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Exhibit 10.14    
    

 
 

STOCK PURCHASE AGREEMENT    
    

        THIS STOCK PURCHASE AGREEMENT ("Agreement"), dated as of June 28, 2003, is by and between Kai-Ye Fung, an individual ("PURCHASER"), and China
Hospitals, Inc., a Delaware corporation ("SELLER") (collectively, the "PARTIES"). 

W I T N E S S E T H  

        WHEREAS, SELLER has offered for sale to PURCHASER shares of common stock of SELLER (the "Shares") at a purchase price of $2.09 per Share. 

        WHEREAS,
SELLER desires to sell to PURCHASER and PURCHASER desires to purchase from SELLER, 57,148 Shares upon the terms and conditions set forth herein. 

        NOW
THEREFORE, in consideration of the promises and respective mutual agreements herein contained, it is agreed by and between the PARTIES hereto as follows: 

ARTICLE 1

SALE AND PURCHASE OF THE SHARES  

        1.1    Sale of the Shares.    Upon execution of this Agreement (the "Closing"), subject to the terms and conditions
herein set forth, and on the basis of the representations, warranties and agreements herein
contained, SELLER shall sell to PURCHASER, and PURCHASER shall purchase from SELLER, the Shares. 

        1.2    Instruments of Conveyance and Transfer.    As soon as practicable after the Closing, SELLER shall deliver a
certificate or certificates representing the Shares of SELLER to PURCHASER sufficient to transfer all right, title and interest in the Shares to PURCHASER. 

        1.3    Consideration and Payment for the Shares.    In consideration for the Shares, PURCHASER shall pay a purchase
price of a total of one hundred nineteen thousand, four hundred thirty-nine dollars and thirty-two cents ($119,439.32) ($2.09 per Share) ("Purchase Price"). 

ARTICLE 2

REPRESENTATIONS AND COVENANTS OF SELLER AND PURCHASER  

        2.1   SELLER
hereby represents and warrants that: 

        (a)   The
Shares issued hereunder (the "Shares") have been duly authorized by the appropriate corporate action of SELLER. 

        (b)   SELLER
shall transfer title, in and to the Shares to PURCHASER free and clear of all liens, security interests, pledges, encumbrances, charges, restrictions, demands and
claims, of any kind and nature whatsoever, whether direct or indirect or contingent. 

        (c)   As
soon as practicable after the Closing Date, SELLER shall deliver to PURCHASER a certificate or certificates representing the Shares subject to no liens, security
interests, pledges, encumbrances, charges, restrictions, demands or claims in any other party whatsoever, except as set forth in the legend on the certificate, which legend shall provide substantially
as follows: 

THE
SHARES (OR OTHER SECURITIES) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THE SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN OPINION OF COUNSEL THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE. 

 

        (d)   PURCHASER
acknowledges that the Shares will initially be "restricted securities" (as such term is defined in Rule 144 promulgated under the Securities Act of
1933, as amended ("Rule 144"), that the Shares will include the foregoing restrictive legend, and, except as otherwise set forth in this Agreement, that the Shares cannot be sold unless
registered with the United States Securities and Exchange Commission ("SEC") and qualified by appropriate state securities regulators, or unless PURCHASER obtains written consent from SELLER and
otherwise complies with an exemption from such registration and qualification (including, without limitation, compliance with Rule 144). 

        (e)   The
Company is obligated to register the Shares in any registration statement filed by the Company with the Securities and Exchange Commission after the Closing Date, so
that holders of the Shares shall be entitled to sell the same simultaneously with and upon the terms and conditions as the securities sold for the account of the Company are being sold pursuant to any
such registration statement, subject to such lock-up provisions as may be proposed by the underwriter of said registration statement (the "Piggyback Registration Right"). 

        (e)   PURCHASER
acknowledges and agrees that SELLER makes no other representations or warranties with respect to the Shares or the SELLER. 

        2.2   PURCHASER
represents and warrants to SELLER as follows: 

        (a)   PURCHASER
has adequate means of providing for current needs and contingencies, has no need for liquidity in the investment, and is able to bear the economic risk of an
investment in the Shares offered by SELLER of the size contemplated. PURCHASER represents that PURCHASER is able to bear the economic risk of the investment and at the present time could afford a
complete loss of such investment. PURCHASER has had a full opportunity to inspect the books and records of the SELLER and to make any and all inquiries of SELLER officers and directors regarding the
SELLER and its business as PURCHASER has deemed appropriate. 

        (b)   PURCHASER
is an "Accredited Investor" as defined in Regulation D of the Securities Act of 1933 (the "Act") or PURCHASER, either alone or with PURCHASER's
professional advisers who are unaffiliated with, have no equity interest in and are not compensated by SELLER or any affiliate or selling agent of SELLER, directly or indirectly, has sufficient
knowledge and experience in financial and business matters that PURCHASER is capable of evaluating the merits and risks of an investment in the Shares offered by SELLER and of making an informed
investment decision with respect thereto and has the capacity to protect PURCHASER's own interests in connection with PURCHASER's proposed investment in the Shares. 

        (c)   PURCHASER
is acquiring the Shares solely for PURCHASER'S own account as principal, for investment purposes only and not with a view to the resale or distribution
thereof, in whole or in part, and no other person or entity has a direct or indirect beneficial interest in such Shares. 

        (d)   PURCHASER
will not sell or otherwise transfer the Shares without registration under the Act or an exemption therefrom and fully understands and agrees that PURCHASER
must bear the economic risk of PURCHASER'S purchase for an indefinite period of time because, among other reasons, the Shares have not been registered under the Act or under the securities laws of any
state and, therefore, cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Act and under the applicable securities laws of such states or
unless an exemption from such registration is available. 

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ARTICLE 3

MISCELLANEOUS  

        3.1    Entire Agreement.    This Agreement sets forth the entire agreement and understanding of the parties hereto
with respect to the transactions contemplated hereby, and supersedes all prior agreements, arrangements and understandings related to the subject matter hereof. No understanding, promise, inducement,
statement of intention, representation, warranty, covenant or condition, written or oral, express or implied, whether by statute or otherwise, has been made by any party hereto which is not embodied
in this Agreement or the written statements, certificates, or other documents delivered pursuant hereto or in connection with the transactions contemplated hereby, and no party hereto shall be bound
by or liable for any alleged understanding, promise, inducement, statement, representation, warranty, covenant or condition not so set forth. 

        3.2    Notices.    Any notice, request, instruction, or other document required by the terms of this Agreement, or
deemed by any of the parties hereto to be desirable, to be given to any other party hereto shall be in writing and shall be given by facsimile, personal delivery, overnight delivery, or mailed by
registered or certified mail, postage prepaid, with return receipt requested. If notice is given by facsimile, personal delivery, or overnight delivery in accordance with the provisions of this
Section, said notice shall be conclusively deemed given at the time of such delivery. If notice is given by mail in accordance with the provisions of this Section, such notice shall be conclusively
deemed given seven days after deposit thereof in the United States mail. 

        3.3    Waiver and Amendment.    Any term, provision, covenant, representation, warranty or condition of this Agreement
may be waived, but only by a written instrument signed by the party entitled to the benefits thereof. The failure or delay of any party at any time or times to require performance of any provision
hereof or to exercise its rights with respect to any provision hereof shall in no manner operate as a waiver of or affect such party's right at a later time to enforce the same. No waiver by any party
of any condition, or of the breach of any term, provision, covenant, representation or warranty contained in this Agreement, in any one or more instances, shall be deemed to be or construed as a
further or continuing waiver of any such condition or breach or waiver of any other condition or of the breach of any other term, provision, covenant, representation or warranty. No modification or
amendment of this Agreement shall be valid and binding unless it be in writing and signed by all parties hereto. 

        3.4    Choice of Law.    This Agreement and the rights of the parties hereunder shall be governed by and construed in
accordance with the laws of the State of California including all matters of construction, validity, performance, and enforcement and without giving effect to the principles of conflict of laws. 

        3.5    Jurisdiction.    The parties submit to the jurisdiction of the Courts of the County of Orange, State of
California or a Federal Court empaneled in the State of California for the resolution of all legal disputes arising under the terms of this Agreement, including, but not limited to, enforcement of any
arbitration award. 

        3.6    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which shall together constitute one and the same instrument. 

        3.7    Attorneys' Fees.    Except as otherwise provided herein, if a dispute should arise between the parties
including, but not limited to arbitration, the prevailing party shall be reimbursed by the non-prevailing party for all reasonable expenses incurred in resolving such dispute, including
reasonable attorneys' fees exclusive of such amount of attorneys' fees as shall be a premium for result or for risk of loss under a contingency fee arrangement. 

        3.8    Taxes.    Any income taxes required to be paid in connection with the payments due hereunder, shall be borne by
the party required to make such payment. Any withholding taxes in the nature of a tax on income shall be deducted from payments due, and the party required to withhold such tax shall furnish
to the party receiving such payment all documentation necessary to prove the proper amount to withhold of such taxes and to prove payment to the tax authority of such required withholding. 

        SIGNATURES
ON NEXT PAGE 

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        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement, as of the date first written hereinabove. 

	SELLER	 	 
	

CHINA HOSPITALS, INC.,

a Delaware corporation	
 	

 
	

 	
 	

 
	

/s/ Frank Hu
 By: Frank Hu, Ph.D.

Its: Chairman & CEO	
 	

 
	
PURCHASER	
 	

 
	

Print Name: Kai-Ye Fung	
 	

 
	

/s/ Kai-Ye Fung
 [Signature]	
 	

 
	

 	
 	

 
	
 Address	 	 
	

 	
 	

 
	
 Address	 	 
	

 	
 	

 
	
 Social Security/Tax I.D. Number	 	 

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Exhibit 10.14

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Exhibit 10.15    
    

ADVISORY BOARD AGREEMENT  

        This
ADVISORY BOARD AGREEMENT made as of this 18th day of November, 2003 by and between China Hospitals, Inc., a Delaware corporation, (the "Company") and Kaiye Fung, an
individual (the "Advisor"). 

 
 

W I T N E S S E T H:    
    

        WHEREAS, the Company desires to retain the Advisor for its advisory board; and 

        WHEREAS, the Advisor is willing to serve on the advisory board of the Company upon the terms and conditions herein set forth; 

        NOW, THEREFORE, in consideration of the promises and mutual covenants herein set forth it is agreed as follows: 

        1.    Retain.    The Company hereby retains the Advisor to serve on its advisory board until removed by the Board or
until the Advisor resigns. 

        2.    Duties.    The Advisor shall perform those functions generally performed by persons of such title and position,
shall attend all meetings of the Advisory Board and shall perform any and all related duties and shall have any and all powers as may be prescribed by resolution of the Advisory Board, and shall be
available to confer and consult with and advise the officers and directors of the Company at such times that may be required by the Company. 

        3.    Compensation:    The Advisor shall be entitled to compensation in an amount when and if declared by the Board of
Directors of the Company. 

        4.    Expenses.    The Advisor shall submit to the Company reasonably detailed receipts with respect thereto which
substantiate the Advisor's expenses, including expenses to attend all advisory board meetings and the Company shall reimburse the Advisor for all reasonable documented expenses. 

        5.    Secrecy.    At no time shall the Advisor disclose to anyone any confidential or secret information (not already
constituting information available to the public) concerning: (a) internal affairs or proprietary business operations of the Company or its affiliates or (b) any trade secrets, new
product developments, patents, programs or programming, especially unique processes or methods. 

        6.    Termination.    

        (a)   Termination
by the Company 

        (i)    The
Company may terminate this Agreement immediately for Cause. For purposes hereof, "Cause" shall mean (a) the conviction of the Advisor for the commission of a
felony; and/or (b) the habitual abuse of alcohol or controlled substances. In no event shall alleged incompetence of the Advisor in the performance of the Advisor's duties be deemed grounds for
termination for Cause. 

        (ii)   This
Agreement automatically shall terminate upon the death of the Advisor, except that the Advisor's estate shall be entitled to receive any amount accrued under
Sections 3 and 4 for the period prior to the Advisor's death and any other amount to which the Advisor was entitled of the time at his death. 

        (iii)  The
Company may terminate this Agreement at any time for any reason or no reason at all upon 30 days written notice to the Advisor. Upon such termination, the
Advisor shall be entitled to receive any amount accrued under Sections 3 and 4 for the period prior to the Advisor's termination. 

 

        7.    Attorneys' Fees and Costs.    If any action at law or in equity is necessary to enforce or interpret the terms
of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 

        8.    Entire Agreement; Survival.    This Agreement contains the entire agreement between the parties with respect to
the transactions contemplated herein and supersedes, effective as of the date hereof any prior agreement or understanding between the Company and the Advisor with respect to the Advisor's employment
by the Company. The unenforceability of any provision of this Agreement shall not affect the enforceability of any other provision. This Agreement may not be amended except by an agreement in writing
signed by the Advisor and the Company, or any waiver, change, discharge or modification as sought. Waiver of or failure to exercise any rights provided by this Agreement and in any respect shall not
be deemed a waiver of any further or future rights. The provisions of this Agreement shall survive the termination of this Agreement. 

        9.    Assignment.    This Agreement shall not be assigned to other parties. 

        10.    Governing Law; Jurisdiction.    This Agreement and all the amendments hereof, and waivers and consents with
respect thereto shall be governed by the internal laws of the State of California, without regard to the conflicts of laws principles thereof. The parties submit to the jurisdiction of the Courts of
the County of Orange, State of California or a Federal Court empanelled in the State of California for the resolution of all legal disputes arising under the terms of this Agreement, including, but
not limited to, enforcement of any arbitration award. 

        11.    Notices.    All notices, responses, demands or other communication under this Agreement shall be in writing and
shall be deemed to have been given when: (a) delivered by hand; (b) sent by facsimile (with receipt confirmed); or (c) received by the addressee as sent by express delivery
service (receipt requested) in each case to the appropriate addresses and/or facsimile numbers as set forth on the signature page to this Agreement and as may be amended by the parties by notice to
the other parties. 

        12.    Severability of Agreement.    Should any part of this Agreement for any reason be declared invalid by a court
of competent jurisdiction, such decision shall not affect the validity of any remaining portion, which remaining provisions shall remain in full force and effect as if this Agreement had been executed
with the invalid portion thereof eliminated, and it is hereby declared the intention of the parties that
they would have executed the remaining portions of this Agreement without including any such part, parts or portions which may, for any reason, be hereafter declared invalid. 

        IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written. 

	THE COMPANY
 
	 	THE ADVISOR
 

	China Hospitals, Inc.,

a Delaware corporation	 	Kaiye Fung
	

 	
 	

 
	/s/ Frank Hu	 	/s/ Kaiye Fung
	
	 	

	BY: Frank Hu	 	Kaiye Fung, an individual
	ITS: Chief Executive Officer	 	ADDRESS: 130 E. San Fernando St.
	ADDRESS: 50 Airport Parkway	 	Suite 301
	San Jose, California 95110	 	San Jose, CA 95112
	Fax Number: (408) 451-8440	 	Fax Number: (408) 287-7856

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Exhibit 10.15

W I T N E S S E T H

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