Document:

fs1a10510ex10xliv_chinabct.htm

 

Exhibit 10.44

 

 

AMENDMENT NO. 1

 

TO

 

EARN-IN AGREEMENT

 

This Amendment No. 1 (“Amendment No. 1”) to the EARN-IN AGREEMENT (the “Agreement”) is entered into as of May 19, 2010  (the “Effective Date”), between and among (i) Zhang Xiao Yan, a Hong Kong individual (the “Seller”); and (ii) the signatories to this Agreement indicated as “Buyers,” Tang Hui Tian, Jiang You Ru, Liu Chun Lin, Wei Wen De, Wang Bang Fu, Zhao Ming An, Zhang Qing Qiu, Yang Xiao Jian, Meng Yuan Gang, Jiang Qi Feng, He Wen Heng, Liu Gong Chun, Jia Jun Wen, Tan Yu Jing, Li Jing Hua, Ye Yuan Jian each an individual citizen of the People’s Republic of China (collectively, the “Buyers”) (each of the foregoing, a “Party” and together, the “Parties”). Capitalized terms not otherwise defined have the meanings assigned to them in Appendix A to this Agreement. As effective of this amendment, all previous earn-in agreements entered into are automatically ceased being effective.

 

RECITALS

 

WHEREAS, pursuant to Section 5.10 of the Agreement, no provision of the Agreement may be amended without the written consent of each party thereto; and

 

WHEREAS, the Parties desire to amend Section 1.1 of the Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficient of which is acknowledged by the Parties, the Parties agree as follows:

 

AGREEMENT

 

The Parties to this Agreement, intending to be bound thereby, in consideration for the mutual promises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the Parties, agree as follows.

 

	
1.1  

	
Amendment. Pursuant to Section 5.10 of the Agreement, the Parties hereby amend, as of the date hereof, Section 1.1 of the Agreement by deleting the text of Section 1.1 of the Agreement and replacing it with the following:

 

           “Call Right.   The Buyers will have, during the Exercise Period, and according to the following schedule, the right and option to purchase from the Seller, and upon the exercise of such right and option the Seller will have the obligation to sell to the Buyers, a portion of the Seller’s Shares identified in the Call Exercise Notice (the “Call Right”).  Any Shares not purchased at a point in the following schedule may be purchased at any later point in the schedule. “Seller’s Shares” means those shares of the capital stock of the Holdco or, upon and after the Exchange Transaction, those exchanged shares of the Shell Company held by the Seller totaled at 22,480,000 shares of the Shell Company’s issued and outstanding common shares, as the case may be at the time when the Buyer exercises the Call Right.

 

	
(a)  

	
One year after a date which the $15 million 2010 after tax net income is achieved and a satisfactory audit report is issued of the result according to US GAAP for the 2010 after tax net income guaranteed to the investors in an equity financing (the “Equity Financing”), but before the Expiration Date (as defined below), each Buyer may exercise a Call Right to his or her Proportionate Share (as defined below) of 50% of the make-good shares of the Seller’s Shares.

 

 

  

1

  

 

	
(b)  

	
One year after a date which the $19 million 2011 make-good is achieved and a satisfactory audit report is issued according to US GAAP for the 2011 after tax net income , but before the Expiration Date (as defined below), each Buyer may exercise a Call Right to his or her Proportionate Share (as defined below) of 50% of the make-good shares of the Seller’s Shares.

 

As used in this Agreement, “Proportionate Share” means the percentage set forth next to a Buyer’s name on Exhibit C to this Agreement.”

 

	
1.2  

	
Governing Law and Language.   This Amendment No. 1, including all matters of construction, validity and performance, will in all respects be governed by, and construed in accordance with, the laws of Hong Kong (without giving effect to principles relating to conflict of laws).  This Agreement is written in English and the English language will govern any interpretation of this Amendment No. 1.

 

	
1.3  

	
Venue and Jurisdiction.   If any legal proceeding or other legal action relating to this Amendment No. 1 is brought or otherwise initiated, the venue therefore will be in Hong Kong, which will be deemed to be a convenient forum.  Each of the Parties hereby expressly and irrevocably consents and submits to the jurisdiction of the courts

 

	
1.4  

	
Effect on Earn-in Agreement.  Except as set forth above, the Agreement shall remain in full force and effect and is hereby ratified and confirmed.

 

	
1.5  

	
Counterparts. This Amendment No. 1 may be executed in several counterparts, each of which will constitute an original and all of which, when taken together, will constitute one agreement.

 

 

 [Remainder of Page Intentionally Left Blank]

 

 

  

2

  

 

 

In Witness Whereof, the Parties have caused this Amendment No. 1 to be executed and delivered as of the date first set forth above.

 

	
“SELLER”

Zhang Xiao Yan, a Hong Kong individual

 

 

By: /s/ Zhang Xiao Yan                                 

Name: Zhang Xiao Yan

Title:

 

 

	  
	
“BUYER”

Tang Hui Tian, an individual citizen of the People’s Republic of China

 

 

By: /s/ Tang Hui Tian                                     

Name: Tang Hui Tian 

	
“BUYER”

Wei Wen De, an individual citizen of the People’s Republic of China

 

 

By: /s/ Wei Wen De                                     

Name: Wei Wen De

 

	
“BUYER”

Jiang You Ru, an individual citizen of the People’s Republic of China

 

 

By: /s/ Jiang You Ru                                      

Name: Jiang You Ru

 

	
“BUYER”

Wang Bang Fu, an individual citizen of the People’s Republic of China

 

 

By: /s/ Wang Bang Fu                                  

Name: Wang Bang Fu

 

	
“BUYER”

Liu Chun Lin, an individual citizen of the People’s Republic of China

 

 

By: /s/ Liu Chun Lin                                       

Name: Liu Chun Lin

 

	
“BUYER”

Zhao Ming An, an individual citizen of the People’s Republic of China

 

 

By: /s/ Zhao Ming An                                  

Name: Zhao Ming An

 

 

 

  

3

  

 

	
“BUYER”

Zhang Qing Qiu, an individual citizen of the People’s Republic of China

 

 

By: /s/ Zhang Qing Qiu                                  

Name: Zhang Qing Qiu

 

	
“BUYER”

Yang Xiao Jian, an individual citizen of the People’s Republic of China

 

 

By: /s/ Yang Xiao Jian                                 

Name: Yang Xiao Jian

 

	
“BUYER”

Meng Yuan Gang, an individual citizen of the People’s Republic of China

 

 

By: /s/ Meng Yuan Gang                               

Name: Meng Yuan Gang

 

	
“BUYER”

Jiang Qi Feng, an individual citizen of the People’s Republic of China

 

 

By: /s/ Jiang Qi Feng                                    

Name: Jiang Qi Feng

 

	
“BUYER”

He Wen Heng, an individual citizen of the People’s Republic of China

 

 

By: /s/ He Wen Heng                                     

Name: He Wen Heng

 

	
“BUYER”

Liu Gong Chun, an individual citizen of the People’s Republic of China

 

 

By: /s/ Liu Gong Chun                                  

Name: Liu Gong Chun

 

	
“BUYER”

Jia Jun Wen, an individual citizen of the People’s Republic of China

 

 

By: /s/ Jia Jun Wen                                        

Name: Jia Jun Wen

 

	
“BUYER”

Tan Yu Jing, an individual citizen of the People’s Republic of China

 

 

By: /s/ Tan Yu Jing                                       

Name: Tan Yu Jing

 

	
“BUYER”

Li Jing Hua, an individual citizen of the People’s Republic of China

 

 

By: /s/ Li Jing Hua                                          

Name: Li Jing Hua

 

	
“BUYER”

Ye Yuan Jian, an individual citizen of the People’s Republic of China

 

 

By: /s/ Ye Yuan Jian                                     

Name: Ye Yuan Jian

 

 

 4fs1a10510ex10xlv_chinabct.htm

 

 

Exhibit 10.45

 

 

Amended and Restated Shares Pledge Agreement

 

Party A: Guangxi Liuzhou Baicaotang Medicine Ltd.

 

Legal Representative: Tang Huitian

 

 

Party B: Liuzhou Baicaotang Property Management Ltd.

 

Representative: Tang Huitian

 

 

Whereas,

 

	
(1)  

	
Party B holds a 51% equity interest in Guangxi Liuzhou Baicaotang Medicine Retail Ltd. (“BCT Retail”);

 

	
(2)  

	
Party A holds a 49% equity interest in BCT Retail;

 

	
(3)  

	
Party B borrowed RMB153,000.00 (“Loan”) from Party A on May 3, 2008;

 

	
(4)  

	
Party B intends to pledge the 51% equity interest it holds in BCT Retail to Party A to guarantee the Loan.

 

	
(5)  

	
The parties desire to enter into this Amended and Restated Shares Pledge Agreement in order to make the contractual relationship between the parties consistent with past practices and understandings between the parties as it relates to the transfer of 51% of the equity interest of BCT Retail to Party B in April 2008.

 

 

Party A and Party B hereby enter into the following Shares Pledge Agreement (“Agreement”):

 

	
1.  

	
Party B shall pay all the amount of Loan back by transferring all of its rights, title and interest in the Pledged Equity (as defined below) to Party A no later than December 31, 2015.

 

	
2.  

	
Party B agrees to pledge all of the 51% equity interest it holds in BCT Retail (“Pledged Equity”) to Party A, and will register such pledge with the competent Authority of Industry and Commerce (“AIC”) within ten (10) days after this Agreement is executed by the parties.

 

	
3.  

	
The scope of guarantee provided by the Pledged Equity includes: principal of Loan and all legal costs, attorney fees, travel and accommodation expenses and other necessary expenses paid by Party A for claiming its rights herein.

 

	
4.  

	
Party A and Party B hereby agree that during the pledge period:

 

 

  

1

  

 

	
(1)  

	
Party A may send its representative to attend the shareholders’ meetings of BCT Retail, executing shareholder’s power within the extension of the Pledged Equity;

 

	
(2)  

	
Party A shall enjoy the rights in the Pledged Equity, including but not limited to, the rights to receive dividends and any other distributions an equity holder of BCT Retail would be entitled to receive;

 

	
(3)  

	
Party B shall not transfer the Pledged Equity to any third party without prior written consent from Party A;

 

	
(4)  

	
Party B shall notice Party A before any internal equity transfer is implemented.

 

	
5.  

	
If Party B repays the Loan by transferring all of its rights, title and interest in the Pledged Equity according to this Agreement, Party A will deregister the pledged with the competent AIC within ten (10) days from the date when Party B repays the Loan to Party A.

 

	
6.  

	
Any dispute arising out of the performance of this Agreement shall be mutually negotiated between the parties.  When failing to get a consistent settlement, any party may submit such dispute to the People’s Court of Liunan District, Liu Zhou City for determination.

 

	
7.  

	
The terms and conditions set forth in herein should not be modified unless written agreed by the parties.

 

	
8.  

	
This Agreement is made in three counterparts with Party A holding one copy, Party B holding one copy and the other one copy will be submitted to competent AIC for registration and filing. This Agreement shall become binding in the date signed by the Parties.

 

	
Party A: Guangxi Liuzhou Baicaotang Medicine Ltd.

	  
	
Legal Representative: /s/ Tang Huitian

	  
	
Date: May 19, 2010

 

	
Party B: Shareholders of Liuzhou Baicaotang Property Management Co., Ltd

	  
	
Representative:/s/ Tang Huitian

	  
	
Date: May 19, 2010

 

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