Document:

Exhibit 10.34

Exhibit 10.34

MANAGEMENT FEE PAYMENT AGREEMENT

This Management Fee Payment Agreement (the “Agreement”) is entered into effective as of May 9,
2011 between the following parties in Dongping County, People’s Republic of China (the “PRC”).

			
	Party A:	 	Mr. Wang Xuchun

Mr. Huang Lingfa

Mr. Qiao Binglong

Mr. Wang Guo

			
		 	

Party B: 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 C:	 	Shandong Xiangrui Pharmacy Co., Ltd

Address: Pengji Town, Dongping County, Shandong Province

Legal Representative: Mr. Huang Lingfa

			
		 	

WHEREAS, Party A collectively hold a 100% equity interest in Party C .

WHEREAS, Party A, Party B and Party C, have entered into a Proxy Agreement, Exclusive Equity
Interest Purchase Agreement (the “Purchase Agreement”) and other agreements.

 

 

 

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

	1.	 	Party A hereby agrees to make the payment stipulated in Article 2 hereunder to Party B, at
the time stipulated in Article 3 hereunder, as a fee for serving as a proxy and providing
company management (the “Management Fee”).

	1.	 	

	2.	 	The amount of the Management Fee under Article 1 hereof shall be the same as the amount Party
A receives as the Transfer Fee from Party B pursuant to the Purchase Agreement.
	 
	2.	 	

	3.	 	Payment of the Management Fee under Article 1 hereof shall coincide with payment of the
Transfer Fee under the Purchase Agreement; and the payment of the Management Fee shall be made
if Party B exercises its purchase right under the Purchase Agreement.

	3.	 	

	4.	 	This Agreement has been duly executed by each of the Parties and/or their authorized
representatives and shall take effect as of the date first set forth above.

	4.	 	

	5.	 	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 the written agreement of
each Party.

	5.	 	

	6.	 	Any amendment supplement or rescission of this Agreement shall be effective if made in
writing and executed by all of the Parties hereto.
	 
	6.	 	

	7	 	If any of the terms of this Agreement is invalid, illegal or unenforceable due to its
non-compliance with applicable law, the validity and enforceability of the other terms hereof
shall nevertheless remain unaffected.

	7	 	

	8	 	This Agreement shall be governed by, construed in all respects and performed in accordance
with the laws of the PRC.
	 
	8	 	

 

2

 

	9	 	This Agreement is executed both in Chinese and English in one or more original or facsimile
counterparts. The Chinese version will prevail in the event of any inconsistency between the
English and any Chinese translations thereof.

	9	 	

	10	 	The Parties shall strive to settle any dispute arising from the interpretation or
performance, or in connection with this Agreement through mutual agreement and negotiation. In
case no settlement can be reached through consultation, each Party may submit such matter to
the Shanghai Sub-commission of China International Economic and Trade Arbitration Committee
for arbitration. The arbitration shall be held in Shanghai. The arbitration proceedings shall
be conducted in Chinese. The arbitration award shall be final and binding upon the Parties.
The arbitration award may be submitted to any court with jurisdiction for enforcement.

	10	 	

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

 

3

 

[Management Fee Payment Agreement —Signature Page]

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

	 	 	 	 	 	 	 	 	 
	 	 	Part A:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Mr. Wang Xuchun	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Mr. Huang Lingfa	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Mr. Qiao Binglong	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Mr. Wang Guo	 	 
	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Part B: Taian Yisheng Management & Consulting Co., Ltd.

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Part C: Shandong Xiangrui Pharmacy Co., Ltd

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

 

4Exhibit 10.35

Exhibit 10.35

EQUITY INTEREST PLEDGE AGREEMENT

This Equity Interest Pledge Agreement (the “Agreement”) is entered into by and between the
following Parties effective as of May 9, 2011.

Pledgee: 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.

 
 

	 	 	 
	Pledgor:

	 	Mr. Wang Xuchun
	 
	 	 
	 

	 	Mr. Huang Lingfa
	 
	 	 
	 

	 	Mr. Qiao Binglong
	 
	 	 
	 

	 	Mr. Wang Guo
	 
	 	 
	

	 	

WHEREAS, Plegdee is a wholly foreign-owned enterprise duly established and valid existing in
Dongping County under the laws of the PRC. With the approval of relevant PRC authorities, it is
permitted to engage in consultation of enterprise management, technological services and business
affairs. Pledgee and Shandong Xiangrui Pharmacy Co., Ltd. (the “Company”), entered into an
Exclusive Technical and Consulting Service Agreement effective as of May 9, 2011 (the “Service
Agreement”).

WHEREAS, Pledgor collectively hold a 100% equity interest in the Company.

WHEREAS, in order to ensure that Pledgee collects the Consulting Service Fee (as such term is
defined in the Service Agreement) from the Company, Pledgor is willing to pledge all of its equity
interest in the Company as security.

 

 

 

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

DEFINITIONS

Unless it is otherwise stipulated, for the purpose of this Agreement, the following terms
shall have the following meanings:

	1.1	 	Pledge shall have the full meaning assigned to that term in Article II of this Agreement.

	 
	1.1	 	

	1.2	 	Equity Interest shall mean the 100% equity interest in the Company collectively held by
Pledgee and all equity interests of the Company held by any other Pledgee from time to time.
	 
	1.2	 	

	1.3	 	Rate of Pledge shall mean the ratio between the value of the Pledge under this Agreement to
the Consulting Service Fee under the Service Agreement.
	 
	1.3	 	

	1.4	 	Term of Pledge shall mean the period provided for under Article 3.2 hereunder.
	 
	1.4	 	
	 
	1.5	 	Service Agreement shall have the meaning assigned to that form in the recitals to this Agreement.
	 
	1.5	 	
	 
	1.6	 	Event of Default shall mean any event in accordance with Article 7 hereunder.
	 
	1.6	 	

	1.7	 	Notice of Default shall mean the notice of default issued by Pledgee in accordance with this
Agreement.
	 
	1.7	 	

 

2

 

ARTICLE II

PLEDGE

	2.1	 	Pledgor pledges the Equity Interest in the Company as security for the payment of the
Consulting Service Fee payable to Pledgee under the Service Agreement (the “Pledge”).
	 
	2.1	 	

	2.2	 	Pledgee, by virtue of the Pledge, shall be entitled to have priority in receiving any payment
or proceeds from the auction or sale of the Equity Interest pledged by Pledgor to Pledgee.
	 
	2.2	 	

ARTICLE III

RATE OF PLEDGE AND TERM OF PLEDGE

	3.1	 	The Rate of Pledge: The Rate of Pledge shall be 100% under this Agreement.
	 
	3.1	 	
	 
	3.2	 	The Term of Pledge:
	 
	3.2	 	

	 	3.2.1	 	The Pledge shall be estiblished as of the date that the Pledge is recorded in
the administration of industry and commerce and shall remain effective so long as the
record remains in effect.
	 
	 	3.2.1	 	

	 	3.2.2	 	During the term of Pledge, Pledgee shall be entitled to foreclose on the
Pledge in accordance with this Agreement in the event that the Company fails to pay the
Consulting Service Fee in accordance with the Service Agreement.
	 
	 	3.2.2	 	

ARTICLE IV

REGISTRATION OF PLEDGE

	4.1	 	Pledgor and Pledgee shall file the Pledge registration with the local administration of
industry and commerce within 30 days after the date of this Agreement.

	4.1	 	

 

3

 

	4.2	 	Pledgee shall be entitled to collect any dividends from the Equity Interest during the term
of the Pledge.
	 
	4.2	 	

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PLEDGOR

	5.1	 	Pledgor is the legal owner of the Equity Interest.
	 
	5.1	 	
	 
	5.2	 	At any time Pledgee exercises its right under this Agreement, it shall be free from any interference.
	 
	5.2	 	
	 
	5.3	 	Pledgee has the right to exercise or transfer the Pledge in accordance with this Agreement.
	 
	5.3	 	
	 
	5.4	 	Pledgor shall not pledge or encumber the Equity Interest to any other person except for Pledgee.
	 
	5.4	 	

ARTICLE VI

COVENANTS OF PLEDGOR

	6.1	 	During the term of this Agreement, Pledgor covenants to Pledgee as follows:

	 
	6.1	 	

	 	6.1.1	 	Except for the transfer of the Equity Interest by Pledgor, Pledgee and the
Company as contemplated by the Exclusive Equity Interest Purchase Agreement entered
into by and among Pledgor, Pledgee and the Company, Pledgor shall not transfer or
assign the Equity Interest or create or permit to be created any pledge which may have
an adverse affect on the rights or benefits of Pledgee without prior written consent
from Pledgee.
	 
	 	6.1.1	 	

	 	6.1.2	 	Pledgor shall comply with all laws and regulations with respect to the right
of Pledge, present Pledgee any notices, orders or suggestions relating to the Pledge
issued or made by a relevant authority after receiving such notices, orders or
suggestions and comply with such notices, orders or suggestions or object to the
foregoing matters at the reasonable request of Pledgee or with the written consent of
Pledgee.

	 	6.1.2	 	

 

4

 

	 	6.1.3	 	Pledgor shall timely notify Pledgee of any events or the receipt of any notice
which may affect the Equity Interest or any part of its right, which may change any of
Pledgor’s covenants and obligations under this Agreement or which may affect Pledgor’s
performance of its obligations under this Agreement.
	 
	 	6.1.3	 	

	6.2	 	Pledgor agrees that Pledgee’s right to exercise the Pledge shall not be suspended or hampered
through any legal procedure instituted by Pledgor, any successors of Pledgor or any person
authorized by Pledgor.
	 
	6.2	 	

	6.3	 	Pledgor warrants to execute in good faith and cause other parties who may have any interest
in the Pledge to execute all title certificates, contracts or other documents, and/or perform
and cause other parties who have interests to take action as required by Pledgee and provide
access to exercise the rights and authorization vested in Pledgee under this Agreement, and
execute all the documents with respect to the Equity Interest and promptly provide all the
notices, orders and decisions related to the Equity Interest and deemed necessary by Pledgee
to Pledgee within a reasonable time.
	 
	6.3	 	

	6.4	 	Pledgor warrants that it will comply with and perform all the guarantees, covenants,
agreements, representations and conditions hereunder for the benefit of Pledgee. Pledgor shall
compensate Pledgee for all losses suffered in the event that Pledgor does not fully perform
its guarantees, covenants, agreements, representations or conditions hereunder and causes any
damage to Pledgee.
	 
	6.4	 	

ARTICLE VII

EVENTS OF DEFAULT

7.1 The occurrence of any of the events listed below shall be deemed as an Event of Default:

7.1 

	 	7.1.1	 	Failure by the Company to make full payment of the Consulting Service Fee, as
provided under the Service Agreement.

	 	7.1.1	 	

 

5

 

	 	7.1.2	 	Pledgor makes any material misleading or fraudulent representations or
warranties under Article 5 herein.
	 
	 	7.1.2	 	
	 
	 	7.1.3	 	Pledgor violates any of the covenants under Article 6 herein.
	 
	 	7.1.3	 	
	 
	 	7.1.4	 	Pledgor violates any of the terms or conditions hereof.
	 
	 	7.1.4	 	

	 	7.1.5	 	Pledgor waives the pledged Equity Interest or transfers or assigns the pledged
Equity Interest without the prior written consent of Pledgee, except as provided in
Article 6.1.1 in this Agreement.
	 
	 	7.1.5	 	

	 	7.1.6	 	Any loan, security, compensation, covenant or other compensation liability of
Pledgor (i) is required to be paid or performed in advance because of an event of
default thereunder; or (ii) is due but cannot be paid or performed, which makes Pledgee
reasonably believe Pledgor’s capability of performing under this Agreement has been
affected.
	 
	 	7.1.6	 	
	 
	 	7.1.7	 	Pledgor is incapable of paying its general debt or other debt.
	 
	 	7.1.7	 	

	 	7.1.8	 	The promulgation of relevant laws makes the performance of this Agreement
illegal or makes Pledgor unable to perform its obligations under this Agreement.
	 
	 	7.1.8	 	

	 	7.1.9	 	The withdrawal, suspension, invalidation or material revision of any approval,
permit or authorization from the relevant authorities needed to perform or validate
this Agreement.
	 
	 	7.1.9	 	

	 	7.1.10	 	Any adverse change in the property of Pledgor that causes Pledgee to reasonably
believe that Pledgor may be unable to perform its obligations hereunder.
	 
	 	7.1.10	 	

	 	7.1.11	 	The inability or refusal by any successor or assignee of the Company to pay the
amounts due under the Service Agreement.
	 
	 	7.1.11	 	

	 	7.1.12	 	The occurrence of any other circumstances whereby Pledgee becomes incapable of
exercising its right to foreclose on the Pledge.
	 
	 	7.1.12	 	

 

6

 

	7.2	 	Pledgor must immediately notify Pledgee in writing if Pledgor knows or is aware of any event
stipulated in Article 7.1 or events that may reasonably lead to any event stipulated in
Article 7.1.
	 
	7.2	 	

	7.3	 	Unless the event of default stipulated in Article 7.1 has been remedied to Pledgee’s sole and
absolute satisfaction, Pledgee may (i) give a written notice of default to Pledgor and require
Pledgor to immediately make full payment of the outstanding Consulting Service Fee under the
Service Agreement and other payables or (ii) foreclose on the Pledge in accordance with
Article 8 herein.
	 
	7.3	 	

ARTICLE VIII

EXERCISE OF THE RIGHT OF THE PLEDGE

	8.1	 	Prior to full payment of the Consulting Service Fee under the Service Agreement, Pledgor
shall not transfer or assign the Equity Interest without prior written approval from Pledgee.
	 
	8.1	 	

	8.2	 	Pledgee shall give Notice of Default to Pledgor when Pledgee exercises its right to foreclose
on the Pledge.
	 
	8.2	 	

	8.3	 	Subject to Article 7.3 herein, Pledgee may exercise the right to foreclose on the Pledge at
any time following written Notice of Default.
	 
	8.3	 	

	8.4	 	Pledgee is entitled to priority receipt of any payment or proceeds from the auction or sale
of all or part of the Equity Interest pledged herein in accordance with applicable law until
the outstanding Consulting Service Fee and all other payables under the Service Agreement are
fully repaid.
	 
	8.4	 	

	8.5	 	Pledgor shall not hinder Pledgee from foreclosing on the Pledge in accordance with this
Agreement and shall give necessary assistance so that Pledgee may effectively realize the
value of the Pledge.
	 
	8.5	 	

 

7

 

ARTICLE IX

TRANSFER OR ASSIGNMENT

	9.1	 	Pledgor shall not grant or transfer its rights or obligations hereunder without prior written
consent from Pledgee.
	 
	9.1	 	
	 
	9.2	 	This Agreement shall be binding upon Pledgor and the successors of Pledgor.

	 
	9.2	 	

	9.3	 	Pledgee may transfer or assign all or any rights and obligations under the Service Agreement
to any person (natural person or legal entity) at any time. Any assignee shall enjoy and
undertake the same rights and obligations herein of Pledgee as if the assignee is a party
hereto. To the extent Pledgee transfers or assigns its rights and obligations under the
Service Agreement, at the request of Pledgee, Pledgor shall execute the relevant agreements
and/or documents with respect to such transfer or assignment.
	 
	9.3	 	

	9.4	 	Upon Pledgee’s transfer or assignment, the new parties to the Pledge shall re-execute a
Pledge contract.
	 
	9.4	 	

ARTICLE X

TERMINATION

	10.1	 	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.
	 
	10.1	 	

ARTICLE XI

FORMALITIES FEES AND OTHER EXPENSES

	11.1	 	Pledgor shall be responsible for all fees and actual expenditures in relation to this
Agreement, including, but not limited to, legal fees, costs of production, stamp tax and any
other taxes and charges. If Pledgee pays the relevant taxes in accordance with the laws,
Pledgor shall fully reimburse Pledgee for any such taxes it pays.

	11.1	 	

 

8

 

	11.2	 	Pledgor shall be responsible for all fees, including, but not limited to, any taxes,
formalities fees, management fees, litigation fees, attorney’s fees, and various insurance
premiums in connection with disposition of the Pledge, incurred by Pledgor as a result of the
failure of Pledgor to pay any payable taxes, fees or charges in accordance with this
Agreement, or as a result of the fact that Pledgee has recourse to any foregoing taxes,
charges or fees by any means or for any other reasons.
	 
	11.2	 	

ARTICLE XII

FORCE MAJEURE

	12.1	 	If the fulfillment of this Agreement is delayed or blocked due to a Force Majeure Event (as
defined below), the Party affected by such a Force Majeure Event shall be free from any
obligation to the extent of such delay or holdback. As used herein, the term “Force Majeure
Event” shall mean any event which is out of the control of either Party, and which is
unavoidable or insurmountable even if the Party affected by such event paid reasonable
attention to it. A Force Majeure Event shall include, but not be limited to, government
actions, natural disaster, fire, explosion, typhoons, floods, earthquakes, tide, lightning or
war. However, any lack of credit, assets or financing shall not be deemed a Force Majeure
Event. The Party claiming the occurrence of a Force Majeure Event shall inform the other Party
and provide the other Party with the steps of fulfilling the obligations of this Agreement.
	 
	12.1	 	

	12.2	 	The Party affected by such a Force Majeure Event shall be free from any obligation under this
Agreement to the extent it is delayed or impeded provided that the Party affected by such a
Force Majeure Event has made reasonable endeavors to perform the Agreement. Upon termination
of the Force Majeure Event, the Parties agree to use reasonable best efforts to complete the
transactions contemplated by this Agreement.
	 
	12.2	 	

 

9

 

ARTICLE XIII

DISPUTE SETTLEMENT

	13.1	 	This Agreement shall be governed by and construed in all respects in accordance with the laws
of the PRC.
	 
	13.1	 	

	13.2	 	The Parties shall strive to settle any dispute arising from the interpretation or
performance, or in connection with this Agreement through mutual agreement and negotiation. In
case no settlement can be reached through consultation, each Party may submit such matter to
the Shanghai Sub-commission of China International Economic and Trade Arbitration Committee
for arbitration. The arbitration shall be held in Shanghai. The arbitration proceedings shall
be conducted in Chinese. The arbitration award shall be final and binding upon the Parties.
The arbitration award may be submitted to any court with jurisdiction for enforcement.
	 
	13.2	 	

ARTICLE XIV

NOTICES

	14.1	 	Any notice which is given by the Parties for the purpose of performing the rights and
obligations hereunder shall be in writing. Where such notice is delivered personally, the time
of notice shall be the time when such notice actually reaches the addressee. Where such notice
is transmitted by telex or facsimile, the notice time shall be the time when such notice is
transmitted. If such notice does not reach the addressee on a business date or reaches the
addressee after the business time, the date of notice shall be the next business day. The
delivery place shall be the address first written above for each Party hereto or any other
address provided to the other Parties in writing from time to time. Written method includes
fax and telefax.
	 
	14.1	 	

ARTICLE XV

APPENDIX

15.1 The Appendix of this Agreement as attached hereto is part of this Agreement.

15.1 

 

10

 

ARTICLE XVI

EFFECTIVENESS

	16.1	 	This Agreement and any amendments, supplements and modifications shall be in writing and come
into effect upon execution by the Parties hereto.
	 
	16.1	 	

	16.2	 	This Agreement is executed both in Chinese and English in one or more original or facsimile
counterparts. The Chinese version will prevail in the event of any inconsistency between the
English and any Chinese translations thereof.
	 
	16.2	 	

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

 

11

 

[Equity Interest Pledge Agreement — Signature Page]

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

	 	 	 	 	 
	 	Taian Yisheng Management & Consulting Co., Ltd.,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 
	 
	 	Mr. Wang Xuchun

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 
	 	Mr. Huang Lingfa

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 
	 	Mr. Qiao Binglong

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 
	 	Mr. Wang Guo

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

 

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.

 

13

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