Document:

Agreement
on Indemnities Transfer

     

    ——Domestic Trade
Credit Insurance Policy

    

    Endorsement No.:
31619000901010000001

    Contract No.:
259653/10

    

    This
Agreement is entered into by the following parties:

    

    The Insurant: Kunming Shenghuo
Pharmaceutical (group) Co., Ltd.

    Address:
No.2 Jing You Road, Kunming National Economy and Technology Developing District,
Yunnan Province, China

    

    The Indemnity Beneficiary:
Kunming Heping
Branch of China Construction Bank

    Address:
No.328 South Ring Road, Kunming City, Yunnan Province

    

    The Insurer: China Ping An Insurance
Company

    Address:
Xinghe Development Centre Plaza, Fuhua Road, Futian District, Shenzhen City,
China

    

    All of
the three parties have reached the provisions as below in accordance with
article 28 under General Clause:

    

    Transfer
of Beneficiary’s Indemnities interest

    

    
      
        	
              	
                1.

              	
                The
      Insurant hereby transfers the beneficial interest for indemnities under
      the insurance policy No. 11619000901010000001 (hereinafter referred to as
      the insurance policy) to The Indemnity
  Beneficiary.

              

      

    

    

    
      
        	
              	
                2.

              	
                The
      Insurer agrees on the transfer and promises to pay all the indemnification
      under the insurance policy to The Indemnity Beneficiary, provided that the
      interest of the Third Party (whose right to indemnification surpasses that
      of the bank) will not be
affected.

              

      

    

    

    
      
        	
              	
                3.

              	
                The
      Indemnity Beneficiary accepts this transfer and declares that it has full
      knowledge about the terms and conditions included in this insurance policy
      and agreed on them.

              

      

    

    

    The
Indemnity Beneficiary recognizes that its beneficial interest for
indemnification will not surpass the beneficial interest of The Insurant, but,
if The Insurer is entitled to propose the defenses of liability exemption,
indemnification and failure in exercising liability against The Insurant, all of
those defenses shall also be applicable to The Indemnity
Beneficiary.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    Under the
condition that the accounts receivable claim of The Insurant has been
transferred to The Indemnity Beneficiary simultaneously, The Indemnity
Beneficiary hereby agrees that:

    
      
        
          	
                  
                  

                	
                  -

                	
                  The
      Indemnity Beneficiary can inform The Insurer instantly once it is aware of
      the occurrence of overdue debts. If The Indemnity claims against The
      Insurer, it is required to provide all written evidence relating to the
      debts, related documents with respect to the assignment of the debts, as
      well as submitting the <<Notice on the occurrence of overdue debts
      and the application for The Insurer’s involvement >> (please find
      the attached format).

                

        

      

    

    

    
      
        
          
            	
                    
                    

                  	
                    -

                  	
                    The
      Indemnity Beneficiary agrees and accepts the following provisions: No. 11,
      12,13,14,15 and 16 provisions under the Section 7of the General Clause, as
      well as No. 24 and 25 provisions under the Section 8 of the General Clause
      and provision No. 4 under the C.102 supplementary
    provision.

                  

          

        

      

    

    

    The
Insurer can deem the actions taken by The Insurant or The Indemnity Beneficiary
during the course of interest assignment as mutually-recognized actions between
The Insurant and The Indemnity Beneficiary.

    

    
      
        	
              	
                4.

              	
                The
      Insurer agrees that this Agreement will not release itself from any of its
      obligations under the insurance
policy.

              

      

    

    

    Both The
Insurant and The Indemnity Beneficiary agree that if the obligations regulated
by the insurance contract have not been fulfilled, then The Insurer is entitled
to not bearing the responsibility of indemnification.

    

    When
losses happen within the range of insurance liability, The Insurant shall claim
against The Insurer directly; The Insurant shall bear the liability in
conditions that The Indemnity Beneficiary’s interest is harmed as a result of
the failure exercise of claim right by The Insurant. On condition that the
creditor’s right of The Insurant has also been transferred to The Indemnity
Beneficiary at the same time, The Indemnity Beneficiary is entitled to claim
against The Insurer.

    

    
      
        	
              	
                5.

              	
                The
      Indemnity Beneficiary has the right to know everything contained in the
      insurance policy, include but not limited to terms and conditions,
      endorsement and line of credit. If any of this insurance policy is
      changed, The Insurer shall inform The Insurant and also inform The
      Indemnity Beneficiary in written at the same
  time.

              

      

    

    

    
      
        	
              	
                6.

              	
                Within
      the valid period of this insurance policy, if The Insurant requests to
      change or terminate the insurance policy unilaterally, it shall get the
      written approval from The Indemnity Beneficiary in advance; if there is no
      written approval provided by The Indemnity Beneficiary enclosed in the
      written application on changing or terminating this insurance policy which
      is submitted by The Insurant, The Insurer will consider it as incomplete
      application and therefore reject
it.

              

      

    

    

    
      
        	
              	
                7.

              	
                This
      Agreement is signed in triplicate and is valid for all of the debts
      included in this insurance policy and becomes effective on May 4,
      2010.

              

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    The Insured: Kunming Shenghuo
Pharmaceutical (group) Co., Ltd.

    (Seal)

    Signature:
Feng Lan

    

    The Indemnity Beneficiary:
Kunming Heping
Branch of China Construction Bank

    (Seal)

    Signature:
Tao Yang

    

    The Insurer: China Ping An Insurance
Company

    (Seal)

    Signature:
Yi Qing

    
      
         

      

      
        3Agreement
on Registration of Accounts Receivable Transfer

     

    No:__________________                                                     

     

    Transferor(Party A):Kunming
Shenghuo Pharmaceutical (group) Co., Ltd.

     

    Address: No.2 Jing You Road,
Kunming Economy and Technology Developing District

     

    Post Code:650217

     

    Legal Representative(person-in-charge):Gui
Hua Lan

     

    Fax:+86-871-7282672

     

    Tel:+86-871-7282691

     

    Transferee(Party B): Heping Branch, China
Construction Bank

     

    Address:No.
300 South Ring Road

     

    Post Code:650000

     

    Person-in-charge: Tao
Yang

     

    Fax:+86-871-3512821

     

    Tel:+86-871-3546917

    

    Since the
entering of the Domestic Factoring Contract
with Recourse No. HPBL20100001
(hereinafter referred to as “Factoring Contract”), both parties, upon
negotiation, mutually agree to conclude this Agreement regarding to the
registration of accounts receivable according to relevant laws, rules and
regulations.

     

    1.
Registration of Pledge/Transfer

    

    Both
parties agree that, after the Agreement is entered into, it is Party B’s
liability to register the accounts receivable under the Factoring Contract
through the AR Registration Notification System of Credit Centre, People’s Bank
of China. The contents of registration shall be solely determined by the Party
B, which include but not limited to Party A’s basic information, AR description
and term of registration. Party A shall provide all kinds of necessary
assistance as per the requirement of Party B. It is Party A’s liability to bear
the relevant expenses on registration.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    2.
Party A promises that all the documents and information provided are accurate,
true, complete, legal and effective, otherwise it shall bear all the
subsequences.

    

    Party A
shall inform truthfully all of its valid names (if Party A is a natural person,
it shall inform Party B all of its valid names and ID Number) to Party B within
4 months prior to the date of signing this Agreement. Where Party B suffers from
damages due to Party A’s failure in truthful notification, it is Party A’s
liability to bear all responsibilities of indemnity.

    

    3.
After the Agreement becomes effective, if the registration turns to be invalid
caused by any reason, Party B is entitled to go through the re-registration
procedure as per this Agreement, without signing an additional agreement; If
relevant laws and rules or relative authorities require Party A to sign the
agreement on registration extension or other documents, it shall do so
immediately.

      

    4.
Registration Extension

    

    Both
parties agree that, where the registration needs to be extended (no limitation
of times of extension), Party B is entitled to handle the extension of
registration by itself. If relevant laws and rules or relative authorities
require Party A to sign the agreement on registration extension or other
documents, it shall do so immediately.

     

    5.
Change of Registration

    

    Party A
shall review the accuracy of registered information and notify Party B to change
the registration for identified errors and omissions. Where those errors and
omissions failed to be corrected timely due to Party A’s delay of notification,
Party A shall bear all the subsequences arising hereunder.

    Where the
existing omissions or errors are identified by Party B in the content of
registration; or the registered contents require to be changed, Party B is
entitled to change the registration by itself. At that time, Party A shall sign
relevant change agreement and provide all kinds of necessary assistance as per
the requirements of Party B.

    In case
that registered contents related to Party A are changed, include but not limited
to the change of Party A’s legal registered name or valid ID Number, Party A
shall inform Party B within 5 business days since the date of change and shall
provide relevant certificates and documents, it shall also sign all the relevant
change agreement as per the requirement of Party B, so that Party B could handle
the change of registration by itself. If Party B suffers from any damage due to
Party A’s failure of abiding by the above mentioned provisions, it is Party A’s
liability to bear all responsibilities of indemnity and other legal
responsibilities.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    6.
This Agreement constitutes an integral part of the Factoring Contract and has
the same legal force as the text of the Contract. Where relevant provisions are
not prescribed or clearly prescribed, shall perform as the Factoring Contract
prescribed.

    

    7.
Other Covenants

     

    
      
        	
                None.

              

      

    

    

    
      
        	 
      
	
                   

              

      

    

     

    8.
Effect of Agreement

     

    This
Agreement becomes valid upon signature or seal by the two parties.

     

    9.
This Agreement is made out in  four  copies.

    

    Party
A(Seal):

     

    Legal
Representative(person-in-charge)or authorized
representative(Signature):Qiong Hua
Gao

     

    May 14,
2010

    

    Party
B(Seal):

     

    Person-in-charge
or authorized representative(signature): Tao
Yang

     

    May 14,
2010

    
      
         

      

      
        3

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