Document:

Exhibit (10)-gg

    
      

    

    Exhibit
      (10)-gg

    Execution
      Copy

    

    DATED
      July 2, 2005

    

    

    (1)
      SINO BIOPHARMACEUTICAL LIMITED

    

    AND

    

    (2)
      BAUSCH & LOMB INCORPORATED

    

    

     

    

    AGREEMENT
      FOR THE

    SALE
      AND PURCHASE OF 

    THE
      ENTIRE ISSUED CAPITAL OF 

    SINO
      CONCEPT TECHNOLOGY LIMITED 中外科技有榰公司

     

    

    

    

    

    

    

    

    

    

    Baker
      & 

    14th
      Floor Hutchison House

    Hong
      Kong

    

    Telephone:
      (852) 2846-1888

    Fax:
      (852) 2845-0476

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CONTENTS

    

    
      	
              Number

            	
              Clause
                Headings

            	
              Page

            
	
              1.

            	
              Definitions
                and Interpretation

            	
              5

            
	
              2.

            	
              Sale
                of Sale Shares

            	
              17

            
	
              3.

            	
              Consideration

            	
              17

            
	
              4.

            	
              Conditions

            	
              17

            
	
              5.

            	
              Completion

            	
              21

            
	
              6.

            	
              Post-Completion

            	
              29

            
	
              7.

            	
              Restriction
                of Vendor and Undertaking of Purchaser

            	
              30

            
	
              8.

            	
              Warranties

            	
              33

            
	
              9.

            	
              Pre-Completion

            	
              34

            
	
              10.

            	
              Confidentiality
                and Restriction on Announcements

            	
              38

            
	
              11.

            	
              Costs

            	
              39

            
	
              12.

            	
              General

            	
              39

            
	
              13.

            	
              Notices

            	
              41

            
	
              14.

            	
              Governing
                Law and Arbitration

            	
              42

            
	
              15.

            	
              English
                and Chinese Versions

            	
              42

            
	 	 	 
	
              SCHEDULE
                1

            	
              Details
                of the Company

            	
              44

            
	
              SCHEDULE
                2

            	
              Details
                of the Subsidiaries

            	
              45

            
	
              SCHEDULE
                3

            	
              The
                Properties

            	
              49

            
	
              SCHEDULE
                4

            	
              Deed
                of Indemnity

            	
              50

            
	
              SCHEDULE
                5

            	
              Warranties

            	
              61

            
	
              SCHEDULE
                6

            	
              Intellectual
                Property

            	
              98

            
	
              SCHEDULE
                7

            	
              Hong
                Kong Legal Opinion

            	
              99

            
	
              SCHEDULE
                8

            	
              Patents

            	
              103

            
	
              SCHEDULE
                9

            	
              Patent
                License Contract

            	
              106

            
	
              SCHEDULE
                10

            	
              Deed
                of Undertaking

            	
              107

            
	
              SCHEDULE
                11

            	
              List
                of Key Employees

            	
              111

            
	
              SCHEDULE
                12

            	
              Principal
                Terms of Key Management Retention Agreement

            	
              112

            
	
              SCHEDULE
                13

            	
              Resignation
                Letter

            	
              113

            
	
              SCHEDULE
                14

            	
              Irrevocable
                Power of Attorney

            	
              114

            
	
              SCHEDULE
                15

            	
              Confirmation
                and Declaration of Shandong Research Institute

            	
              117

            
	 	 	 
	
              Annex
                I

            	
              Accounts

            	
              118

            
	
              Annex
                II

            	
              Management
                Accounts

            	
              119

            
	
              Annex
                III

            	
              Subsidiary
                Accounts

            	
              120

            
	
              Annex
                IV

            	
              Subsidiary
                Management Accounts

            	
              121

            
	
              Annex
                V

            	
              Approved
                Extraordinary Expenditures

            	
              122

            
	 	 	 
	
              Execution

            	 	
              122

            

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    DATE:
      July
      2,
      2005

    

    PARTIES:

    

    
      	
              (1)

            	
              SINO
                BIOPHARMACEUTICAL LIMITED,
                a
                company incorporated in the Cayman Islands, whose registered office
                is at
                Century Yard, Cricket Square, Hutchins Drive, P.O. Box 2681 GT, George
                Town, Grand Cayman, British West Indies and whose principal place
                of
                business in Hong Kong is Unit 09, 41st Floor, Office Tower, Convention
                Plaza, 1 Harbour Road, Wanchai, Hong Kong (the “Vendor”).

            

    

    
      	
              (2)

            	
              BAUSCH
                & LOMB INCORPORATED,
                a
                company incorporated in the State of New York, United States of America,
                whose principal place of business is at One Bausch & Lomb Place,
                Rochester, New York 14604-2701, United States of America (the “Purchaser”).

            

    

    

    RECITALS:

    

    
      	
              (A)

            	
              The
                Company (as defined below) is a limited liability company incorporated
                in
                Hong Kong with registered number 300326 and as at the date of this
                Agreement has an authorised share capital of HK$10,100 divided into
                10,100
                ordinary shares of HK$1.00 each, all of which have been issued and
                are
                fully paid up and are beneficially owned by the Vendor. Further
                particulars of the Company are set out in Schedule
                1.

            

    

    

    
      	
              (B)

            	
              The
                Vendor wishes to sell and the Purchaser wishes to purchase the Sale
                Shares
                (as defined below) on the terms and conditions set out in this
                Agreement.

            

    

    

    TERMS
      AGREED:

    

    	1.  	
            Definitions
              and Interpretation

          

    

    
      	
              1.1

            	
              In
                this Agreement where the context so admits the following words and
                expressions shall have the following
                meanings:

            

    

    

    
      	
              “Accounting
                Date”

            	
              December
                31, 2004;

            
	
              “Accounts”

            	
              the
                audited consolidated financial statements of the Company for the
                accounting period which ended on the Accounting Date (each such financial
                statement comprising the consolidated profit and loss account,
                consolidated balance sheet, consolidated summary statement of changes
                in
                equity, consolidated cash flow statement, a balance sheet for the
                Company,
                directors’ and auditors’ reports, and notes to the financial statements as
                at and for the period ended on the Accounting Date), copies of which
                are
                annexed hereto as Annex I and initialled for the purposes of
                identification by the Parties;

            
	
              “Approved
                Extraordinary Expenditures”

            	
              the
                expected extraordinary expenditures for the Subsidiaries for the
                three (3)
                months immediately after the date of this Agreement which have been
                approved by the Purchaser, a list of which is annexed hereto as Annex
                V
                and initialled for the purposes of identification by the
                Parties;

            
	
              “Auditors”

            	
              Ernst
                & Young;

            
	
              “Board”

            	
              the
                board of directors of the Company for the time being;

            
	
              “Business
                Day”

            	
              a
                day on which banks are generally open for business in Hong Kong and
                which
                is not a Saturday, a Sunday, a public holiday or a day on which typhoon
                signal no. 8 or a “black” rainstorm warning is hoisted in Hong
                Kong;

            
	
              “Company”

            	
              Sino
                Concept Technology Limited 中外科技有榰公司,
                details of which are set out in Schedule 1;

            
	
              “company”

            	
              any
                company or body corporate wherever incorporated;

            
	
              “Companies
                Ordinance”

            	
              Companies
                Ordinance (Chapter 32 of the Laws of Hong Kong);

            
	
              “Completion”

            	
              completion
                of the sale and purchase of the Sale Shares as specified in Clause
                5;

            
	
              “Completion
                Date”

            	
              the
                date of Completion, being the fifth Business Day after the fulfilment
                or
                waiver (as the case may be) of all of the Conditions specified in
                Clause
                4.1 (save for the Conditions set out in Clauses 4.1.2, 4.1.3, 4.1.4
                and
                4.1.7) (or such later date as the Parties may agree in
                writing);

            
	
              “Conditions”

            	
              the
                conditions specified in Clause 4.1;

            
	
              “Consideration”

            	
              the
                amount of US$200,000,000 (United States Dollars Two Hundred
                Million);

            
	
              “Control”

            	
              a
                person or persons (each a “controller”) shall be taken to have Control of
                another person (“the controlled person”) if one or more of the
                controllers, whether by law or in fact has, or is entitled to acquire,
                the
                right or the power to secure whether directly or indirectly, that
                the
                controlled person’s affairs are conducted in accordance with the wishes of
                the controller and in particular, but without prejudice to the generality
                of the foregoing, if one or more of the controllers holds:

               

              (i)    the
                greater part of the share capital of the controlled person or of
                the
                voting rights attaching to the controlled person’s shares; or

               

              (ii)    the
                power to control the composition of any board of directors or governing
                body of the controlled person;

               

              For
                the purposes of the foregoing and without limitation there shall
                be
                attributed to any controller:

               

              (i)     any
                rights or powers which another person possesses on his behalf or
                is or may
                be required to exercise on his direction or behalf; and

               

              (ii)     all
                rights and powers of any body corporate of which any controller alone
                or
                together with another or other controllers has control or of any
                two or
                more such bodies corporate;

            
	
              “CTF”

            	
              山东正大福瑞灂制粑有榰公司
                (Shandong Chia Tai Freda Pharmaceutical Co. Ltd.), details of which
                are
                set out in Part A of Schedule 2;

            
	
              “CTFP”

            	
              山东正大福瑞灂包眻新材料有榰公司
                (Shandong Chia Tai Freda New Packaging Resources Co. Ltd.), details
                of
                which are set out in Part B of Schedule 2;

            
	
              “Deed
                of Indemnity”

            	
              the
                deed of indemnity to be entered into between the Vendor, the Company
                and
                the Purchaser in the form set out in Schedule 4;

            
	
              “Dermatitis
                Products”

            	
              cremes,
                emollients and other topical medicines sold and administered principally
                for therapeutic purposes, and distinguished from products sold and
                administered principally for cosmetic purposes, which are not the
                subject
                of a restrictive covenant;

            
	
              “Directors”

            	
              the
                persons listed as directors of the Company in Schedule
                1;

            
	
              “Disclosure
                Letter”

            	
              the
                letter of today’s date from the Vendor to the Purchaser in the approved
                terms;

            
	
              “Environment”

            	
              all
                or any of the following media, namely, the air, water and land; and
                the
                medium of air includes the air within buildings and the air within
                other
                natural or man-made structures above or below ground;

            
	
              “Environmental
                Law”

            	
              all
                and any laws, directives, regulations, notices, standards having
                force of
                law, codes of practice, guidance notes, by-laws, judgments, decrees
                or
                orders of and within the PRC, relating to pollution, contamination
                or
                protection of the Environment or to the storage, labelling, handling,
                release, treatment, manufacture, processing, deposit, transportation
                or
                disposal of Hazardous Substances;

            
	
              “Environmental
                Licence”

            	
              any
                permit, licence, authorisation, consent or other approval, that may
                be
                required by any Environmental Law;

            
	
              “Equity
                Interests”

            	
              the
                55% equity interests held by the Company in each of CTF and
                CTFP;

            
	
              “Formulation
                Information”

            	
              the
                written statement of ingredients, concentrations and manufacturing
                instructions, specifications and procedures for each of the following
                products of the Subsidiaries:

               

              (i) Moisten
                Eye Drops,

              (ii) Mioclear
                Eye Drops,

              (iii) Renown
                Eye Drops,

              (iv) Levsaxin
                Eye Drops,

              (v) Mioclear
                Eye Cleaning Solution, and

              (vi) Sodium
                Hyaluronate Injection;

            
	
              “Group”

            	
              the
                group of companies comprising the Company and the Subsidiaries; the
                expression “member
                of the Group”
                shall mean any or a specific one of them;

            
	
              “HA”

            	
              hyaluronic
                acid or hyaluronate, a polysaccharide made up of two repeating
                monosaccharide units (N-acetylglucosamine and Naglucuronate) present
                in
                the intercellular matrix of nearly all connective
                tissues;

            
	
              “Hazardous
                Substances”

            	
              all
                substances of whatever description which may cause or have a harmful
                effect on the Environment, including, without limitation, all poisonous,
                toxic, noxious, dangerous and offensive substances;

            
	
              “HK$”

            	
              Hong
                Kong dollars, the lawful currency of Hong Kong;

            
	
              “HKIAC”

            	
              has
                the meaning ascribed to it in Clause 14.2;

            
	
              “Hong
                Kong”

            	
              the
                Hong Kong Special Administrative Region of the People’s Republic of
                China;

            
	
              “Intellectual
                Property”

            	
              includes
                patents, knowhow, trade secrets and other confidential information,
                registered designs, copyrights, Internet domain names of any level,
                design
                rights, rights in circuit layouts, moral rights, trade marks, service
                marks, trade dress, business names, registrations of, applications
                to
                register and rights to apply for registration of any of the aforesaid
                items, rights in the nature of any of the aforesaid items in any
                country,
                rights in the nature of unfair competition rights and rights to sue
                for
                passing off;

            
	
              “Key
                Employees”

            	
              those
                individuals whose names are set out in Schedule 11;

            
	
              “Key
                Management Retention Agreements”

            	
              the
                services retention agreements to be entered into between the relevant
                member of the Group and the Key Employees which will incorporate
                the
                principal terms set out in Schedule 12;

            
	
              “Leases”

            	
              all
                the leases, sub-leases, tenancy agreements, sub-tenancy agreements,
                licences or other documents (including any options for extension
                relating
                thereto) granted or agreed to be granted to any member of the Group
                or
                pursuant to which any member of the Group holds or occupies any property,
                details of which are set out in Schedule 3;

            
	
              “Leased
                Properties”

            	
              the
                properties short particulars of which are set out in Part 2 of Schedule
                3;

            
	
              “Listing
                Rules”

            	
              the
                Rules Governing the Listing of Securities on The Stock Exchange of
                Hong
                Kong Limited;

            
	
              “Management
                Accounts”

            	
              the
                unaudited consolidated balance sheet of the Company as at May 31,
                2005 and
                the unaudited consolidated profit and loss account of the Company
                for the
                period commencing from January 1, 2005 and ending on May 31, 2005,
                copies
                of which are annexed hereto as Annex II and initialled for the purpose
                of
                identification by the Parties;

            
	
              “Material
                Adverse Effect”

            	
              a
                material adverse effect on the assets, business, liabilities, operations,
                property or financial condition of the Group taken as a
                whole;

            
	
              “Owned
                Properties”

            	
              the
                properties, short particulars of which are set out in Part 1 of Schedule
                3;

            
	
              “Parties”

            	
              the
                named parties to this Agreement and their respective successors and
                assigns and “Party”
                means each or any specific one of them;

            
	
              “Patents”

            	
              the
                patents and patent applications listed in Schedule 8 and such unpatented
                products and technology (including unfiled, abandoned or not yet
                filed
                patents and patent applications on inventions) as are used by the
                Subsidiaries in the production, use or sale of its products (including
                pipeline products) at the date hereof and where applicable, patents
                and
                patent applications filed by the Subsidiaries even if they are not
                used in
                any of the products of the Subsidiaries;

            
	
              “PRC”

            	
              the
                People’s Republic of China and for the purposes of this Agreement, shall
                exclude Hong Kong, the Macau Special Administrative Region and
                Taiwan;

            
	
              “Properties”

            	
              the
                Owned Properties and the Leased Properties;

            
	
              “Purchaser’s
                Patent Review”

            	
              the
                review to be conducted by the Purchaser’s Solicitors as described in
                Clause 4.1.9;

            
	
              “Purchaser’s
                Solicitors”

            	
              Baker
                & McKenzie of 14th Floor Hutchison House, 10 Harcourt Road, Central,
                Hong Kong;

            
	
              “Relevant
                Scheme”

            	
              has
                the meaning ascribed to it in Clause 9.1.9;

            
	
              “Restricted
                Businesses”

            	
              the
                manufacturing and sale of (i) ophthalmic chemical products regardless
                of
                whether they incorporate HA as the key compound or agent (the “Restricted
                Ophthalmic Business”) and (ii) osteoarthritis products or Dermatitis
                Products for external applications incorporating HA as the key compound
                or
                agent (the “Restricted Other Businesses”);

            
	
              “RMB”

            	
              Renminbi,
                the lawful currency of the PRC;

            
	
              “Sale
                Shares”

            	
              the
                10,100 ordinary shares of HK$1.00 each in the share capital of the
                Company, being the entire issued share capital of the
                Company;

            
	
              “Shandong
                Research Institute”

            	
              Shandong
                Biopharmaceutical Research Institute, a biopharmaceutical research
                laboratory in Shandong Province, PRC;

            
	
              “Subsidiaries”

            	
              CTF
                and CTFP;

            
	
              “Subsidiary
                Accounts”

            	
              the
                audited financial statements of each Subsidiary for the accounting
                period
                which ended on the Accounting Date (each such financial statement
                comprising a balance sheet, profit and loss account, statement of
                cash
                flow, auditors’ report, and any notes, reports or statements included
                therein or annexed thereto), copies of which are annexed hereto as
                Annex
                III and initialled for the purposes of identification by the
                Parties;

            
	
              “Subsidiary
                Management Accounts”

            	
              the
                unaudited balance sheet of each Subsidiary as at May 31, 2005, and
                the
                unaudited profit and loss account of each Subsidiary for the period
                commencing from January 1, 2005 and ending on May 31, 2005, copies
                of
                which are annexed hereto as Annex IV and initialled for the purpose
                of
                identification by the Parties;

            
	
              “Tax”

            	
              all
                forms of taxation, estate duties, deductions, withholdings, duties,
                imposts, levies, fees, charges, social security contributions and
                rates
                imposed, levied, collected, withheld or assessed by any local, municipal,
                regional, urban, governmental, state, federal or other body in Hong
                Kong,
                the PRC, or elsewhere and any interest, additional taxation, penalty,
                surcharge or fine in connection therewith;

            
	
              “US$”

            	
              United
                States dollars, the lawful currency of the United States of
                America;

            
	
              “Vendor’s
                Solicitors”

            	
              Morrison
                & Foerster of 21st Floor, Entertainment Building, 30 Queen’s Road
                Central, Hong Kong; and

            
	
              “Warranties”

            	
              the
                representations, warranties and undertakings contained or referred
                to in
                Clause 8 and set out in Schedule 5; “Warranty”
                means any or a specific one of
                them.

            

    

    
      	
              1.2

            	
              Save
                where the context otherwise requires words and phrases the definitions
                of
                which are contained or referred to in the Companies Ordinance shall
                be
                construed as having the meaning thereby attributed to
                them.

            

    

    

    
      	
              1.3

            	
              Any
                references, express or implied, to statutes or statutory provisions
                shall
                be construed as references to those statutes or provisions as respectively
                amended or re-enacted or as their application is modified from time
                to
                time by other provisions (whether before or after the date hereof)
                and
                shall include any statutes or provisions of which they are re-enactments
                (whether with or without modification) and any orders, regulations,
                instruments or other subordinate legislation under the relevant statute
                or
                statutory provision. References to Sections of consolidating legislation
                shall, wherever necessary or appropriate in the context, be construed
                as
                including references to the Sections of the previous legislation
                from
                which the consolidating legislation has been
                prepared.

            

    

    

    
      	
              1.4

            	
              References
                in this Agreement to Clauses and Schedules are to clauses in and
                schedules
                to this Agreement (unless the context otherwise requires). The Recitals
                and Schedules to this Agreement shall be deemed to form part of this
                Agreement.

            

    

    

    
      	
              1.5

            	
              Headings
                are inserted for convenience only and shall not affect the construction
                of
                this Agreement.

            

    

    

    
      	
              1.6

            	
              The
                expressions “the
                Vendor”
                and “the
                Purchaser”
                include their respective successors and
                assigns.

            

    

    

    
      	
              1.7

            	
              References
                to “persons”
                shall include individuals, bodies corporate, unincorporated associations
                and partnerships (whether or not having separate legal
                personality).

            

    

    

    
      	
              1.8

            	
              References
                to writing shall include any methods of producing or reproducing
                words in
                a legible and non-transitory form.

            

    

    

    
      	
              1.9

            	
              The
                masculine gender shall include the feminine and neuter and the singular
                number shall include the plural and vice
                versa.

            

    

    

    
      	
              1.10

            	
              A
                document expressed to be “in
                the approved terms”
                means a document the terms of which have been approved by or on behalf
                of
                the Parties in writing.

            

    

    

    1.11   In
      construing this Agreement:

    

    
      	 	
              1.11.1

            	
              the
                rule known as the ejusdem generis rule shall not apply and, accordingly,
                general words introduced by the word “other” shall not be given a
                restrictive meaning by reason of the fact that they are preceded
                by words
                indicating a particular class of acts, matters or things;
                and

            

    

    

    
      	 	
              1.11.2

            	
              general
                words shall not be given a restrictive meaning by reason of the fact
                that
                they are followed by particular examples intended to be embraced
                by the
                general words.

            

    

    

    	2.         
              	
            Sale
              of Sale Shares

          

    

    
      	
              2.1

            	
              Subject
                to the terms of this Agreement, the Vendor shall sell as legal and
                beneficial owner and the Purchaser shall purchase, the Sale Shares,
                free
                from all liens, charges and encumbrances and together with all rights
                now
                or hereafter attaching to them, including all rights to any dividend
                or
                other distribution declared, made or paid after the date of this
                Agreement.

            

    

    

    
      	
              2.2

            	
              The
                Vendor hereby waives and agrees to procure the waiver of any restrictions
                on transfer (including pre-emption rights), if any, which may exist
                in
                relation to the Sale Shares, whether under the articles of association
                of
                the Company or otherwise.

            

    

    

    	3.          
             	
            Consideration

          

    

    
      	
              3.1

            	
              The
                total consideration payable for the Sale Shares shall be the
                Consideration.

            

    

    

    
      	
              3.2

            	
              The
                Consideration shall be payable on Completion in accordance with Clause
                5.2.1.

            

    

    

    	4.          
             	
            Conditions

          

    

    4.1  The
      sale
      and purchase of the Sale Shares is conditional upon:

    

    
      	 	
              4.1.1

            	
              no
                notice having been received from the PRC Ministry of Commerce
                (“MOFCOM”)
                and/or the PRC State Administration of Industry and Commerce (“SAIC”)
                pursuant to the Provisional
                Rules on Mergers with and Acquisitions of Domestic Enterprises by
                Foreign
                Investors,
                promulgated by the Ministry of Foreign Trade and Economic Cooperation
                (the
                predecessor of MOFCOM), State Administration of Taxation, SAIC and
                State
                Administration of Foreign Exchange on 7 March 2003 and effective
                as of 12
                April 2003, ordering an anti-trust filing to be made in respect of
                the
                sale and purchase of the Sale Shares pursuant to this Agreement;
                in the
                event such order to file is received, this condition shall be satisfied
                after the Vendor and the Purchaser have jointly made the necessary
                anti-trust filing and MOFCOM and SAIC having consented to the sale
                and
                purchase of the Sale Shares pursuant to this
                Agreement;

            

    

    

    
      	 	
              4.1.2

            	
              the
                Warranties not being untrue or inaccurate or misleading at Completion
                which results in a Material Adverse
                Effect;

            

    

    

    
      	 	
              4.1.3

            	
              the
                Vendor having complied fully with the obligations specified in Clause
                9.1
                and otherwise having performed all of the covenants and agreements
                required to be performed by it under this
                Agreement;

            

    

    

    
      	 	
              4.1.4

            	
              no
                statute, regulation or decision which would prohibit, restrict or
                materially delay the sale and purchase of the Sale Shares or the
                operation
                of any member of the Group after Completion having been proposed,
                enacted
                or taken by any governmental or official authority;
                

            

    

    

    
      	 	
              4.1.5

            	
              (i)
                Mr. Ling Peixue having entered into a license contract with CTF,
                acknowledged by the Shandong Research Institute, substantially in
                the form
                set out in Schedule 9 (the “Patent
                License Contract”);
                (ii) Mr. Hu Hongjie having executed a license contract with CTF,
                acknowledged by Shandong Research Institute, substantially similar
                in form
                to the Technology License Contract; (iii) Mr. Ling, Mr. Hu and, if
                necessary, the Shandong Research Institute having executed the relevant
                governmental license recordal forms requested by Purchaser in respect
                of
                the Technology License Contracts referred to in sub-clauses (i) and
                (ii)
                above; and (iv) the Shandong Research Institute having executed a
                Confirmation and Declaration substantially in the form set out in
                Schedule
                15;

            

    

    

    
      	 	
              4.1.6

            	
              the
                approval of the shareholders of the Vendor (or, if required under
                the
                Listing Rules, the approval of the independent shareholders of the
                Vendor), being obtained in respect of the sale and purchase of the
                Sale
                Shares pursuant to this Agreement;

            

    

    

    
      	 	
              4.1.7

            	
              there
                being no change in the business or operations of the Group which
                has a
                Material Adverse Effect any time between the date of this Agreement
                and
                Completion;

            

    

    

    
      	 	
              4.1.8

            	
              each
                of the Key Employees having entered into a Key Management Retention
                Agreement;

            

    

    

    
      	 	
              4.1.9

            	
              the
                Purchaser’s Solicitors (through Chiang Ling Li) shall have been provided
                with the Formulation Information and shall not have within a period
                of
                fifteen (15) Business Days (counted, for the sake of clarity, beginning
                with the first Business Day after
                Formulation Information is actually delivered) determined based on
                a
                review of the Formulation Information so provided, that one or more
                claim
                of a published patent in the PRC or patent application in the PRC
                is
                infringed by one or more of the products which are the subject of
                the
                Formulation Information. The foregoing condition shall be deemed
                satisfied
                unless the Purchaser’s Solicitors’ conclusion that there is such
                infringement, with detailed findings, is provided to the Vendor’s
                Solicitors in writing on or before the end of such fifteen (15) Business
                Day period. For purposes of the foregoing, the Vendor shall not be
                required to provide the Formulation Information to the Purchaser’s
                Solicitors as stated above unless and until the Conditions set out
                in
                Clauses 4.1.5 and 4.1.8 shall have been fulfilled or waived in
                writing.(pursuant to Clause 4.2);
                and

            

    

    

    
      	 	
              4.1.10

            	
              a
                contract to terminate the existing license granted by Mr. Ling Peixue
                and
                any other licensor(s) thereto (if any) to Shandong Freda Biotechnology
                Engineering Co. Ltd. in respect of eye wash solutions containing
                hyaluronic acid and salts and their preparation methods and technology
                which are the subject of patent application number 200410035712.3
                at an
                aggregate termination costs not exceeding RMB150,000 and and such
                termination contract must contain a provision obliging and requiring
                Shandong Freda Biotechnology Engineering Co. Ltd. to cease production,
                use
                and sale of all products containing the foregoing Intellectual Property
                by
                December 31, 2005.

            

    

    

    
      	
              4.2

            	
              Save
                for the Conditions set out in Clauses 4.1.1, 4.1.4 and 4.1.6, the
                Purchaser may waive in whole or in part all or any of the Conditions
                at
                any time by notice in writing to the
                Vendor.

            

    

    

    
      	
              4.3

            	
              The
                Vendor shall in good faith use his best efforts and proceed diligently
                to
                procure the fulfilment of the Conditions set out in Clauses 4.1.3,
                4.1.5,
                4.1.6, 4.1.7, 4.1.8 and 4.1.10 on or before the date specified in
                Clause
                4.5 below, provided that best efforts shall not require the payment
                of
                amounts which are not ordinarily required to be paid to ensure the
                performance by a third party of actions necessary to ensure the fulfilment
                of the relevant Condition.

            

    

    

    
      	
              4.4

            	
              The
                Vendor shall give the Purchaser notice in writing and provide relevant
                evidence reasonably satisfactory to the Purchaser of the satisfaction
                of
                each relevant Condition (save for the Conditions set out in Clauses
                4.1.1,
                4.1.2, 4.1.3, 4.1.4 and 4.1.7) within three (3) Business Days of
                becoming
                aware of the same.

            

    

    

    
      	
              4.5

            	
              In
                the event that any of the Conditions (other than the Conditions set
                out in
                Clause 4.1.2) shall not have been fulfilled (or waived pursuant to
                Clause
                4.2) by September 30, 2005 (the “Drop Dead Date”), then neither the
                Purchaser nor the Vendor shall be bound to proceed with the sale
                and
                purchase of the Sale Shares and this Agreement shall cease to be
                of any
                effect except Clauses 1, 10, 11, 12, 13, 14 and 15 which shall remain
                in
                force and save in respect of claims arising out of any antecedent
                breach
                of this Agreement, provided
                that (i) if the Condition(s) which has (have) not been fulfilled
                by the
                Drop Dead Date is (are) any of the Conditions set out in any of Clauses
                4.1.3, 4.1.5, 4.1.6, 4.1.7, 4.1.8 or 4.1.10 and such non-fulfilment
                is the
                result of the Vendor’s breach of its obligations under Clause 4.3 in
                relation to such Condition(s), then the Purchaser shall have the
                right
                upon notice in writing to the Vendor, to extend the last date for
                the
                fulfilment of the said Condition(s) past the Drop Dead Date and this
                Agreement
                shall remain in full force and effect in all respects; and (ii) if
                the
                fifteen (15) Business Day period referred to in Clause 4.1.9 is not
                completed prior to the Drop Dead Date, then the Drop Dead Date shall
                be
                automatically extended to allow for the end of such fifteen (15)
                Business
                Day period and all references in this Agreement to the Drop Dead
                Date
                shall be construed accordingly.

            

    

    

    
      	
              4.6

            	
              In
                the event that the Purchaser shall waive any of the Conditions (save
                for
                the Conditions set out in Clauses 4.1.1, 4.1.4 and 4.1.6), such waiver
                shall not, except to the limited extent set forth below, imply that
                the
                Purchaser is not relying on the Warranties but rather only that it
                is
                prepared, in reliance upon the Warranties and such comfort, if any,
                as it
                has taken from its investigations, to proceed with the transaction.
                Without limiting the requirement of Clause 5.3.1.7, each Party agrees
                to
                promptly notify the other Party in writing upon becoming aware of
                any
                breach of any of the Warranties by the Vendor after the date of this
                Agreement and before Completion. In the event the Purchaser elects
                to
                proceed to Completion after being notified by the Vendor in writing
                that
                the Vendor is aware of a breach of a Warranty which cannot be cured,
                notwithstanding the best efforts of the Vendor, the Purchaser will,
                in
                such case, no longer be entitled to make a claim in respect of such
                breach
                of Warranty after the Completion
                Date.

            

    

    

    	5.         
              	
            Completion

          

    

    
      	
              5.1

            	
              Subject
                to the provisions of Clause 4, Completion shall take place on the
                Completion Date at the offices of the Purchaser’s Solicitors (or such
                other place as the Parties may agree in writing) when all of the
                events
                described in this Clause 5 shall
                occur.

            

    

    

    5.2   
At
      Completion, the Purchaser shall:

    

    
      	 	
              5.2.1

            	
              pay
                an amount equal to the Consideration to the Vendor by telegraphic
                bank
                transfer to the following bank account (and/or such other account(s)
                as
                may be designated in writing by the Vendor at least five (5) Business
                Days
                prior to the Completion Date);

            

    

    

    Name
      of
      Bank: Citic
      Ka
      Wah Bank Limited

    Address
      of Bank: 116
      Hennessy Road, Wan Chai, Hong Kong

    Name
      of
      Account Holder: Sino
      Biopharmaceutical Ltd.

    Account
      Number: 725103608801

    

    
      	 	
              5.2.2

            	
              deliver
                to the Vendor an original counterpart of the Deed of Indemnity duly
                executed by the Purchaser; and

            

    

    

    
      	 	
              5.2.3

            	
              deliver
                to the Vendor a certified copy of the minutes of a duly held meeting
                of
                the board of directors of the Purchaser approving and authorising
                the
                execution of this Agreement, the performance of this Agreement and
                all
                transactions contemplated herein.

            

    

    

    5.3    At
      Completion, the Vendor shall:

    

    5.3.1     deliver
      to the Purchaser:

    

    
      	 	
              5.3.1.1

            	
              duly
                executed transfers and sold notes in respect of all of the Sale Shares
                in
                favour of the Purchaser or its nominee together with the relative
                share
                certificates; 

            

    

    

    
      	 	
              5.3.1.2
                

            	
              a
                cheque for an amount equal to 0.1% of the HK$ equivalent of the
                Consideration as at the Completion Date in respect of the Vendor’s share
                of stamp duty drawn in favour of the Government of the Hong Kong
                Special
                Administrative Region;

            

    

    

    
      	 	
              5.3.1.3

            	
              an
                original counterpart of the Deed of Indemnity duly executed by the
                Vendor
                and the Company;

            

    

    

    
      	 	
              5.3.1.4

            	
              duly
                executed letter of resignation of the Auditors, resigning as the
                auditors
                of the Company, such letter to comply with the requirements of Section
                140A of the Companies Ordinance, and duly executed letter from Shandong
                Sincere Certified Public Accountants Co., Ltd. confirming that it
                has no
                claim against the Subsidiaries, whether for any outstanding fees
                or
                otherwise; 

            

    

    

    
      	 	
              5.3.1.5

            	
              (if
                any) the title deeds, Leases and all other relevant deeds, documents
                and
                correspondence relating to the Properties, the land use rights
                certificates and building ownership certificates relating to the
                Owned
                Properties, and leases in respect of the Leased Properties of the
                Subsidiaries, which are in the possession or under the control of
                the
                Vendor or the Company;

            

    

    

    
      	 	
              5.3.1.6

            	
              all
                the statutory and other books and records (including financial records)
                duly written up to date of the Company and the certificate of
                incorporation, current business registration certificate, common
                seal and
                chop of the Company and any other papers and documents of the Company
                in
                its possession or under its control; and (if any) the Certificates
                of
                Approval, business licences, chops, capital contribution reports,
                tax
                registration certificates, and foreign exchange registration certificates
                for each of the Subsidiaries, all the statutory and other books and
                records (including financial records) duly written up to date of
                the
                Subsidiaries and any other papers and documents of the Subsidiaries
                which
                are in the possession or under the control of the Vendor or the
                Company;

            

    

    

    
      	 	
              5.3.1.7

            	
              a
                completion certificate duly executed by the Vendor pursuant to which
                it
                confirms that (1) the Warranties remain true and accurate and not
                misleading as given as of the Completion Date, save for any breach
                of the
                Warranties which the Vendor has notified the Purchaser in writing
                at least
                five (5) Business Days prior to the Completion Date and matters fairly
                and
                specifically disclosed in the Disclosure Letter; and (2) the Vendor
                has
                complied fully with its obligations, covenants, undertakings and
                agreements under this Agreement on or prior to the Completion Date;
                

            

    

    

    
      	 	
              5.3.1.8

            	
              unconditional
                letters of release from the bankers to each member of the Group (if
                any)
                evidencing the release and discharge of all guarantees, debentures
                and
                charges (if any) granted by any member of the Group in favour of
                the
                Vendor and/or any subsidiaries of the Vendor, or in favour of third
                parties in respect of the performance of the obligations of the Vendor
                and/or any subsidiaries of the Vendor or any other person not being
                a
                member of the Group;

            

    

    

    
      	 	
              5.3.1.9

            	
              a
                certified copy of the minutes of a duly held meeting of the board
                of
                directors of the Vendor approving and authorising the execution of
                this
                Agreement and the performance of this Agreement and all transactions
                contemplated herein; 

            

    

    

    
      	 	
              5.3.1.10

            	
              duly
                executed letters of resignation dated as of the Completion Date in
                the
                form set out in Schedule 13 (or the Chinese equivalent) from the
                Directors
                and the secretary of the Company and the directors of each of the
                Subsidiaries who are nominated or appointed by the Vendor (and in
                case of
                the Subsidiaries, through the
                Company);

            

    

    

    
      	 	
              5.3.1.11

            	
              a
                duly executed confirmation or release from the Vendor (for itself
                and on
                behalf of its subsidiaries) and from Mr. Tse Ping (for himself and
                on
                behalf of entities Controlled by him) (as applicable) under seal,
                in the
                approved terms, releasing the Company and the Subsidiaries from any
                liability whatsoever (whether actual or contingent) (other than trade
                debts) which may be owing to the Vendor or any of its subsidiaries
                or to
                Mr. Tse Ping or to any persons Controlled by any of them, by the
                Company
                or any of the Subsidiaries at
                Completion;

            

    

    

    
      	 	
              5.3.1.12

            	
              irrevocable
                powers of attorney (in the form set out in Schedule 14) executed
                under
                seal by each of the holders of the Sale Shares in favour of the Purchaser
                or such person(s) as may be nominated by the
                Purchaser;

            

    

    

    
      	 	
              5.3.1.13

            	
              a
                legal opinion issued by the Vendor’s Solicitors, in the form set out in
                Schedule 7; 

            

    

    

    
      	 	
              5.3.1.14

            	
              a
                legal opinion issued by a firm of lawyers qualified to advise on
                PRC law
                and is satisfactory to the Purchaser, in the form and substance
                satisfactory to the Purchaser, to state that each Subsidiary has
                been duly
                established and registered as a PRC legal person with limited liability,
                and is validly existing under PRC law, and 55% of the equity interests
                of
                each of the Subsidiaries is legally owned by the Company;
                

            

    

    

    
      	 	
              5.3.1.15

            	
              all
                documents evidencing registration or filing (as applicable) of all
                registrable Intellectual Property owned by the Group, including,
                without
                limitation, registration certificates and applications, in the possession
                or under the control of the Vendor or the Company (if
                any);

            

    

    

    
      	 	
              5.3.1.16

            	
              a
                deed of undertaking by Mr. Tse Ping in favour of the Purchaser in
                the form
                set out in Schedule 10 duly executed by Mr. Tse Ping;
                

            

    

    

    
      	 	
              5.3.1.17

            	
              true
                and correct copies of the Key Management Retention Agreements entered
                into
                between the Key Employees and the relevant members of the
                Group;

            

    

    

    
      	 	
              5.3.1.18

            	
              a
                true and correct copy of a new HA Compound supply agreement duly
                executed
                by CTF and the existing supplier of HA compound to CTF;
                

            

    

    

    
      	 	
              5.3.1.19

            	
              true
                and correct copies of the approval of the shareholders of the Vendor
                (or,
                if required under the Listing Rules, the approval of the independent
                shareholders of the Vendor), in respect of the sale and purchase
                of the
                Sale Shares pursuant to this
                Agreement;

            

    

    

    
      	 	
              5.3.1.20

            	
              a
                true and correct copy of the Patent Licence Contract duly executed
                by
                Shandong Research Institute and Mr. Ling Peixue;
                and

            

    

    

    
      	 	
              5.3.1.21

            	
              a
                true and correct copy of the Property Title Certificate in respect
                of
                CTF’s ownership of the property located at Guanhai Building, northwest
                corner, Madian Qiao, Bei Sanhuan Zhong Lu, Haidian District,
                Beijing;

            

    

    

    
      	 	
              5.3.2

            	
              make
                available to the Purchaser in the PRC for inspection
                purposes:

            

    

    

    
      	 	
              5.3.2.1

            	
              the
                title deeds, Leases and all other relevant deeds, documents and
                correspondences relating to the Properties, the land use rights
                certificates and building ownership certificates relating to the
                Owned
                Properties, and leases in respect of the Leased Properties of the
                Subsidiaries;

            

    

    

    
      	 	
              5.3.2.2

            	
              the
                Certificates of Approval, business licences, chops, capital contribution
                reports, tax registration certificates, and foreign exchange registration
                certificates for each of the Subsidiaries, all the Statutory and
                other
                books and records (including financial records) duly written up to
                date of
                the Subsidiaries and all other papers and documents of the Subsidiaries;
                and

            

    

    

    
      	 	
              5.3.2.3

            	
              all
                documents evidencing registration or filing (as applicable) of all
                registrable Intellectual Property owned by the Group, including,
                without
                limitation, registration certificates and
                applications;

            

    

    

    
      	 	
              5.3.3

            	
              cause
                the Directors to hold a meeting of the Board at which the Directors
                shall
                pass resolutions to: 

            

    

    

    
      	 	
              5.3.3.1

            	
              approve
                the transfer of the Sale Shares pursuant to this Agreement and the
                registration of the Purchaser or its nominees as members of the Company
                subject only to the production of duly stamped and completed transfers
                in
                respect of the Sale Shares;

            

    

    

    
      	 	
              5.3.3.2

            	
              approve
                and authorise the execution by the Company of the Deed of
                Indemnity;

            

    

    

    
      	 	
              5.3.3.3

            	
              accept
                the resignation of the Auditors, Directors and secretary of the Company
                referred to in Clauses 5.3.1.4 and
                5.3.1.10;

            

    

    

    
      	 	
              5.3.3.4

            	
              appoint
                the directors and secretary of the Company nominated by the Purchaser;
                and

            

    

    

    
      	 	
              5.3.3.5

            	
              (if
                any bank account of the Company remains on the Completion Date) revoke
                all
                of the authorities to the bankers of the Company relating to bank
                accounts
                and authorise such persons as the Purchaser may nominate to operate
                the
                same;

            

    

    

    
      	 	
              5.3.4

            	
              cause
                such persons as the Purchaser may nominate (at least three (3) Business
                Days prior to the Completion Date) to be validly appointed as directors
                and secretary of the Company and upon such appointment forthwith
                cause the
                Directors and the secretary of the Company to resign from their respective
                offices and as employees, each delivering to the Purchaser a resignation
                letter under seal in the form set out in Schedule
                13;

            

    

    

    
      	 	
              5.3.5

            	
              cause
                the Legal Representative of each of the Subsidiaries to arrange for
                the
                filing with the relevant authorities in the PRC in relation to the
                new
                directors of the Subsidiaries nominated or appointed by the Purchaser
                through the Company, subject to the new directors having signed the
                appointment forms;

            

    

    

    
      	 	
              5.3.6

            	
              cause
                such persons as the Purchaser may nominate (at least three (3) Business
                Days prior to the Completion Date) to be validly appointed as directors
                of
                each of the Subsidiaries nominated or appointed by the Vendor through
                the
                Company in accordance with the Joint Venture Contract and Articles
                of
                Association of the relevant Subsidiary and upon such appointment
                forthwith
                cause the directors of each of the Subsidiaries nominated or appointed
                by
                the Vendor through the Company to resign from their respective offices
                and
                as employees, each delivering to the Purchaser a letter acknowledging
                that
                the person so retiring has no claim outstanding for compensation
                or
                otherwise; and

            

    

    

    
      	 	
              5.3.7

            	
              (i)
                procure revocation of all authorities to the bankers of the Company
                relating to bank accounts and use best efforts to procure the giving
                of
                authority to such persons as the Purchaser may nominate to operate
                the
                same, or if no bank account of the Company remains on the Completion
                Date,
                deliver a bank cashier order made payable to the Company for all
                credit
                balances therein prior to their closure in excess of HK$10,000; and
                (ii)
                procure the delivery to a representative of the Purchaser of the
                chops
                held by the Chief Financial Officer of the Subsidiaries which are
                required
                in order to operate the bank accounts of the Subsidiaries in the
                PRC.
                

            

    

    

    
      	
              5.4

            	
              Without
                prejudice to any other remedies available to the relevant Party,
                if in any
                respect the provisions of Clause 5 (other than Clause 5.3.1.21) are
                not
                complied with by the relevant Party on the Completion Date, the Party
                not
                in default may:

            

    

    

    
      	 	
              5.4.1

            	
              defer
                Completion to a date not more than 28 days after the Completion Date
                (and
                so that the provisions of this Clause 5.4 shall apply to Completion
                as so
                deferred); 

            

    

    

    
      	 	
              5.4.2

            	
              proceed
                to Completion so far as practicable (without prejudice to its rights
                under
                this Agreement); or

            

    

    

    
      	 	
              5.4.3

            	
              terminate
                this Agreement.

            

    

    

    	6.          
             	
            Post-Completion

          

    

    
      	
              6.1

            	
              The
                Vendor shall use all reasonable endeavours to procure Ms. Zhao Yanping
                will, during the period from the Completion Date to the date falling
                six
                (6) months thereafter, provide services to any member of the Group
                for the
                purpose of and as is reasonably necessary for post-Completion
                transition.

            

    

    

    
      	
              6.2

            	
              The
                Vendor shall fully indemnify and hold harmless the Purchaser and
                the
                members of the Group and their directors, officers and employees
                for a
                period of ten years after the date hereof against any and all liability,
                loss, damage, claim or expense, including attorney’s fees and costs
                arising out of failure to obtain state asset valuation with respect
                to the
                Patents which were alleged to have been developed by the Shandong
                Research
                Institute.

            

    

    

    
      	
              6.3

            	
              In
                the event the Vendor does not deliver to the Purchaser the Property
                Title
                Certificate on the Completion Date pursuant to Clause 5.3.1.21, the
                Vendor
                shall fully indemnify and hold harmless the Purchaser against any
                and all
                liability, loss, damage, claim or expense, including attorney’s fees and
                costs incurred by the Purchaser and 55% of any and all liability,
                loss,
                damage, claim or expense, including attorney’s fees and costs incurred by
                CTF arising out of the failure of CTF to obtain the necessary Property
                Title Certificate in respect of CTF’s ownership of the property located at
                Guanhai Building, northwest corner, Madian Qiao, Bei Sanhuan Zhong
                Lu,
                Haidian District, Beijing.

            

    

    

    	7.          
             	
            Restriction
              of Vendor and Undertaking of
              Purchaser

          

    

    
      	
              7.1

            	
              Subject
                to Completion, the Vendor undertakes with the Purchaser (for itself
                and as
                trustee for the Company and each of the Subsidiaries) that, except
                with
                the consent in writing of the Purchaser and subject to the provisions
                of
                Clause 7.3:

            

    

    

    
      	 	
              7.1.1

            	
              for
                the period of five years after the Completion Date in respect of
                the
                Restricted Ophthalmic Business and a period of three years in respect
                of
                the Restricted Other Businesses, it will not within any country or
                place
                in which any member of the Group has carried on business during the
                year
                preceding the Completion Date, either on its own account or in conjunction
                with or on behalf of any person, firm or company carry on or be engaged,
                concerned or interested, directly or indirectly, whether as shareholder,
                director, employee, partner, agent or otherwise in carrying on the
                relevant Restricted Businesses (other than as a holder of not more
                than 5
                per cent of the issued shares or debentures of any company listed
                on a
                recognised stock exchange);

            

    

    

    
      	 	
              7.1.2

            	
              for
                the period of five years after the Completion Date, it will not either
                on
                its own account or in conjunction with or on behalf of any other
                person,
                firm or company solicit or entice away or attempt to solicit or entice
                away from any member of the Group the custom of any person, firm,
                company
                or organisation who shall at any time within the year preceding the
                date
                hereof have been a customer or identified prospective customer of
                any
                member of the Group in respect of any Restricted
                Businesses;

            

    

    

    
      	 	
              7.1.3

            	
              for
                the period of three years after the Completion Date, it will not
                either on
                its own account or in conjunction with or on behalf of any other
                person,
                firm or company solicit, entice away or attempt to solicit or entice
                away
                from any member of the Group (which for the avoidance of doubt, shall
                exclude any advertisement or solicitation targeted at or made available
                to
                the general public) any person who at the time of such solicitation,
                enticement or attempt is an officer, manager, consultant or employee
                of
                any member of the Group whether or not such person would commit a
                breach
                of contract by reason of leaving such
                employment;

            

    

    

    
      	 	
              7.1.4

            	
              it
                will not at any time hereafter make use of or disclose or divulge
                to any
                person (other than to officers or employees of the Vendor, the Company
                or
                any of the Subsidiaries whose province it is to know the same) any
                information (other than any information properly available to the
                public
                or disclosed or divulged pursuant to an order of a court of competent
                jurisdiction or the requirements of The Stock Exchange of Hong Kong
                Limited or of the Securities and Futures Commission in Hong Kong,
                or
                disclosed or divulged to the auditors of the Vendor solely for the
                purpose
                of performing an audit in respect of the Vendor (provided always
                that the
                Vendor shall procure its auditors will observe the provisions of
                this
                Clause 7.1.4), or disclosed or divulged to professional advisers
                or
                designated employees of the Vendor strictly on a need-to-know basis
                (provided always that the Vendor shall procure such professional
                advisers
                and employees will observe the provisions of this Clause 7.1.4))
                relating
                to any member of the Group, the identity of its customers and suppliers,
                its products, finance, contractual arrangements, business or methods
                of
                business;

            

    

    

    
      	 	
              7.1.5

            	
              if,
                in connection with the business or affairs of any member of the Group,
                it
                shall have obtained trade secrets or other confidential information
                belonging to any third party under an agreement purporting to bind
                any
                member of the Group which contained restrictions on disclosure it
                will not
                without the previous written consent of the Purchaser at any time
                infringe
                or take any action which would or might result in an infringement
                of such
                restrictions;

            

    

    

    
      	 	
              7.1.6

            	
              it
                will not at any time hereafter in relation to any trade, business
                or
                company use or register a name, trade mark, service mark, trade dress
                or
                business name including the words or symbol “Chia Tai Freda”, “CT Freda”,
                “CP Freda”, “CTF Freda”, “CPF Freda” and/or “Freda”, or their Chinese
                equivalents or any word or symbol confusingly similar thereto in
                such a
                way as to be capable of or likely to be confused with the name, any
                trade
                mark, service mark, trade dress or business name of any member of
                the
                Group and shall use his best endeavours to procure that no such name,
                trade mark, service mark, trade dress or business name shall be used
                by
                any person, firm or company with which is under its Control, and
                it will
                not take any action contrary to the Intellectual Property of any
                member of
                the Group, including, without limitation, challenging the ownership
                of
                such right, title or interest or contesting any registration or
                application for any Intellectual Property of any member of the Group.
                For
                the avoidance of doubt, the foregoing restriction does not apply
                to the
                words “Chia Tai”, “CTF”, “CPF”, “CT” or “CP” individually or their Chinese
                equivalents.

            

    

    

    
      	
              7.2

            	
              The
                Vendor shall procure that all entities Controlled by the Vendor will
                observe the restrictions contained in the foregoing provisions of
                this
                Clause 7 and shall use all reasonable endeavours to procure that
                the
                respective employees of itself, its subsidiaries and its Controlled
                entities will observe the confidentiality restrictions contained
                in Clause
                7.1.4. 

            

    

    

    
      	
              7.3

            	
              While
                the restrictions contained in this Clause 7 are considered by the
                Parties
                to be reasonable in all the circumstances, it is recognised that
                restrictions of the nature in question may fail for technical reasons
                and
                accordingly it is hereby agreed and declared that if any of such
                restrictions shall be adjudged to be void as going beyond what is
                reasonable in all the circumstances for the protection of the interests
                of
                the Purchaser but would be valid if part of the wording thereof were
                deleted or the periods thereof reduced or the range of activities
                or area
                dealt with thereby reduced in scope the said restriction shall apply
                with
                such modifications as may be necessary to make it valid and
                effective.

            

    

    

    7.4    Subject
      to Completion, the Purchaser undertakes to the Vendor that:-

    

    
      	 	
              7.4.1

            	
              it
                shall not, and shall procure that its Controlled entities (including
                without limitation the Group) shall not, in relation to any new product
                of
                the Group with effect from the Completion Date use the words “正大”
                or “Chia Tai” or “CP” (save as part of “Chia Tai Freda”, “CP Freda” or
                their Chinese equivalent), as part of its name, trade mark, service
                mark,
                trade dress or business name, or any word or symbol confusingly similar
                thereto in such a way as to be capable of or likely to be confused
                with
                such word or symbol;

            

    

    

    
      	 	
              7.4.2

            	
              it
                shall not, and shall procure that its Controlled entities in the
                PRC
                (including without limitation the Group) shall not, directly or
                indirectly, with effect from the date falling five (5) years from
                the
                Completion Date, in relation to any product, trade, business or company
                use or register a name, trade mark, service mark, trade dress or
                business
                name including the words or symbol “正大”
                or “Chia Tai” or “CP” or “CT” (including as part of “Chia Tai Freda”, “CP
                Freda”, “CT Freda”, “CTF”, “CPF” or their Chinese equivalents), or any
                word or symbol confusingly similar thereto in such a way as to be
                capable
                of or likely to be confused with such word or
                symbol;

            

    

    

    Provided
      that for the avoidance of doubt, the Purchaser shall not be restricted from
      the
      use of “Freda” or its Chinese equivalent, either alone or in connection with any
      other term or word except as stated above.

    

    	8.          
             	
            Warranties

          

    

    
      	
              8.1

            	
              The
                Vendor represents, warrants and undertakes to and with the Purchaser
                that
                each of the statements set out in Schedule 5 is now and will at Completion
                (with all references in any such statement to “the date of this
                Agreement”, or “the date hereof”, or any other comparable references being
                changed to “the Completion Date”) be true and
                accurate.

            

    

    

    
      	
              8.2

            	
              The
                Warranties (other than Warranties in respect of title and ownership
                of the
                Sale Shares, the equity interests of the Subsidiaries held by the
                Company,
                and approvals and authorizations of the Vendor necessary for the
                Vendor to
                enter into this Agreement and perform its obligations under this
                Agreement
                (the “Fundamental
                Warranties”),
                in respect of which no qualification is accepted) are given subject
                to
                matters fairly and specifically disclosed in the Disclosure Letter
                but no
                other information relating to the Company or the Subsidiaries of
                which the
                Purchaser has knowledge (actual or constructive) and no investigation
                by
                or on behalf of the Purchaser shall prejudice any claim made by the
                Purchaser under the Warranties or operate to reduce any amount
                recoverable, and liability in respect thereof shall not be confined
                to
                breaches discovered before Completion. No letter, document or other
                communication shall be deemed to constitute a disclosure for the
                purposes
                of this Agreement unless the same is expressly referred to in the
                Disclosure Letter.

            

    

    

    
      	
              8.3

            	
              The
                Vendor acknowledges that the Purchaser has entered into this Agreement
                in
                reliance upon the Warranties.

            

    

    

    
      	
              8.4

            	
              Subject
                to Completion, in the event that any of the Warranties is breached
                or (as
                the case may be) proves to be untrue or misleading and without prejudice
                to any other equitable relief a court of competent jurisdiction may
                see
                fit to award, the Vendor shall, on demand, pay to the
                Purchaser:

            

    

    

    
      	 	
              8.4.1

            	
              the
                amount necessary to put the Purchaser and the Company, and 55% of
                the
                amount necessary to put the relevant Subsidiary (or Subsidiaries),
                into
                the position which would have existed if the Warranties had not been
                breached or (as the case may be) had been true and not misleading;
                and

            

    

    

    
      	 	
              8.4.2

            	
              all
                costs and expenses incurred by the Purchaser and the Company, and
                55% of
                all costs and expenses incurred by the relevant Subsidiary (or
                Subsidiaries), in connection with or as a result of such breach and
                any
                costs (including legal costs on a solicitor and own client basis),
                expenses or other liabilities which the Purchaser and the Company,
                and 55%
                of any such costs, expenses or other liabilities which any of the
                Subsidiaries may incur either before or after the commencement of
                any
                action in connection with (i) any legal proceedings in which the
                Purchaser
                claims that any of the Warranties has been breached or is untrue
                or
                misleading and in which judgement or an arbitral award is given for
                the
                Purchaser or (ii) the enforcement of any settlement of, or judgement
                or an
                arbitral award in respect of, such
                claim.

            

    

    

    
      	
              8.5

            	
              Each
                of the Warranties shall be separate and independent and, save as
                expressly
                provided to the contrary, shall not be limited by inference from
                or
                non-specific reference to any other Warranty or any other term of
                this
                Agreement, nor by anything in the Disclosure Letter which is not
                expressly
                referenced to the Warranty concerned, notwithstanding any contrary
                or
                conflicting provision in the Disclosure
                Letter.

            

    

    

    
      	
              8.6

            	
              The
                Vendor hereby agrees with the Purchaser (for itself and as trustee
                for the
                Company and each of the Subsidiaries) to waive any rights which it
                may
                have in respect of any misrepresentation or inaccuracy in, or omission
                from, any information or advice supplied or given by the Company
                or its
                Subsidiaries or their officers, employees or advisers in connection
                with
                the giving of the Warranties and the preparation of the Disclosure
                Letter.

            

    

    

    
      	
              8.7

            	
              The
                Vendor shall procure that (save only as may be necessary to give
                effect to
                this Agreement) neither it nor any member of the Group shall do,
                allow or
                procure any act or omission before Completion which would constitute
                a
                breach of any of the Warranties if they were given at Completion
                or which
                would make any of the Warranties inaccurate or misleading if they
                were so
                given.

            

    

    

    
      	
              8.8

            	
              The
                Vendor hereby agrees to disclose promptly to the Purchaser in writing
                immediately upon becoming aware of the same, any matter, event or
                circumstance (including any omission to act) which may arise or become
                known to it after the date of this Agreement and before Completion
                which
                constitutes a breach of or is inconsistent with any of the
                Warranties.

            

    

    

    
      	
              8.9

            	
              The
                benefit of the Warranties may be assigned to other members of the
                Bausch
                & Lomb group in whole or in part and without restriction by the person
                for the time being entitled
                thereto.

            

    

    

    
      	
              8.10

            	
              If
                any sum payable by the Vendor under this Clause 8 shall be subject
                to Tax
                (whether by way of deduction or withholding or direct assessment
                of the
                person entitled thereto) such payment shall be increased by such
                an amount
                as shall ensure that after deduction, withholding or payment of such
                Tax
                the recipient shall have received a net amount equal to the payment
                otherwise required hereby to be made. If the Vendor pays any sum
                to the
                Purchaser under this Clause 8, the Consideration shall be deemed
                to be
                reduced by the amount of such
                payment.

            

    

    

    
      	
              8.11

            	
              Where
                any statement in the Warranties is qualified by the expression “to the
                best of the Vendor’s knowledge and belief” or any similar expression, that
                statement shall be deemed to include an additional statement that
                it has
                been made after reasonable and careful enquiry and shall be deemed
                to
                include the knowledge of the senior management of the Vendor (including,
                without limitation, Mr. Tse Ping, Ms. Zhao Yanping, the directors,
                officers and senior managers of the Vendor, and the officers and
                senior
                managers and factory managers of the
                Subsidiaries).

            

    

    

    
      	
              8.12

            	
              The
                liabilities of the Vendor under the
                Warranties:

            

    

    

    
      	 	
              8.12.1

            	
              together
                with the liabilities of the Vendor under the Deed of Indemnity, shall,
                except for the Fundamental Warranties, be limited to a maximum aggregate
                amount equal to 50% of the
                Consideration;

            

    

    

    
      	 	
              8.12.2

            	
              shall
                in relation to those Warranties in respect of Tax (“Tax
                Warranties”)
                cease seven years after the Completion Date, except in respect of
                matters
                which have been the subject of a written claim made before such date
                by
                the Purchaser to the Vendor; 

            

    

    

    
      	 	
              8.12.3

            	
              shall,
                except for the Fundamental Warranties, cease two years after the
                Completion Date, except in respect of matters which have been the
                subject
                of a written claim made before such date by the Purchaser to the
                Vendor;

            

    

    

    
      	 	
              8.12.4

            	
              shall
                be exempted in respect of any breach of Warranties which arises as
                a
                result of any PRC
                tax laws, including an increase in the rate of Tax, not in force
                as at the
                date
                of this Agreement and which is retrospective in effect;
                and

            

    

    

    
      	 	
              8.12.5

            	
              shall
                be exempted in respect of a claim for breach of Warranty to the extent
                that provision or reserve in respect of the matter or thing giving
                rise to
                such claim has been specifically provided for in the Accounts or
                the
                Management Accounts, or has been specifically disclosed in this Agreement
                or the Disclosure Letter;

            

    

    

    unless
      the relevant claim or claims has arisen by reason of fraud, wilful concealment,
      dishonesty on the part of the Vendor, in which event there shall be no limit
      under this Agreement on the amount recoverable by the Purchaser from the Vendor
      in respect of such claim or claims or the time period within which such claims
      may be brought.

    

    
      	
              8.13

            	
              The
                Vendor shall not be liable for a claim under the Warranties if a
                claim in
                respect of the same event or circumstance has already been made under
                the
                Deed of Indemnity.

            

    

    

    
      	
              8.14

            	
              The
                Parties agree that no liability shall attach to the Vendor in relation
                to
                any Warranty claim to the extent that such claim would not have arisen
                but
                for an omission or a voluntary act (other than an omission or act
                carried
                out pursuant to a legally binding obligation created on or before
                Completion) of the Purchaser or any member of the Group occurring
                after
                Completion which constitutes fraud or wilful
                misconduct.

            

    

    

    
      	
              8.15

            	
              The
                Parties agree that no liability shall attach to the Vendor in relation
                to
                any Warranty claim until the aggregate amount of all claims, each
                of which
                (including on an aggregated basis where the individual claim is associated
                with or forms part of a series of related claims arising from or
                with
                respect to the same facts or circumstances) is of an amount (for
                the sake
                of clarify, prior to reduction in respect of the Subsidiaries as
                may be
                required by Clause 8.4) of US$30,000 or higher, exceeds US$4,500,000
                and
                in such event, the Vendor shall be liable only for the excess of
                the
                aggregate amount of all claims over the said US$4,500,000, subject,
                as the
                case may be, to limitation in respect of the Subsidiaries as may
                be
                required by Clause 8.4. For the sake of clarity, the limitations
                under
                this Clause 8.15 shall not apply to the obligations under the Deed
                of
                Indemnity or under Clause 6.2
                hereof.

            

    

    

    
      	
              8.16

            	
              If
                the Purchaser shall become aware of any material breach of Warranty
                in
                respect of which a claim could be made under this Agreement, it shall
                give
                reasonable written notice thereof to the Vendor and provide the Vendor
                with the opportunity to cure such breach (only if such breach is
                curable)
                within ten Business Days of its receipt of such notice from the Purchaser.
                In addition, the Purchaser shall (provided that the Vendor shall
                indemnify
                and hold harmless the Purchaser and the Company and the Subsidiaries,
                as
                applicable, to the Purchaser’s reasonable satisfaction, against any and
                all liabilities, costs, damages and/or expenses which may be incurred
                thereby) take such action and procure that the Company take such
                action as
                may reasonably be necessary to mitigate the loss or damage incurred
                relating to the Warranty claim; provided that neither the Company
                nor the
                relevant Subsidiary nor the Purchaser shall in any event be required
                to
                take any steps which would require any admission of guilt or liability
                relating to matters connected with the claim in question or which
                would
                affect the conduct of the business of the Purchaser or the Company
                or any
                of the Subsidiaries. For the avoidance of doubt, under no circumstances
                shall the failure by the Purchaser to provide prior reasonable written
                notice to the Vendor or the opportunity of the Vendor to cure such
                breach
                reduce or limit the liability of the Vendor in respect of such breach,
                unless and to the extent the Vendor is actually and materially prejudiced
                by such failure by the Purchaser.

            

    

    

    	9.          
             	
            Pre-Completion

          

    

    
      	
              9.1

            	
              The
                Vendor shall procure that, during the period from the date of this
                Agreement to the Completion Date or the termination of this Agreement
                pursuant to the terms hereof, each member of the Group shall carry
                on
                business in the same manner as it was operated prior hereto and in
                the
                normal and usual course and in furtherance of the foregoing, no member
                of
                the Group shall undertake any of the matters listed below without
                the
                prior written consent of the Purchaser:

            

    

    

    
      	 	
              9.1.1

            	
              enter
                into any contract, make any material change to the terms of the existing
                contracts or assume any liability which will result in any long term,
                unusual or onerous liability or commitment of any member of the
                Group;

            

    

    

    
      	 	
              9.1.2

            	
              save
                for the Approved Extraordinary Expenditures, enter into any capital
                commitment with an individual contract value of more than HK$500,000
                (whether by way of purchase, lease, hire purchase or
                otherwise);

            

    

    

    
      	 	
              9.1.3

            	
              make
                any change in the nature, scope or organisation of its business or
                dispose
                of the whole of its undertaking or property or a substantial part
                thereof;

            

    

    

    
      	 	
              9.1.4

            	
              acquire
                or form any subsidiary or acquire any shares in any company or acquire
                the
                whole or any substantial part of the undertaking, assets or business
                of
                any other company or any firm or person or enter into any joint venture
                or
                partnership with any other person;

            

    

    

    
      	 	
              9.1.5

            	
              make
                any loans or grant any credit (other than credit given in the normal
                course of trading and advances made to employees against expenses
                incurred
                by them on its behalf);

            

    

    

    
      	 	
              9.1.6

            	
              borrow
                any money or make any payments out of or drawings on its bank accounts
                (except routine payments in the ordinary course of business);
                

            

    

    

    
      	 	
              9.1.7

            	
              enter
                into any guarantee, indemnity or
                surety;

            

    

    

    
      	 	
              9.1.8

            	
              save
                as required by any applicable laws or regulations and as contemplated
                under Condition 4.1.8, make any changes to the terms of employment
                or of
                any profit sharing, share option, profit related, bonus or incentive
                scheme of any of its employees or in any arrangements with its
                consultants, or make any special or extraordinary payments to any
                of its
                employees or consultants;

            

    

    

    
      	 	
              9.1.9

            	
              save
                as required by any applicable laws or regulations, change (or announce
                to
                employees any proposal to change) the terms of any retirement scheme
                or
                pension plan in which that member of the Group participates (“Relevant
                Scheme”),
                or exercise any discretionary power under the Relevant Scheme, or
                cause
                the Relevant Scheme to be terminated or wound up (or otherwise fail
                to
                maintain the Relevant Scheme in full force and effect) or fail to
                make any
                required contribution (or other payment) to the Relevant Scheme,
                or fail
                to meet any obligation of any kind whatsoever to the Relevant
                Scheme;

            

    

    

    
      	 	
              9.1.10

            	
              acquire
                or dispose of or grant any option or right of pre-emption in respect
                of
                any material asset (including, without limitation, any of its Intellectual
                Property) or any interest nor give nor receive any service otherwise
                than
                at market value;

            

    

    

    
      	 	
              9.1.11

            	
              acquire
                or dispose of any freehold or leasehold property or grant any lease
                or
                third party right in respect of any of the
                Properties;

            

    

    

    
      	 	
              9.1.12

            	
              enter
                into any leasing, hire purchase agreement or any agreement or arrangements
                for payment on deferred terms;

            

    

    

    
      	 	
              9.1.13

            	
              grant
                or enter into any assignment, licence, franchise or other agreement
                or
                arrangement concerning any part of its name, trading names, know-how,
                patents, trademarks, service marks, trade dress, copyright, inventions
                or
                any other of its Intellectual
                Property;

            

    

    

    
      	 	
              9.1.14

            	
              declare,
                authorize, make or pay any dividend or other distribution (whether
                in cash
                or in specie) or reduce its paid-up
                capital;

            

    

    

    
      	 	
              9.1.15

            	
              incur
                or pay any management charges;

            

    

    

    
      	 	
              9.1.16

            	
              permit
                any of its insurances to lapse or do anything which would make any
                policy
                of insurance void or voidable;

            

    

    

    
      	 	
              9.1.17

            	
              make
                any payments to either the Vendor or any of its subsidiaries or to
                Mr. Tse
                Ping or to any persons (other than members of the Group) affiliated
                with
                any of the foregoing (for the purpose of this Clause, a person shall
                be
                considered to be “affiliated” with another person if that person either
                Controls, is Controlled by or under the common Control with such
                person);

            

    

    

    
      	 	
              9.1.18

            	
              other
                than in the ordinary course of business, apply for, surrender or
                agree any
                variations to any Environmental
                Licences;

            

    

    

    
      	 	
              9.1.19

            	
              agree,
                conditionally or otherwise, to do any of the
                foregoing;

            

    

    

    
      	 	
              9.1.20

            	
              commence
                the prosecution or defence of, or settle, any legal or arbitration
                proceedings (other than in connection with the collection of ordinary
                trade debts);

            

    

    

    
      	 	
              9.1.21

            	
              make
                any changes in the pricing of any products of any member of the Group,
                other than in the ordinary course of business or as required by applicable
                laws or regulations;

            

    

    

    
      	 	
              9.1.22

            	
              make
                any changes to any of its constitutional
                documents;

            

    

    

    
      	 	
              9.1.23

            	
              amend
                the accounting policies or practices or reporting practices existing
                as of
                the date of this Agreement;

            

    

    

    
      	 	
              9.1.24

            	
              terminate,
                enter into or amend any supply or distribution agreement or arrangement;
                or

            

    

    

    
      	 	
              9.1.25

            	
              create,
                allot or issue or agree to create, allot or issue any share or loan
                capital or other security, or equity interests, or grant any option
                over
                or other right to subscribe for any share or loan capital or other
                security, or equity interests.

            

    

    

    
      	
              9.2

            	
              The
                Vendor undertakes and covenants with the Purchaser that during the
                period
                from the date hereof until the Completion Date or the termination
                of this
                Agreement pursuant to the terms hereof, it will
                not:

            

    

    

    
      	 	
              9.2.1

            	
              sell,
                mortgage, grant an option over or otherwise dispose of or encumber
                to any
                person the whole or any part of the shares or equity interests of
                any
                member of the Group owned by the Vendor or the Company or the business
                or
                assets of any member of the Group, or indicate a willingness to consider
                any offer to do any of the
                foregoing;

            

    

    

    
      	 	
              9.2.2

            	
              engage
                in discussions or negotiations with any person in relation to the
                sale,
                mortgage or other disposition of, or grant of an option or other
                encumbrance in respect of, the whole or any part of the shares or
                equity
                interests of any member of the Group owned by the Vendor or the Company
                or
                the business or assets of any member of the Group;
                or

            

    

    

    
      	 	
              9.2.3

            	
              provide
                to any prospective purchaser of the whole or any part of the business,
                assets or shares or equity interests of any member of the Group any
                non-public information concerning any member of the
                Group;

            

    

    

    provided
      that the foregoing shall not prevent the sale or other disposal or any
      discussions or negotiations in respect of any such sale or other disposal by
      any
      member of the Group of any of its assets in the usual and ordinary course of
      business.

    

    
      	
              9.3

            	
              The
                Vendor undertakes that it will after the signing of this Agreement
                and
                before Completion make available to the Purchaser upon its request
                personnel with knowledge of the history and development of the Group’s
                products for the purpose of providing information thereon to the
                Purchaser.

            

    

    

    	10.       
              	
            Confidentiality
              and Restriction on
              Announcements

          

    

    
      	
              10.1

            	
              Subject
                to Clause 10.2, each Party shall treat as confidential all information
                received or obtained by it or its directors, employees, agents or
                advisers
                as a result of entering into or performing this Agreement including
                (i)
                information relating to the provisions of this Agreement; (ii) the
                negotiations leading up to this Agreement;(iii) the subject matter
                of this
                Agreement; or (iv) the business or affairs of the other Party, and
                shall
                not at any time make use of, disclose or divulge to any person any
                such
                information or make any announcement on any such information without
                the
                prior written consent of the other
                Party.

            

    

    

    
      	
              10.2

            	
              The
                restrictions contained in Clause 10.1 shall not apply so as to prevent
                a
                Party from disclosing or making any announcement of any information
                which
                would otherwise be confidential if and to the extent: (i) required
                by law
                of any relevant jurisdiction; (ii) required by any securities exchange,
                supervisory, regulatory or governmental body to which such Party
                is
                subject (including but not limited to The Stock Exchange of Hong
                Kong
                limited and the Securities and Futures Commission in Hong Kong) whether
                or
                not the requirement for information has the force of law; (iii) disclosed
                to any professional advisers of such Party (provided always that
                such
                Party shall procure such professional advisers will observe the provision
                of this Clause 10); (iv) disclosed in a press announcement in a form
                agreed by both Parties or consistent with a mutually agreed set of
                questions and answers; or (v) any information which comes into the
                public
                domain through no fault of such Party.

            

    

    

    	11.       
              	
            Costs

          

    

    
      	
              11.1

            	
              Each
                Party shall pay its own costs of and incidental to this Agreement
                and the
                sale and purchase hereby agreed to be
                made.

            

    

    

    
      	
              11.2

            	
              The
                Vendor and the Purchaser shall each equally bear any stamp duty payable
                as
                a result of the sale and purchase of the Sale Shares pursuant to
                this
                Agreement.

            

    

    

    
      	
              11.3

            	
              The
                Vendor confirms that no costs or expenses of whatever nature relating
                to
                the sale of the Sale Shares has been or is to be borne by any member
                of
                the Group and if any such costs or expenses have been or are to be
                borne
                by any member of the Group, the Vendor shall forthwith reimburse
                any and
                all such costs and expenses to the relevant member of the
                Group.

            

    

    

    	12.        
             	
            General

          

    

    
      	
              12.1

            	
              This
                Agreement shall be binding upon and enure for the benefit of the
                estates,
                personal representatives or successors of the Parties. Save for an
                assignment of this Agreement by the Purchaser to a subsidiary of
                the
                Purchaser, no Party may assign or transfer its rights or obligations
                under
                this Agreement without the prior written consent of the other
                Party.

            

    

    

    
      	
              12.2

            	
              This
                Agreement (together with any documents referred to herein or executed
                contemporaneously by the Parties in connection herewith) constitutes
                the
                whole agreement between the Parties and supersedes any previous agreements
                or arrangements between them relating to the subject matter hereof;
                it is
                expressly declared that no variations hereof shall be effective unless
                made in writing signed by duly authorised representatives of the
                Parties.
                Notwithstanding the foregoing, the Confidentiality Agreement entered
                into
                between the Vendor and the Purchaser dated November 21, 2004, as
                amended
                on July 2, 2005, survives the signing of the Agreement, but shall
                terminate upon Completion.

            

    

    

    
      	
              12.3

            	
              All
                of the provisions of this Agreement shall remain in full force and
                effect
                notwithstanding Completion (except insofar as they set out obligations
                which have been fully performed at
                Completion).

            

    

    

    
      	
              12.4

            	
              If
                any provision or part of a provision of this Agreement shall be,
                or be
                found by any authority or court of competent jurisdiction to be,
                invalid
                or unenforceable, such invalidity or unenforceability shall not affect
                the
                other provisions or parts of such provisions of this Agreement, all
                of
                which shall remain in full force and
                effect.

            

    

    

    
      	
              12.5

            	
              Any
                right of rescission conferred upon any Party hereby shall be in addition
                to and without prejudice to all other rights and remedies available
                to it
                (and, without prejudice to the generality of the foregoing, shall
                not
                extinguish any right to damages to which that Party may be entitled
                in
                respect of the breach of this Agreement) and no exercise or failure
                to
                exercise such a right of rescission shall constitute a waiver by
                that
                Party of any such other right or
                remedy.

            

    

    

    
      	
              12.6

            	
              No
                failure of any Party to exercise, and no delay or forbearance in
                exercising, any right or remedy in respect of any provision of this
                Agreement shall operate as a waiver of such right or
                remedy.

            

    

    

    
      	
              12.7

            	
              Upon
                and after Completion the Vendor shall do and execute or procure to
                be done
                and executed all such further acts, deeds, documents and things as
                may be
                     reasonably necessary to give effect to the terms of this Agreement
                and to
                place control of the Company and the Subsidiaries in the hands of
                the
                Purchaser and to deliver and make available to the Purchaser all
                documents
                and records (if any) of the Company and the Subsidiaries, and all
                documents (if any) evidencing registration or filing (as applicable)
                of
                all registrable Intellectual Property owned by the Group, which are
                in the
                possession or under the control of the Vendor, and pending the doing
                of
                such acts, deeds, documents and things, the Vendor shall as from
                Completion hold the legal estate in the Sale Shares in trust for
                the
                Purchaser.

            

    

    

    
      	
              12.8

            	
              This
                Agreement may be executed in one or more counterparts (including
                by
                facsimile signature), but shall not be effective until each Party
                has
                executed at least one counterpart and each such counterpart shall
                constitute an original of this Agreement but all the counterparts
                shall
                together constitute one and the same
                instrument.

            

    

    

    	13.        
             	
            Notices

          

    

    Each
      notice, demand or other communication given or made under this Agreement shall
      be in writing and delivered or sent to the relevant Party at its address or
      fax
      number set out below (or such other address or fax number as the addressee
      has
      by five (5) Business Days’ prior written notice specified to the other
      Party):

    

    To
      the
      Vendor:                    
Sino
      Biopharmaceutical Limited

    Unit
      09,
      41st Floor

    Office
      Tower

    Convention
      Plaza

    1
      Harbour
      Road

    Wanchai

    Hong
      Kong

    Attention: Mr.
      Tse
      Ping

    Fax
      Number: (852)
      2880 0847

    

    To
      the
      Purchaser:                
Bausch
      & Lomb Incorporated

    One
      Bausch & Lomb Place

    Rochester,
      New York 14604-2701

    United
      States of America

    Attention: Vice
      President - Business Development

    Fax
      Number: (1-585)
      338-5043

    

    With
      a
      copy
      to:                  
 Bausch
      & Lomb Incorporated

    One
      Bausch & Lomb Place

    Rochester,
      New York 14604-2701

    United
      States of America

    Attention: Senior
      Vice President and 

    General
      Counsel

    Fax
      Number: (1-585)
      338-8706

    

    Any
      notice, demand or other communication so addressed to the relevant Party shall
      be deemed to have been delivered (a) if given or made by letter, when actually
      delivered to the relevant address and (b) if given or made by fax, when
      despatched.

    

    	14.        
             	
            Governing
              Law and Arbitration

          

    

    
      	
              14.1

            	
              This
                Agreement shall be governed by and construed in accordance with the
                laws
                of Hong Kong. 

            

    

    

    
      	
              14.2

            	
              Any
                dispute, controversy or claim arising out or relating to this Agreement,
                or the breach, termination or invalidity thereof, shall be settled
                by
                final and binding arbitration in accordance with the UNCITRAL Arbitration
                Rules as at present in force and as may be amended by the rest of
                this
                Clause. The appointing body shall be the Hong Kong International
                Arbitration Centre (“HKIAC”).
                The place of arbitration shall be in Hong Kong at HKIAC. The tribunal
                for
                any arbitration shall consist of three (3) arbitrators with each
                of the
                Purchaser and the Vendor having the right to appoint one arbitrator
                and
                the third arbitrator shall be appointed by the Secretary General
                of HKIAC.
                The language to be used in the arbitral proceedings shall be
                English.

            

    

    

    	15.        
             	
            English
              and Chinese Versions

          

    

    The
      Parties hereby acknowledge and agree that even though they will each execute
      both an English and a Chinese version of this Agreement, if and to the extent
      that there is any conflict or inconsistencies between the English and Chinese
      versions of this Agreement, the English version of this Agreement shall prevail
      at all times and no Party shall take any steps which may be inconsistent with
      the foregoing.

    

    

    IN
      WITNESS WHEREOF
      the
      Parties have executed this document on the date appearing at the head
      hereof.

    

    

    SIGNED
      by                                                                                
 )

    Tse
      Hsin                                                                                    
 )

    for
      and
      on behalf of      )
      /s/ Tse
      Hsin

    SINO
      BIOPHARMACEUTICAL LIMITED      )

    in
      the
      presence
      of:                                                                    
 )

    

    /s/
      Oh
      Chee Hwa

    

    

    SIGNED
      by       )

    John
      M.
      Loughlin                                                                    
 )

    for
      and
      on behalf of      )
      /s/
      John M. Loughlin

    BAUSCH
      & LOMB INCORPORATED       )

    in
      the
      presence
      of:              
     )

    

    /s/
      Stephen ChanExhibit (10)-hh

     

    Exhibit
      (10)-hh

     

     

    Summary
      of Employment Arrangement of Dr. Praveen Tyle

     

     

    Dr.
      Praveen Tyle entered into an employment arrangement in or around June 2004.
      He
      became a named executive officer based on 2005 compensation. His terms of
      employment include:

     

     

    	·  	
            Eligible
              to participate in certain Company management plans that have been
              previously filed with the Securities and Exchange Commission, including
              the Annual Incentive Compensation Plan, the Bausch & Lomb Stock
              Incentive Plan, and Long-Term Incentive
              Plan;

          

     

    	·  	
            Entitled
              to receive employee benefits made available to other employees and
              officers of the Company and their eligible
              dependents;

          

     

    	·  	
            Received
              a stock option award of 35,000 shares, which vests in three equal
              installments over a three-year period, and a restricted stock award
              of
              8,000 shares, which vests in three equal installments in three, five
              and
              seven years from the date of grant;

          

     

    	·  	
            Modified
              severance benefits payable to him under the Company’s Officer Separation
              Plan - if Dr. Tyle’s employment terminates prior to July 19, 2007, under
              circumstances which would otherwise entitle him to severance protection
              under the Company’s Officer Separation Plan: (i) unvested portions of his
              restricted stock and his stock option award granted under his 2004
              employment arrangement vest immediately upon the termination date;
              and
              (ii) if accelerated vesting is not approved under the Company’s 2003
              Long-Term Incentive Plan, the Company will pay him, subject to
              withholdings, an amount equal to the fair market value of the unvested
              restricted stock award and the excess, if any, of the fair market value
              of
              the unvested stock option award over the option’s exercise price. In
              addition, if Dr. Tyle is involuntarily terminated after three years
              from
              his hire date under circumstances providing him with benefits under
              the
              Officer Separation Plan, then remaining unvested portions of Dr. Tyle’s
              restricted stock grant, if any, shall immediately vest on such date
              of
              termination. In the event of a termination due to a change of control,
              Dr.
              Tyle’s severance arrangement would be superseded by the Change of Control
              Agreement between Dr. Tyle and the
              Company.

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