Document:

Exhibit 10.36

Exhibit 10.36

EXCLUSIVE EQUITY INTEREST PURCHASE AGREEMENT

This Exclusive Equity Interest Purchase Agreement (the “Agreement”) is entered into by and
among the following parties effective as of May 9, 2011.

Party A: Taian Yisheng Management & Consulting Co., Ltd., a wholly foreign-owned enterprise duly
established and valid existing under the laws of the People’s Republic of China (“PRC”). Registered
Address: Ruixing industry park, Dongping County, Shandong Province, China.

			
	Party B:	 	Mr. Wang Xuchun

Mr. Huang Lingfa

Mr. Qiao Binglong

Mr. Wang Guo

			
		 	

			
	Party C:	 	Shandong Xiangrui Pharmacy Co., Ltd

Address: Pengji Town, Dongping County, Shandong Province

Legal Representative: Mr. Huang Lingfa

			
		 	

WHEREAS, Party B holds a 100% equity interest in Party C (the “Equity Interest”);

WHEREAS, Party C and Party A have entered into an Exclusive Technical Consulting and Service
Agreement and other agreements.

 

 

 

NOW THEREFORE, intending to be bound hereby and for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

ARTICLE I

TRANSFER OF EQUITY INTEREST

	1.1	 	Grant of Purchase Right
	 
	1.1	 	

Party B hereby irrevocably grants Party A the exclusive right to purchase or designate one
or more persons (the “Specified Person”) to purchase all or any portion of the Equity
Interest from Party B, subject to compliance with legal restrictions under applicable PRC
laws (the “Purchase Right”). Party B shall not sell or transfer all or any portion of the
Equity Interest to any party other than Party A and/or the Specified Person. Party C hereby
acknowledges that Party B may grant the Purchase Right to Party A, and the other
shareholders of Party C have already agreed to waive any rights to acquire the Equity
Interest of Party C from Party B and such shareholders have executed the Announcement Letter
to waive their pre-emptive rights (attached as Appendices). As used in this Agreement, the
term “person” refers to an individual, corporation, joint enterprise, partnership,
enterprise, trust or non-corporation organization.

	1.2	 	Steps for Exercise of the Purchase Right
	 
	1.2	 	

Compliance with PRC laws and regulations are conditions precedent to exercise of the
Purchase Right by Party A. To the extent Party A wishes to exercise the Purchase Right, it
shall issue a written notice (the “Purchase Notice”) to Party B, and the Purchase Notice
shall state: (a) that Party A intends to exercise the Purchase Right; (b) the percentage of
the Equity Interest to be purchased therewith; and (c) the effective date or transfer date.

 

2

 

	1.3	 	Consideration for the Equity Interest

	1.3	 	

The transfer fee (“Transfer Fee”) payable by Party A shall be not be significantly lower
than the value of the net assets of Party C, as determined by the assets evaluation
institution retained by Party A.

	1.4	 	Transfer of the Equity Interest
	 
	1.4	 	

Each time Party A exercises the Purchase Right:

	 	1.4.1	 	Party B shall ensure that Party C timely convenes a shareholders’ meeting at
which the shareholders of Party C shall pass resolutions providing that Party B may
transfer the Equity Interest to Party A or the Specified Person.

	 	1.4.1	 	

	 	1.4.2	 	Each of Party B and Party C shall enter into an equity transfer contract
relating to the Equity Interest pursuant to this Agreement and the Purchase Notice (an
“Equity Transfer Contract”).

	 	1.4.2	 	

	 	1.4.3	 	The Parties shall execute all other necessary agreements or documents, obtain
all necessary government approvals and consents, and take all necessary actions to
legally transfer the ownership of the Equity Interest to Party A or the Specified
Person and ensure that Party A or the Specified Person will be the registered owner of
the Equity Interest. The Equity Interest shall be free from any Security Interest (as
defined below). For the purpose of this Agreement, the term “Security Interest” shall
include any guarantee, mortgage, third party right or interest, purchase right,
preemption right, offset right, ownership withholding right or other security
arrangement, but shall exclude any security interest granted pursuant to this Agreement
or the Equity Interest Pledge Agreement entered into by and between Party A and Party B
effective as of May 9, 2011 (“Equity Interest Pledge Agreement”). Pursuant to the
Equity Interest Pledge Agreement, Party B shall pledge all the equity possessed by
Party B in Party C to Party A as guaranty of the fees payable pursuant to the Exclusive
Technical and Consulting Service Agreement entered into by and between Party C and
Party A effective as of May 9, 2011 (the “Exclusive Technical and Consulting Service
Agreement”).

	 	1.4.3	 	

 

3

 

	1.5	 	Payment for the Equity Interest
	 
	1.5	 	

	 	1.5.1	 	Party A shall pay the Transfer Fee to Party B in accordance with the terms of Article 1.3.
	 
	 	1.5.1	 	

ARTICLE II

COVENANTS RELATING TO THE EQUITY INTEREST

	2.1	 	Covenants of Party C
	 
	2.1	 	

	 	2.1.1	 	Without the written consent of Party A, Party C will not supplement, amend or
modify any provisions in relation to its registered capital or equity structure of the
constitutional documents of Party C and will not otherwise increase or reduce its
registered capital or change its equity structure in any way.

	 	2.1.1	 	

	 	2.1.2	 	Party C shall remain in good standing, and prudently and efficiently operate
its business and corporate affairs in accordance with commercial standards and
practice.
	 
	 	2.1.2	 	

	 	2.1.3	 	Without the prior written consent of Party A, Party C shall not sell,
transfer, mortgage or dispose of its assets, business or beneficial rights whose value
excess the amount of RMB5,000,000, or allow the creation of any Security Interest or
other encumbrance upon its assets whose value excess the amount of RMB5,000,000,.

	 	2.1.3	 	

	 	2.1.4	 	Without the prior written consent of Party A, Party C shall not incur or
guarantee any debt involving an amount in excess of RMB 5,000,000, or permit the
existence of any debt involving an amount in excess of RMB 5,000,000, other than (i)
debt that is incurred during the course of normal business operations (excluding
business loans) and (ii) debt that has been previously disclosed to Party A and to
which Party A has provided prior written consent.

	 	2.1.4	 	

	 	2.1.5	 	Party C shall operate in the normal course of business to maintain the value
of its assets and shall not take any action which shall materially adversely influence
its business operations or the value of its assets.

	 	2.1.5	 	

 

4

 

	 	2.1.6	 	Without the prior written consent of Party A, Party C shall not enter into any
material agreement outside the normal course of business. For the purposes of this
Agreement, an agreement involving an amount in excess of RMB5,000,000 shall be deemed a
material agreement.

	 	2.1.6	 	

	 	2.1.7	 	Without the prior written consent of Party A, Party C shall not provide any
loans or credit whose amount exceeds RMB 5,000,000 to any third party.
	 
	 	2.1.7	 	

	 	2.1.8	 	At the request of Party A, Party C shall provide Party A with any and all
materials relating to the business operation and financial status of Party C.
	 
	 	2.1.8	 	

	 	2.1.9	 	Party C shall purchase business insurance from an insurance company acceptable
to Party A and shall maintain such insurance. The amount and kind of such insurance
shall be similar to insurance carried by other companies which operate similar
businesses and possess similar assets in the same geographic area.

	 	2.1.9	 	

	 	2.1.10	 	Without the prior written consent of Party A, Party C shall not merge with, make an
investment whose amount exceeds RMB 5,000,000 in, combine with or purchase the equity
or substantially all the assets, the consideration of which exceeds RMB 5,000,000 of
any other entity.

	 	2.1.10	 	

	 	2.1.11	 	Party C shall inform Party A of any actual or threatened litigation, arbitration, or
administrative procedures involving an amount probably in excess of RMB 5,000,000
relating to the assets, business and beneficial rights of Party C.

	 	2.1.11	 	

	 	2.1.12	 	In order to maintain Party C’s ownership of all its assets, Party C shall execute all
necessary or proper documents, take all necessary or proper actions, substitute all
necessary or proper claims, and make all necessary or proper answer to all compensation
claims.

	 	2.1.12	 	

	 	2.1.13	 	Without the prior written consent of Party A, Party C shall not grant any dividend to
its shareholders. However, once requested by Party A, Party C shall immediately
distribute all distributable profits to its shareholders.

	 	2.1.13	 	

 

5

 

	2.2	 	Covenants of Party B
	 
	2.2	 	

	 	2.2.1	 	Without the prior written consent of Party A, Party B shall not sell,
transfer, mortgage or dispose of any right or interest relating to the Equity Interest,
or allow any creation of any other Security Interest or encumbrance on the Equity
Interest (excluding the security interest under this Agreement and the Equity Interest
Pledge Agreement).

	 	2.2.1	 	

	 	2.2.2	 	Party B shall use its best efforts to prevent the other shareholders of Party
C, if any, from adopting resolutions relating to the sale, transfer, mortgage, disposal
of any rights or interests relating to the Equity Interest, or allowing any creation of
any other Security Interest or encumbrance on the Equity Interest without the prior
written consent of Party A (excluding the security interest under this Agreement and
the Equity Interest Pledge Agreement).

	 	2.2.2	 	

	 	2.2.3	 	Party B shall use its reasonable best efforts to prevent the other
shareholders of Party C, if any, from approving resolutions relating to Party C’s
merger with, combination with, purchase of, or investment in any other entity without
the prior written consent of Party A.

	 	2.2.3	 	

	 	2.2.4	 	Party B shall inform Party A immediately of any actual or threatened
litigation, arbitration, or administrative procedure relating to the Equity Interest.
	 
	 	2.2.4	 	

	 	2.2.5	 	Party B shall use its reasonable best efforts to ensure that the other
shareholders of Party C, if any, approve the transfer of the Equity Interest as set out
in this Agreement.
	 
	 	2.2.5	 	

	 	2.2.6	 	In order to keep the ownership of the Equity Interest, Party B shall execute
all necessary or proper documents, take all necessary or proper actions, substitute all
necessary or proper claims, and make all necessary or proper responses to all
compensation claims.

	 	2.2.6	 	

	 	2.2.7	 	Upon the request of Party A from time to time, Party B shall immediately
transfer the Equity Interest to Party A or the Specified Person pursuant to the terms
of this Agreement.
	 
	 	2.2.7	 	

 

6

 

	 	2.2.8	 	Party B shall strictly comply with this Agreement and any other agreements
which may be entered into by and among Party B, Party C, and Party A collectively or
separately, and shall perform its
obligations under this Agreement, and shall not take any actions which shall affect
the validity and enforceability of this Agreement.

	 	2.2.8	 	

ARTICLE III

REPRESENTATIONS AND WARRANTIES

	3.1	 	Party B and Party C, jointly and severally, make the following representations to Party A on
the date of this Agreement and the date of each Equity Transfer Contract:
	 
	3.1	 	

	 	3.1.1	 	Each such party has the power to enter into and deliver this Agreement and the
Equity Transfer Contract to be executed by it for each transfer of the Equity Interest,
and each such Party has the power and capacity to perform its obligations under this
Agreement and the Equity Transfer Contract. Upon the execution of this Agreement and
the Equity Transfer Contract, such documents shall constitute valid and legally binding
documents and may be enforceable in accordance therewith.

	 	3.1.1	 	

	 	3.1.2	 	Neither the execution and delivery of this Agreement or any Equity Transfer
Contract, nor performance of the obligations under this Agreement or any Equity
Transfer Contract will: (i) violate any applicable PRC law; (ii) conflict with such
Party’s Articles of Association or other organizational documents; (iii) breach any
contract or document which such Party is a party to or which is binding upon such
Party; (iv) violate any acquired permit, approval or any valid qualification; or (v)
result in the termination or revocation or additional conditions to the acquired permit
approval or qualification.

	 	3.1.2	 	

	 	3.1.3	 	Party C maintains full and transferable ownership of all of its assets. Except
for the pledge incurred by this Agreement and the pledge of the Equity Interest
incurred by the Equity Interests Pledge Agreement, there is no other pledge and/or
mortgage on the Equity Interest.

	 	3.1.3	 	

	 	3.1.4	 	Party C has no outstanding debt except for (i) debts, which were incurred
during the ordinary course of business; and (ii) debt that has been previously
disclosed to Party A and to which Party A has provided written consent.

	 	3.1.4	 	

 

7

 

	 	3.1.5	 	Party C is in compliance with all applicable laws and regulations. There is no
actual, pending or potential litigation, arbitration, or administrative procedures
relating to the Equity Interest, the assets of Party C or other matters relating to
Party C.

	 	3.1.5	 	

ARTICLE IV

EFFECTIVE DATE

	4.1	 	This Agreement shall be executed and come into effect as of the date first set forth above.
This Agreement shall expire on the date that is twenty-five (25) years following the date
hereof, and this Agreement may be extended prior to termination upon written agreement
executed by each Party.

	4.1	 	

ARTICLE V

GOVERNING LAW AND DISPUTE SETTLEMENT

	5.1	 	Governing Law
	 
	5.1	 	

This Agreement shall be governed by and interpreted according to the laws of the PRC.

	5.2	 	Dispute Settlement
	 
	5.2	 	

The Parties shall negotiate in good faith to settle any dispute relating to the
interpretation or implementation of this Agreement. To the extent such dispute cannot be
settled within thirty (30) days from the date a Party first issues written notice requesting
settlement of a dispute through negotiation, either Party may submit the dispute to the
Shanghai Sub-commission of China International Economic and Trade Arbitration Committee for
arbitration according to the requisite arbitration rules. The arbitration shall be held in
Shanghai. The arbitration proceedings shall be conducted in Chinese. The arbitration award
is final and binding on each party.

 

8

 

ARTICLE VI

TAX AND EXPENSES

	6.1	 	Each Party shall bear any and all burden of its own taxes, costs and expenses under PRC law
relating to the preparation and execution of this Agreement and each Equity Transfer Contract.

	6.1	 	

ARTICLE VII

NOTICE

	7.1	 	Any notice or other communication under this Agreement shall be in Chinese and be sent to the
recipient at its address first above written or such other address as may be designated from
time to time by hand delivery, mail or facsimile. Any notice required or given hereunder shall
be deemed to have been served: (a) on the same date if sent by hand delivery; (b) on the tenth
day if sent by prepaid air-mail, or on the fourth day if sent by the professional hand
delivery which is acknowledged worldwide; and (c) the receipt date displayed on the
transmission confirmation notice if sent by facsimile.

	7.1	 	

ARTICLE VIII

CONFIDENTIALITY

	8.1	 	The Parties acknowledge and confirm that any oral or written information relating to this
Agreement communicated among the Parties shall be deemed to be confidential information
(“Confidential Information”). The Parties shall keep such Confidential Information
confidential and shall not disclose it to any third party without written consent from of the
other Parties except that the following information shall be excluded from the definition of
Confidential Information: (a) information that is publicly available or will become publicly
available so long as it is not disclosed by the Party receiving such Confidential Information;
(b) information that is disclosed in accordance with applicable laws or regulations; or (c) a
Party may disclose Confidential Information to its attorney or financial advisor so long as
such attorney or financial advisor needs to access such information and agrees to keep such
information confidential. The disclosure by an employee or agent of a Party shall be deemed to
be disclosure by the Party itself, and the Party shall undertake liability therefor. The
Parties agree that the provisions of this Article shall survive notwithstanding the
termination of this Agreement.

	8.1	 	

 

9

 

ARTICLE IX

FURTHER ASSURANCE

	9.1	 	The Parties agree that they will execute any and all necessary documents required for the
purpose of performing this Agreement and will execute any documents and take any actions which
are beneficial for purposes of this Agreement.

	9.1	 	

ARTICLE X

MISCELLANEOUS

	10.1	 	Amendment and supplementation
	 
	10.1	 	

Any revision to, amendment of or supplement to this Agreement must be in writing and be
executed by each Party hereto.

	10.2	 	Compliance with laws and regulations
	 
	10.2	 	

The Parties shall comply with all applicable laws and regulations which have been formally
issued.

	10.3	 	Entire agreement
	 
	10.3	 	

Unless it is otherwise revised, amended or supplemented, this Agreement and its appendices
constitute the entire agreement among the Parties as to the subject matter of this
Agreement, and supersede any prior oral or written negotiations, statements or agreements
among the parties relating thereto.

 

10

 

	10.4	 	Headings
	 
	10.4	 	

Headings in this Agreement are only used for reading convenience, and shall not be used to
interpret, explain or otherwise influence the meaning of the provisions of this Agreement.

	10.5	 	Severability
	 
	10.5	 	

If any of the terms of this Agreement is declared invalid, illegal or unenforceable in
accordance with any applicable laws or regulations, the validity and enforceability of the
other terms hereof shall nevertheless remain unaffected. The Parties hereto agree to
negotiate to restructure such invalid, illegal or unenforceable terms so as to maintain the
same or similar economic impact.

	10.5	 	
	 
	10.6	 	Successor
	 
	10.6	 	

This Agreement shall bind the permitted transferee or successor of each Party and shall be
interpreted for its benefit.

	10.7	 	Survival
	 
	10.7	 	

	 	10.8.1	 	Any duties occurred in relation to the Agreement prior to termination or expiration
shall continue to be effective after expiration or termination of the Agreement.
	 
	 	10.8.1	 	

	 	10.8.2	 	The provisions of Articles 5, 7, 8 and 10.8 shall survive the termination of this
Agreement.
	 
	 	10.8.2	 	

	10.8	 	Waiver
	 
	10.8	 	

Each Party may waive the terms and conditions under this Agreement in writing. Such waiver
must be duly signed by such Party. Any waiver relating to the breach of the other Party in
certain circumstance shall not be deemed as a waiver for a similar breach in other
circumstances

[Remainder of Page Left Intentionally Blank — Signature Page Follows

 

11

 

[Equity Interest Purchase Agreement —— Signature Page]

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Party A:	 	Taian Yisheng Management & Consulting Co., Ltd.	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	Its:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Party B:	 	Mr. Wang Xuchun	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Mr. Huang Lingfa	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Mr. Qiao Binglong	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Mr. Wang Guo	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Party C:	 	Shandong Xiangrui Pharmacy Co., Ltd	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Legal Representative	 	 
	 	 	 	 	 	 		 	 

 

12

 

Appendix 1

Announcement Letter

Shandong Xiangrui Pharmacy Co., Ltd (the “Company”) is a limited liability company established
and validly existing under the laws of the PRC. We, as shareholders of the Company, hold
collectively a 100% equity interest in the Company. We hereby irrevocably waive any pre-emptive
right we may have upon 100% equity interest in the Company and will not encumber the transfer of
the equity interest you proposed in any way.

This Announcement Letter is effective as of May 9, 2011.

 

13Exhibit 10.37

Exhibit 10.37

OPERATING AGREEMENT

This Operating Agreement (the “Agreement”) is entered into by and among the following parties
effective as of May 9, 2011.

Party A: Taian Yisheng Management & Consulting Co., Ltd., a wholly foreign-owned enterprise duly
established and valid existing under the laws of the People’s Republic of China (“PRC”). Registered
Address: Ruixing industry park, Dongping County, Shandong Province, China.

	 	 	 
	

	 	
	

	: 	
	 
	Party B:

	 	Shandong Xiangrui Pharmacy Co., Ltd
	 

	 	Address: Pengji Town, Dongping County, Shandong Province
	 

	 	Legal Representative: Mr. Huang Lingfa
	 
	

	 	
	 
	 	 
	Party C:

	 	Mr. Wang Xuchun
	 
	 	 
	 

	 	Mr. Huang Lingfa
	 
	 	 
	 

	 	Mr. Qiao Binglong
	 
	 	 
	 

	 	Mr. Wang Guo
	 
	 	 
	

	 	

WHEREAS:

	1.	 	Party A is a wholly foreign-owned enterprise duly incorporated and validly existing under the
PRC law, which has the technology expertise, practical experience and professional technicians
to provide consulting services;

	2.	 	Party B is a limited liability company duly incorporated and validly existing under the PRC
law;

 

 

 

	3.	 	Party C comprises the shareholders of Party B, who collectively own 100% of the equity
interests of Party B;

	4.	 	Party A has established a business relationship with Party B by entering into the “Exclusive
Technical Consulting Service Agreement” (the “Service Agreement”);

	5.	 	Pursuant to the Service Agreement, Party B pays a certain amount of money to Party A.
However, the relevant payable account has not been paid yet and the daily operations of Party
B will have a material effect on its ability to pay such payable account to Party A;

	6.	 	The Parties desire to enter into this Agreement to provide for Party A’s guarantee of
expenses and losses of Party B and clarify matters in connection with Party B’s operation.

NOW THEREFORE, all parties of this Agreement hereby agree as follows through mutual negotiations:

	1.	 	Party A agrees, subject to the satisfaction of the relevant provisions by Party B herein, to
serve as guarantor for Party B in the contracts, agreements or transactions in connection with
Party B’s operation between Party B and any other third party, to provide full guarantee for
the performance of such contracts, agreements or transactions by Party B. Party B agrees, as
the counter-guarantee, to pledge the receivable account in its operation and its equipment and
operating assets to Party A. According to the aforesaid guarantee arrangement, Party A wishes
to enter into written guarantee contracts with Party B’s counter-parties thereof to assume the
guarantee liability as the guarantor when it needs; therefore, Party B and Party C shall take
all necessary actions (including but not limited to execute relevant documents and transact
relevant registrations) to carry out the arrangement of counter-guarantee to Party A.

	1.	 	

 

2

 

	2.	 	In consideration of the requirement of Article 1 herein and assuring the performance of the
various operation agreements between Party A and Party B and the payment of the payables
accounts by Party B to Party A, Party B together with its shareholder, Party C hereby jointly
agree that Party B shall not conduct any transaction which may materially affect its assets,
obligations, rights or operation (excluding business contracts entered into in the ordinary
course of Party B’s regular operations and the lien obtained by relevant counter parties due
to such agreements) unless Party A provides its prior written consent. Such transactions shall
include, but not be limited to, the following matters:

	2.	 	

	 	2.1	 	borrowing money from any third party or assume any debt whose amount in
excess of RMB 5,000,000;

	 	2.1	 	

	 	2.2	 	selling to or acquiring from any third party any asset or right whose amount in
excess of RMB 5,000,000, including but not limited to any intellectual property right;

	 	2.2	 	

	 	2.3	 	providing any real guarantee whose amount in excess of RMB 5,000,000 for any
third party with its assets or intellectual property rights; or

	 	2.3	 	

	 	2.4	 	assigning to any third party its business agreements.

	 	2.4	 	

	3.	 	In order to ensure the performance of the various operation agreements between Party A and
Party B and the payment of the various payables by Party B to Party A, Party B together with
its shareholder Party C hereby jointly agree to accept, from time to time, the corporate
policy advice and guidance provided by Party A in connection with company’s daily operating
and financial management and the employment and dismissal of the company’s employees.

	3.	 	

	4.	 	Party B together with its shareholder Party C hereby jointly agree that Party C shall
cooperate to appoint the persons recommended by Party A as the directors of Party B, and Party
B shall appoint Party A’s senior managers as Party B’s General Manager, Chief Financial
Officer, and other senior officers. If any of the above senior officers leaves or is dismissed
by Party A, he or she will lose the qualification to take any position in Party B and Party B
shall appoint such other senior officers of Party A recommended by Party A to take such
position. The person recommended by Party A in accordance with this Article herein should
comply with the stipulation on the qualifications of directors, General Manager, Chief
Financial Officer, and other senior officers pursuant to applicable law.

	4.	 	

 

3

 

	5.	 	Party B together with its shareholder Party C hereby jointly agree and confirm that Party B
shall seek the guarantee from Party A first if it needs any guarantee for its performance of
any contract or loan of flow capital in the course of operation. In such case, Party A shall
have the right but not the obligation to provide the appropriate guarantee to Party B on its own discretion. If Party A decides not to
provide such guarantee, Party A shall issue a written notice to Party B immediately and
Party B shall seek a guarantee from other third party.

	5.	 	

	6.	 	In the event that any of the agreements between Party A and Party B terminates or expires,
Party A shall have the right but not the obligation to terminate all agreements between Party
A and Party B including but not limited to the Services Agreement.

	6.	 	

	7.	 	Any amendment and supplement of this Agreement shall be made in writing. The amendment and
supplement duly executed by all parties shall be deemed as a part of this Agreement and shall
have the same legal effect as this Agreement.

	7.	 	

	8.	 	If any clause hereof is judged as invalid or non-enforceable according to applicable laws,
such clause shall be deemed invalid only within the applicable area of the laws and without
affecting other clauses hereof in any way.

	8.	 	

	9.	 	Party B shall not assign its rights and obligations under this Agreement to any third party
without the prior written consent of Party A. Party B hereby agrees that Party A may assign
its rights and obligations under this Agreement as it needs and such transfer shall only be
subject to a written notice sent to Party B by Party A, and no any further consent from Party
B will be required.

	9.	 	

	10.	 	All parties acknowledge and confirm that any oral or written materials communicated pursuant
to this Agreement are confidential documents. All parties shall keep secret of all such
documents and not disclose any such documents to any third party without prior written consent
from other parties except under the following conditions: (a) such documents are known or
shall be known by the public (other than when the receiving party discloses such documents to
the public without authorization); (b) any documents disclosed in accordance with applicable
laws or rules or regulations of a stock exchange with jurisdiction; (c) any documents required
to be disclosed by any party to its legal counsel or financial consultant for the purpose of
the transaction of this Agreement by any party, provided such legal counsel or financial
consultant shall also comply with the confidentiality as stated hereof. Any disclosure by
employees or agencies employed by any party shall be deemed the disclosure of such party and
such party shall assume the liabilities for its breach of contract pursuant to this Agreement.
This Article shall survive the termination of, amendment of, cancellation of or inability to
perform this Agreement.

	10.	 	

 

4

 

	11.	 	This Agreement shall be governed by and construed in accordance with the laws of the PRC.

	11.	 	

	12.	 	The parties shall strive to settle any dispute arising from the interpretation or performance
of this Agreement through friendly consultation. In case no settlement can be reached through
consultation, each party can submit such matter to Shanghai Sub-commission of China
International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration in
accordance with its rules of CIETAC then in effect. The arbitration proceedings shall take
place in Shanghai and shall be conducted in Chinese. The arbitration award shall be final and
conclusive and binding upon all the parties.

	12.	 	

	13.	 	This Agreement shall be executed by a duly authorized representative of each party as of the
date first written above and become effective simultaneously.

	13.	 	

	14.	 	The parties confirm that this Agreement shall constitute the entire agreement of the Parties
with respect to the subject matters therein.

	14.	 	

	15	 	This Agreement shall expire on the date that is twenty-five (25) years following the date
hereof, and this Agreement may be extended prior to termination upon written agreement
executed by each Party.

	15	 	

	16.	 	This Agreement shall be terminated on the expiring date unless it is renewed in accordance
with the relevant provision herein. During the term of this Agreement, Party B shall not
terminate this Agreement.

	16.	 	

	17.	 	This Agreement may be signed in one or more original or facsimile copies.

	17.	 	

[Remainder of Page Left Intentionally Blank — Signature Page Follows]

 

5

 

Operating Agreement — Signature Page

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Part A: Taian Yisheng Management & Consulting
Co., Ltd.,	 	 
	 	 	 	 	
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Part B: Shandong Xiangrui Pharmacy Co., Ltd	 	 
	 	 	 	 	
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Part C:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Mr. Wang Xuchun	 	 
	 	 	 	 	 	 	
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Mr. Huang Lingfa	 	 
	 	 	 	 	 	 	
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Mr. Qiao Binglong	 	 
	 	 	 	 	 	 	
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Mr. Wang Guo	 	 
	 	 	 	 	 	 	

 

6

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