Document:

Exhibit
10.1

    

     

    
      SECURITIES
PURCHASE AGREEMENT

    

     

    This
Securities Purchase Agreement (this “Agreement”) is dated
as of May 18, 2009, between Hemispherx Biopharma, Inc., a Delaware corporation
(the “Company”), and each
purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “Purchaser” and
collectively the “Purchasers”).

     

    WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to
an effective registration statement under the Securities Act of 1933, as amended
(the “Securities
Act”), the Company desires to issue and sell to each Purchaser, and each
Purchaser, severally and not jointly, desires to purchase from the Company,
securities of the Company as more fully described in this
Agreement.

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and each Purchaser agree as
follows:

     

    ARTICLE
I.

    DEFINITIONS

     

    1.1            Definitions.  In
addition to the terms defined elsewhere in this Agreement, for all purposes of
this Agreement, the following terms have the meanings set forth in this Section
1.1:

     

    “Acquiring Person”
shall have the meaning ascribed to such term in Section 4.5.

     

    “Action” shall have
the meaning ascribed to such term in Section 3.1(j).

     

    “Affiliate” means any
Person that, directly or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with a Person as such terms are
used in and construed under Rule 405 under the Securities Act.

     

    “Board of Directors”
means the board of directors of the Company.

     

    “Business Day” means
any day except any Saturday, any Sunday, any day which is a federal legal
holiday in the United States or any day on which banking institutions in the
State of New York are authorized or required by law or other governmental action
to close.

     

    “Closing” means the
closing of the purchase and sale of the Securities pursuant to Section
2.1.

     

    “Closing Date” means
the Trading Day on which all of the Transaction Documents have been executed and
delivered by the applicable parties thereto, and all conditions precedent to (i)
the Purchasers’ obligations to pay the Subscription Amount and (ii) the
Company’s obligations to deliver the Securities, in each case, have been
satisfied or waived.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    “Commission” means the
United States Securities and Exchange Commission.

     

    “Common Stock” means
the common stock of the Company, par value $0.001 per share, and any other class
of securities into which such securities may hereafter be reclassified or
changed.

     

    “Common Stock
Equivalents” means any securities of the Company or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

     

    “Company Counsel”
means Silverman Sclar Shin & Byrne PLLC, with offices located at 381 Park
Avenue South, 16th floor,
New York, NY 10016.

     

    “Disclosure Schedules”
means the Disclosure Schedules of the Company delivered concurrently
herewith.

     

    “Evaluation Date”
shall have the meaning ascribed to such term in Section 3.1(r).

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

    “Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees,
officers, directors or vendors of the Company pursuant to any stock or option
plan duly adopted for such purpose, by a majority of the non-employee members of
the Board of Directors or a majority of the members of a committee of
non-employee directors established for such purpose, (b) securities upon the
exercise or exchange of or conversion of any Securities issued hereunder and/or
other securities exercisable or exchangeable for or convertible into shares of
Common Stock issued and outstanding on the date of this Agreement, provided that
such securities have not been amended since the date of this Agreement to
increase the number of such securities or to decrease the exercise price,
exchange price or conversion price of such securities, and (c) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of the
disinterested directors of the Company, which acquisitions or strategic
transactions can have a Variable Rate Transaction component,  provided
that any such issuance shall only be to a Person (or to the equityholders of a
Person) which is, itself or through its subsidiaries, an operating company or an
asset in a business synergistic with the business of the Company and shall
provide to the Company additional benefits in addition to the investment of
funds, but shall not include a transaction in which the Company is issuing
securities primarily for the purpose of raising capital or to an entity whose
primary business is investing in securities.

     

     “FDA” shall have the
meaning ascribed to such term in Section 3.1(gg).

     

    “FDCA” shall have the
meaning ascribed to such term in Section 3.1(gg).

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

     “FWS” means Feldman
Weinstein & Smith LLP with offices located at 420 Lexington Avenue, Suite
2620, New York, New York 10170-0002.

     

    “GAAP” shall have the
meaning ascribed to such term in Section 3.1(h).

     

    “Indebtedness” shall
have the meaning ascribed to such term in Section 3.1(z).

     

    “Intellectual Property
Rights” shall have the meaning ascribed to such term in Section
3.1(o).

     

    “Liens” means a lien,
charge, security interest, encumbrance, right of first refusal, preemptive right
or other restriction.

     

    “Material Adverse
Effect” shall have the meaning assigned to such term in Section
3.1(b).

     

    “Material Permits”
shall have the meaning ascribed to such term in Section 3.1(m).

     

    “NYSE Amex Approval”
means the approval by the NYSE AMEX of the Company’s additional listing
applications with regard to the issuance of the Securities.

     

     “Per Share Purchase
Price” equals $1.34375, subject to
adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

     

    “Person” means an
individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any
kind.

     

     “Pharmaceutical
Product” shall have the meaning ascribed to such term in Section
3.1(gg).

     

     “Proceeding” means an
action, claim, suit, investigation or proceeding (including, without limitation,
an informal investigation or partial proceeding, such as a deposition), whether
commenced or threatened.

     

    “Prospectus” means the
final prospectus filed for the Registration Statement.

     

    “Prospectus
Supplement” means the supplement to the Prospectus complying with Rule
424(b) of the Securities Act that is filed with the Commission and delivered by
the Company to each Purchaser prior to the Closing.

     

    “Purchaser Party”
shall have the meaning ascribed to such term in Section 4.8.

     

    “Registration
Statement” means the effective registration statement with Commission
file No. 333-151696 which registers the sale of the Shares, the Warrants and the
Warrant Shares by the Purchasers.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Required Approvals”
shall have the meaning ascribed to such term in Section 3.1(e).

     

    “Rule 144” means Rule
144 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

     

    “Rule 424” means Rule
424 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended or interpreted from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.

     

     “SEC Reports” shall
have the meaning ascribed to such term in Section 3.1(h).

     

    “Securities” means the
Shares, the Warrants and the Warrant Shares.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     

    “Shares” means the
shares of Common Stock issued or issuable to each Purchaser pursuant to this
Agreement.

     

    “Short Sales” means
all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange
Act (but shall not be deemed to include the location and/or reservation of
borrowable shares of Common Stock). 

     

     “Subscription Amount”
means, as to each Purchaser, the aggregate amount to be paid for Shares and
Warrants purchased hereunder as specified below such Purchaser’s name on the
signature page of this Agreement and next to the heading “Subscription Amount,”
in United States dollars and in immediately available funds.

     

     “Subsidiary” means any
subsidiary of the Company as set forth on Schedule 3.1(a), and
shall, where applicable, also include any direct or indirect subsidiary of the
Company formed or acquired after the date hereof.

     

    “Trading Day” means a
day on which the principal Trading Market is open for trading.

     

     “Trading Market” means
any of the following markets or exchanges on which the Common Stock is listed or
quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital
Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New
York Stock Exchange (or any successors to any of the foregoing).

     

    “Transaction
Documents” means this Agreement, the Warrants and any other documents or
agreements executed in connection with the transactions contemplated
hereunder.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    “Transfer Agent” means
Continental Stock Transfer & Trust Co., the current transfer agent of the
Company, with a mailing address of 17 Battery Place, New York,  NY
10004 and a facsimile number of (212) 509-5150, and any successor transfer agent
of the Company.

     

    “Variable Rate
Transaction” shall have the meaning ascribed to such term in Section
4.12(b).

     

    “Warrants” means the
Common Stock purchase warrants delivered to the Purchasers at the Closing in
accordance with Section 2.2(a) hereof, which shall be immediately exercisable
and have a term of exercise equal to five years, in the form of Exhibit A attached
hereto.

     

    “Warrant Shares” means
the shares of Common Stock issuable upon exercise of the Warrants.

     

    ARTICLE
II.

    PURCHASE
AND SALE

     

    2.1           Closing.  On
the Closing Date, upon the terms and subject to the conditions set forth herein,
substantially concurrent with the execution and delivery of this Agreement by
the parties hereto, the Company agrees to sell, and the Purchasers, severally
and not jointly,  agree to purchase, up to an aggregate of $16,000,000
of Shares and Warrants.  Each Purchaser shall deliver to the Company,
via wire transfer or a certified check of immediately available funds equal to
such Purchaser’s Subscription Amount as set forth on the signature page hereto
executed by such Purchaser and the Company shall deliver to each Purchaser its
respective Shares and a Warrant as determined pursuant to Section 2.2(a), and
the Company and each Purchaser shall deliver the other items set forth in
Section 2.2 deliverable at the Closing.  Upon satisfaction of the
covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall
occur at the offices of FWS or such other location as the parties shall mutually
agree.

     

    2.2           Deliveries.

     

    (a)           On
or prior to the Closing Date, the Company shall deliver or cause to be delivered
to each Purchaser the following:

     

    (i)           this
Agreement duly executed by the Company;

     

    (ii)           a
legal opinion of Company Counsel, substantially in the form of Exhibit B attached
hereto;

     

    (iii)           a
copy of the irrevocable instructions to the Company’s transfer agent instructing
the transfer agent to deliver via the Depository Trust Company Deposit
Withdrawal Agent Commission System (“DWAC”) Shares equal
to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price,
registered in the name of such Purchaser;

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (iv)           a
Warrant registered in the name of such Purchaser to purchase up to a number of
shares of Common Stock equal to 35% of such Purchaser’s
Shares, with an exercise price equal to $1.31, subject to adjustment
therein (such Warrant certificate may be delivered within three Trading Days of
the Closing Date);  and

     

    (v)           the
Prospectus and Prospectus Supplement (which may be delivered in accordance with
Rule 172 under the Securities Act).

     

    (b)         On
or prior to the Closing Date, each Purchaser shall deliver or cause to be
delivered to the Company the following:

     

    (i)           this
Agreement duly executed by such Purchaser; and

     

    (ii)           such
Purchaser’s Subscription Amount by wire transfer to the account as specified in
writing by the Company.

     

    2.3           Closing
Conditions.

     

    (a)           The
obligations of the Company hereunder in connection with the Closing are subject
to the following conditions being met:

     

    (i)           the
accuracy in all material respects on the Closing Date of the representations and
warranties of the Purchasers contained herein (unless as of a specific date
therein);

     

    (ii)           all
obligations, covenants and agreements of each Purchaser required to be performed
at or prior to the Closing Date shall have been performed;

     

    (iii)           the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this
Agreement and

     

    (iv)           The
NYSE Amex Approval.

     

    (b)         The
respective obligations of the Purchasers hereunder in connection with the
Closing are subject to the following conditions being met:

     

    (i)           the
accuracy in all material respects when made and on the Closing Date of the
representations and warranties of the Company contained herein (unless as of a
specific date therein);

     

    (ii)           all
obligations, covenants and agreements of the Company required to be performed at
or prior to the Closing Date shall have been performed;

     

    (iii)           the
delivery by the Company of the items set forth in Section 2.2(a) of this
Agreement;

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (iv)           there
shall have been no Material Adverse Effect with respect to the Company since the
date hereof;

     

    (v)           The
NYSE Amex Approval; and

     

    (vi)           from
the date hereof to the Closing Date, trading in the Common Stock shall not have
been suspended by the Commission or the Company’s principal Trading Market
(except for any suspension of trading of limited duration agreed to by the
Company, which suspension shall be terminated prior to the Closing), and, at any
time prior to the Closing Date, trading in securities generally as reported by
Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall
not have been established on securities whose trades are reported by such
service, or on any Trading Market, nor shall a banking moratorium have been
declared either by the United States or New York State authorities nor shall
there have occurred any material outbreak or escalation of hostilities or other
national or international calamity of such magnitude in its effect on, or any
material adverse change in, any financial market which, in each case, in the
reasonable judgment of each Purchaser, makes it impracticable or inadvisable to
purchase the Securities at the Closing.

     

    ARTICLE
III.

    REPRESENTATIONS
AND WARRANTIES

     

    3.1           Representations and
Warranties of the Company.  Except as set forth in the
Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof
and shall qualify any representation or otherwise made herein to the extent of
the disclosure contained in the corresponding section of the Disclosure
Schedules, the Company hereby makes the following representations and warranties
to each Purchaser:

     

    (a)           Subsidiaries.  All
of the direct and indirect subsidiaries of the Company are set forth on Schedule
3.1(a).  Except as set forth on Schedule 3.1(a), the Company
owns, directly or indirectly, all of the capital stock or other equity interests
of each Subsidiary free and clear of any Liens, and all of the issued and
outstanding shares of capital stock of each Subsidiary are validly issued and
are fully paid, non-assessable and free of preemptive and similar rights to
subscribe for or purchase securities.  If the Company has no
subsidiaries, all other references to the Subsidiaries or any of them in the
Transaction Documents shall be disregarded.

     

    (b)         Organization and
Qualification.  The Company and each of the Subsidiaries is an
entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization, with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently
conducted.  Neither the Company nor any Subsidiary is in violation nor
default of any of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter
documents.  Each of the Company and the Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other
entity in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, could not
have or reasonably be expected to result in: (i) a material adverse effect on
the legality, validity or enforceability of any Transaction Document, (ii) a
material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the
Subsidiaries, taken as a whole, or (iii) a material adverse effect on the
Company’s ability to perform in any material respect on a timely basis its
obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse
Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such
power and authority or qualification.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (c)         Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder.  The execution and delivery of each of the
Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all
necessary action on the part of the Company and no further action is required by
the Company, the Board of Directors or the Company’s stockholders in connection
therewith other than in connection with the Required Approvals.  Each
Transaction Document to which it is a party has been (or upon delivery will have
been) duly executed by the Company and, when delivered in accordance with the
terms hereof and thereof, will constitute the valid and binding obligation of
the Company enforceable against the Company in accordance with its terms, except
(i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law.

     

    (d)         No
Conflicts.  The execution, delivery and performance by the
Company of the Transaction Documents, the issuance and sale of the Securities
and the consummation by it of the transactions contemplated hereby and thereby
to which it is a party do not and will not (i) conflict with or violate any
provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii)
conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, result in the creation of any Lien
upon any of the properties or assets of the Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or
otherwise) or other understanding to which the Company or any Subsidiary is a
party or by which any property or asset of the Company or any Subsidiary is
bound or affected, or (iii) subject to the Required Approvals, conflict with or
result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including federal and state securities laws
and regulations), or by which any property or asset of the Company or a
Subsidiary is bound or affected; except in the case of each of clauses (ii) and
(iii), such as could not have or reasonably be expected to result in a Material
Adverse Effect.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (e)         Filings, Consents and
Approvals.  The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution,
delivery and performance by the Company of the Transaction Documents, other
than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii)
the filing with the Commission of the Prospectus Supplement, (iii)
application(s) to each applicable Trading Market for the listing of the
Securities for trading thereon in the time and manner required thereby and (iv)
such filings as are required to be made under applicable state securities laws
(collectively, the “Required
Approvals”).

     

    (f)         Issuance of the Securities;
Registration.  The Securities are duly authorized and, when
issued and paid for in accordance with the applicable Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of
all Liens imposed by the Company.  The Warrant Shares, when issued in
accordance with the terms of the Warrants, will be validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the
Company.  The Company has reserved from its duly authorized capital
stock the maximum number of shares of Common Stock issuable pursuant to this
Agreement and the Warrants. The Company has prepared and filed the Registration
Statement in conformity with the requirements of the Securities Act, which
became effective on June 27, 2008 (the “Effective Date”),
including the Prospectus, and such amendments and supplements thereto as may
have been required to the date of this Agreement.  The Registration
Statement is effective under the Securities Act and no stop order preventing or
suspending the effectiveness of the Registration Statement or suspending or
preventing the use of the Prospectus has been issued by the Commission and no
proceedings for that purpose have been instituted or, to the knowledge of the
Company, are threatened by the Commission.  The Company, if required
by the rules and regulations of the Commission, proposes to file the Prospectus
Supplement, with the Commission pursuant to Rule 424(b).  At the time
the Registration Statement and any amendments thereto became effective, at the
date of this Agreement and at the Closing Date, the Registration Statement and
any amendments thereto conformed and will conform in all material respects to
the requirements of the Securities Act and did not and will not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not misleading;
and the Prospectus and any amendments or supplements thereto, at time the
Prospectus or any amendment or supplement thereto was issued and at the Closing
Date, conformed and will conform in all material respects to the requirements of
the Securities Act and did not and will not contain an untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (g)         Capitalization.  The
capitalization of the Company is as set forth on Schedule
3.1(g).  Except as set forth on Schedule 3.1(g), the
Company has not issued any capital stock since its most recently filed periodic
report under the Exchange Act, other than pursuant to the exercise of employee
stock options under the Company’s stock option plans, the issuance of shares of
Common Stock to employees pursuant to the Company’s employee stock purchase
plans and pursuant to the conversion and/or exercise of Common Stock Equivalents
outstanding as of the date of the most recently filed periodic report under the
Exchange Act.  No Person has any right of first refusal, preemptive
right, right of participation, or any similar right to participate in the
transactions contemplated by the Transaction Documents.  Except as a
result of the purchase and sale of the Securities and except as set forth on
Schedule
3.1(g), there are no outstanding options, warrants, scrip rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exercisable or
exchangeable for, or giving any Person any right to subscribe for or acquire,
any shares of Common Stock, or contracts, commitments, understandings or
arrangements by which the Company or any Subsidiary is or may become bound to
issue additional shares of Common Stock or Common Stock
Equivalents.  The issuance and sale of the Securities will not
obligate the Company to issue shares of Common Stock or other securities to any
Person (other than the Purchasers) and, except as set forth on Schedule 3.1(g), will
not result in a right of any holder of Company securities to adjust the
exercise, conversion, exchange or reset price under any of such securities. All
of the outstanding shares of capital stock of the Company are validly issued,
fully paid and nonassessable, have been issued in compliance with all federal
and state securities laws, and none of such outstanding shares was issued in
violation of any preemptive rights or similar rights to subscribe for or
purchase securities.  No further approval or authorization of any
stockholder, the Board of Directors or others (except as set forth on Schedule 3.1(g)) is
required for the issuance and sale of the Securities.  There are no
stockholders agreements, voting agreements or other similar agreements with
respect to the Company’s capital stock to which the Company is a party or, to
the knowledge of the Company, between or among any of the Company’s
stockholders.

     

    (h)         SEC Reports; Financial
Statements.  The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by the Company under
the Securities Act and the Exchange Act, including pursuant to Section 13(a) or
15(d) thereof, for the two years preceding the date hereof (or such shorter
period as the Company was required by law or regulation to file such material)
(the foregoing materials, including the exhibits thereto and documents
incorporated by reference therein, together with the Prospectus and the
Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on a
timely basis or has received a valid extension of such time of filing and has
filed any such SEC Reports prior to the expiration of any such
extension.  As of their respective dates, the SEC Reports complied in
all material respects with the requirements of the Securities Act and the
Exchange Act, as applicable, and none of the SEC Reports, when filed, contained
any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading. The Company has never been an issuer subject to Rule 144(i) under
the Securities Act. The financial statements of the Company included in the SEC
Reports comply in all material respects with applicable accounting requirements
and the rules and regulations of the Commission with respect thereto as in
effect at the time of filing.  Such financial statements have been
prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may
be otherwise specified in such financial statements or the notes thereto and
except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial
position of the Company and its consolidated Subsidiaries as of and for the
dates thereof and the results of operations and cash flows for the periods then
ended, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (i)         Material Changes;
Undisclosed Events, Liabilities or Developments.  Since the
date of the latest audited financial statements included within the SEC Reports,
except as specifically disclosed in a subsequent SEC Report filed prior to the
date hereof, (i) there has been no event, occurrence or development that has had
or that could reasonably be expected to result in a Material Adverse Effect,
(ii) the Company has not incurred any liabilities (contingent or otherwise)
other than (A) trade payables and accrued expenses incurred in the ordinary
course of business consistent with past practice and (B) liabilities not
required to be reflected in the Company’s financial statements pursuant to GAAP
or disclosed in filings made with the Commission, (iii) the Company has not
altered its method of accounting, (iv) the Company has not declared or made any
dividend or distribution of cash or other property to its stockholders or
purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock and (v) the Company has not issued any equity securities to
any officer, director or Affiliate, except pursuant to existing Company stock
option plans.  The Company does not have pending before the Commission
any request for confidential treatment of information.  Except for the
issuance of the Securities contemplated by this Agreement or as set forth on
Schedule
3.1(i), no event, liability, fact, circumstance, occurrence or
development has occurred or exists or is reasonably expected to occur or exist
with respect to the Company or its Subsidiaries or their respective business,
prospects, properties, operations, assets or financial condition that would be
required to be disclosed by the Company under applicable securities laws at the
time this representation is made or deemed made that has not been publicly
disclosed at least 1 Trading Day prior to the date that this representation is
made.

     

    (j)         Litigation.  There
is no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the
Company, any Subsidiary or any of their respective properties before or by any
court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which (i)
adversely affects or challenges the legality, validity or enforceability of any
of the Transaction Documents or the Securities or (ii) could, if there were an
unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect.  Neither the Company nor any Subsidiary, nor any
director or officer thereof, is or has been the subject of any Action involving
a claim of violation of or liability under federal or state securities laws or a
claim of breach of fiduciary duty.  There has not been, and to the
knowledge of the Company, there is not pending or contemplated, any
investigation by the Commission involving the Company or any current or former
director or officer of the Company.  The Commission has not issued any
stop order or other order suspending the effectiveness of any registration
statement filed by the Company or any Subsidiary under the Exchange Act or the
Securities Act.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (k)         Labor
Relations.  No material labor dispute exists or, to the
knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse
Effect.  None of the Company’s or its Subsidiaries’ employees is a
member of a union that relates to such employee’s relationship with the Company
or such Subsidiary, and neither the Company nor any of its Subsidiaries is a
party to a collective bargaining agreement, and the Company and its Subsidiaries
believe that their relationships with their employees are good.  No
executive officer, to the knowledge of the Company, is, or is now expected to
be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or
non-competition agreement, or any other contract or agreement or any restrictive
covenant in favor of any third party, and the continued employment of each such
executive officer does not subject the Company or any of its Subsidiaries to any
liability with respect to any of the foregoing matters.  The Company
and its Subsidiaries are in compliance with all U.S. federal, state, local and
foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure
to be in compliance could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

     

    (l)         Compliance.  Neither
the Company nor any Subsidiary: (i) is in default under or in violation of (and
no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by the Company or any Subsidiary under),
nor has the Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is in violation of any judgment, decree or
order of any court, arbitrator or governmental body or (iii) is or has been in
violation of any statute, rule, ordinance or regulation of any governmental
authority, including without limitation all foreign, federal, state and local
laws applicable to its business and all such laws that affect the environment,
except in each case as could not have or reasonably be expected to result in a
Material Adverse Effect.

     

    (m)       Regulatory
Permits.  The Company and the Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their
respective businesses as described in the SEC Reports, except where the failure
to possess such permits could not reasonably be expected to result in a Material
Adverse Effect (“Material Permits”),
and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material
Permit.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (n)         Title to
Assets.  The Company and the Subsidiaries have good and
marketable title in fee simple to all real property owned by them and good and
marketable title in all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of all
Liens, except for Liens as do not materially affect the value of such property
and do not materially interfere with the use made and proposed to be made of
such property by the Company and the Subsidiaries and Liens for the payment of
federal, state or other taxes, the payment of which is neither delinquent nor
subject to penalties.  Any real property and facilities held under
lease by the Company and the Subsidiaries are held by them under valid,
subsisting and enforceable leases with which the Company and the Subsidiaries
are in compliance.

     

    (o)         Patents and
Trademarks.  The Company and the Subsidiaries have, or have
rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights,
licenses and other intellectual property rights and similar rights necessary or
material for use in connection with their respective businesses as described in
the SEC Reports and which the failure to so have could have a Material Adverse
Effect (collectively, the “Intellectual Property
Rights”).  Neither the Company nor any Subsidiary has received
a notice (written or otherwise) that any of the Intellectual Property Rights
used by the Company or any Subsidiary violates or infringes upon the rights of
any Person.  To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another
Person of any of the Intellectual Property Rights.  The Company and
its Subsidiaries have taken reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties, except where
failure to do so could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

     

    (p)         Insurance.  Except
as set forth on Schedule 3.1(p), the
Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses in which the Company and the Subsidiaries are
engaged, including, but not limited to, directors and officers insurance
coverage at least equal to the aggregate Subscription Amount.  Neither
the Company nor any Subsidiary has any reason to believe that it will not be
able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to
continue its business without a significant increase in cost.

     

    (q)         Transactions With Affiliates
and Employees.  Except as set forth in the SEC Reports, none of
the officers or directors of the Company and, to the knowledge of the Company,
none of the employees of the Company is presently a party to any transaction
with the Company or any Subsidiary (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any
officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner, in each case in excess
of $120,000 other than for (i) payment of salary or consulting fees for services
rendered, (ii) reimbursement for expenses incurred on behalf of the Company and
(iii) other employee benefits, including stock option agreements under any stock
option plan of the Company.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (r)         Sarbanes-Oxley; Internal
Accounting Controls.  The Company is in material compliance
with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it
as of the Closing Date.  The Company and the Subsidiaries maintain a
system of internal accounting controls sufficient to provide reasonable
assurance that: (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to
maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences. The Company has established disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and
designed such disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or submits under
the Exchange Act is recorded, processed, summarized and reported, within the
time periods specified in the Commission’s rules and forms.  The
Company’s certifying officers have evaluated the effectiveness of the Company’s
disclosure controls and procedures as of the end of the period covered by the
Company’s most recently filed periodic report under the Exchange Act (such date,
the “Evaluation
Date”).  The Company presented in its most recently filed
periodic report under the Exchange Act the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date.  Since the Evaluation
Date, there have been no changes in the Company’s internal control over
financial reporting (as such term is defined in the Exchange Act) that has
materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.

     

    (s)         Certain
Fees.  Except as set forth in the Prospectus Supplement, no
brokerage or finder’s fees or commissions are or will be payable by the Company
to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents.  The Purchasers shall have
no obligation with respect to any fees or with respect to any claims made by or
on behalf of other Persons for fees of a type contemplated in this Section that
may be due in connection with the transactions contemplated by the Transaction
Documents.

     

    (t)         Investment Company.
The Company is not, and is not an Affiliate of, and immediately after receipt of
payment for the Securities, will not be or be an Affiliate of, an “investment
company” within the meaning of the Investment Company Act of 1940, as
amended.  The Company shall conduct its business in a manner so that
it will not become an “investment company” subject to registration under the
Investment Company Act of 1940, as amended.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    (u)         Registration
Rights.  No Person has any right to cause the Company to effect
the registration under the Securities Act of any securities of the
Company.

     

    (v)         Listing and Maintenance
Requirements.  The Common Stock is registered pursuant to
Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action
designed to, or which to its knowledge is likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act nor has
the Company received any notification that the Commission is contemplating
terminating such registration.  The Company has not, in the 12 months
preceding the date hereof, received notice from any Trading Market on which the
Common Stock is or has been listed or quoted to the effect that the Company is
not in compliance with the listing or maintenance requirements of such Trading
Market. The Company is, and has no reason to believe that it will not in the
foreseeable future continue to be, in compliance with all such listing and
maintenance requirements.

     

    (w)        Application of Takeover
Protections.  The Company and the Board of Directors have taken
all necessary action, if any, in order to render inapplicable any control share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s
certificate of incorporation (or similar charter documents) or the laws of its
state of incorporation that is or could become applicable to the Purchasers as a
result of the Purchasers and the Company fulfilling their obligations or
exercising their rights under the Transaction Documents, including without
limitation as a result of the Company’s issuance of the Securities and the
Purchasers’ ownership of the Securities.

     

    (x)         Disclosure.  Except
with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company confirms that neither it
nor any other Person acting on its behalf has provided any of the Purchasers or
their agents or counsel with any information that it believes constitutes or
might constitute material, non-public information which is not otherwise
disclosed in the Prospectus Supplement.   The Company understands
and confirms that the Purchasers will rely on the foregoing representation in
effecting transactions in securities of the Company.  All of the
disclosure furnished by or on behalf of the Company to the Purchasers regarding
the Company, its business and the transactions contemplated hereby, including
the Disclosure Schedules to this Agreement, is true and correct and does not
contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. The press releases
disseminated by the Company during the twelve months preceding the date of this
Agreement taken as a whole do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under
which they were made and when made, not misleading.  The Company
acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than
those specifically set forth in Section 3.2 hereof.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    (y)         No Integrated
Offering. Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3.2 and the NYSE Amex Approval, neither the
Company, nor any of its Affiliates, nor any Person acting on its or their behalf
has, directly or indirectly, made any offers or sales of any security or
solicited any offers to buy any security, under circumstances that would cause
this offering of the Securities to be integrated with prior offerings by the
Company for purposes of any applicable shareholder approval provisions of any
Trading Market on which any of the securities of the Company are listed or
designated.

     

    (z)         Solvency.  Based
on the consolidated financial condition of the Company as of the Closing Date,
after giving effect to the receipt by the Company of the proceeds from the sale
of the Securities hereunder, (i) the fair saleable value of the Company’s assets
exceeds the amount that will be required to be paid on or in respect of the
Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature, (ii) the Company’s assets do not constitute
unreasonably small capital to carry on its business as now conducted and as
proposed to be conducted including its capital needs taking into account the
particular capital requirements of the business conducted by the Company, and
projected capital requirements and capital availability thereof, and (iii) the
current cash flow of the Company, together with the proceeds the Company would
receive, were it to liquidate all of its assets, after taking into account all
anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be
paid.  The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of
cash to be payable on or in respect of its debt).  The Company has no
knowledge of any facts or circumstances which lead it to believe that it will
file for reorganization or liquidation under the bankruptcy or reorganization
laws of any jurisdiction within one year from the Closing Date.  Schedule 3.1(z) sets
forth as of the date hereof all outstanding secured and unsecured Indebtedness
of the Company or any Subsidiary, or for which the Company or any Subsidiary has
commitments.  For the purposes of this Agreement, “Indebtedness” means
(x) any liabilities for borrowed money or amounts owed in excess of $50,000
(other than trade accounts payable incurred in the ordinary course of business),
(y) all guaranties, endorsements and other contingent obligations in respect of
indebtedness of others, whether or not the same are or should be reflected in
the Company’s balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (z) the present value of
any lease payments in excess of $50,000 due under leases required to be
capitalized in accordance with GAAP.  Neither the Company nor any
Subsidiary is in default with respect to any Indebtedness.

     

    (aa)       Tax
Status.  Except for matters that would not, individually or in
the aggregate, have or reasonably be expected to result in a Material Adverse
Effect, the Company and each Subsidiary has filed all necessary federal, state
and foreign income and franchise tax returns and has paid or accrued all taxes
shown as due thereon, and the Company has no knowledge of a tax deficiency which
has been asserted or threatened against the Company or any
Subsidiary.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    (bb)      Foreign Corrupt
Practices.  Neither the Company, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company, has (i)
directly or indirectly, used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (iii) failed to disclose fully any
contribution made by the Company (or made by any person acting on its behalf of
which the Company is aware) which is in violation of law, or (iv) violated in
any material respect any provision of the Foreign Corrupt Practices Act of 1977,
as amended.

     

    (cc)       Accountants.  The
Company’s accounting firm is set forth on Schedule 3.1(cc) of
the Disclosure Schedules.  To the knowledge and belief of the Company,
such accounting firm (i) is a registered public accounting firm as required by
the Exchange Act and (ii) shall express its opinion with respect to the
financial statements to be included in the Company’s Annual Report for the year
ended December 31, 2008.

     

    (dd)      Acknowledgment Regarding
Purchasers’ Purchase of Securities.  The Company acknowledges
and agrees that each of the Purchasers is acting solely in the capacity of an
arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated thereby.  The Company further acknowledges
that no Purchaser is acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to the Transaction Documents and the
transactions contemplated thereby and any advice given by any Purchaser or any
of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the
Purchasers’ purchase of the Securities.  The Company further
represents to each Purchaser that the Company’s decision to enter into this
Agreement and the other Transaction Documents has been based solely on the
independent evaluation of the transactions contemplated hereby by the Company
and its representatives.

     

    (ee)       Acknowledgement Regarding
Purchaser’s Trading Activity.  Anything in this Agreement or
elsewhere herein to the contrary notwithstanding (except for
Sections 3.2(e) and 4.14 hereof), it is understood and acknowledged by the
Company that: (i) none of the Purchasers have been asked by the Company to
agree, nor has any Purchaser agreed, to desist from purchasing or selling, long
and/or short, securities of the Company, or “derivative” securities based on
securities issued by the Company or to hold the Securities for any specified
term; (ii) past or future open market or other transactions by any Purchaser,
specifically including, without limitation, Short Sales or “derivative”
transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (iii) any Purchaser, and counter-parties in
“derivative” transactions to which any such Purchaser is a party, directly or
indirectly, presently may have a “short” position in the Common Stock, and (iv)
each Purchaser shall not be deemed to have any affiliation with or control over
any arm’s length counter-party in any “derivative” transaction.  The
Company further understands and acknowledges that (y) one or more Purchasers may
engage in hedging activities at various times during the period that the
Securities are outstanding, including, without limitation, during the periods
that the value of the Warrant Shares deliverable with respect to Securities are
being determined, and (z) such hedging activities (if any) could reduce the
value of the existing stockholders' equity interests in the Company at and after
the time that the hedging activities are being conducted.  The Company
acknowledges that such aforementioned hedging activities do not constitute a
breach of any of the Transaction Documents.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    (ff)        Regulation M
Compliance.  The Company has not, and to its knowledge no one acting
on its behalf has, (i) taken, directly or indirectly, any action designed to
cause or to result in the stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of any of the
Securities, (ii) sold, bid for, purchased, or, paid any compensation for
soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay
to any Person any compensation for soliciting another to purchase any other
securities of the Company, other than, in the case of clauses (ii) and (iii),
compensation paid to the Company’s placement agent in connection with the
placement of the Securities.

     

    (gg)      FDA.  As to
each product subject to the jurisdiction of the U.S. Food and Drug
Administration (“FDA”) under the
Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder
(“FDCA”) that
is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed
by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical
Product”), such Pharmaceutical Product is being manufactured, packaged,
labeled, tested, distributed, sold and/or marketed by the Company in compliance
with all applicable requirements under FDCA and similar laws, rules and
regulations relating to registration, investigational use, premarket clearance,
licensure, or application approval, good manufacturing practices, good
laboratory practices, good clinical practices, product listing, quotas,
labeling, advertising, record keeping and filing of reports, except where the
failure to be in compliance would not have a Material Adverse
Effect.  There is no pending, completed or, to the Company's
knowledge, threatened, action (including any lawsuit, arbitration, or legal or
administrative or regulatory proceeding, charge, complaint, or investigation)
against the Company or any of its Subsidiaries, and none of the Company or any
of its Subsidiaries has received any notice, warning letter or other
communication from the FDA or any other governmental entity, which (i) contests
the premarket clearance, licensure, registration, or approval of, the uses of,
the distribution of, the manufacturing or packaging of, the testing of, the sale
of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws
its approval of, requests the recall, suspension, or seizure of, or withdraws or
orders the withdrawal of advertising or sales promotional materials relating to,
any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical
investigation by the Company or any of its Subsidiaries, (iv) enjoins production
at any facility of the Company or any of its Subsidiaries, (v) enters or
proposes to enter into a consent decree of permanent injunction with the Company
or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws,
rules or regulations by the Company or any of its Subsidiaries, and which,
either individually or in the aggregate, would have a Material Adverse
Effect.  The properties, business and operations of the Company have
been and are being conducted in all material respects in accordance with all
applicable laws, rules and regulations of the FDA.  The Company has not
been informed by the FDA that the FDA will prohibit the marketing, sale, license
or use in the United States of any product proposed to be developed, produced or
marketed by the Company nor has the FDA expressed any concern as to approving or
clearing for marketing any product being developed or proposed to be developed
by the Company.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    3.2           Representations and
Warranties of the Purchasers.  Each Purchaser, for itself and
for no other Purchaser, hereby represents and warrants as of the date hereof and
as of the Closing Date to the Company as follows (unless as of a specific date
therein):

     

    (a)           Organization;
Authority.  Such Purchaser is either an individual or an entity
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization with full right, corporate or partnership power
and authority to enter into and to consummate the transactions contemplated by
this Agreement and otherwise to carry out its obligations hereunder and
thereunder. The execution and delivery of this Agreement and performance by such
Purchaser of the transactions contemplated by this Agreement have been duly
authorized by all necessary corporate, partnership, limited liability company or
similar action, as applicable, on the part of such Purchaser.  Each
Transaction Document to which it is a party has been duly executed by such
Purchaser, and when delivered by such Purchaser in accordance with the terms
hereof, will constitute the valid and legally binding obligation of such
Purchaser, enforceable against it in accordance with its terms, except: (i) as
limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

     

    (b)           Own
Account.  Such Purchaser is acquiring the Securities as
principal for its own account and not with a view to or for distributing or
reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing
any of such Securities in violation of the Securities Act or any applicable
state securities law and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of such
Securities in violation of the Securities Act or any applicable state securities
law (this representation and warranty not limiting such Purchaser’s right to
sell the Securities pursuant to the Registration Statement or otherwise in
compliance with applicable federal and state securities laws).  Such
Purchaser is acquiring the Securities hereunder in the ordinary course of its
business.

     

    (c)           Purchaser
Status.  At the time such Purchaser was offered the Securities,
it was, and as of the date hereof it is, and on each date on which it exercises
any Warrants, it will be either: (i) an “accredited investor” as defined in Rule
501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a
“qualified institutional buyer” as defined in Rule 144A(a) under the Securities
Act.  Such Purchaser is not required to be registered as a
broker-dealer under Section 15 of the Exchange Act.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    (d)           Experience of Such
Purchaser.  Such Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Securities, and has so evaluated the merits
and risks of such investment.  Such Purchaser is able to bear the
economic risk of an investment in the Securities and, at the present time, is
able to afford a complete loss of such investment.

     

    (e)           Certain Transactions and
Confidentiality.  Other than consummating the transactions
contemplated hereunder, such Purchaser has not, nor has any Person acting on
behalf of or pursuant to any understanding with such Purchaser, directly or
indirectly executed any purchases or sales, including Short Sales, of the
securities of the Company during the period commencing as of the time that such
Purchaser first received a term sheet (written or oral) as of the Company or any
other Person representing the Company setting forth the material terms of the
transactions contemplated hereunder and ending immediately prior to the
execution hereof.  Notwithstanding the foregoing, in the case of a
Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no direct knowledge of the investment decisions made by the
portfolio managers managing other portions of such Purchaser’s assets, the
representation set forth above shall only apply with respect to the portion of
assets managed by the portfolio manager that made the investment decision to
purchase the Securities covered by this Agreement.  Other than to
other Persons party to this Agreement, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this
transaction). Notwithstanding the foregoing, for avoidance of doubt,
nothing contained herein shall constitute a representation or warranty, or
preclude any actions, with respect to the identification of the availability of,
or securing of, available shares to borrow in order to effect Short Sales or
similar transactions in the future.

     

    The
Company acknowledges and agrees that the representations contained in Section
3.2 shall not modify, amend or affect such Purchaser’s right to rely on the
Company’s representations and warranties contained in this Agreement or any
representations and warranties contained in any other Transaction Document or
any other document or instrument executed and/or delivered in connection with
this Agreement or the consummation of the transaction contemplated
hereby.

     

    ARTICLE
IV.

    OTHER
AGREEMENTS OF THE PARTIES

     

    4.1           Warrant
Shares.  If all or any portion of a Warrant is exercised at a
time when there is an effective registration statement to cover the issuance or
resale of the Warrant Shares or if the Warrant is exercised via cashless
exercise, the Warrant Shares issued pursuant to any such exercise shall be
issued free of all legends.  If at any time following the date hereof
the Registration Statement (or any subsequent registration statement registering
the sale or resale of the Warrant Shares) is not effective or is not otherwise
available for the sale or resale of the Warrant Shares, the Company shall
immediately notify the holders of the Warrants in writing that such registration
statement is not then effective and thereafter shall promptly notify such
holders when the registration statement is effective again and available for the
sale or resale of the Warrant Shares (it being understood and agreed that the
foregoing shall not limit the ability of the Company to issue, or any Purchaser
to sell, any of the Warrant Shares in compliance with applicable federal and
state securities laws).  The Company shall use best efforts to keep a
registration statement (including the Registration Statement) registering the
issuance or resale of the Warrant Shares effective during the term of the
Warrants. Upon a cashless exercise of a Warrant, the holding period for purposes
of Rule 144 shall tack back to the original date of issuance of such
Warrant.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    4.2           Furnishing of
Information.  Until the earliest of the time that (i) no
Purchaser owns Securities or (ii) the Warrants have expired, the Company
covenants to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to the Exchange Act even if the Company
is not then subject to the reporting requirements of the Exchange
Act.  As long as any Purchaser owns Securities, if the Company is not
required to file reports pursuant to the Exchange Act, it will prepare and
furnish to the Purchasers and make publicly available in accordance with Rule
144(c) such information as is required for the Purchasers to sell the
Securities, including without limitation, under Rule 144. The Company further
covenants that it will take such further action as any holder of Securities may
reasonably request, to the extent required from time to time to enable such
Person to sell such Securities without registration under the Securities Act,
including without limitation, within the requirements of the exemption provided
by Rule 144.

     

    4.3           Integration.  The
Company shall not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the Securities for
purposes of the rules and regulations of any Trading Market such that it would
require shareholder approval prior to the closing of such other transaction
unless shareholder approval is obtained before the closing of such subsequent
transaction.

     

    4.4           Securities Laws Disclosure;
Publicity.  The Company shall, by 8:30 a.m. (New York City
time) on the Trading Day immediately following the date hereof, issue a press
release disclosing the material terms of the transactions contemplated hereby,
and including the Transaction Documents as exhibits thereto.  From and
after the issuance of such press release, the Company shall have publicly
disclosed all material, non-public information delivered to any of the
Purchasers by the Company or any of its subsidiaries, or any of their respective
officers, directors, employees or agents in connection with the transactions
contemplated by the Transaction Documents.  The Company and each
Purchaser shall consult with each other in issuing any other press releases with
respect to the transactions contemplated hereby, and neither the Company nor any
Purchaser shall issue any such press release nor otherwise make any such public
statement without the prior consent of the Company, with respect to any press
release of any Purchaser, or without the prior consent of each Purchaser, with
respect to any press release of the Company, which consent shall not
unreasonably be withheld or delayed, except if such disclosure is required by
law, in which case the disclosing party shall promptly provide the other party
with prior notice of such public statement or
communication.  Notwithstanding the foregoing, the Company shall not
publicly disclose the name of any Purchaser, or include the name of any
Purchaser in any filing with the Commission or any regulatory agency or Trading
Market, without the prior written consent of such Purchaser, except (a) as
required by federal securities law in connection with the filing of final
Transaction Documents (including signature pages thereto) with the Commission
and (b) to the extent such disclosure is required by law or Trading Market
regulations, in which case the Company shall provide the Purchasers with prior
notice of such disclosure permitted under this clause (b).

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    4.5           Shareholder Rights
Plan.  No claim will be made or enforced by the Company or,
with the consent of the Company, any other Person, that any Purchaser is an
“Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar
anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that any Purchaser could be deemed to trigger the provisions of any such plan
or arrangement, by virtue of receiving Securities under the Transaction
Documents or under any other agreement between the Company and the
Purchasers.

     

    4.6           Non-Public
Information.  Except with respect to the material terms and
conditions of the transactions contemplated by the Transaction Documents, the
Company covenants and agrees that neither it, nor any other Person acting on its
behalf will provide any Purchaser or its agents or counsel with any information
that the Company believes constitutes material non-public information, unless
prior thereto such Purchaser shall have executed a written agreement with the
Company regarding the confidentiality and use of such
information.  The Company understands and confirms that each Purchaser
shall be relying on the foregoing covenant in effecting transactions in
securities of the Company.

     

    4.7           Use of
Proceeds.  Except as set forth on Schedule 4.7 attached
hereto, the Company shall use the net proceeds from the sale of the Securities
hereunder for working capital purposes and shall not use such proceeds for: (a)
the satisfaction of any portion of the Company’s debt (other than payment of
trade payables in the ordinary course of the Company’s business and prior
practices), (b) the redemption of any Common Stock or Common Stock Equivalents
or (c) the settlement of any outstanding litigation.

     

    4.8           Indemnification of
Purchasers.   Subject to the provisions of this Section
4.8, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other
Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title), each Person who
controls such Purchaser (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a
lack of such title or any other title) of such controlling persons (each, a
“Purchaser
Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and
costs of investigation that any such Purchaser Party may suffer or incur as a
result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in
the other Transaction Documents or (b) any action instituted against a Purchaser
in any capacity, or any of them or their respective Affiliates, by any
stockholder of the Company who is not an Affiliate of such Purchaser, with
respect to any of the transactions contemplated by the Transaction Documents
(unless such action is based upon a breach of such Purchaser’s representations,
warranties or covenants under the Transaction Documents or any agreements or
understandings such Purchaser may have with any such stockholder or any
violations by such Purchaser of state or federal securities laws or any conduct
by such Purchaser which constitutes fraud, gross negligence, willful misconduct
or malfeasance).  If any action shall be brought against any Purchaser
Party in respect of which indemnity may be sought pursuant to this Agreement,
such Purchaser Party shall promptly notify the Company in writing, and the
Company shall have the right to assume the defense thereof with counsel of its
own choosing reasonably acceptable to the Purchaser Party.  Any
Purchaser Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Purchaser Party except to the extent
that (i) the employment thereof has been specifically authorized by the Company
in writing, (ii) the Company has failed after a reasonable period of time to
assume such defense and to employ counsel or (iii) in such action there is, in
the reasonable opinion of counsel, a material conflict on any material issue
between the position of the Company and the position of such Purchaser Party, in
which case the Company shall be responsible for the reasonable fees and expenses
of no more than one such separate counsel.  The Company will not be
liable to any Purchaser Party under this Agreement (y) for any settlement by a
Purchaser Party effected without the Company’s prior written consent, which
shall not be unreasonably withheld or delayed; or (z) to the extent, but only to
the extent that a loss, claim, damage or liability is attributable to any
Purchaser Party’s breach of any of the representations, warranties, covenants or
agreements made by such Purchaser Party in this Agreement or in the other
Transaction Documents.

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    4.9           Reservation of Common
Stock. As of the date hereof, the Company has reserved and the Company
shall continue to reserve and keep available at all times, free of preemptive
rights, a sufficient number of shares of Common Stock for the purpose of
enabling the Company to issue Shares pursuant to this Agreement and Warrant
Shares pursuant to any exercise of the Warrants.

     

    4.10           Listing of Common
Stock. The Company hereby agrees to use best efforts to maintain the
listing or quotation of the Common Stock on the Trading Market on which it
is currently listed, and the Company shall use best efforts to promptly apply to
list or quote all of the Shares and Warrant Shares on such Trading Market and
use best efforts to promptly secure the listing of all of the Shares and Warrant
Shares on such Trading Market.  The Company further agrees, if the Company
applies to have the Common Stock traded on any other Trading Market, it will
then include in such application all of the Shares and Warrant Shares, and will
take such other action as is necessary to cause all of the Shares and Warrant
Shares to be listed or quoted on such other Trading Market as promptly as
possible.  The Company will then take all action reasonably necessary
to continue the listing and trading of its Common Stock on a Trading Market and
will comply in all respects with the Company’s reporting, filing and other
obligations under the bylaws or rules of the Trading Market.

     

    4.11           RESERVED.

     

    4.12           Subsequent Equity
Sales.

     

    (a)         From
the date hereof until 90 days after the Closing Date, neither the Company nor
any Subsidiary shall issue, enter into any agreement to issue or announce the
issuance or proposed issuance of any shares of Common Stock or Common Stock
Equivalents; provided, however, that the 90
day period set forth in this Section 4.12 shall be extended for the number of
Trading Days during such period in which (i) trading in the Common Stock is
suspended by any Trading Market, or (ii) the Registration Statement is not
effective or the prospectus included in the Registration Statement may not be
used by the Purchasers for the resale of the Shares and Warrant
Shares.  Additionally, from the date hereof until 30 days after the
Closing Date, the Company shall not draw down on its existing Common Stock
Purchase Agreement with Fusion Capital Fund II, LLC.

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    (b)         From
the date hereof until such time as the earlier of six months after the Closing
Date or the date that no Purchaser holds any of the Securities, the Company
shall be prohibited from effecting or entering into an agreement to effect any
issuance by the Company or any of its Subsidiaries of Common Stock or Common
Stock Equivalents for cash consideration (or a combination of units hereof)
involving a Variable Rate Transaction.  “Variable Rate
Transaction” means a transaction in which the Company (i) issues or sells
any debt or equity securities that are convertible into, exchangeable or
exercisable for, or include the right to receive additional shares of Common
Stock either (A) at a conversion price, exercise price or exchange rate or other
price that is based upon and/or varies with the trading prices of or quotations
for the shares of Common Stock at any time after the initial issuance of such
debt or equity securities, or (B) with a conversion, exercise or exchange price
that is subject to being reset at some future date after the initial issuance of
such debt or equity security or upon the occurrence of specified or contingent
events directly or indirectly related to the business of the Company or the
market for the Common Stock or (ii) enters into any agreement, including, but
not limited to, an equity line of credit, whereby the Company may sell
securities at a future determined price.  Any Purchaser shall be
entitled to obtain injunctive relief against the Company to preclude any such
issuance, which remedy shall be in addition to any right to collect
damages.

     

    (c)         Notwithstanding
the foregoing, this Section 4.12 shall not apply in respect of an Exempt
Issuance, except that no Variable Rate Transaction shall be an Exempt Issuance
unless it is a component of acquisitions or strategic transactions that are
Exempt Issuances.

     

    4.13           Equal Treatment of
Purchasers.  No consideration (including any modification of
any Transaction Document) shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of the Transaction
Documents unless the same consideration is also offered to all of the parties to
the Transaction Documents.  For clarification purposes, this provision
constitutes a separate right granted to each Purchaser by the Company and
negotiated separately by each Purchaser, and is intended for the Company to
treat the Purchasers as a class and shall not in any way be construed as the
Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Securities or otherwise.

     

    4.14           Certain Transactions and
Confidentiality. Each Purchaser, severally and not jointly with the
other Purchasers, covenants that neither it nor any Affiliate acting on its
behalf or pursuant to any understanding with it will execute any purchases or
sales, including Short Sales of any of the Company’s securities during the
period commencing with the execution of this Agreement and ending at such time
that the transactions contemplated by this Agreement are first publicly
announced pursuant to the initial press release as described in Section
4.4.  Each Purchaser, severally and not jointly with the other Purchasers,
covenants that until such time as the transactions contemplated by this
Agreement are publicly disclosed by the Company pursuant to the initial press
release as described in Section 4.4, such Purchaser will maintain the
confidentiality of the existence and terms of this transaction and the
information included in the Disclosure Schedules.  Notwithstanding the
foregoing and notwithstanding anything contained in this Agreement to the
contrary, the Company expressly acknowledges and agrees that (i) no Purchaser
makes any representation, warranty or covenant hereby that it will not engage in
effecting transactions in any securities of the Company after the time that the
transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in Section 4.4, (ii) no
Purchaser shall be restricted or prohibited from effecting any transactions in
any securities of the Company in accordance with applicable securities laws from
and after the time that the transactions contemplated by this Agreement are
first publicly announced pursuant to the initial press release as described in
Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality to the
Company or its Subsidiaries after the issuance of the initial press release as
described in Section 4.4.  Notwithstanding the foregoing, in the case of a
Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no direct knowledge of the investment decisions made by the
portfolio managers managing other portions of such Purchaser’s assets, the
covenant set forth above shall only apply with respect to the portion of assets
managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement.

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    4.15            Delivery of Warrants After
Closing; Buy-In in Respect of the Share.  The Company shall
deliver, or cause to be delivered, the respective Warrant certificates purchased
by each Purchaser to such Purchaser within 3 Trading Days of the Closing
Date. In addition to any other rights available to the a Purchaser, if the
Company fails to cause the Transfer Agent to transmit to such Purchaser it
Shares within 3 Trading Days of the date required under this Agreement, and if
after such date the Purchaser is required by its broker to purchase (in an open
market transaction or otherwise) or the Purchaser’s brokerage firm otherwise
purchases, shares of Common Stock to deliver in satisfaction of a sale by the
Purchaser of the Shares which the Purchaser was entitled to receive
hereunder (a “Buy-In”), then the
Company shall (A) pay in cash to the Purchaser the amount, if any, by which (x)
the Purchaser’s total purchase price (including brokerage commissions, if any)
for the shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (1) the number of Shares that the Company was required to deliver to
the Purchaser times (2) the price at which the sell order giving rise to such
purchase obligation was executed, and (B) deliver to the Purchaser the number of
shares of Common Stock that would have been issued had the Company timely
complied with its obligations hereunder.  Nothing herein shall limit a
Purchaser’s right to pursue any other remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock as required pursuant to the
terms hereof.

     

    4.16           Capital
Changes.  Until the one year anniversary of the Closing Date,
the Company shall not undertake a reverse or forward stock split or
reclassification of the Common Stock without the prior written consent of the
Purchasers holding a majority in interest of the Shares.

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    4.17           Liquidated Damages for
Failure to Comply.  If the Company shall fail to materially
observe or perform any other covenant or agreement contained in the Transaction
Documents (each, an “Event” and the date
on which such Event occurs, the “Event Date”), then,
in addition to any other rights the Purchasers may have hereunder or under
applicable law, on each such Event Date and on each monthly anniversary of each
such Event Date (if the applicable Event shall not have been cured by such date)
until the applicable Event is cured, the Company shall pay to each Purchaser, in
cash, as liquidated damages and not as a penalty, an amount equal to 1.5% of the
Subscription Amount of the Shares then held by such Purchaser, subject to a
maximum aggregate amount of 10% of the original Subscription Amount of such
Purchaser; provided, that if any other provision of any Transaction Document
separately provides for liquidated damages for any particular breach of a
covenant therein, then if the Company actually pays such liquidated damages
required under such other Transaction Document, then no further liquidated
damages shall be payable pursuant to this provision.  Nothing herein shall
limit a Purchaser’s right to pursue any remedies available to it hereunder, at
law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief.  The exercise of any such rights shall not
prohibit a Purchaser from seeking to enforce damages pursuant to any other
Section hereof or under applicable law. If the Company fails to pay any partial
liquidated damages pursuant to this Section in full within seven days after the
date payable, the Company will pay interest thereon at a rate of 18% per annum
(or such lesser maximum amount that is permitted to be paid by applicable law)
to the Purchaser, accruing daily from the date such partial liquidated damages
are due until such amounts, plus all such interest thereon, are paid in full.
The partial liquidated damages pursuant to the terms hereof shall apply on a
daily pro rata basis for any portion of a month prior to the cure of an
Event.

     

    ARTICLE
V.

    MISCELLANEOUS

     

    5.1           Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s
obligations hereunder only and without any effect whatsoever on the obligations
between the Company and the other Purchasers, by written notice to the other
parties, if the Closing has not been consummated on or before May *, 2009; provided, however, that no such
termination will affect the right of any party to sue for any breach by the
other party (or parties).

     

    5.2           Fees and
Expenses.  Except as expressly set forth in the Transaction
Documents to the contrary, each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement.  The Company shall pay all
Transfer Agent fees, stamp taxes and other taxes and duties levied in connection
with the delivery of any Securities to the Purchasers.

     

    5.3           Entire
Agreement.  The Transaction Documents, together with the
exhibits and schedules thereto, the Prospectus and the Prospectus Supplement,
contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been
merged into such documents, exhibits and schedules.

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    5.4           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of: (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on
the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number set
forth on the signature pages attached hereto on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second
(2nd)
Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service or (d) upon actual receipt by the party to whom such
notice is required to be given.  The address for such notices and
communications shall be as set forth on the signature pages attached
hereto.

     

    5.5           Amendments;
Waivers.  No provision of this Agreement may be waived,
modified, supplemented or amended except in a written instrument signed, in the
case of an amendment, by the Company and the Purchasers holding at least 66% in
interest of the Shares then outstanding or, in the case of a waiver, by the
party against whom enforcement of any such waived provision is
sought.  No waiver of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the
exercise of any such right.

     

    5.6           Headings.  The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

     

    5.7           Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and permitted
assigns.  The Company may not assign this Agreement or any rights or
obligations hereunder without the prior written consent of each Purchaser (other
than by merger).  Any Purchaser may assign any or all of its rights
under this Agreement to any Person to whom such Purchaser assigns or transfers
any Securities, provided that such transferee agrees in writing to be bound,
with respect to the transferred Securities, by the provisions of the Transaction
Documents that apply to the “Purchasers.”

     

    5.8           No Third-Party
Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective successors and permitted assigns and is
not for the benefit of, nor may any provision hereof be enforced by, any other
Person, except as otherwise set forth in Section 4.8.

     

    5.9           Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law
thereof.  Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by
this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts sitting in the City
of New York, borough of Manhattan for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or
discussed herein (including with respect to the enforcement of any of the
Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action or proceeding is
improper or is an inconvenient venue for such proceeding.  Each party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof.  Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner
permitted by law.  If either party shall commence an action or
proceeding to enforce any provisions of the Transaction Documents, then, in
addition to the obligations of the Company under Section 4.8, the prevailing
party in such action or proceeding shall be reimbursed by the other party for
its reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or
proceeding.

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

    5.10           Survival.  The
representations and warranties contained herein shall survive the Closing and
the delivery of the Securities.

     

    5.11           Execution.  This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

     

    5.12           Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

     

    5.13           Rescission and Withdrawal
Right.  Notwithstanding anything to the contrary contained in
(and without limiting any similar provisions of) any of the other Transaction
Documents, whenever any Purchaser exercises a right, election, demand or option
under a Transaction Document and the Company does not timely perform its related
obligations within the periods therein provided, then such Purchaser may rescind
or withdraw, in its sole discretion from time to time upon written notice to the
Company, any relevant notice, demand or election in whole or in part without
prejudice to its future actions and rights; provided, however, that in the
case of a rescission of an exercise of a Warrant, the applicable Purchaser shall
be required to return any shares of Common Stock subject to any such rescinded
exercise notice concurrently with the return to such Purchaser of the aggregate
exercise price paid to the Company for such shares and the restoration of such
Purchaser’s right to acquire such shares pursuant to such Purchaser’s Warrant
(including, issuance of a replacement warrant certificate evidencing such
restored right).

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    5.14           Replacement of
Securities.  If any certificate or instrument evidencing any
Securities is mutilated, lost, stolen or destroyed, the Company shall issue or
cause to be issued in exchange and substitution for and upon cancellation
thereof (in the case of mutilation), or in lieu of and substitution therefor, a
new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction.  The
applicant for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs (including customary indemnity)
associated with the issuance of such replacement Securities.

     

    5.15           Remedies.  In
addition to being entitled to exercise all rights provided herein or granted by
law, including recovery of damages, each of the Purchasers and the Company will
be entitled to specific performance under the Transaction
Documents.  The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of
obligations contained in the Transaction Documents and hereby agree to waive and
not to assert in any action for specific performance of any such obligation the
defense that a remedy at law would be adequate.

     

    5.16           Payment Set
Aside.  To the extent that the Company makes a payment or
payments to any Purchaser pursuant to any Transaction Document or a Purchaser
enforces or exercises its rights thereunder, and such payment or payments or the
proceeds of such enforcement or exercise or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored
to the Company, a trustee, receiver or any other person under any law
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.

     

    5.17           Independent Nature of
Purchasers’ Obligations and Rights.  The obligations of each
Purchaser under any Transaction Document are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any
way for the performance or non-performance of the obligations of any other
Purchaser under any Transaction Document.  Nothing contained herein or
in any other Transaction Document, and no action taken by any Purchaser pursuant
thereto, shall be deemed to constitute the Purchasers as a partnership, an
association, a joint venture or any other kind of entity, or create a
presumption that the Purchasers are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by the
Transaction Documents.  Each Purchaser shall be entitled to
independently protect and enforce its rights including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents,
and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.  Each Purchaser
has been represented by its own separate legal counsel in their review and
negotiation of the Transaction Documents.  For reasons of
administrative convenience only, each Purchaser and its respective counsel have
chosen to communicate with the Company through FWS.  FWS does not
represent any of the Purchasers and only represents Rodman & Renshaw, LLC,
the placement agent. The Company has elected to provide all Purchasers with the
same terms and Transaction Documents for the convenience of the Company and not
because it was required or requested to do so by any of the
Purchasers.

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

    5.18           Liquidated
Damages.  The Company’s obligations to pay any partial
liquidated damages or other amounts owing under the Transaction Documents is a
continuing obligation of the Company and shall not terminate until all unpaid
partial liquidated damages and other amounts have been paid notwithstanding the
fact that the instrument or security pursuant to which such partial liquidated
damages or other amounts are due and payable shall have been
canceled.

     

    5.19           Saturdays, Sundays, Holidays,
etc.   If the last or appointed day for the taking of any
action or the expiration of any right required or granted herein shall not be a
Business Day, then such action may be taken or such right may be exercised on
the next succeeding Business Day.

     

    5.20           Construction. The
parties agree that each of them and/or their respective counsel has reviewed and
had an opportunity to revise the Transaction Documents and, therefore, the
normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation
of the Transaction Documents or any amendments hereto. In addition, each
and every reference to share prices and shares of Common Stock in any
Transaction Document shall be subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

     

    5.21           WAIVER OF
JURY TRIAL.  IN ANY
ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY
OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST
EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

     

    (Signature
Pages Follow)

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the parties hereto
have caused this Securities Purchase Agreement to be duly executed by their
respective authorized signatories as of the date first indicated
above.

     

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  HEMISPHERX
      BIOPHARMA, INC.

                                	 	
                                  Address for Notice:

                                
	 	 	 
	By: 	  	 	      
                                  Fax: 

                                
	
                                  Name:

                                	 	 
	
                                  Title:

                                	 	 
	
                                  With
      a copy to (which shall not constitute notice):

                                	 	
                                   

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

     

    [PURCHASER
SIGNATURE PAGES TO HEB SECURITIES PURCHASE AGREEMENT]

    

    IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement
to be duly executed by their respective authorized signatories as of the date
first indicated above.

     

    Name of
Purchaser: ________________________________________________________

     

    Signature of Authorized Signatory of
Purchaser: _________________________________

     

    Name of
Authorized Signatory:
_______________________________________________

     

    Title of
Authorized Signatory:
________________________________________________

     

    Email
Address of Authorized
Signatory:_________________________________________

     

    Facsimile
Number of Authorized Signatory:
__________________________________________

     

    Address
for Notice of Purchaser:

    

    Address
for Delivery of Securities for Purchaser (if not same as address for
notice):

    

    Subscription
Amount: $_________________

    

    Shares:
_________________

    

    Warrant
Shares: __________________

    

    EIN
Number:  [PROVIDE
THIS UNDER SEPARATE COVER]

    

    [SIGNATURE
PAGES CONTINUE]

     

    
      
         

      

      
        32DATED [—], 2009

    

    CHINA
CORD BLOOD CORPORATION

    

    and

    

    TING
ZHENG

    

    
      
        

      

    

    

    SERVICE
AGREEMENT

    

    
      
 

    JONES
DAY

    Solicitors
and International Lawyers

    29th Floor,
Edinburgh Tower

    The
Landmark

    15
Queen’s Road Central

    Hong
Kong

    Telephone:
(852) 2526-6895

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    INDEX

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Clause 

                              	 
      	
                                Subject

                              	 
      	
                                Page No

                              
	 
      	 
      	 
      	 
      	 
      
	
                                1.

                              	 
      	
                                DEFINITIONS AND
    INTERPRETATION

                              	 
      	
                                1

                              
	
                                2.

                              	 
      	
                                APPOINTMENT

                              	 
      	
                                4

                              
	
                                3.

                              	 
      	
                                TERM OF APPOINTMENT AND CONDITION
      PRECEDENT

                              	 
      	
                                4

                              
	
                                4.

                              	 
      	
                                POWERS, DUTIES AND WORKING
      HOURS

                              	 
      	
                                4

                              
	
                                5.

                              	 
      	
                                REPORTING

                              	 
      	
                                5

                              
	
                                6.

                              	 
      	
                                OUTSIDE INTERESTS

                              	 
      	
                                5

                              
	
                                7.

                              	 
      	
                                MEMBERS OF THE GROUP

                              	 
      	
                                6

                              
	
                                8.

                              	 
      	
                                REMUNERATION

                              	 
      	
                                6

                              
	
                                9.

                              	 
      	
                                LEAVE AND PAYMENTS DURING ABSENCE ON MEDICAL
      GROUNDS

                              	 
      	
                                7

                              
	
                                10.

                              	 
      	
                                OTHER
      BENEFITS

                              	 
      	
                                8

                              
	
                                11.

                              	 
      	
                                OBLIGATION TO PROVIDE WORK

                              	 
      	
                                9

                              
	
                                12.

                              	 
      	
                                TERMINATION

                              	 
      	
                                9

                              
	
                                13.

                              	 
      	
                                RECEIPT OF PAYMENTS AND BENEFITS FROM THIRD
      PARTIES

                              	 
      	
                                15

                              
	
                                14.

                              	 
      	
                                CONFIDENTIALITY

                              	 
      	
                                15

                              
	
                                15.

                              	 
      	
                                INVENTIONS, PATENTS AND OTHER
      INDUSTRIAL OR INTELLECTUAL
      PROPERTY

                              	 
      	
                                16

                              
	
                                16.

                              	 
      	
                                RESTRICTIVE COVENANTS

                              	 
      	
                                17

                              
	
                                17.

                              	 
      	
                                SEVERABILITY

                              	 
      	
                                20

                              
	
                                18.

                              	 
      	
                                ASSIGNMENT

                              	 
      	
                                20

                              
	
                                19.

                              	 
      	
                                ENTIRE AGREEMENT

                              	 
      	
                                20

                              
	
                                20.

                              	 
      	
                                PRIOR OBLIGATIONS

                              	 
      	
                                21

                              
	
                                21.

                              	 
      	
                                NOTICES

                              	 
      	
                                21

                              
	
                                22.

                              	 
      	
                                GENERAL

                              	 
      	
                                22

                              
	
                                23.

                              	
                                  

                              	
                                GOVERNING LAW AND
    JURISDICTION

                              	
                                  

                              	
                                22

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THIS AGREEMENT is made on
[—],
2009.

    

    BETWEEN:

    

    
      	
              (1)

            	
              CHINA CORD BLOOD CORPORATION,
      a company incorporated under the laws of Cayman Islands with its
      registered office at Codan Trust Company (Cayman) Limited, Cricket Square,
      Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands and
      in Hong Kong at 48/F, Bank of China Tower, 1 Garden Road, Central, Hong
      Kong (the “Company”); and

            

    

    

    
      	
              (2)

            	
              TING ZHENG of 48/F, Bank
      of China Tower, 1 Garden Road, Central, Hong Kong
      (“Executive”).

            

    

    

    RECITALS:

    

    
      	
              (A)

            	
              The
      Company is engaged in the provision of cord blood stem cells storage
      services (“Business”) and wishes to retain the full-time services of the
      Executive.

            

    

    

    
      	
              (B)

            	
              The
      Executive has agreed to serve the Company as Chairman and Chief Executive
      Officer of the Company on the terms and conditions set out
      herein.

            

    

    

    IT
IS AGREED as follows:

    

    
      	
              1.

            	
              DEFINITIONS
      AND INTERPRETATION

            

    

    

    
      	
              1.1

            	
              In
      this Agreement, unless the context otherwise requires, the following words
      and expressions shall have the following
  meanings:

            

    

     

    
      
        
          
            	
                    “Accrued
      Obligations”

                  	
                    has
      the meaning set forth in clause 12.4(a) of this
  Agreement;

                  
	 
      	 
      
	
                    “Affiliates”

                  	
                    has
      the meaning as defined in Rule 405 under the Securities
    Act;

                  
	 
      	 
      
	
                    “Appointment”

                  	
                    the
      appointment by the Company of the Executive pursuant to this
      Agreement;

                  
	 
      	 
      
	
                    “Board”

                  	
                    the
      board of directors from time to time of the Company;

                  
	 
      	 
      
	
                    “Business
      Combination”

                  	
                    has
      the meaning set forth in clause 12.4(b)(iii);

                  
	 
      	 
      
	
                    “Business
      Day”

                  	
                    a
      day on which banks are open for business in Hong Kong;

                  
	 
      	 
      
	
                    “Change
      of Control Termination”

                  	
                    has
      the meaning set forth in clause 12.4(c) of the
  Agreement;

                  

          

        

        

        
          
            
               

            

            
              - 1
-

              
                

              

            

            
               

            

          

        

         

        
          
            
              
                
                  	
                          “Confidential
      Information”

                        	
                          the
      business plans, financial information, operational methods, technical
      processes, inventions, customer and supplier lists and other trade
      secrets, know-how or confidential information of the Company and any
      member of the Group whether relating to the Business or which the Company
      and any member of the group has obtained from any third party on terms
      that restrict its disclosure or use, other confidential technical
      information, any of the trade secrets, clients’ list, accounts, financial
      or trading information or other confidential or personal information which
      the Executive may receive or obtain in relation to the business, finances,
      dealings or affairs of the Group or any principal, joint venture partner,
      contracting party or client of the Group including any information
      regarding the products, services, research program, projects or other
      technical data, knowhow or specifications, whether in human or machine
      readable form and whether stored electronically or otherwise, or the
      finances, proposals, contractual arrangements, principals, joint venture
      partners, contracting parties, clients, employees or agents of the
      Group;

                        
	 	 
	
                          “Constructive
      Termination”

                        	
                          has
      the meaning set forth in clause 12.4(d) of this
  Agreement;

                        
	 
      	 
	
                          “Designated
      Stock Exchange”

                        	
                          the
      exchange on which shares of the Company are traded;

                        
	 
      	 
      
	
                          “Group”

                        	
                          the
      Company and its Subsidiaries;

                        
	 
      	 
      
	
                          “Hong
      Kong”

                        	
                          the
      Hong Kong Special Administrative Region of the PRC;

                        
	 
      	 
      
	
                          “Independent
      Shareholders”

                        	
                          holders
      of ordinary shares in the Company other than the Executive and his
      Affiliates;

                        
	 
      	 
      
	
                          “Intellectual
      Property”

                        	
                          includes
      (collectively with all Inventions) all discoveries, concepts, formats,
      suggestions, developments, arrangements, packages, programs, trade marks,
      trade names, copyrights, designs, know how, goodwill, reputation, get-up,
      logos, plans, models and other industrial or intellectual
      properties;

                        
	 
      	 
      
	
                          “Inventions”

                        	
                          includes
      all processes, inventions and improvements;

                        
	
                           
      

                        	 
      
	
                          “Involuntary
      Termination”

                        	
                          has
      the meaning set forth in clause 12.4(e) of the
  Agreement;

                        
	 
      	 
      
	
                          “Person”

                        	
                          has
      the meaning set forth in clause 12.4(b)(ii) of this
    Agreement;

                        

                

              

            

          

        

        
          
            
               

            

            
              - 2
-

              
                

              

            

            
               

            

          

        

         

      

    

    
      
        
          	
                  “PRC”

                	
                  the
      People’s Republic of China;

                
	 
      	 
      
	
                  “Relevant
      Intellectual Property”

                	
                  all
      Intellectual Property produced, invented or discovered by the Executive
      either alone or with any other person at any time now or hereafter during
      the continuance in force of this Agreement (whether or not in the course
      of his employment hereunder) which is Intellectual Property of the kind
      produced at any such time by the Company or any member of the Group and
      not copied from others, or relates directly or indirectly to the business
      of the Company or any member of the Group or which may in the opinion of
      the Company be capable of being used or adapted for use therein or in
      connection therewith;

                
	 
      	 
      
	
                  “Severance
      Benefit”

                	
                  has
      the meaning set forth in clause 12.3(a)(ii) of this
    Agreement;

                
	
                   
      

                	 
      
	
                  “Subsidiary”

                   

                	
                  in
      relation to a Person, a corporation or other entity a majority of whose
      outstanding voting stock or voting power is beneficially owned directly or
      indirectly by the Person;

                
	 
      	 
      
	
                  “Term”

                	
                  the
      term of the Executive’s appointment under this Agreement until its expiry
      or termination pursuant to clause 3 or 12;

                
	 
      	 
      
	
                  “U.S.”

                	
                  United
      States of America; and

                
	 
      	 
      
	
                  “US$”

                	
                  United
      States dollars.

                

        

      

       

    

    
      	
              1.2

            	
              Reference
      to any statute or statutory provision includes a reference to that statute
      or statutory provision as from time to time amended, consolidated,
      extended and re-enacted, or as its operation is modified by any other
      statute or statutory provision (whether with or without modification), and
      shall include any subsidiary legislation enacted under the relevant
      statute.

            

    

    

    
      	
              1.3

            	
              References
      to the singular include the plural; references to any one gender shall
      include every gender; references to persons shall include bodies corporate
      and unincorporate; and (in each case) vice
  versa.

            

    

    

    
      	
              1.4

            	
              References
      to parties and clauses are respectively to the parties and clauses to this
      Agreement.

            

    

    

    
      	
              1.5

            	
              Headings
      used in this Agreement are for convenience only and shall not affect its
      interpretation.

            

    

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    

    
      	
              2.

            	
              APPOINTMENT

            

    

    

    
      	
              2.1

            	
              The
      Company hereby engages the Executive and the Executive agrees to serve the
      Company as Chairman and Chief Executive Officer and in such capacity to
      perform the duties and exercise the powers from time to time assigned to
      or vested in him by the Board or in such other capacity of like status as
      the Board may require.

            

    

    

    
      	
              3.

            	
              TERM
      OF APPOINTMENT AND CONDITION
PRECEDENT

            

    

    

    Subject
to clause 12 and the terms and conditions of this Agreement, the term of this
Agreement shall be three years commencing from the date of this Agreement and
will be automatically renewed.

    

    
      	
              4.

            	
              POWERS,
      DUTIES AND WORKING HOURS

            

    

    

    
      	
              4.1

            	
              During
      the Term the Executive shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              serve
      the Company in the capacity of Chairman and Chief Executive Officer of the
      Company and shall serve any other member of the Group as required by the
      Board and shall in such capacity contribute to the overall policy making,
      management and business development of the Group as the Board may
      reasonably direct;

            

    

    

    
      	
               
      

            	
              (b)

            	
              unless
      prevented by ill health or accident devote the whole of his time,
      attention and abilities exclusively and diligently to carrying out his
      duties hereunder;

            

    

    

    
      	
               
      

            	
              (c)

            	
              carry
      out his duties in a proper and efficient manner and use his best endeavors
      to promote and maintain the interests and reputation of the
      Group;

            

    

    

    
      	
               
      

            	
              (d)

            	
              exercise
      such powers and perform such duties in relation to the business and
      operations of the Group as may from time to time be vested in or assigned
      to him by the Board; such powers and duties may from time to time fall
      outside the normal ambit of the Executive’s position but will not be
      duties inappropriate to the Executive’s
status;

            

    

    

    
      	
               
      

            	
              (e)

            	
              comply
      with all reasonable directions from time to time given to him by the Board
      and with all rules and regulations from time to time laid down by the
      Company concerning its employees which are consistent with this
      Agreement;

            

    

    

    
      	
               
      

            	
              (f)

            	
              work
      at such location in the territory of Hong Kong and/or the PRC and/or any
      part of the world as the Company shall require from time to time and, if
      the Company shall so require for this purpose, move to and reside at such
      location;

            

    

    

    
      	
               
      

            	
              (g)

            	
              travel
      to such places (whether within or outside the territory of Hong Kong or
      the PRC) in such manner and on such occasions as the Group may from time
      to time reasonably require;

            

    

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (h)

            	
              ensure
      that the requirements of the United States Securities Act of 1933, as
      amended (the “Securities Act”), the United States Securities Exchange Act
      of 1934, as amended (the “Exchange Act”), and all other U.S. securities
      laws, rules and regulations, including rules of the Designated Stock
      Exchange, from time to time in force are duly complied with by the
      Company; and

            

    

    

    
      	
               
      

            	
              (i)

            	
              at
      all times keep the Board promptly and fully informed of all matters
      relating to or in connection with the performance of his duties in
      relation to the Company.

            

    

    

    
      	
              4.2

            	
              The
      Executive’s normal working hours shall be from 9:00 a.m. to 5:30 p.m.
      Monday to Friday (inclusive) together with such additional hours outside
      those hours or on Saturdays or Sundays or during holidays as in the
      opinion of the Company are reasonably necessary for the proper performance
      of the Executive’s duties.

            

    

    

    
      	
              4.3

            	
              The
      Company may from time to time and at any time assign any title to the
      Executive and any other duties to the Executive in addition to or in
      substitution of any title then held by the Executive and the duties (if
      any) then assigned to him.

            

    

    

    
      	
              4.4

            	
              The
      Executive shall be required to devote his full time, attention and
      abilities to his duties under this Agreement and to act in the best
      interests of all members of the Group at all
  times.

            

    

    

    
      	
              5.

            	
              REPORTING

            

    

    

    The
Executive shall report to the Board and shall at all times keep the Board fully
informed of his activities and shall promptly provide such information and
explanations as may be requested from time to time by the Board.

    

    
      	
              6.

            	
              OUTSIDE
      INTERESTS

            

    

    

    
      	
              6.1

            	
              The
      Executive shall not at any time during the Term without the prior
      notification to and sanction by the Board be or become a director of any
      company (other than any members of the Group, Golden Meditech Company
      Limited and Affiliates of Golden Meditech Company Limited) or be directly
      or indirectly engaged or concerned or interested in any other companies
      which carries on business of a similar nature to the
    Business.

            

    

    

    
      	
              6.2

            	
              Nothing
      in this Agreement shall prevent the Executive
  from:

            

    

    

    
      	
               
      

            	
              (a)

            	
              being
      engaged, concerned, interested in any other business, trade or occupation
      with the prior notification to and sanction by the Board;
    or

            

    

    

    
      	
               
      

            	
              (b)

            	
              holding
      or being beneficially interested in less than 5% in any class of
      securities in any company if such class of securities is listed on a stock
      exchange or the relevant company does not carry on any business which
      competes with the Business of the
Group.

            

    

    

    
      	
              6.3

            	
              The
      following provisions shall apply in relation to any application for
      consent under clause 6.2(a):

            

    

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Executive shall furnish to the Board a description of the nature of the
      business, trade or occupation in which he intends to engage, the nature of
      the duties required and information as the Board may require from time to
      time; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Executive shall (as a condition precedent to such consent) furnish to the
      Board an undertaking that the matter represented in the statement referred
      to in clause 6.3(a) will at all times during the Term remain correct and
      accurate and that he will not during the Term act in variance
      thereof.

            

    

    

    
      	
              7.

            	
              MEMBERS
      OF THE GROUP

            

    

    

    Without
prejudice to the Executive’s rights under this Agreement the Company shall be
entitled to second the Executive’s services on a full or part time basis to any
member of the Group and the Executive shall hold such offices with the relevant
member of the Group for such periods as the Company may require.

    

    
      	
              8.

            	
              REMUNERATION

            

    

    

    
      	
              8.1

            	
              During
      the continuance of the Term the remuneration of the Executive shall
      be:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Salary

            

    

    

    
      	
               
      

            	
              (i)

            	
              A
      salary of HK$100,000 per month.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Such
      salary shall be payable in arrears at the end of each calendar month
      during the Term or, if the date of payment is not a Business Day, on the
      immediately preceding Business Day.  Such payment date may be
      varied by the Board from time to time but so that the salary of the
      Executive for a particular calendar month shall not be paid later than the
      last day of that calendar month.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              During
      the continuance of the Term, on the completion of each 12 months of
      service, the Executive shall be entitled to an additional payment in an
      amount equal to the then current monthly salary. Such additional salary
      shall be payable at the same time when salary for the twelfth month shall
      be paid in accordance with sub-clause
  8.1(a)(ii).

            

    

    

    
      	
               
      

            	
              (iv)

            	
              The
      salary of the Executive shall be subject to review by the Board on an
      annual basis and may be increased as the Board may determine in its
      absolute discretion. Without the express prior written consent of the
      Executive, the Company shall not reduce the salary of the
      Executive.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Bonus

            

    

    

    A bonus
in such sum and payable at such time or times as the Board may in its absolute
discretion determine.

     

    
      
        
        

      

      
        - 6
-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (c)

            	
              Share
      Options

            

    

    

    The
Company may offer share options, restricted shares, performance shares, etc to
the Executive pursuant to the executive / employee share option scheme adopted
or to be adopted by the Company; provided always that the amount of the options
offered, the option price and the date of grant shall be determined by the Board
after all necessary regulatory and other consents, approvals and authorizations
have been obtained.

    

    
      	
              8.2

            	
              Notwithstanding
      anything to the contrary contained in the articles of association of the
      Company or of any member of the Group the Executive shall not be entitled
      to any remuneration or any payment whatsoever as an officer or employee of
      the Company or of any member of the Group in addition to that specified in
      this Agreement.

            

    

    

    
      	
              8.3

            	
              The
      Company shall reimburse the Executive all out-of-pocket expenses
      reasonably incurred by the Executive in carrying out his duties in
      connection with the business of the Company or of any member of the Group
      upon production of the relevant invoices and
  receipts.

            

    

    

    
      	
              8.4

            	
              The
      Company shall be entitled to deduct from the Executive’s salary under
      sub-clause 8.1(a) and/or bonus under sub-clause 8.1(b) all sums from time
      to time owing from the Executive to the Company or to any member of the
      Group.

            

    

    

    
      	
              8.5

            	
              The
      Executive shall not vote (nor be counted in the quorum) on any resolution
      of the Board regarding the determination of the annual revision, if any,
      to the Executive’s annual salary and/or bonus under sub-clauses 8.1(a) and
      (b).

            

    

    

    
      	
              9.

            	
              LEAVE
      AND PAYMENTS DURING ABSENCE ON MEDICAL
GROUNDS

            

    

    

    
      	
              9.1

            	
              Leave

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      Executive shall (in addition to statutory and bank holidays in Hong
      Kong)  be entitled after completion of each year of the
      Appointment to 14 working days’ paid leave, which shall be taken at such
      time or times as may be approved by the Board.  Accrued paid
      leave may be carried forward up to a maximum of 15 working days for each
      completed year or, at the option of the Board, a payment in lieu thereof
      to be agreed in writing between the Board and the Executive shall be made
      to the Executive.

            

    

    

    
      	
               
      

            	
              (b)

            	
              If
      the Appointment of the Executive is to
  terminate:

            

    

    

    
      	
               
      

            	
              (i)

            	
              on
      the completion of any year of service, the Executive shall be entitled to
      take his leave immediately prior to the end of such year of service
      notwithstanding that at that time the year of service shall not have been
      completed; or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              during
      any year of service (for any reason other than termination pursuant to
      sub-clauses 12.1(b)(i), (ii) and (iii)) the Executive shall be entitled to
      an amount of leave proportionate to the part of the year during which he
      has been employed by the Company, such leave to be taken immediately prior
      to the termination of the
Appointment.

            

    

    
      
         

      

      
        - 7
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              If
      for any reason the Executive shall not have taken his full entitlement of
      leave in any one year he shall not have any claim against the Company in
      respect thereof nor, unless the reason is the exigency of the Company’s
      business (of which the Company shall be the sole judge), shall he be
      entitled to additional leave in any year in respect of leave not taken in
      previous years.

            

    

    

    
      	
              9.2

            	
              Payments during
      absence on medical grounds

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      Company shall continue to pay the Executive his full remuneration during
      any period of absence by the Executive on medical grounds up to a maximum
      of 30 working days in any period of 12 months; provided that the Executive
      shall, if required, supply the Company with medical certificates covering
      his period or periods of absence.

            

    

    

    
      	
               
      

            	
              (b)

            	
              If
      the absence of the Executive was or appeared to be occasioned by
      actionable negligence of a third party in respect of which damages are or
      may be recoverable, the Executive shall forthwith notify the Company of
      the relevant circumstances and of any claim, compromise, settlement or
      judgment made or awarded in connection therewith and shall give to the
      Company all such particulars of such matter as the Company may
      require.  If the Company shall so require, the Executive shall
      pay over to the Company such sum as he may recover in respect of such
      claim, compromise, settlement or judgment less any fees, expenses and
      other outgoings paid or incurred or to be paid or incurred by the
      Executive in connection therewith, provided that the maximum amount so
      payable by the Executive to the Company hereunder shall be that paid by
      the Company to the Executive under sub-clause 9.2(a) in respect of his
      period or periods of absence.

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      Company may at its expense at any time, whether or not the Executive is
      then absent on medical grounds, require the Executive to submit to such
      medical examinations and tests by doctors nominated by the
      Company.

            

    

    

    
      	
              10.

            	
              OTHER
      BENEFITS

            

    

    

    
      	
              10.1

            	
              The
      Executive shall also be entitled to the following benefits, subject to
      determination by the Board as to the appropriate level of cost for each
      item.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Business and Related
      Expenses

            

    

    

    
      	
               
      

            	
              (i)

            	
              The
      following arrangements shall apply whenever the Executive is required to
      travel outside the location where he is based in the performance of his
      duties under this Agreement:

            

    

    

    
      	
               
      

            	
              (1)

            	
              full
      reimbursement shall be made to the Executive for meal expenses properly
      and reasonably incurred by him;

            

    

    

    
      	
               
      

            	
              (2)

            	
              full
      reimbursement shall be made to the Executive for all travel expenses
      properly and reasonably incurred by
him.

            

    

    
      
         

      

      
        - 8
-

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (ii)

            	
              All
      reasonable traveling, entertainment and other expenses reasonably incurred
      by the Executive in the proper performance of his duties under this
      Agreement, a monthly account of which accompanied by supporting vouchers,
      shall be rendered by the Executive to the Company and the Company shall be
      entitled to withhold or reclaim payment of any such expenses which in the
      opinion of the Board have not been reasonably or properly
      incurred.  The Board shall consider the relevant accounts within
      a reasonable time after they have been rendered and indicate its approval
      or disapproval.  The expenses shall be paid or reimbursed not
      more than 21 Business Days after the approval by the Board of the relevant
      accounts.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Medical and Dental
      Expenses

            

    

    

    The
Executive is entitled to such medical and dental coverage (if any) as provided
for under the insurance taken out by the Company.

    

    
      	
               
      

            	
              (c)

            	
              Directors’ and
      Officers’ Liability
Insurance

            

    

    

    The
Company shall during the continuance of the Term provide to the Executive
insurance cover under directors’ and officers’ liability insurance policy
subscribed to by the Company, on such terms and conditions as the Board may
prescribe and subject further to the terms of the policy issued by its
underwriter.  The Company shall punctually pay all premiums payable on
such policy.

    

    
      	
              11.

            	
              OBLIGATION
      TO PROVIDE WORK

            

    

    

    
      	
              11.1

            	
              There
      shall be no obligation on the Company to provide work for the Executive
      and if during the continuance of the Appointment the Company or any member
      of the Group does not provide the Executive with any work for a certain
      period then during such period, the
Executive:

            

    

    

    
      	
               
      

            	
              (a)

            	
              shall
      not be entitled to access to any premises or offices of the Company or any
      member of the Group; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              shall
      continue to receive his full remuneration and other benefits for or in
      respect of such period payable
hereunder.

            

    

    

    
      	
              12.

            	
              TERMINATION

            

    

    

    
      	
              12.1

            	
              Termination by the
      Company

            

    

    

    
      	
               
      

            	
              (a)

            	
              This
      Agreement may be terminated by the Board at any time (i) in the event of
      the Executive’s death; or (ii) if the Executive shall at any time during
      the Term become physically or mentally disabled whether totally or
      partially so that he is substantially unable to perform his services
      hereunder for a period of or periods aggregating 90 days in the
      immediately preceding twelve (12) months (and in this case the Company may
      at any time after the accrual of 90 days in the period or periods
      aforesaid by written notice to the Executive terminate the Appointment
      whether forthwith or at a date specified in the notice of
      termination).

            

    

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              In
      addition to the circumstances set forth in clause 12.1(a), this Agreement
      may be terminated by the Company at any time without prior notice, if the
      Executive shall at any time during the
Term:

            

    

    

    
      	
               
      

            	
              (i)

            	
              be
      convicted of any offence (other than a traffic offence) involving the
      property of the Company or any member of the Group, or any other criminal
      offence (other than an offence which in the reasonable opinion of the
      Board does not affect his position in the
  Company);

            

    

    

    
      	
               
      

            	
              (ii)

            	
              have
      committed, repeated or continued (after warning) any irredeemable,
      persistent or material breach of his obligations or any of the provisions
      of this Agreement;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              be
      guilty of willful neglect, fraud or dishonesty in the discharge of his
      duties under this Agreement, or any grave misconduct which in the absolute
      opinion of the Board tends to bring himself or the Company or any member
      of the Group into disrepute;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              have
      committed an act of bankruptcy or compounded with his creditors generally
      or be guilty of conduct which would make his continued Appointment
      prejudicial to the best interests of the Company or any member of the
      Group;

            

    

    

    
      	
               
      

            	
              (v)

            	
              be
      disqualified to act as a director of the Company under any applicable law,
      rules or regulations;

            

    

    

    
      	
               
      

            	
              (vi)

            	
              be
      absent (other than in accordance with clause 9) for an aggregate period of
      14 working days without prior notice to the
  Board;

            

    

    

    
      	
               
      

            	
              (vii)

            	
              be
      in any material or persistent deviation from any matter or circumstances
      represented by him in the statement referred to in clause
      6.3(a);

            

    

    

    
      	
               
      

            	
              (viii)

            	
              be
      in material breach of any of the terms of the undertaking referred to in
      clause 6.3(b);

            

    

    

    
      	
               
      

            	
              (ix)

            	
              be
      in material breach of any terms or conditions of this Agreement;
      or

            

    

    

    
      	
               
      

            	
              (x)

            	
              have
      committed or failed to commit any other act, which commission or failure
      would entitle the Company to terminate this Agreement without notice at
      common law.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Notwithstanding
      anything herein to the contrary, this Agreement may be terminated by the
      Company at any time, without cause, with no less than thirty (30) days’
      advance notice to the Executive.

            

    

     

    
      
        
        

      

      
        - 10
-

        
          

        

      

      
        
        

      

    

     

    
      	
              12.2

            	
              Termination by the
      Executive

            

    

     

    
      	
               
      

            	
              (a)

            	
              This
      Agreement may be terminated by the Executive in the event of a
      Constructive Termination.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      anything herein to the contrary, this Agreement may be terminated by the
      Executive at any time, without cause, with no less than ninety (90) days’
      advance notice to the Company.

            

    

     

    
      	
              12.3

            	
              Benefits upon
      Termination

            

    

     

    

    
      	
               
      

            	
              (a)

            	
              If
      this Agreement is terminated for any reason by the Company or by the
      Executive (in such a case, the date on which the Executive’s employment by
      the Company terminates is referred to as the “Severance Date”), the
      Company shall have no further obligation to make or provide to the
      Executive, and the Executive shall have no further right to receive or
      obtain from the Company, any payments or benefits or compensation or
      damages except as follows:

            

    

    

    
      	
               
      

            	
              (i)

            	
              The
      Company shall pay the Executive (or, in the event of his death, the
      Executive’s estate) his Accrued
Obligations;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              In
      the event of an Involuntary Termination, each outstanding option,
      restricted stock award or other stock-based award granted by the Company
      to the Executive shall be automatically accelerated so that such award
      shall be vested in full as of the Severance Date;
  and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              In
      the event of a Change of Control Termination, the Company shall pay the
      Executive in one lump sum, subject to tax withholding and other authorized
      deductions, an amount equal to US$5 million (the “Severance Benefit”),
      subject to the Executive’s execution of the documents in accordance with
      clause 12.5(b).

            

    

    

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      the foregoing provisions of this clause 12.3, if any of the events set
      forth in clause 12.1(b), which give rise to the Company’s option to
      terminate this Agreement, shall have occurred prior to the Severance Date
      or if the Executive shall be in breach of clauses 14, 15 or 16 (whether
      prior to or after the Severance Date) (x) the Executive shall not be
      entitled to claim any compensation or damages for or in respect of or by
      reason of such termination and (y) the Executive shall no longer be
      entitled to the additional benefits prescribed by clause
      12.3(a)(ii).

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      Executive agrees that the payments contemplated by this clause 12.3 (and
      any applicable acceleration of vesting of an equity-based award in
      accordance with the terms of such award in connection with the termination
      of the Executive’s Appointment) shall constitute the exclusive and sole
      remedy for the Executive and the Executive covenants not to assert or
      pursue any other remedies, at law or in equity, with respect to any
      termination of the Appointment. The Company and the Executive acknowledge
      and agree that there is no duty of the Executive to mitigate damages under
      this Agreement. All amounts paid to the Executive pursuant to clause 12.3
      shall be paid without regard to whether the Executive has taken or takes
      actions to  mitigate
damages.

            

    

    
      
         

      

      
        - 11
-

        
          

        

      

      
         

      

    

    
 

    
      	
              12.4

            	
              Certain Defined
      Terms

            

    

    

    For
purposes of this clause 12:

    

    
      	
               
      

            	
              (a)

            	
              “Accrued
      Obligations” means:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Any
      salary under clause 8.1(a) for or in respect of the then current year of
      service that had actually accrued but had not been paid (including accrued
      and unpaid vacation time) on or before the Severance
  Date;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Any
      bonus payable pursuant to clause 8.1(b) to the extent earned by but not
      previously paid to the Executive;
and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Any
      reimbursement due to the Executive pursuant to clause 10.1(a) for expenses
      incurred by the Executive on or before the Severance
  Date.

            

    

    

    
      	
               
      

            	
              (b)

            	
              “Change
      of Control” shall mean the first to occur of any of the following events
      after the commencement of the Term:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Approval
      by shareholders of the Company (or, if no shareholder approval is
      required, by the Board alone) of the complete dissolution or liquidation
      of the Company, other than in the context of a Business Combination that
      does not constitute a Change in Control under paragraph (iii)
      below;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      acquisition by any individual, entity or group (within the meaning of
      Section 13(d)(3) or 14(d)(2) of the Exchange Act, referred to herein as a
      “Person”) of beneficial ownership (within the meaning of Rule 13d-3
      promulgated under the Exchange Act) of 50% or more of either (1) the
      then-outstanding ordinary shares of the Company (the “Outstanding Company
      Common Shares”) or (2) the combined voting power of the then-outstanding
      voting securities of the Company entitled to vote generally in the
      election of directors (the “Outstanding Company Voting Securities”);
      provided, however, that, for purposes of this paragraph (ii), the
      following acquisitions shall not constitute a Change in Control: (A) any
      acquisition directly from the Company, including, without limitation, a
      public offering of securities, (B) any acquisition by the Company, (C) any
      acquisition by any employee benefit plan (or related trust) sponsored or
      maintained by the Company or its Affiliates or a successor, (D) any
      acquisition by any entity pursuant to a Business Combination, (E) any
      acquisition by a Person described in and satisfying the conditions of Rule
      13d-1(b) promulgated under the Exchange Act, or (F) any acquisition by a
      Person who is the beneficial owner (within the meaning of Rule 13d-3
      promulgated under the Exchange Act) of 40% or more of the Outstanding
      Company Common Shares and/or the Outstanding Company Voting Securities on
      the date of this Agreement (or an Affiliate, heir, descendant, or related
      party of or to such Person); or

            

    

    
      
         

      

      
        - 12
-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (iii)

            	
              Consummation
      of a reorganization, merger, statutory share exchange or consolidation or
      similar corporate transaction involving the Company or any Subsidiary of
      the Company, a sale or other disposition of all or substantially all of
      the assets of the Company, or the acquisition of assets or stock of
      another entity by the Company or any of its Subsidiaries (each, a
      “Business Combination”), in each case unless, following such Business
      Combination, all or substantially all of the individuals and entities that
      were the beneficial owners of the Outstanding Company Common Shares and
      the Outstanding Company Voting Securities immediately prior to such
      Business Combination beneficially own, directly or indirectly, more than
      50% of the then-outstanding shares of common stock and the combined voting
      power of the then-outstanding voting securities entitled to vote generally
      in the election of directors, as the case may be, of the entity resulting
      from such Business Combination (including, without limitation, an entity
      that, as a result of such transaction, owns the Company or all or
      substantially all of the Company’s assets directly or through one or more
      subsidiaries), and no Person (excluding any individual or entity described
      in clauses (C), (E) or (F) of paragraph (ii) above) beneficially owns
      (within the meaning of Rule 13d-3 promulgated under the Exchange Act),
      directly or indirectly, more than 50% of, respectively, the
      then-outstanding shares of common stock of the entity resulting from such
      Business Combination or the combined voting power of the then-outstanding
      voting securities of such entity, except to the extent that the ownership
      in excess of 50% existed prior to the Business Combination and the Company
      is not the surviving entity; or

            

    

    

    provided,
however, that a transaction shall not constitute a Change of Control if it is in
connection with the underwritten public offering of the securities of the
Company.

    

    
      	
               
      

            	
              (c)

            	
              “Change
      of Control Termination” shall mean (i) a resignation by the Executive
      within thirty (30) days after a Change of Control or (ii) a termination of
      the Executive by the Company for reasons other than those set out in
      clauses 12.1(a) and 12.1(b) following a Change of Control or within two
      (2) years thereafter.

            

    

    

    
      	
               
      

            	
              (d)

            	
              “Constructive
      Termination” shall mean the occurrence of any of the following: (1)
      without the Executive’s express written consent, a material reduction of
      the Executive’s duties, position or responsibilities relative to the
      Executive’s duties, position or responsibilities in effect immediately
      prior to such reduction, or the removal of the Executive from such duties,
      position and responsibilities, unless the Executive is provided with
      substantially comparable duties, position and responsibilities; (2)
      without the Executive’s express written consent, a material reduction of
      the facilities and perquisites (including without limitation office space,
      location and administrative support) available to the Executive
      immediately prior to such reduction; (3) without the Executive’s express
      written consent, a reduction by the Company of the Executive’s salary or
      bonus opportunity as in effect immediately prior to such reduction; (4) a
      material reduction by the Company in the kind or level of employee
      benefits to which the Executive is entitled immediately prior to such
      reduction with the result that the Executive’s overall benefits package is
      materially reduced; or (5) the Company materially breaches any term or
      condition of this Agreement which has not been cured within a reasonable
      time after the Executive has given to the Company written notice of such
      breach.

            

    

    
      
         

      

      
        - 13
-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (e)

            	
              “Involuntary
      Termination” shall mean a Constructive Termination, a Change of Control
      Termination or a termination of the Executive by the Company for reasons
      other than those set out in clauses 12.1(a) and
  12.1(b).

            

    

    

    
      	
              12.5

            	
              Upon
      expiry or termination of the Term pursuant to clause 3 or
    12:

            

    

    

    
      	
               
      

            	
              (a)

            	
              all
      documents, records, correspondence, client lists, accounts, statistics,
      equipment or other property relating to the businesses or affairs of any
      member of the Group (including all those items referred to in clause 13)
      kept in the possession or under the control of the Executive and all
      copies thereof or extracts therefrom made by or on behalf of the Executive
      shall be and remain the property of the Company and shall be delivered up
      to the Company;

            

    

    

    
      	
               
      

            	
              (b)

            	
              if
      the Executive is at any time appointed a director of the Company or any
      member of the Group, he shall resign in writing from any office held by
      him as such director and from all other offices held by him with the Group
      and to execute an acknowledgment under seal to the effect that he has no
      claims against the Company or any member of the Group for compensation for
      loss of office, remuneration, severance benefits or otherwise;
      and

            

    

    

    
      	
               
      

            	
              (c)

            	
              in
      the event of the Executive failing to take any of the actions as required
      by the Company, the Company is hereby irrevocably and by way of security
      appointed the attorney of the Executive to appoint such person in the name
      of and on behalf of the Executive to sign, seal and deliver resignations
      to the Company and to file such returns or take such other action as may
      be necessary or desirable under applicable laws, rules and
      regulations.  The Executive agrees to confirm and ratify such
      documents and acts.

            

    

    

    
      	
              12.6

            	
              After
      the expiry or termination of the Term the Executive shall not at any time
      thereafter represent himself as being in any way connected with or
      interested in the business of or employed by the Company or any member of
      the Group; or use for trade or other purposes the name of the Company or
      any member of the Group or any name capable of confusion
      therewith.

            

    

    

    
      	
              12.7

            	
              Expiry
      or termination of the Term shall be without prejudice to clauses 14, 15
      and 16 (all of which shall remain in full force and effect notwithstanding
      such expiry or termination).

            

    

    
      
         

      

      
        - 14
-

        
          

        

      

      
         

      

    

    

    
      	
              13.

            	
              RECEIPT
      OF PAYMENTS AND BENEFITS FROM THIRD
PARTIES

            

    

    

    Subject
to any written regulations issued by the Company which may be applicable,
neither the Executive nor any member of his family nor any company nor any
business entity in which the Executive or any of them has an interest, shall be
entitled to receive or obtain directly or indirectly any payment, discount,
rebate, commission or other benefit from third parties in respect of any
business transacted (whether or not by the Executive) by or on behalf of any
member of the Group.  If the Executive, any member of his family or
any company or any business entity in which the Executive or any of them has an
interest shall directly or indirectly obtain any such payment, discount, rebate,
commission or other benefit, the Executive shall forthwith disclose this to the
Company and, unless the Company agrees otherwise, account to the Company or the
relevant member of the Group for the amount received or the value of the benefit
so obtained.

    

    
      	
              14.

            	
              CONFIDENTIALITY

            

    

    

    
      	
              14.1

            	
              The
      Executive recognises and acknowledges that in the performance of his
      duties under this Agreement the Executive may come into contact with
      Confidential Information, all of which is of a confidential nature, is
      valuable and is the exclusive property of the Company or the relevant
      member of the Group (as the case may be).  Without prejudice to
      the general duty of confidence of the Executive towards the Company and
      any member of the Group, the Executive shall not either during or at any
      time after the expiry or termination of the Term (as the case may
      be):

            

    

    

    
      	
               
      

            	
              (a)

            	
              divulge
      or communicate to or cause or enable any third party to become aware of or
      use, take away, conceal, destroy or retain for his own use or some other
      person’s advantage or to the detriment of the Company or any member of the
      Group any Confidential Information, except to those officers or employees
      of the Company and any member of the Group whose duties require that such
      Confidential Information be disclosed to
them;

            

    

    

    
      	
               
      

            	
              (b)

            	
              use
      any Confidential Information for his own purposes or for any purpose other
      than those of the Company or any member of the Group;
  or

            

    

    

    
      	
               
      

            	
              (c)

            	
              through
      any failure to exercise due care and diligence cause any unauthorized
      disclosure of any Confidential Information or other information in respect
      of which the Company or any member of the Group is bound by an obligation
      of confidence to any third party which obligation is within the actual or
      constructive knowledge of the
Executive.

            

    

    

    
      	
              14.2

            	
              The
      Executive shall promptly deliver to the Company upon expiry or termination
      of the Term or at any time as the Company may request all such memorandum,
      notes, records, papers, reports, manuals, drawings, blueprints and other
      documents (and all copies thereof) relating to the business of the Company
      or any member of the Group and all property associated therewith as he may
      possess or have under his control at the time.  For the
      avoidance of doubt it is hereby declared that the property in all such
      documents shall at all times be vested in the Company or the relevant
      member of the Group, as the case may
be.

            

    

    
      
         

      

      
        - 15
-

        
          

        

      

      
         

      

    

    

    
      	
              14.3

            	
              If
      the Executive commits or threatens to commit a breach of sub-clauses 14.1
      or 14.2 the Company shall be
entitled:

            

    

    

    
      	
               
      

            	
              (a)

            	
              to
      seek an injunction (against a breach of sub-clause 14.1) or specific
      performance (for a breach of sub-clause 14.2) against him, it being
      acknowledged that any such breach or threatened breach shall cause
      irreparable injury to the Company and that monetary damages shall not
      provide an adequate remedy to the Company;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              to
      require him to account for and pay over to the Company (which the
      Executive hereby agrees to do) all compensation, profits, monies,
      accruals, increments or any other transactions constituting a breach of
      any of the provisions of sub-clauses 14.l and
  14.2.

            

    

    

    
      	
              15.

            	
              INVENTIONS,
      PATENTS AND OTHER INDUSTRIAL OR INTELLECTUAL
  PROPERTY

            

    

    

    
      	
              15.1

            	
              The
      Executive agrees that all Relevant Intellectual Property (whether
      patentable or not) shall be the absolute property of the
      Company.  The Executive shall
further:

            

    

    

    
      	
               
      

            	
              (a)

            	
              notify
      and disclose to the Company in writing full details of all Relevant
      Intellectual Property forthwith upon the production of the same, and
      promptly whenever requested by the Company and in any event upon the
      expiry or termination of the Term deliver up to the Company all
      correspondence and other documents, papers and records, and all copies
      thereof in his possession, custody and power relating to any Relevant
      Intellectual Property;

            

    

    

    
      	
               
      

            	
              (b)

            	
              assign
      to the Company or any member of the Group as the Company may designate in
      its absolute discretion, without additional compensation all rights
      (including patent, registered design and trade mark rights and copyrights)
      to such Relevant Intellectual Property
  worldwide;

            

    

    

    
      	
               
      

            	
              (c)

            	
              if
      required by the Company, apply or join with the Company or any member of
      the Group as the Company may direct in applying for letters, patents,
      registered design, trade mark, copyright and other protection or
      registration for such Relevant Intellectual Property in the relevant
      jurisdiction at the expense of the Company or any member of the Group
      nominated by the Company;

            

    

    

    
      	
               
      

            	
              (d)

            	
              sign
      and execute all documents and do all things as may in the opinion of the
      Board be necessary or desirable to carry out the foregoing and otherwise
      to protect and maintain all Relevant Intellectual
  Property;

            

    

    

    
      	
               
      

            	
              (e)

            	
              give
      testimony in support of his inventorship if required;
  and

            

    

    

    
      	
               
      

            	
              (f)

            	
              hold
      upon trust for the benefit of the Company any Relevant Intellectual
      Property to the extent the same may not be and until the same is vested
      absolutely in the Company and/or a member of the Group, as the case may
      be.

            

    

    
      
         

      

      
        - 16
-

        
          

        

      

      
         

      

    

    
      	
              15.2

            	
              If
      any Invention is described in a patent application, or is disclosed to
      third parties directly or indirectly by the Executive within two (2) years
      after the expiry or termination of the Term there shall be a prima facie
      presumption that the Invention was conceived or made during the Term and
      it shall be incumbent upon the Executive to prove on a balance of
      probabilities that the Invention was not conceived or made during the
      Term.

            

    

    

    
      	
              15.3

            	
              The
      Executive agrees that he will not assert any and will relinquish all
      rights to any Intellectual Property as having been made or acquired by him
      prior to the date of this Agreement except for those Intellectual Property
      (if any) disclosed to the Company in writing prior to the date
      hereof.

            

    

    

    
      	
              16.

            	
              RESTRICTIVE
      COVENANTS

            

    

    

    
      	
              16.1

            	
              The
      Executive covenants with and undertakes to the Company that he shall
      not:

            

    

    

    
      	
               
      

            	
              (a)

            	
              at
      any time during the Term or within three (3) years from the date of the
      expiry or termination of the Term in Hong Kong or in the PRC or any other
      jurisdiction in which the Group operates either alone or jointly with or
      as manager, agent or employee for any person, firm or company directly or
      indirectly and whether or not for
gain:

            

    

    

    
      	
               
      

            	
              (i)

            	
              engage
      or be engaged or interested in or concerned with the Business carried on
      from time to time by the Group or any other business competing or likely
      to compete (directly or indirectly) with the businesses operated by the
      Group from time to time (“Restricted
Business”);

            

    

    

    
      	
               
      

            	
              (ii)

            	
              take
      employment with any person, firm, company or organization engaged in the
      PRC or any other jurisdiction in which the Group operates whether directly
      or indirectly in any of the Restricted Business (but this restriction
      shall not operate so as to prohibit an employment none of the duties of
      which relate to such businesses) nor assist any such person, firm, company
      or organization with technical, commercial or professional advice in
      relation to the Restricted
Business;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              be
      interested in any project or proposal on behalf or for the benefit of any
      person who within one (1) year prior to the expiry or termination of the
      Term is a principal, joint venture partner, contracting party or client of
      the Group or an Affiliate of any of the
  foregoing;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              be
      interested in any project or proposal for the acquisition, turning to
      account, development of or investment in any asset of the Company or any
      member of the Group, unless such asset is offered by the Company or any
      member of the Group for sale to, turning to account or development by
      third parties; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              at
      any time after the expiry of termination of the Term use for any purpose
      whatsoever the name or trading style of the Company in Hong Kong or in the
      PRC or any other part of the world or represent himself or themselves as
      carrying on or continuing or being connected with the Company or any
      member of the Group or (where applicable) any of its shareholders or their
      respective business;

            

    

    
      
         

      

      
        - 17
-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (c)

            	
              within
      three (3) years from the date of the expiry or termination of the Term,
      solicit or entice away from the Company or any member of the Group any
      director, manager or employee who has, at any time, during the period of
      one (1) year immediately preceding such expiry or termination been
      employed or engaged by the Company or any member of the
    Group;

            

    

    

    
      	
               
      

            	
              (d)

            	
              within
      three (3) years from the date of the expiry or termination of the Term,
      employ or otherwise engage any person who has during the period of one (1)
      year immediately preceding such expiry or termination been a director,
      manager, employee of or consultant to the Company or any member of the
      Group and who by reason of such employment is or may be likely to be in
      possession of any confidential information or trade secrets relating to
      the business of the Company or any member of the Group or the business of
      the customers of the Company;

            

    

    

    
      	
               
      

            	
              (e)

            	
              within
      three (3) years from the date of the expiry or termination of the Term,
      solicit business in competition with the Company or any member of the
      Group from any person, firm, company or organization which at any time
      during the period of one (1) year immediately preceding such expiry or
      termination has dealt with the Company or which on such expiry or
      termination is in the process of negotiating with the Company or any
      member of the Group in relation to any of the Restricted Business, and
      with whom or which during such period the Executive has had personal
      dealings in the course of his Term;
and

            

    

    

    
      	
               
      

            	
              (f)

            	
              within
      three (3) years from the date of the expiry or termination of the Term,
      solicit or entice away from the Company or any member of the Group any
      customer or supplier who has, at any time, during the period of one (1)
      year immediately preceding such expiry or termination been a customer or
      supplier of the Company or any member of the
  Group.

            

    

    

    
      	
              16.2

            	
              While
      the restrictions contained in this clause 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 unforeseen and
      accordingly it is hereby agreed and declared that if any 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 Company but would
      be valid if part of the wording thereof were deleted or amended or the
      periods (if any) thereof were reduced or the range of businesses or area
      dealt with thereby were reduced in scope the said restriction or
      restrictions shall apply with such modifications as may be necessary to
      make it or them valid, effective and
  enforceable.

            

    

    

    
      	
              16.3

            	
              Since
      the Executive may also obtain in the course of his Term hereunder by
      reason of services rendered for or offices held in any other company
      knowledge of the trade secrets or other confidential information of such
      company, the Executive hereby agrees that he will at the request and cost
      of the Company enter into a direct agreement or undertaking with such
      company whereby he will accept restrictions corresponding to the
      restrictions herein contained (or such of them as may be appropriate in
      the circumstances) in relation to such products and services and such area
      and for such period the Company may reasonably require for the protection
      of its legitimate interests.

            

    

    
      
         

      

      
        - 18
-

        
          

        

      

      
         

      

    

     

    
      	
              16.4

            	
              The
      Company hereby covenants with and undertakes in favor of the Executive
      that neither it nor any of its subsidiaries will after the expiry or
      termination of the Term use the Executive’s name or represent that the
      Executive is carrying on or continuing to be or being connected with the
      Company or any member of the Group or their respective businesses whether
      in Hong Kong or the PRC or
elsewhere.

            

    

    

    
      	
              16.5

            	
              For
      the purposes of clause 16.1:

            

    

    

    
      	
               
      

            	
              (a)

            	
              “employee”
      includes any staff of the Company or any member of the Group or any
      successors thereof; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              “assets”
      include intellectual property rights and know-how of all forms and
      descriptions that are related to any of the principal businesses carried
      on from time to time by the Company or any member of the Group during the
      Term and all licenses and rights to use or apply any such rights or
      know-how.

            

    

    

    
      	
              16.6

            	
              For
      the purposes of clause 16.3:

            

    

    

    
      	
               
      

            	
              (a)

            	
              “trade
      secrets” means trade secrets including knowledge of and know-how in
      connection with the Company or any member of the Group or any of their
      respective businesses or proposed products or businesses and which are so
      confidential as to require protection as trade secrets;
  and

            

    

    

    
      	
               
      

            	
              (b)

            	
              “other
      confidential information” means:

            

    

    

    
      	
               
      

            	
              (i)

            	
              any
      information imparted to the Executive on the express basis that it is
      confidential; and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              any
      other information or knowledge received or obtained by the Executive which
      if used, divulged or communicated to any person other than in accordance
      with clause 14 would have infringed the restriction in that
      clause.

            

    

    

    
      	
              16.7

            	
              Nothing
      in this clause 16 (other than clause 16.2) shall apply
  to:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      direct or indirect holding of any securities listed on a stock exchange
      where the total voting rights exercisable at general meetings of the
      Company as represented by such holding do not exceed 5 per cent. of the
      total voting rights attaching to the securities of the same class as that
      held by the Executive and/or his Affiliates, provided that neither the
      Executive nor any of his Affiliates participates in or are otherwise
      involved in the management of the Company;
or

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      holding by the Executive or any of his Affiliates of any securities of the
      Company.

            

    

    
      
         

      

      
        - 19
-

        
          

        

      

      
         

      

    

     

    
      	
              16.8

            	
              The
      Executive warrants to and in favor of the Company that save through his
      interests and the interests of his Affiliates in the Company or any member
      of the Group or his employment by the Company pursuant to this Agreement,
      neither he nor any of his Affiliates on the date of this Agreement engages
      or is interested in or is concerned with the Business, whether in Hong
      Kong or the PRC or elsewhere.

            

    

    

    
      	
              16.9

            	
              In
      the event of and notwithstanding the expiry or termination of the Term,
      each of the parties covenants with and undertakes to the other that it or
      he will at all times and in all respects continue to observe and comply
      with the provisions of this clause 16 of this
  Agreement.

            

    

    

    
      	
              17.

            	
              SEVERABILITY

            

    

    

    
      	
              17.1

            	
              While
      the covenants contained in clauses 14, 15 and 16 are considered by the
      parties to be reasonable in all the circumstances, it is recognised that
      restrictions or undertakings of the nature in question may fail for
      technical reasons unforeseen and accordingly it is hereby agreed and
      declared that if any such restrictions or undertakings shall be adjudged
      to be void as going beyond what is reasonable in all the circumstances for
      the protection of the interests of the Company, but would be valid if part
      of the wording thereof were deleted or the duration or area (if any)
      thereof were reduced in scope, the restriction or undertaking shall apply
      with such modification as is considered necessary to make it valid and
      enforceable.

            

    

    

    
      	
              17.2

            	
              In
      the event that any court or tribunal of competent jurisdiction shall hold
      any such restriction or undertaking wholly unenforceable by reason of the
      breadth of such scope or otherwise, the parties agree that such
      determination shall not in any way prejudice the Company’s right to any
      remedies provided herein which may be granted by any other court or
      tribunal of competent jurisdiction in respect of breaches of such
      restriction or undertaking.

            

    

    

    
      	
              18.

            	
              ASSIGNMENT

            

    

    

    
      	
              18.1

            	
              The
      rights and obligations of the Executive under this Agreement shall not be
      assignable or transferable.

            

    

    

    
      	
              18.2

            	
              The
      Company may assign and transfer its rights or obligations hereunder in
      connection with any sale, transfer or other disposition of all or
      substantially all of its business or assets.  This Agreement
      shall be binding upon and shall enure for the benefit of the Company’s
      successors or assigns whether by merger, consolidation or acquisition of
      all or substantially all of its business or
  assets.

            

    

    

    
      	
              19.

            	
              ENTIRE
      AGREEMENT

            

    

    

    
      	
              19.1

            	
              This
      Agreement constitutes the entire agreement and understanding of the
      parties relating to the subject matter hereof and shall be in substitution
      for any previous agreement or arrangement (whether oral or written) made
      between the Company or any member of the Group and the
      Executive.  Any such previous agreement or arrangement shall be
      deemed to have been terminated by mutual consent as from the date of this
      Agreement.

            

    

    
      
         

      

      
        - 20
-

        
          

        

      

      
         

      

    

     

    
      	
              19.2

            	
              The
      Executive acknowledges and warrants to the Company that he is not entering
      into this Agreement in reliance on any representation, promise or
      inducement not expressly set out
herein.

            

    

    

    
      	
              20.

            	
              PRIOR
      OBLIGATIONS

            

    

    

    
      	
              20.1

            	
              The
      Executive warrants that by entering into this Agreement he will not be in
      breach of any agreements with or obligations owed to any third
      party.

            

    

    

    
      	
              21.

            	
              NOTICES

            

    

    

    
      	
              21.1

            	
              Delivery

            

    

    

    All
notices, demands or other communications which are to be given under this
Agreement shall be in writing and shall be addressed as shown
below:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    (a)

                                  	
                                    if
      to the Company

                                  
	 
      	 
      	 	 
      
	 
      	
                                    Address

                                  	 :	
                                    48/F,
      Bank of China Tower, 1 Garden Road, Central, Hong Kong

                                  
	 	 	 	 
	 
      	
                                    Facsimile

                                  	 :	
                                    (852)
      3605 8181

                                  
	 	 	 	 
	 
      	
                                    Attention

                                  	 :	
                                    The
      Board of Directors

                                  
	 	 	 	 
	
                                    (b)

                                  	
                                    if
      to the Executive

                                  
	 
      	 
      	 	 
      
	 
      	
                                    Address

                                  	 :	
                                    48/F,
      Bank of China Tower, 1 Garden Road, Central, Hong Kong

                                  
	 	 	 	 
	 
      	
                                    Facsimile

                                  	 :	
                                    (852)
      3605
8181

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    or to
such other address, telex number or facsimile number or marked for the attention
of such other person as the recipient may designate by notice given in
accordance with the provisions of this clause.

    

    
      	
              21.2

            	
              Receipt

            

    

    

    Any such
notice may be delivered personally or by prepaid post or sent by telex or
facsimile transmission and shall be deemed to have been effectively
served:

    

    
      	
               
      

            	
              (a)

            	
              if
      by delivery in person, when delivered to the
  addressee;

            

    

    

    
      	
               
      

            	
              (b)

            	
              if
      by telex upon receipt by the sender of the
  answerback;

            

    

    

    
      	
               
      

            	
              (c)

            	
              if
      by facsimile transmission when dispatched;
and

            

    

    

    
      	
               
      

            	
              (d)

            	
              if
      by post:

            

    

    
      
         

      

      
        - 21
-

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (i)

            	
              on
      the second Business Day following the day of posting if sent from the PRC
      to the address of a recipient in the PRC unless actually received sooner;
      or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              on
      the seventh Business Day following the day of posting if sent from the PRC
      to an address outside the PRC (and vice versa) unless actually received
      sooner.

            

    

    

    
      	
              21.3

            	
              Language

            

    

    

    Each
notice, demand or other communication and any other documents required to be
delivered under this Agreement shall be either in English or accompanied by a
certified translation into the English language.

    

    
      	
              22.

            	
              GENERAL

            

    

    

    
      	
              22.1

            	
              The
      failure of the Company at any time or times to require performance of any
      provision of this Agreement shall in no manner affect the Company’s right
      at a later time to enforce the same.  No waiver by the Company
      of the breach of any term or covenant contained in this Agreement whether
      by conduct or otherwise in any one or more instances shall be deemed to be
      or construed as a further or continuing waiver of any such breach or a
      waiver of the breach of any other term or covenant contained in this
      Agreement.  Each of the rights and remedies provided herein
      shall be in addition to and not exclusive of any rights or remedies
      provided by law.

            

    

    

    
      	
              22.2

            	
              The
      Executive hereby irrevocably and by way of security appoints the Company
      and each member of the Group now or in the future existing to be his
      attorney and in his name and on his behalf and as his act and deed to
      sign, execute and do all acts, things and documents which he is obliged to
      execute and do under the provisions of this Agreement (and in particular,
      but without limitation, sub-clauses 12.5(c) and 15.1(d)) and the Executive
      hereby agrees forthwith on the request of the Company to ratify and
      confirm all such, things and documents signed, executed or done in
      pursuance of this power.

            

    

    

    
      	
              23.

            	
              GOVERNING
      LAW AND JURISDICTION

            

    

    

    
      	
              23.1

            	
              This
      Agreement is governed by and is to be construed in accordance with the
      laws of Hong Kong Special Administrative Region without regard to the
      conflict of laws principles
thereof.

            

    

    

    
      	
              23.2

            	
              Nothing
      in this Agreement shall limit the right of either party to commence any
      legal action against the other party and/or its property in any other
      jurisdiction or to serve process in any manner permitted by law, and the
      taking of proceedings in any jurisdiction shall not preclude the taking of
      proceedings in any other jurisdiction whether concurrently or
      not.

            

    

    
      
         

      

      
        - 22
-

        
          

        

      

      
         

      

    

    IN WITNESS whereof the parties
have entered into this Agreement the day and year first above
written.

    

    
      
        	
                SIGNED
      by

              	
                )

              
	
                for
      and on behalf of

              	
                )

              
	
                CHINA
      CORD BLOOD

              	
                )

              
	
                CORPORATION

              	
                )

              
	
                in
      the presence of:

              	
                )

              

      

    

    

    
      
        	
                SIGNED
      AND DELIVERED

              	
                )

              
	
                by
      TING
      ZHENG

              	
                )

              
	
                in
      the presence of:

              	
                )

              

      

    

    
      
         

      

      
        - 23
-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]