to Adamson under this Agreement; provided, however, that, to the extent permitted by applicable law, in no event shall the Indemnified Parties be required to
contribute an aggregate amount in excess of the aggregate Placement Agent Fee actually paid to Adamson under this Agreement. 

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	9.
	Notice Defense and Settlement of Claim, Action or Proceedings

        (a)   Promptly
after receipt by an Indemnified Party of notice of any claim or the commencement of any action or proceeding with respect to which an Indemnified Party may be
entitled to indemnity hereunder, the Indemnified Party will notify the Company in writing of such claim or of the commencement of such action or proceeding and the Company will assume the defense of
such action or proceeding and will employ counsel satisfactory to the Indemnified Parties and will pay the fees and expenses of such counsel as incurred. The failure to notify the Company will not
relieve the Company of any liability that it may have to any Indemnified Party, except to the extent that the Company demonstrates that the defense of such action is prejudiced by the Indemnified
Party's failure to give such notice. Notwithstanding anything herein to the contrary, any Indemnified Party will be entitled to employ such counsel separate from counsel for the Company and from any
other party in such action if such Indemnified Party determines that a conflict of interest exists which makes representation by counsel chosen by the Company not advisable. In such event, the fees
and disbursements of such separate counsel will be paid by the Company provided the Company shall in no case be obligated to pay the fees and expenses of more than one separate counsel for all
Indemnified Parties unless the parties otherwise agree. 

        (b)   The
Company agrees that, without Adamson's prior written consent, it will not settle, compromise or consent to the entry of any judgment in any pending or threatened
claim, action or proceeding in respect of which indemnification would be available under the indemnification provisions of this Agreement (whether or not Adamson or any other Indemnified Party is an
actual or potential party to such claim, action or proceeding), unless such settlement, compromise or consent includes an unconditional release of each Indemnified Party from all liability arising out
of such claim, action or proceeding. 

        (c)   No
Indemnified Party shall enter into any settlement or compromise of any claim for which indemnity may be or has been sought hereunder without the consent of the
Company. 

        (d)   In
the event Adamson or any Indemnified Party is requested or required to appear as a witness in any action brought by or on behalf of or against the Company or any
affiliate or any participant in a transaction covered hereby in which Adamson or such Indemnified Party is not named as a defendant, the Company agrees to reimburse Adamson for all expenses incurred
by it in connection with such Indemnified Party's appearing and preparing to appear as a witness, including, without limitation, the fees and disbursements of its legal counsel. 

	10.
	Notices

        All
notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to be duly given when received by hand
delivery, by facsimile (when confirmed by return facsimile) followed by first-class mail, by nationally recognized overnight courier service or by prepaid registered or certified mail, return receipt
requested to the addresses set forth below: 

If to the Company:  

China
Hospitals, Inc.

50 Airport Parkway

San Jose, California 95110

Attention: Chief Executive Officer 

9

 

If to the Placement Agent:  

Adamson
Brothers, Inc.

Paramus Plaza IV, 12 Route 17 North

Paramus, New Jersey 07652

Attention: Andy Altahwi 

        The
Company agrees to give Adamson notice of, and an opportunity to attend periodic meetings with Common Stock holders, including annual information meetings and advisory committee or
similar types of meetings. 

	11.
	Termination of this Agreement

        (a)   This
Agreement shall automatically terminate if subscription agreements providing for the purchase of the Minimum Offering are not received and accepted prior to the
Termination Date of the Private Placement, as defined in the Memorandum, as it may be extended under the terms of the Memorandum. Upon such termination of this Agreement, there will be no further
liabilities or obligations hereunder between Adamson and the Company, except that (i) if the Company or any of its affiliates sells any Common Stock or other securities of the Company to any
party introduced to the Company by Adamson within 12 months after termination, then Adamson shall be paid the Fees described in section 7(e) hereof; and (b) if sales of any shares
of Common Stock of the Company are closed with respect to purchase agreements actually executed by purchasers on or prior to termination, Adamson shall be paid the Fees described in sections 7(a) and
(b) hereof. 

        (b)   This
Agreement also may be terminated by Adamson for any reason upon giving 30 days prior written notice; provided, however, that in the event the Company does
not perform any covenant, obligation, agreement, condition or term of or under this Agreement or any representation or warranty hereunder is not true or ceases to be true, or is incomplete or
inaccurate in any respect, this Agreement and all of Adamson's obligations hereunder may be immediately terminated by Adamson by written notice thereof to the Company. Notwithstanding any termination
of or under this Agreement as provided herein, there shall be no liability of any party to any other party, except as otherwise provided in section 4 relating to specified events and
section 7 relating to the payment of Fees. 

	12.
	Survival of Certain Provisions

        The
respective representations, warranties, indemnities, and agreements of the Company and its affiliates and Adamson shall remain operative and in full force and effect regardless of
any
investigation made by or on behalf of the Company or Adamson or any of its or their affiliates or controlling persons, and shall survive any termination or the consummation of the Private Placement.
Additionally, sections 4,7,8,9,12,13,16 and 17 shall survive any termination or consummation of the Private Placement. 

	13.
	Writing Required to Waive, Amend or Modify

        No
waiver, amendment or other modification of this Agreement shall be effective unless in writing and signed by each party to be bound thereby. 

	14.
	Parties

        This
Agreement incorporates the entire understanding of the parties with respect to this engagement of Adamson by the Company, and supersedes all previous agreements regarding such
engagement, should they exist. 

	15.
	Governing Law

        This
Agreement shall be governed by and constructed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof. 

10

 

	16.
	Consent to Jurisdiction and Waiver of Trial by Jury

        Each
party hereto; (a) consents to personal jurisdiction and service and venue in any court in which a claim subject to this agreement is brought against the other party hereto or
any other Indemnified
Party; and (b) waives all right to trial by jury in any action, proceeding or counterclaim (whether based upon contract, tort or otherwise) related to or arising out of the engagement of
Adamson pursuant to, or the performance by Adamson of the services contemplated by, this Agreement. 

	17.
	Attorneys' Fees. 

        In
the event any party hereto shall commence legal proceedings against the other to enforce the terms hereof, or to declare rights hereunder, as the result of a breach of any covenant or
condition of this Agreement, the prevailing party in any such proceeding shall be entitled to recover from the losing party its costs of suit, including reasonable attorneys' fees, as may be fixed by
the court. 

        Pleas
confirm that the foregoing terms correctly set forth our agreement by signing and returning to Adamson the duplicate copy of this agreement enclosed herewith. 

	 	 	Very truly yours,
	

 	
 	

Adamson Brothers, Inc.
	

 	
 	

/s/  ANDY ALTAHWI      
 BY: Andy Altahwi

ITS: President
	

Accepted as of the date first written above:	
 	

 
	

China Hospitals, Inc.	
 	

 
	

/s/  FRANK HU      
 BY: Frank Hu

ITS: CEO and Chairman	
 	

 

11

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Exhibit 10.19  

 
 

Finder's Agreement    
    

        FINDER'S AGREEMENT dated as of December 1, 2003, between China Hospitals, Inc., a Delaware corporation ("Company"), and Adamson
Brothers, Inc. ("Agent"). 

        Witnesseth

        WHEREAS,
Agent and the Company have entered into a Placement Agent Agreement on even date herewith. 

        WHEREAS,
paragraph 7(e) of the Placement Agent Agreement requires the Company to enter into this Finder's Agreement upon the first closing of the Company's Private Placement (as
defined in the Placement Agent Agreement) 

        NOW,
THEREFORE, in consideration of the premise and the mutual promises and covenants contained herein and subject specifically to the conditions hereof, and intending to be legally
bound thereby, the parties agree as follows: 

	1.
	Appointment
of Agent as Finder 

        The
Company hereby appoints the Agent as a finder and the Agent hereby accepts such appointment subject to the terms of this Agreement. 

	2.
	Agents'
Rights and Duties 

        (a)   The
Agents shall use their best efforts to facilitate communications between the Company and possible funding sources. 

        (b)   The
Agents' services under this Agreement exclude any financially related transactions including activities related to capital raising or formation, nor shall the
Agents' services hereunder include any services that constitute the rendering of any legal opinions or performance of work that is in the ordinary purview of a Certified Public Accountant or Attorney. 

	4.
	Compensation

        In
the event that at any time prior to the fifth anniversary of the final Closing (as defined in the Placement Agent Agreement) the Company or any of its affiliates shall enter into any
transaction (including, without limitation, any merger, consolidation, acquisition, financing, joint venture or other arrangement) with any party introduced to the Company by the Agent, directly or
indirectly, during such period, the Agent will be paid a transaction fee, payable at the closing thereof, equal to a percentage of the consideration or value received by the Company and/or its
stockholders as follows: (a) 5% of the first $1,000,000, (b) 4% of the next $1,000,000, (c) 3% of the next $1,000,000, (d) 2% of the next $1,000,000, and (e) 1% of
all amounts in excess of $4,000,000. In no event shall the fees payable pursuant to this paragraph 4 shall exceed the maximum finder's fee allowed by the National Association of Securities
Dealers, Inc. at the time of such transaction. 

	5.
	Expenses

        The
parties to this agreement shall each pay their own expenses, including but not limited to attorneys, accountants, and other professional advisors, regardless of whether or not a
transaction occurs. 

	6.
	Other
Engagements 

        The
parties acknowledge that the Agents will be acting as a finder to parties other than the Company and agree that the provision of services to such parties shall not constitute a
breach hereof or of any duty owed to the Company by virtue of this Agreement. 

 
	7.
	Independent
Contractor 

        In
providing services pursuant to this Agreement, the parties shall be independent contractors, and no party to this Agreement shall make any representations or statements indicating or
suggesting that any joint venture, partnership, or other such relationship exists between any of the parties except as set forth herein. 

	8.
	General
Provisions 

        (a)   This
agreement shall be governed by and under the laws of the State of New York, USA without giving effect to conflicts of law principles. If any provision hereof is
found invalid or unenforceable, that part shall be amended to achieve as nearly as possible the same effect as the original provision and the remainder of this agreement shall remain in full force and
effect. 

        (b)   Any
dispute arising under or in any way related to this agreement shall be submitted to binding arbitration by the American Arbitration Association in accordance with
the Association's commercial rules then in effect. The arbitration shall be conducted in the state of New York. The arbitration shall be binding on the parties and the arbitration award may be
confirmed by any court of competent jurisdiction. 

        (c)   In
any adverse action, the parties shall restrict themselves to claims for compensatory damages and/or securities issued or to be issued and no claims shall be made by
any party or affiliate for lost profits, punitive or multiple damages 

        (d)   This
agreement constitutes the entire agreement and final understanding of the parties with respect to the subject matter hereof and supersedes and terminates all prior
and/or contemporaneous understandings and/or discussions between the parties, whether written or verbal, express or implied, relating in any way to the subject matter hereof. This agreement may not be
altered, amended, modified or otherwise changed in any way except by a written agreement, signed by both parties. 

        (e)   All
notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to be duly given when
received by hand delivery, by facsimile (when confirmed by return facsimile) followed by first-class mail, by nationally recognized overnight courier service or by prepaid registered or certified
mail, return receipt requested to the addresses set forth below: 

If to the Company:  

China
Hospitals, Inc.

50 Airport Parkway

San Jose, California 95110

Attention: Chief Executive Officer 

If to the Agent:  

Adamson
Brothers, Inc.

Paramus Plaza IV, 12 Route 17 North

Paramus, New Jersey 07652

Attention: Andy Altahwi 

        (f)    This
agreement may be executed in counterparts, each one of which shall constitute an original and all of which taken together shall constitute one document. 

        (g)   In
the event any Party hereto shall commence legal proceedings against the other to enforce the terms hereof, or to declare rights hereunder, as the result of a breach
of any covenant or condition of this Agreement, the prevailing party in any such proceeding shall be entitled to recover from the losing party its costs of suit, including reasonable attorneys' fees,
as may be fixed by the court. 

2

 

        IN
WITNESS WHEREOF, the parties hereto have caused this agreement to be duly executed as of the date first written above. 

	Adamson Brothers, Inc.	 	 
	

/s/  ANDYALTAHWI      
 BY: Andy Altahwi

ITS: President	
 	

 
	

China Hospitals, Inc.	
 	

 
	

/s/  FRANK HU      
 BY: Frank Hu

ITS: Chairman and CEO	
 	

 

3

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Finder's Agreement

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