Document:

Share Purchase Agreement

 Exhibit 4.9 
 EXECUTION COPY 
 SINOVAC BIOTECH LTD. 
 SHARE PURCHASE AGREEMENT 
 This Share Purchase Agreement (this
“Agreement”) is dated as of January 22, 2008, among Sinovac Biotech Ltd., a corporation organized under the laws of Antigua (the “Company”), and Sansar Capital Management, L.L.C., a Delaware limited liability
company (the “Purchaser”). 
 WHEREAS, the Company’s Common Shares (as defined below) are listed on the American Stock
Exchange (ticker symbol: SVA) as of the date hereof. 
 WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant
to Section 4(2) of the Securities Act (as defined below), and Rule 506 promulgated thereunder, the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company 2,500,000 Common Shares (the
“Purchased Shares”) at an aggregate purchase price of US$9,750,000 (the “Subscription Amount”). 
 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 the 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 indicated in this Section 1.1: 
 “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 144. 
 “Agreement” shall have the meaning ascribed to such term in the Preamble. 
 “Authorization” shall have the meaning ascribed to such term in Section 3.1(e). 
 “Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday or a 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 each closing of the purchase and sale of the Purchased Shares pursuant to
Section 2.1. 
 “Closing Date” means the date of the Closing. 
 “Commission” means the Securities and Exchange Commission. 

 “Common Shares” means the common shares of the Company, $0.001 par value
per share. 
 “Common Shares Equivalents” means any securities of the Company or the Subsidiaries which would
entitle the holder thereof to acquire at any time Common Shares, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that are at any time convertible into or exchangeable for, or otherwise entitles
the holder thereof to receive, Common Shares. 
 “Company” shall have the meaning ascribed to such term in
the Preamble. 
 “Company Counsel” means Latham Watkins LLP, counsel to the Company. 
 “Disclosure Materials” shall have the meaning ascribed to such term in Section 3.1(h). 
 “Disclosure Schedules” means the Disclosure Schedules attached hereto. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “GAAP” shall have the meaning ascribed to such term in Section 3.1(h). 
 “Governmental Entity” shall have the meaning ascribed to such term in Section 3.1(e). 
 “Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(p). 
 “Law” shall have the meaning ascribed to such term in Section 3.1(e). 
 “Liens” shall have the meaning ascribed to such term in Section 3.1(a). 
 “Material Adverse Effect” shall have the meaning ascribed to such term in Section 3.1(b). 
 “Material Permits” shall have the meaning ascribed to such term in Section 3.1(n). 
 “Money Laundering Laws” shall have the meaning ascribed to such term in Section 3.1(ii). 
 “OFAC” shall have the meaning ascribed to such term in Section 3.1(hh). 
 “Order” shall have the meaning ascribed to such term in Section 3.1(d). 
 “Per Share Purchase Price” equals $3.90, subject to adjustment for reverse and forward stock splits, stock dividends,
stock combinations and other similar transactions of the Common Shares that occur after the date of this Agreement. 
  

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 “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. 
 “PRC” means the People’s Republic of China, not including Taiwan, Hong Kong and Macau. 
 “Proceeding” means any action, arbitration, audit, examination, investigation, hearing, litigation or suit, proceeding
(including, without limitation, a partial proceeding, such as a deposition), (whether civil, criminal, administrative, judicial or investigative, whether formal or informal, and whether public or private), whether pending or threatened, commenced,
brought, conducted or heard by or before, or otherwise involving, any Person, including any Governmental Authority. 
 “Purchased Shares” shall have the meaning ascribed to such term in the Recitals. 
 “Purchaser” shall have the meaning ascribed to such term in the Preamble. 
 “Regulation
D” shall have the meaning ascribed to such term in Section 3.1(ee). 
 “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. 
 “SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h). 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Subscription Amount” shall have the meaning ascribed to such term in the Recitals. 
 “Subsidiary” means any “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X promulgated by the
Commission under the Exchange Act. 
 “Trading Day” means (i) a day on which the Common Shares are
traded on a Trading Market, or (ii) if the Common Shares are not listed on a Trading Market, a day on which the Common Shares are traded on the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Shares
are not quoted on the OTC Bulletin Board, a day on which the Common Shares are quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of
reporting prices); provided, that in the event that the Common Shares are not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day. 
 “Trading Market” means the following markets or exchanges on which the Common Shares are listed or quoted for trading on
the date in question: the American Stock Exchange, the New York Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or OTC Bulletin Board. 
 “Transaction Documents” means this Agreement and any other documents or agreements executed in connection with the
transactions contemplated hereunder. 
  

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 ARTICLE II. 
 PURCHASE AND SALE 
 2.1 Closing. 
 (a) Closing. Subject to the terms and conditions set forth in this Agreement, at the Closing, the Purchaser shall purchase and the Company shall
issue and sell to the Purchaser the Purchased Shares at the Per Share Purchase Price in the amount equal to the Subscription Amount. The closing shall occur at 10 a.m. New York time, on or prior to January 31, 2008 (unless otherwise extended in
accordance with this Section 2.1(a)), the Closing shall occur remotely by the exchange of signatures, certificates and funds by mail or electronic transmission, or at such other time and place as the Company and Purchaser shall mutually agree.

 2.2 Closing Deliveries. At the Closing the Company shall deliver or cause to be delivered to the Purchaser the following:

 (i) a certificate evidencing the Purchased Shares issued to and registered in the name of the Purchaser; 
 (ii) the legal opinion(s) of Company Counsel, executed by such counsel and delivered to the Purchaser, substantially in the form set forth
in Exhibit A-1; 
 (iii) the legal opinion of the Company’s legal counsel in Antigua, executed by such counsel and
delivered to the Purchaser, substantially in the form set forth in Exhibit A-2; 
 (iv) a certificate executed by the
Company’s secretary or assistant secretary, attaching its Company charter and by-laws, each as amended through the Closing Date, any minutes of its board of directors and its stockholders related to the execution of the Transaction Documents
and the consummation of the transactions contemplated thereby, and proof of the signatures of all officers of the Company executing such agreements, substantially in the form attached hereto as Exhibit A-3. 
 (b) At the Closing the Purchaser shall deliver or cause to be delivered to the Company the following: 
 (i) the Purchaser’s Subscription Amount by wire transfer in immediately available funds to the account designated in writing by the
Company; 
  

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 ARTICLE III. 
 REPRESENTATIONS AND WARRANTIES 
 3.1 Representations and Warranties of the Company. Except as set
forth in the SEC Reports or under the corresponding section of the Disclosure Schedules delivered concurrently herewith, the Company hereby makes the following representations and warranties to the Purchaser: 
 (a) Subsidiaries. The Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and clear of any lien,
charge, security interest, encumbrance, right of first refusal or other restriction (collectively, “Liens”), and all 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. 
 (b) Organization and Qualification. Each of the Company
and each Subsidiary 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 (as applicable), with the requisite power and authority to own
and use its properties and assets and to carry on its business as described in the Disclosure Materials (as defined below). Each Subsidiary is a direct or indirect wholly owned (and in the case of Sinovac Biotech Co, Ltd., a majority-owned)
Subsidiary of the Company. Neither the Company nor any Subsidiary is in violation 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 or licensed to conduct its respective 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, would 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 or financial condition of the Company and the Subsidiaries, taken as a whole, or (iii) adversely impair 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”). 
 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to execute and deliver each of the
Transaction Documents and to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations thereunder. The execution and delivery of each of the Transaction Documents by
the Company and the consummation by it of the transactions contemplated thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company or its stockholders in connection
therewith. Each Transaction Document including this Agreement has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except where enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights or by the effect of general equitable
principles. 
  

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 (d) No Conflicts. The execution, delivery and performance of the Transaction
Documents and the consummation by the Company of the transactions contemplated thereby 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; (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, 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; (iii) to the Company’s knowledge, conflict with, or result in or constitute any violation of, any award, decision, judgment,
decree, injunction, writ, order, subpoena, ruling, verdict or arbitration award entered, issued, made or rendered by any federal, state, local or foreign government or any other Governmental Entity (each an “Order”), or any Law,
applicable to the Company or any of its Subsidiaries, or to any of their respective properties or assets, or to any shares; (iv) result in the creation or imposition of (or the obligation to create or impose) any Lien on any of the properties
or assets of the Company or any of its subsidiaries, or on any of the Purchased Shares; or (v) conflict with, or result in or constitute any violation of, or result in the termination, suspension or revocation of, any Authorization applicable
to the Company or any of its subsidiaries, or to any of their respective properties or assets, or to any of the Purchased Shares, or result in any other impairment of the rights of the holder of any such Authorization; except in the case of each of
clauses (ii), (iii), (iv) and (v), such as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. 
 (e) Filings, Consents and Approvals. Assuming the accuracy of the representations of the Purchaser set forth in Section 3.2
hereof, no registration (including any registration under the Securities Act) or filing with, or any notification to, or any approval, permission, consent, ratification, waiver, authorization, order, finding of suitability, permit, license,
franchise, exemption, certification or similar instrument or document (each, an “Authorization”) of or from, any U.S. or PRC court, arbitral tribunal, arbitrator, administrative or regulatory agency or commission or other
governmental or regulatory authority, agency or governing body, domestic or foreign, including without limitation any Trading Market (each, a “Governmental Entity”), or any other person, or under any statute, law, ordinance, rule,
regulation or agency requirement of any Governmental Entity, (each, a “Law”), on the part of the Company or any of its subsidiaries is required in connection with the execution or delivery by the Company of the Transaction Documents
or the performance by the Company of its obligations under each of the Transaction Documents except (i) as would not have a Material Adverse Effect on the Company or its performance of its obligations under the Transaction Documents,
(ii) Form D and blue sky filings, (iii) the filings contemplated by the Transaction Documents and (iv) the submission of a listing application for the Purchased Shares with the American Stock Exchange. 
 (f) Issuance of the Purchased Shares. The Purchased Shares have been duly authorized and, when issued and paid for in accordance
with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all 

  

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Liens, except for such restrictions on transfer or ownership imposed by applicable federal or state securities laws or set forth in this Agreement. The
Company has reserved from its duly authorized capital stock the maximum number of Common Shares issuable pursuant to this Agreement. 
 (g) Capitalization. As of the date hereof, the authorized capital stock of the Company consists of 150,000,000 shares, 100,000,000 shares of which are Common Shares, $0.001 par value per share and 50,000,000 shares of which are
preferred shares, $0.001 par value per share. As of the date hereof and immediately prior to the transactions contemplated hereby, the number of shares and type of all issued and outstanding capital stock of the Company, and all Common Shares
reserved for issuance under the Company’s various option and incentive plans, is specified in Schedule 3.1(g) of the Disclosure Schedules, and there are no shares of preferred stock issued and outstanding. Other than as contemplated in
this Agreement, the Company has not issued any capital stock since January 1, 2007 other than pursuant to the exercise of (i) stock options or restricted grants held by employees, officers, directors, or consultants, whether or not
pursuant to the Company’s equity incentive plans or stock option plans, (ii) the issuance of Common Shares to employees pursuant to the Company’s equity incentive plans, stock option plans, stock option agreements, restricted stock
agreements, stock ownership plans or dividend reinvestment plans, and (iii) pursuant to the conversion or exercise of outstanding Common Share Equivalents. Except as set forth in the Disclosure Materials, 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 disclosed in Section 3.1(g) of the Disclosure Schedule, there are no
outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or
acquire, any Common Shares, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional Common Shares, or securities or rights convertible or exchangeable into Common
Shares. The issue and sale of the Purchased Shares will not obligate the Company to issue Common Shares or other securities to any Person (other than the Purchased Shares) and will not result in a right of any holder of Company securities to adjust
the exercise, conversion, exchange or reset price under such securities. 
 (h) SEC Reports; Financial Statements. The
Company has filed all reports required to be filed by it 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 to file such material) (the foregoing materials, including the exhibits thereto (together with any materials filed by the Company under the Exchange Act, whether or not required), being collectively referred to herein as the
“SEC Reports” and, together with the Disclosure Schedules to this Agreement, the “Disclosure Materials”) on a timely basis or has timely filed a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension. The Company has informed the Purchaser prior to the date hereof of any filing by the Company of any SEC Reports within the 10 days preceding the date hereof. As of their respective dates, the
SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations 

  

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of the Commission promulgated thereunder, 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 light of the circumstances under which they were made, not misleading. 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 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. All material agreements to which the Company and its Subsidiaries are a party or to which any of their respective property or assets are
subject that are required to be filed as Exhibits to the SEC Reports on Form 20-F are included as a part of, or specifically identified in, the SEC Reports. 
 (i) Material Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as
disclosed in the Disclosure Materials, (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 that would not be required to be reflected in the Company’s
financial statements pursuant to GAAP or that would not be required to be 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 equity incentive plans, stock option plans, stock option agreements, restricted stock agreements, stock ownership plans or dividend reinvestment plans. The Company does not have pending before the
Commission any request for confidential treatment of information. 
 (j) Litigation. Except as disclosed in the
Disclosure Materials, there are no actions, suits, inquiries, notices of violation, proceedings or investigations 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 Purchased Shares or (ii) would 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 

  

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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. 
 (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 or any Subsidiary which could reasonably be expected to result in a Material Adverse Effect. 
 (l)
Taxes. Each of the Company and its Subsidiaries has filed all necessary material federal, state and foreign income and franchise tax returns and has paid or accrued all material taxes shown as due thereon, and neither the Company nor any of
its Subsidiaries has knowledge of a tax deficiency which has been or might be asserted or threatened against it which could reasonably be expected to result in a Material Adverse Effect. 
 (m) 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, could 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 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 (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) to the Company’s knowledge, is or has been in
violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, kickbacks and false claims in healthcare programs,
occupational health and safety, product quality and safety and employment, labor matters, except in each case as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. The Company is in
compliance with the applicable requirements of the Sarbanes-Oxley Act of 2002 and the rules and regulations thereunder promulgated by the Commission, except where such noncompliance would not have or reasonably be expected to result in a Material
Adverse Effect. 
 (n) 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 would not have or
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.

 (o) Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real
property owned by them that is material to their respective businesses and good and marketable title in all personal property owned by them that is material to their respective businesses, in each case free and clear of all Liens, except for
(i) Liens described on 

  

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Schedule 3.1(o) of the Disclosure Schedules, (ii) Liens as do not materially affect the value of such property, do not materially interfere with the
use made and proposed to be made of such property by the Company and the Subsidiaries, (iii) Liens for taxes not yet due and payable and (iv) Liens which would not, individually or in the aggregate, reasonably be expected to have or result
in a Material Adverse Effect. To the Company’s knowledge, any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases of which the Company and the
Subsidiaries are in compliance except, in each case, as would not reasonably be expected to result in a Material Adverse Effect. 
 (p) Patents and Trademarks. The Company and the Subsidiaries own (and are the record owner of) or possess adequate licenses to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names,
copyrights, licenses, confidential information, technology and other similar rights (and all goodwill associated therewith) that are necessary or that are used in connection with their respective businesses as described in the SEC Reports and which
the failure to so own or have would, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Except as set forth in the Disclosure
Materials, neither the Company nor any Subsidiary has received a written notice that any of the Intellectual Property Rights violates or infringes upon or conflicts with the rights of any Person. Except as set forth in the Disclosure Materials, or
as would not reasonably be expected to result in a Material Adverse Effect, 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. 
 (q) PRC FDA Compliance. The Company and each of its Subsidiaries, and the manufacture, marketing
and sales of their products, comply with any and all applicable requirements of the applicable PRC food and drug administration Laws to which the Company or any of its Subsidiaries is subject, except where such noncompliance would not, individually
or in the aggregate, have a Material Adverse Effect. 
 (r) Insurance. 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 in their locality. 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. 
 (s) Price of Common Shares. The Company has not taken, and will not take, directly or
indirectly, any action designed to cause or result in, or which has constituted or which might reasonably be expected to constitute, the stabilization or manipulation of the price of the Common Shares to facilitate the sale or resale of the
Purchased Shares. 
  

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 (t) Transactions With Affiliates and Employees. Except as set forth in the
Disclosure Materials, none of the officers or directors of the Company and its Subsidiaries and, to the knowledge of the Company, none of the employees of the Company or its Subsidiaries is presently a party to any transaction with the Company or
any Subsidiary (other than for services as employees, officers and directors) which would be required to be disclosed by the Company pursuant to Item 404 under Regulation S-K under the Exchange Act, 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 (a) for payment of salary or consulting fees for services
rendered, (b) reimbursement for expenses incurred on behalf of the Company or its Subsidiaries and (c) for other employee benefits, including stock option agreements, whether or not issued, under any stock option plan of the Company.

 (u) Internal Accounting Controls. Except as set forth in the Disclosure Materials, the Company and each of its
Subsidiaries maintains 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. Except as set forth in the Disclosure Materials, 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 material information relating to the Company, including its
subsidiaries, is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s Form 20-F is being prepared. To the Company’s knowledge, there are no material weaknesses in the
Company’s internal control over financial reporting in its most recently filed Form 20-F. Since the filing of the Company’s most recent Form 20-F, there have been no significant changes in the Company’s internal control over financial
reporting (as such term is defined in Item 308(c) of Regulations S-K under the Exchange Act) or, to the Company’s knowledge, in other factors that could significantly affect the Company’s internal control over financial reporting.

 (v) Solvency. Based on the financial condition of the Company as of the date hereof, (i) the Company’s
fair saleable value of its 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 for the current fiscal year 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 (A) as of the date hereof and (B) as of the Closing Date (in which case together
with the proceeds the Company would receive, assuming that the Closing shall 

  

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have occurred), 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 debt 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). 
 (w) Certain Fees. 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 this Agreement. The Purchaser 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 this Agreement. 
 (x) Certain Registration Matters. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section
3.2(b)-(e), no registration under the Securities Act is required for the offer and sale of the Purchased Shares by the Company to the Purchaser under the Transaction Documents. 
 (y) Registration Rights. Except as set forth in the Disclosure Materials, no Person has any right to cause the Company to effect
the registration under the Securities Act of any securities of the Company. 
 (z) Listing and Maintenance
Requirements. Except as specified in the Disclosure Materials, the Company has not, in the twenty-four months preceding the date hereof, received notice from any Trading Market on which the Common Shares are 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. The Company is in compliance with the listing and maintenance requirements for continued listing of the Common Shares on the American Stock Exchange. 
 (aa) Investment Company. The Company is not, and after giving effect to the sale of the Purchased Shares and the application of the
net proceeds therefrom, will not be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 (bb) Off-Balance Sheet Arrangements. There is no transaction, arrangement or other relationship between the Company and an unconsolidated or other off-balance sheet entity that is required to be disclosed by
the Company in its Exchange Act filings and is not so disclosed or that otherwise would be reasonably expected to result in a Material Adverse Effect. There are no such transactions, arrangements or other relationships with the Company that may
create contingencies or liabilities that are not otherwise disclosed by the Company in its Exchange filings. 
 (cc)
Application of Takeover Protections. The Company and its 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

  

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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 or any agreement to which the Company is a party that is or could become applicable to the Purchaser as a result of the Purchaser and the Company fulfilling their obligations or exercising their rights under
the Transaction Documents, including without limitation the Company’s issuance of the Purchased Shares and the Purchaser’ ownership of the Purchased Shares. 
 (dd) Disclosure. The Company has publicly disclosed all material information previously made available to Purchaser and required to
be made publicly available under the applicable US securities Laws. The Company understands and confirms that the Purchaser will rely on the foregoing representations and covenants in effecting transactions in securities of the Company. All
disclosure provided to the Purchaser regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, furnished by or on behalf of the Company are complete, true and correct in all
material respects and do 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.

 (ee) Regulation D. Except as set forth on Schedule 3.1(ee) of the Disclosure Schedules, none of the Company or any
affiliate (as defined in Rule 501(b) of Regulation D (“Regulation D”) under the Securities Act) of the Company has directly, or through any agent, (a) sold, offered for sale, solicited offers to buy or otherwise negotiated in
respect of any security (as defined in the Securities Act) which is or will be integrated with the sale of the Purchased Shares in a manner that would require the registration of the Purchased Shares under the Securities Act or cause this offering
to be integrated with other offerings of the Company for purposes of the rules and regulations of the American Stock Exchange or; (b) engaged in or used any form of general solicitation or general advertising (within the meaning of Regulation
D) in connection with the sale of the Purchased Shares, including articles, notices or other communications published in any newspaper, magazine or similar medium or broadcast over television or radio, or any seminar or meeting whose attendees have
been invited by any general solicitation or general advertising. 
 (ff) Foreign Private Issuer Status. The Company is a “foreign
private issuer” within the meaning of Rule 3b-4(c) of the Exchange Act and neither the Company nor any Subsidiary is or intends to become a “passive foreign investment company” within the meaning of Section 1297 of the U.S.
Internal Revenue Code of 1986, as amended. 
 (gg) Foreign Corrupt Practices Act. Neither the Company nor any Subsidiary, nor to the
knowledge of the Company, any agent or other person acting on behalf of any of the Company or any Subsidiary, has, directly or indirectly, (i) used any funds, or will use any proceeds from the sale of the Purchased Shares, 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 any Subsidiary (or made by any Person acting on their behalf of which the Company 

  

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is aware) which is in violation of law, or (iv) has violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as
amended, and the rules and regulations thereunder. 
 (hh) OFAC. Neither the Company nor any Subsidiary nor, to the knowledge of the
Company, any director, officer, agent, employee, Affiliate or Person acting on behalf of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department
(“OFAC”); and the Company will not directly or indirectly use the proceeds of the sale of the Purchased Shares, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person
or entity, towards any sales or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned by OFAC or for the purpose of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC.

 (ii) Money Laundering Laws. The operations of each of the Company and any Subsidiary are and have been conducted at all times in
compliance with the money laundering statutes of the United States and the PRC, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any applicable governmental agency
(collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company and/or any Subsidiary with respect to the Money
Laundering Laws is pending or, to the best knowledge of the Company, threatened. 
 (jj) No Integrated Offering. None of the Company,
any of its Affiliates, and any Person acting on its behalf has, directly or indirectly, made any offers or sales of any security of the Company or solicited any offers to buy any security of the Company, which activities would require registration
of any of the Purchased Shares under the Securities Act or cause this offering of the Purchased Shares to be integrated with prior offerings by the Company for purposes of the Securities Act or any stockholder approval provisions of any applicable
law or regulation that is applicable to the Company, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated. None of the
Company, its Affiliates and any Person acting on its behalf will take any action or steps referred to in the preceding sentence that would require registration of any of the Purchased Shares under the Securities Act or cause the offering of the
Purchased Shares to be integrated with other offerings. 
 3.2 Representations and Warranties of the Purchaser. The Purchaser hereby
represents and warrants to the Company as follows: 
 (a) Organization; Authority. The Purchaser is an entity duly
organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite limited liability company power and authority to enter into and to consummate the transactions contemplated by the applicable
Transaction Documents and otherwise to carry out its obligations thereunder. The execution, delivery and performance by the Purchaser of the transactions contemplated by this Agreement has been duly authorized by all necessary limited liability
company action on the part of the Purchaser. This Agreement has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with terms hereof, will constitute the valid and legally binding obligation of the Purchaser,
enforceable against it in accordance with its terms. 
  

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 (b) Investment Intent. The Purchaser is acquiring the Purchased Shares as
principal for its own account for investment purposes only and not with a view to or for distributing or reselling such Purchased Shares or any part thereof, without prejudice, however, to the Purchaser’s right, subject to the provisions of
this Agreement, at all times to sell or otherwise dispose of all or any part of such Purchased Shares pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and otherwise in compliance
with applicable federal and state securities Laws. Subject to the immediately preceding sentence, nothing contained herein shall be deemed a representation or warranty by the Purchaser to hold the Purchased Shares for any period of time. The
Purchaser is acquiring the Purchased Shares hereunder in the ordinary course of its business. The Purchaser does not have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Purchased Shares. 

(c) Purchaser Status. At the time the Purchaser was offered the Purchased Shares, it was, and at the date hereof it is an
“accredited investor” as defined in Rule 501(a) under the Securities Act. The Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act. 
 (d) Experience of the Purchaser. The 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 Purchased Shares, and has so evaluated the merits and risks of such investment. The Purchaser
is able to bear the economic risk of an investment in the Purchased Shares and, at the present time, is able to afford a complete loss of such investment. The Purchaser has requested, received, reviewed and considered all information it deems
relevant in making an informed decision to purchase the Purchased Shares. 
 (e) General Solicitation. The Purchaser is
not purchasing the Purchased Shares as a result of any advertisement, article, notice or other communication regarding the Purchased Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general solicitation or general advertisement. At no time was the Purchaser presented with or solicited by any publicly issued or circulated newspaper, mail, radio, television, or to the Purchaser’s knowledge, any other
form of general advertising or solicitation in connection with the offer, sale and purchase of the Purchased Shares. 
 (f)
Access to Information. The Purchaser acknowledges that it has reviewed the Disclosure Materials and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives
of the Company concerning the terms and conditions of the offering of the Purchased Shares and the merits and risks of investing in the Purchased Shares; (ii) access to information about the Company and the Subsidiaries and their respective
financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and 

  

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(iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is
necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of the Purchaser or its representatives or counsel shall modify, amend or affect the
Purchaser’s right to rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties contained in this Agreement. 
 (g) Certain Fees. Except for any fees that will be payable by the Company under Section 3.1(w), the Purchaser has not entered
into any agreement or arrangement that would entitle any broker or finder to compensation by the Company in connection with the sale of the Company of the Purchased Shares to the Purchaser. 
 (h) No Tax, Legal or Investment Advice. The Purchaser understands that nothing in the Transaction Documents or any other materials
presented to the Purchaser in connection with the purchase and sale of the Purchased Shares constitutes tax, legal, or investment advice. The Purchaser has consulted such tax, legal, and investment advisors as it, in its sole discretion, has deemed
necessary or appropriate in connection with its purchase of the Purchased Shares. 
 (i) Compliance with Securities
Laws. The Purchaser represents and warrants that, in connection with its purchase of the Purchased Shares, it has complied with all applicable provisions of the Securities Act, including the rules and regulations promulgated by the SEC
thereunder, and applicable state securities Laws. 
 (j) Reliance. The Purchaser understands and acknowledges that
(i) the Purchased Shares are being offered and sold to it without registration under the Securities Act in a private placement that is exempt from the registration requirements of the Securities Act and (ii) the availability of such
exemption, depends in part on, and the Company will rely upon the accuracy and truthfulness of, the foregoing representations and warranties and the Purchaser hereby consents to such reliance. 
 The Company acknowledges and agrees that the Purchaser does not make or has not made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in this Section 3.2. 
 ARTICLE IV. 
 OTHER AGREEMENTS OF THE PARTIES 
 4.1
Registration Required. The Purchaser hereby covenants with the Company not to, directly or indirectly, offer, sell, pledge, transfer, or otherwise dispose of (or solicit offers to buy, purchase or otherwise acquire or take pledge of) any of
the Purchased Shares without complying with the provisions hereof, the Securities Act and the applicable rules and regulations of the Commission thereunder, including without limitation, the prospectus delivery requirement under the Securities Act
to be satisfied (unless the Purchaser is selling such Purchased Shares in a transaction not subject to the prospectus delivery requirement), and the Purchaser acknowledges that the certificates evidencing the Purchased Shares will be imprinted with
a legend that prohibits their transfer except in accordance therewith. Notwithstanding anything to the contrary in this Agreement, this Agreement shall in no event be deemed to 

  

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affect, or impose any additional requirements or restrictions on, transfer or ownership by the Purchaser of any Common Shares that are not the Purchased
Shares and that are held or may be held by the Purchaser from time to time. 
 4.2 Transfer Restrictions. 
 (a) The Purchased Shares may only be disposed of in compliance with state and federal securities Laws, including pursuant to an exemption therefrom. In
connection with any transfer of the Purchased Shares other than pursuant to an effective registration statement, pursuant to paragraph (k) of Rule 144, to the Company, to an Affiliate of a Purchaser or in connection with a pledge as
contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory to the Company, to
the effect that such transfer does not require registration of such transferred Purchased Shares under the Securities Act. 
 (b) The Purchaser agree to the imprinting, so long as is required by this Section 4.1(b), of a legend on any of the Purchased Shares in the following form: 
 THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. SUBJECT TO COMPLIANCE WITH APPLICABLE SECURITIES LAWS, THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT. 
 The Company acknowledges and agrees that, subject to
compliance with applicable securities Laws, a Purchaser may from time to time pledge and/or grant a security interest pursuant to a bona fide margin agreement in a bona fide margin account and, if required under the terms of such arrangement,
agreement or account, the Purchaser may transfer pledged or secured Purchased Shares to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee,
secured party or pledgor shall be required in connection therewith. However, at the discretion of the Company, such legal opinion may be required in connection with a subsequent transfer following default by 

  

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the Purchaser transferee of the pledge. No notice shall be required of such pledge. At the Purchaser’s expense, the Company will execute and deliver
such reasonable documentation as a pledgee or secured party of Purchased Shares may reasonably request in connection with a pledge or transfer of the Purchased Shares. 
 (c) Certificates evidencing the Purchased Shares shall not contain any legend (including the legend set forth in Section 4.1(b)),
(i) following any sale of such Purchased Shares pursuant to Rule 144 or an effective registration statement, or (ii) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the Staff of the Commission). In the case of clause (i) of this Section 4.1(c), the Company shall, if requested by its transfer agent, direct the Company’s counsel to issue a legal opinion to such transfer
agent to effect the removal of the legend hereunder and, if required by the Company’s transfer agent, such legal opinion need not be issued until the Company’s transfer agent has first received a copy of the Purchaser’s broker
representation letter relating to the Purchaser’s Purchased Shares. The Company agrees that at such time as such legend is no longer required under this Section 4.1(c), it will, no later than four Trading Days following the delivery by a
Purchaser to the Company or the Company’s transfer agent of a certificate representing Purchased Shares with a restrictive legend, direct the transfer agent to deliver to the Purchaser a certificate representing such Purchased Shares that is
free from all restrictive and other legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. 
 (d) The Purchaser agrees that the removal of the restrictive legend from certificates representing Purchased Shares as set forth in this
Section 4.1 is predicated upon (i) the Company’s reliance that the Purchaser will sell any Purchased Shares pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements,
an exemption therefrom, or termination of such restrictions and/or (ii) that in the context of a sale under Rule 144, if requested by the Company’s transfer agent, the Purchaser shall have delivered to the transfer agent a broker
representation letter relating to the Purchaser’s Purchased Shares. 
 4.3 Furnishing of Information. As long as any Purchaser
owns any Purchased Shares, and until the Purchased Shares can be resold by non-Affiliate of the Company under Rule 144 without restrictions under Rule 144, the Company covenants to (i) 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, (ii) deliver to such Purchaser a written certification of a duly authorized officer as to whether it
has complied with the preceding sentence unless such statement has been included in the Company’s most recent report filed pursuant to Section 13 or Section 15(d) of the Exchange Act, and (iii) if the Company is not required to
file reports pursuant to such laws, it will prepare and furnish to the Purchaser and make publicly available in accordance with Rule 144(c) such information as is required for the Purchaser to sell the Purchased Shares under Rule 144. 
 4.4 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 Purchased Shares in a 

  

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manner that would require the registration under the Securities Act of the sale of the Purchased Shares to the Purchaser or that would be integrated with the
offer or sale of the Purchased Shares for purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the
closing of such subsequent transaction. 
 4.5 Shares Laws Disclosure; Publicity. The Company shall, by 8:30 a.m. Eastern time on the
Business Day following the date of this Agreement, issue a press release and file a Current Report on Form 6-K, in each case reasonably acceptable to Purchaser, disclosing the transactions contemplated hereby and make such other filings and notices
in the manner and time required by the Commission. The Company and any of its Subsidiaries shall consult with Purchaser in issuing any press releases with respect to the transactions contemplated hereby, and the Company or any of its Subsidiaries
shall not issue any such press release or otherwise make any such public statement without the prior consent of Purchaser, which consent shall not unreasonably be withheld, except if such disclosure is required by Law, in which case the Company
shall promptly provide Purchaser with prior notice of such public statement or communication. 
 4.6 Stockholders Rights Plan. No
claim will be made or enforced by the Company or any other Person that any Purchaser is an “Acquiring Person” under any stockholders rights plan or similar 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 Purchased Shares under the Transaction Documents or under any other agreement between the Company and the Purchaser. 
 4.7 Non-Public Information. 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 the Purchaser shall have executed a written agreement regarding the confidentiality and use of such
information. The Company understands and confirms that the Purchaser shall be relying on the foregoing representations in effecting transactions in securities of the Company. 
 4.8 Use of Proceeds. The Company shall (i) first use the net proceeds from the sale of the Purchased Shares hereunder to buy any or all of
the minority equity interests of Sinovac Biotech Co., Ltd. or Beijing Kexing, held by third parties when any such equity interest is available for sale at reasonable price judged by the management of the Company, and (ii) in the event that
transactions described in clause (i) cannot be completed as judged by the management of the Company, then for general corporate purposes, including working capital, for the expansion of current business and for potential acquisitions but not
for the satisfaction of any portion of the Company’s debt (other than payment of trade payables and accrued expenses in the ordinary course of the Company’s business and consistent with prior practices) or to redeem any Common Shares or
Common Share Equivalents. 
 4.9 Reimbursement. If the Purchaser becomes involved in any capacity in any Proceeding by or against any
Person who is a stockholder of the Company (except as a result of sales, pledges, margin sales and similar transactions by the Purchaser to or with any current stockholder), solely as a result of the Purchaser’s acquisition of the Purchased
Shares under this Agreement, the Company will reimburse the Purchaser for its reasonable legal and other expenses (including the cost of any investigation preparation and travel 

  

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in connection therewith) incurred in connection therewith, as such expenses are incurred; provided, that the Company shall only be required to reimburse the
Purchaser pursuant to this Section 4.9 with respect to a Proceeding in which (i) the Proceeding primarily results from the Company’s breach of the terms of this Agreement and (ii) the Proceeding does not primarily result from any
action in violation of the terms of this Agreement or other wrongful acts by the Purchaser requesting reimbursement. The reimbursement obligations of the Company under this paragraph shall be in addition to any liability which the Company may
otherwise have, shall extend upon the same terms and conditions to any Affiliates of the Purchaser who are actually named in such action, proceeding or investigation, and partners, directors, agents, employees and controlling persons (if any), as
the case may be, of the Purchaser and any such Affiliate, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, the Purchaser and any such Affiliate and any such Person. The
Company also agrees that neither the Purchaser nor any such Affiliates, partners, directors, agents, employees or controlling persons shall have any liability to the Company or any Person asserting claims on behalf of or in right of the Company
solely as a result of acquiring the Purchased Shares under this Agreement. 
 4.10 Listing of Common Shares. The Company hereby agrees
to use commercially reasonable efforts to maintain the listing of the Common Shares on the Trading Market, and as soon as reasonably practicable after the date hereof (but not later than the 180th day following the Closing Date) to list all of the
Purchased Shares on the Trading Market. The Company further agrees, if the Company applies to have the Common Shares traded on any other Trading Market, it will include in such application all of the Purchased Shares, and will take such other action
as is necessary or desirable in the opinion of the Purchaser to cause the Purchased Shares to be listed on such other Trading Market as promptly as possible. The Company will use commercially reasonable efforts to comply in all material respects
with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market. 
 4.11 Foreign Private
Issuer Status. For a minimum period of two years following the Closing Date, the Company shall maintain its “foreign private issuer” status under Rule 3b-4(c) of the Exchange Act. 
 4.12 Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required to be paid in
connection with the sale and transfer of the Purchased Shares to be sold to the Purchaser under this Agreement shall be, or shall have been, fully paid or provided for by the Company, and all Laws imposing such taxes will be or will have been
complied with. 
 ARTICLE V. 
 MISCELLANEOUS 
 5.1 Fees and Expenses. Except as otherwise set forth in this Agreement, 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; provided, that the Company will
pay the fees and expenses of counsel to Purchaser in an amount not to exceed $25,000. The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Purchased Shares. 
  

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 5.2 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto,
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. 
 5.3 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 6:30 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 6:30 p.m. (New York City time) on any Trading Day, (c) the second 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. 
 5.4 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver 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 either party to exercise any right hereunder in any manner
impair the exercise of any such right. 
 5.5 Construction. 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. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction
will be applied against any party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this
Agreement or any of the Transaction Documents. Each party hereto further agrees that the English version of this Agreement and any other Transaction Document shall govern in the event of any discrepancy between the English version of this Agreement
or any such Transaction Document, on the one hand, and the Chinese translation thereof, on the other hand. 
 5.6 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 the Purchaser. The Purchaser may assign any or all of its rights under this Agreement, provided such transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions hereof that apply to the
“Purchaser”. 
 5.7 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 4.9 and as otherwise necessary for Purchaser to enforce its
rights hereunder. 
  

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 5.8 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,
stockholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, New York. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the City of New York, New York 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 the 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.
Each party hereto 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 manner permitted by Law. Each party hereto (including its affiliates, agents, officers, directors and employees) hereby irrevocably waives, to the fullest extent permitted by applicable Law, any and all right to
trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of a Transaction Document, then the
prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
 5.9 Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Purchased Shares the second
anniversary of the Closing Date, and, in the case of all other agreements and covenants contained herein, in accordance with their respective terms. 
 5.10 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, 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 signature page were an original thereof. 
 5.11 Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing,
shall incorporate such substitute provision in this Agreement. 
  

 -22- 

 5.12 Replacement of Shares. If any certificate or instrument evidencing any Purchased Shares is
mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, 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 and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs associated with the issuance of such replacement Purchased Shares. 
 5.13 Remedies. In addition to being entitled
to exercise all rights provided herein or granted by Law, including recovery of damages, the Purchaser 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 described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be
adequate. 
 5.14 Payment Set Aside. To the extent that the Company makes a payment or payments to the Purchaser pursuant to any
Transaction Document or the 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. 
 ARTICLE VI. 
 CONDITIONS 
 6.1 Conditions to the Closing of the Purchaser. The
Purchaser’s obligation to purchase the Purchased Shares being issued at the Closing is subject to the satisfaction, or waiver by the Purchaser, of the following conditions: 
 (a) Representations and Warranties. The representations and warranties of the Company set forth in this Agreement shall be true and
correct in all material respects (except for those qualified as to materiality or a Material Adverse Effect, which shall be true and correct) as of the date of this Agreement and as of the Closing Date (except to the extent that such representation
or warranty speaks of an earlier date, in which case such representation or warranty shall be true and correct in all material respects (or if qualified as to materiality or a Material Adverse Effect, true and correct) as of such date) as though
made on and as of the Closing Date. 
 (b) Performance of Obligations of Company. The Company shall have performed in
all material respects all agreements and covenants required to be performed by it under this Agreement (including the deliveries required under Section 2.2) on or prior to the Closing Date. 
  

 -23- 

 (c) No Injunction. No Order has been enacted, entered, promulgated or endorsed by
any court or Governmental Authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents. 
 (d) No Adverse Changes. Since the date of execution of this Agreement, no event or series of events shall have occurred that
resulted or would reasonably be expected to result in a Material Adverse Effect. 
 (e) No Suspension of Trading. As of
the Closing Date, trading in the Common Shares shall not have been suspended by the Commission, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg Financial Markets 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
Governmental Authorities. 
 (f) Certificate. The Purchaser shall have received a certificate, dated the Closing Date,
of the Company executed by the Company’s director or officer duly authorized to execute the Transaction Documents, certifying as to the matters set forth in Section 6.1 and delivered to the Purchaser, substantially in the form attached
hereto as Exhibit A-4. 
 6.2 Conditions to the Closing of the Company. The Company’s obligation to issue and sell the
portion of the Purchased Shares being issued at the Closing is subject to the satisfaction, or waiver by the Company, of the following conditions: 
 (a) Representations and Warranties. The representations and warranties of the Purchaser set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and as of
the Closing Date (except to the extent that such representation or warranty speaks of an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such date) as though made on and as of the
Closing Date. 
 (b) Performance of Obligations of the Purchaser. The Purchaser shall have performed in all material
respects all agreements and covenants required to be performed by it under this Agreement on or prior to the Closing Date. 
 (c) Regulatory Approvals. The Company and the Purchaser shall have received all requisite approvals (including all required findings of suitability). 
 (d) Officers’ Certificate. The Company shall have received a certificate, dated the Closing Date, of the Purchaser executed by
the Purchaser’s officer or officers certifying to the effect that the conditions specified in this Section 6.2(a) and 6.2(b) have been satisfied and delivered to the Purchaser, substantially in the form attached hereto as Exhibit
A-5. 
  

 -24- 

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

							
	SINOVAC BIOTECH LTD.	 		  	Address for Notice:
		 		 		  	
		 		 		  	No. 39 Shangdi Xi Road
		 		 		  	Haidian District
	By:	 	 /s/ Weldong Yin
	 		  	Beijing 100085
	Name:	 	Weldong Yin	 		  	People’s Republic of China
	Title:	 	Chief Executive Officer and Director	 		  	Attn: Mr. Weidong Yin
		 		 		  	 Email: vinwd@sinovac.com
 Tel: +86-10-8289-0088

 Fax: +86-10-62966910

	 	 	  	  
 With copy to (which shall not constitute notice):
  
 Latham & Watkins LLP
 41/F One Exchange Square,
 8 Connaught Place, Central
 Hong Kong
 Attn: David Zhang, Esq.
 Email: david.zhang@lw.com
 Tel: +852-2912-2503
 Fax: +852-2522-7006
  

		 	SANSAR CAPITAL MANAGEMENT, L.L.C.	 		  	Address for Notice:
		 		 		  	
	By:	 	 /s/ Vincent Guacci
	 		  	Sansar Capital Management, L.L.C.
	Name:	 	Vincent Guacci	 		  	135 East 57th Street, 23rd Floor
	Title:	 	COO & CFO	 		  	New York, NY 10022
		 		 		  	 Attn: Vincent Guacci
 E-mail:
vincent@sansarcapital.com
 Tel: +1-212-399-8982
 Fax:
+1-917-849-5120

	 	 	  	  
 With copy to (which shall not constitute notice):
  
 Ropes & Gray LLP
 One International Place
 Boston, Massachusetts 02110
 Attn: Christopher J. Austin, Esq.
 E-mail: christopher.austin@ropesgray.com
 Tel: +1-617-951-7303
 Fax: +1-617-951-9050

 [SIGNATURE PAGE TO SINOVAC
SHARE PURCHASE AGREEMENT] 

 Disclosure Schedule 
 These Disclosure Schedules are furnished pursuant to the Share Purchase Agreement (the “Agreement”), dated as of January 22, 2008,
between Sinovac Biotech Ltd. (the “Company”) and Sansar Capital Management, L.L.C. (the “Purchaser”). 
 The information and disclosures contained in any schedule comprising these Disclosure Schedules shall provide an exception to or otherwise qualify (i) the representations or warranties of the Company contained in the section of the
Agreement corresponding by number to such disclosure and (ii) the other representations and warranties in the Agreement to the extent such disclosure reasonably appears to be applicable to such other representations or warranties. 

The inclusion of any matter in the Schedules shall not be deemed to be an admission by the Company that such matter is material or that such matter is
required to be included herein. The information provided herein is solely for the use of the Purchaser and nothing herein shall be deemed an admission against interest by the Company in favor of any third party. 
 The headings and descriptions of the disclosures herein are for convenience of reference only and are not intended and do not alter the meaning of any
provision of the Agreement or of these Disclosure Schedules. Capitalized terms not defined herein shall have the meanings ascribed to them in the Agreement. 

 Disclosure Schedule 
 3.1(b) The Company owns 71.56% of Sinovac Biotech Co, Ltd. and 100% of Tangshan Yian Biological Engineering Co., Ltd. 
 3.1(c) The Company needs approval from the American Stock Exchange for the listing of additional shares in connection with the Purchased Shares. 
 3.1(g) The total number outstanding shares of the Company is 40,305,028 and the total number of shares reserved for options issuable under the Company’s share incentive plan is 1,513,000. 
 3.1(u) The Company did not conduct an assessment of its internal control for fiscal year 2006. However, the Company’s outside auditor concluded in a report to the
Company’s audit committee that no material weaknesses in internal control over financial reporting were identified in connection with its audit of the Company’s 2006 consolidated financial statements. 
 3.1(z) The Company extended the annual shareholders’ meeting of 2007 to a date before April 30, 2008, which date is yet to be determined. The Company has notified
the American Stock Exchange of the extension. The American Stock Exchange acknowledged receipt of the Company’s notice and informed the Company that any failure by the Company to hold the annual shareholders’ meeting before April 30,
2008 will cause AMEX to review the Company’s listing eligibility. 

 Exhibit A-1 
 Form Opinion of Company Counsel 
 1. The Purchase Agreement has been duly executed and delivered by the Company, and
is the legally valid and binding agreement of the Company, enforceable against the Company in accordance with its terms. 
 2. The execution and delivery of
the Purchase Agreement and the issuance and sale of the Common Shares by the Company to you pursuant to the Purchase Agreement do not on the date hereof: 
 (i) violate any federal or New York statute, rule or regulation applicable to the Company; or 
 (ii) require
any consents, approvals, or authorizations to be obtained by the Company from, or any registrations, declarations or filings to be made by the Company with, any governmental authority under any federal or New York statute, rule or regulation
applicable to the Company that have not been obtained or made. 
 3. The Company is not required to be registered as an “investment company” within
the meaning of the Investment Company Act of 1940, as amended. 
 4. No registration of the Common
Shares under the Securities Act of 1933, as amended, is required for the purchase of the Common Shares by you in the manner contemplated by the Purchase Agreement. We express no opinion, however, as to when or under what circumstances any Common
Shares purchased by you may be reoffered or resold.1 
  
  

	 1
	 With your consent, for purposes of the opinion rendered in paragraph 4, we have assumed that the representations and
agreements made by each of you and the Company contained in the Purchase Agreement are accurate and have been and will be complied with. 

 Exhibit A-2 
 Form Opinion of Company’s Antigua Counsel 
 1. The Company has been duly incorporated and is in good standing
under the laws of Antigua, with corporate power and authority to own its properties and conduct its business and to enter into and perform its obligations under the Purchase Agreement and consummate the transactions contemplated thereunder.

 2. The Company has taken all corporate action that it needs to take to authorize the Company to enter into the Purchase Agreement and to perform its
obligations thereunder. 
 3. The Purchase Agreement has been duly authorized, executed and delivered by the Company and constitutes the legal, valid and
binding obligation of the Company; enforceable against the Company in the Relevant Jurisdiction in accordance with its terms, except where enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights or by the effect of general equitable principles. 
 4. The execution, delivery, performance, making or consummation by the Company of
the Purchase Agreement and the consummation of the transactions contemplated thereby, do not and will not, whether with or without the giving of notice or lapse of time or both, violate (x) the charter or by-laws of the Company, (y) any
applicable laws of Antigua or (z) any judgment, order, writ or decree applicable to the Company and known to such counsel of any government, government instrumentality or court in Antigua and Burbuda; 
 5. The issuance of all of the Purchased Shares to be issued under the terms of the Purchase Agreement has been validly authorized by the Company. All such shares are to
be issued as fully paid and, if so issued, no calls for further payment may be made by the Company upon those shares or upon the holders of such shares solely by reason of their ownership of them. 
 6. No filing, authorization, approval, consent, license, order or decree of, any court or governmental agency or body in Antigua and Barbuda is necessary or required in
connection with the due authorization, execution and delivery of the Purchase Agreement. 
 7. Provided the Purchaser is an Accredited Investor (as that term
is defined in the Purchase Agreement), no disclosure document is required to be issued under the applicable Law in relation to the issue of the Purchased Shares to the Purchaser under the Purchase Agreement. 

 Exhibit A-3 
 Form of Secretary Certificate 
 SINOVAC BIOTECH LTD. 
 Certificate of Secretary 
 January
    , 2008 
 The undersigned Secretary of Sinovac Biotech Ltd. (the “Company”), an Antigua
corporation, hereby certifies as follows: 
 1. Reference is made to the Certificate of Secretary of the Company (the
“Certificate”) delivered in connection with the execution and delivery of the Share Purchase Agreement dated January     , 2008, between the Company and Sansar Capital Management, L.L.C., a Delaware
limited liability company (the “Purchaser”). 
 2. The copy of the Articles of Incorporation of the Company attached as
Exhibit A to the Certificate is a true and complete copy thereof as in effect on [date] and at all times through the Closing Date. 
 3. The copy of the Bylaws of the Company attached as Exhibit B to the Certificate is a true and complete copy thereof as in effect on [date] and at all times through the Closing Date. 
 4. The resolutions attached as Exhibit C to the Certificate were duly adopted by the Board of Directors of the Company by unanimous consent on January 7,
2008, and such resolutions have not been amended or rescinded and remain in full force and effect as of the Closing Date. 
 5. Each of the
following persons has been duly elected to and has at all times since January 1, 2007 through the Closing Date held the office set forth after his or her name, and the signature opposite his or her name is genuine: 
  

					
	 Name
	  	 Office
	  	 Signature

			
	[Officer Name 1]	  	[                                      
                      ]	  	  

			
	[Officer Name 2]	  	[                                      
                      ]	  	  

 Exhibit A-4 
 Form of Company Certificate 
 SINOVAC BIOTECH LTD. 
 Certificate 
 January
    , 2008 
 The undersigned, [Officer Name 1], [Office] and [Officer Name 2], [Office], of Sinovac Biotech Ltd.,
an Antigua corporation (the “Company”), pursuant to Section 6.1(f) of the Share Purchase Agreement dated as of January __, 2008, by and between the Company and Sansar Capital Management, L.L.C., a Delaware limited liability
company (the “Purchase Agreement”), do hereby certify in his or her respective capacity as [Office] and [Office], that the undersigned have been duly authorized and am presently serving in those respective capacities in accordance
with the Bylaws of the Company and in connection with the execution and delivery of the Purchase Agreement and the consummation of the transactions contemplated thereby, and to the best of his or her knowledge after reasonable investigation
(capitalized terms shall have the meanings ascribed to them in the Purchase Agreement): 
 (i) The representations and warranties in
Section 3.1 of the Purchase Agreement are true and correct in all material respects as of the Closing Date (except to the extent that such representation or warranty speaks of an earlier date, in which case such representation or warranty shall
be true and correct in all material respects as of such date) as though made on and as of the Closing Date; 
 (ii) The Company has performed
in all material respects all agreements and covenants required to be performed by it under the Purchase Agreement on or prior to the Closing Date; 
 (iii) No Order has been enacted, entered, promulgated or endorsed by any court or Governmental Authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents;

 (iv) Since the date of the Purchase Agreement, no event or series of event has occurred that resulted or would reasonably be expected to
result in a Material Adverse Effect. 
 (v) As of the Closing Date, trading in the Common Shares has not been suspended by the Commission and
trading in securities generally as reported by Bloomberg Financial Markets has not been suspended or limited, or minimum prices has not have been established on securities whose trades are reported by such service, or on any Trading Market, nor has
a banking moratorium been declared either by the United States or New York State Governmental Authorities. 

 Exhibit A-5 
 Form of Purchaser Officer Certificate 
 SANSAR CAPITAL MANAGEMENT, L.L.C.  
 Officer’s Certificate 
 January
    , 2008 
 The undersigned, [Officer Name 1], [Office] and [Officer Name 2], [Office], of Sansar Capital
Management, L.L.C., a Delaware limited liability company (the “Company”), pursuant to Section 6.2(d) of the Share Purchase Agreement dated as of January __, 2008, by and between the Company and Sinovac Biotech Ltd., an Antigua
corporation (the “Purchase Agreement”), do hereby certify in his or her respective capacity as [Office] and [Office] that the undersigned have been duly authorized and am presently serving in those respective capacities in
accordance with the limited liability agreement of the Company and in connection with the execution and delivery of the Purchase Agreement and the consummation of the transactions contemplated thereby, and to the best of his or her knowledge after
reasonable investigation (capitalized terms shall have the meanings ascribed to them in the Purchase Agreement): 
 (i) The representations
and warranties in Section 3.2 of the Purchase Agreement are true and correct in all material respects as of the Closing Date (except to the extent that such representation or warranty speaks of an earlier date, in which case such representation
or warranty shall be true and correct in all material respects as of such date) as though made on and as of the Closing Date; 
 (ii) The
Company has performed in all material respects all agreements and covenants required to be performed by it under the Purchase Agreement on or prior to the Closing Date;Exclusive Promotion Service

 Exhibit 4.10 
 EXCLUSIVE PROMOTION SERVICE AGREEMENT 
 THIS AGREEMENT is made the 30th day of July 2007 between

 GLAXOSMITHKLINE (China) Investment Co., Ltd., whose
registered office is at 9/F, Building A Ocean International Center, 56 Mid 4th East Ring Rd, Chao Yang District, Beijing (hereinafter referred to as
“GSK”); and 
 Sinovac Biotech Co., Ltd., whose registered office is at No.39, Shangdi Xi Rd., Haidian
District, Beijing, PRC (hereinafter referred to as “Sinovac”). 
 WHEREAS: 
  

	A.	Sinovac and its Affiliates own and control all rights, title and interest in certain patents, trade marks and intellectual property rights relating to the Product (as hereinafter
defined) manufactured by Sinovac and sold under the Trademarks (as hereinafter defined) in the Territory; 

  

	B.	GSK has expertise in the marketing and promotion of pharmaceutical and vaccine products; 

  

	C.	Sinovac wishes GSK to provide services in marketing and promotion of the Product to the non-tender Customers in the Territory (as hereinafter defined). 

  

	D.	Sinovac wishes to work with GSK on Tender Sales (as hereinafter defined) as agreed by the Parties. 

 NOW IT IS HEREBY AGREED as follows: 
  

	1	DEFINITIONS AND INTERPRETATION 

  

	1.1	In this Agreement the following expressions shall have the following meanings 

 “Adverse Event” shall have the meaning set out in Schedule 3. 
 “Affiliates” of a party to this Agreement shall mean an organization which is directly or indirectly controlled by, in Control of or under common Control with such party. 
  

 1 

 “Control” (including the terms “controlling”, “controlled by” and
“under common control with”) shall mean the ownership, direct or indirect, of more than fifty per cent (50%) of the voting stock of an organization or the legal power, directly or indirectly, to appoint more than one half of the board
of directors of an organisation or similar body, or to direct the general management of an organisation. 
 “Customer” shall mean
all levels of CDC, all kinds of point of vaccination, and all other institutions which purchase the Product within the Territory. 
 “Effective Date” shall mean the date when this Agreement is signed and chopped by authorized representative of the Parties. 
 “Guaranteed Annual Sales” shall mean the minimum level of Sales of Product required to be achieved with respect to the Product in each Year as set out in Schedule 2 hereto. 
 “Information” shall mean all information of whatever kind disclosed by either GSK or Sinovac to the other Party or its employees relating
to the Product. 
 “Laws” shall mean all laws and regulations in the Territory applicable to the sale and promotion of
pharmaceutical and vaccine products in the Territory, including without limitation laws and regulations relating to risk management, drug safety and pharmacovigilance. 
 “Marketing Authorisations” shall mean the authorisations, approvals or licences required for the sale of the Product in the Territory registered in the name of Sinovac, which shall include but not
limited to Product Manufacture License. 
 “Product” shall mean Anflu® Adult vaccine in final packaged form, i.e. any
dose form including PFS, Cillin Bottle and Ampul, 240 doses per cold box, each PFS or Cillin Bottle bearing corresponding ID, manufactured and sold by Sinovac under the Trademarks in the Territory. 
 “Product Liability” shall mean the liabilities on the manufacturer of a product to make compensation for personal injury, property damage or
other damages caused by the product. 
  

 2 

 “Promotion” shall mean the services that GSK shall provide to Sinovac in relation to the
marketing and promotion of the Product by GSK in accordance with this Agreement as detailed in Art.2 and Art.4 hereof. 
 “Regulatory
Authorities” shall mean the duly constituted governmental agencies having jurisdiction over the sales, marketing, promotion, pricing and distribution of the Product in the Territory including but not limited to State Food and Drug
Administration, Ministry of Health, National Development and Reform Commission. 
 “Service Fees” shall mean the amounts
payable by Sinovac to GSK for the Promotion by GSK hereunder as set out in Schedule 1 hereto. 
 “Sales of Product” shall be
calculated by reference to the payment collected by Sinovac from the Customers for the products. 
 “Targeted Delivery
Schedule” shall mean the delivery schedule of the Product as set out in Schedule 2 hereto for 2007 or as agreed by the Parties in the following calendar year. 
 “Tender Sales” shall mean the purchase of the Product which is (a) fully funded by the government, whether central, provincial or municipal; and (b) conducted by a CDC, as designated and
authorized by such funding government, by inviting bidding and entering the commercial purchase agreement of the Product with Sinovac who becomes the success bidder. 
 “Territory” shall mean the People’s Republic of China, excluding Hong Kong SAR, Macau SAR and Taiwan. 
 “Trademarks” shall mean Sinovac® and Anflu® owned or controlled by Sinovac or its Affiliates. 
 “LSP” [***]† or any other logistic provider as appointed by GSK to provide the logistic services to Sinovac. 
  

	 †
	 This portion of the service agreement has been omitted and filed separately with the Securities and Exchange Commission,
pursuant to Rule 24b-2. 

  

 3 

 “Product Recall” is to track, withdraw and recovery, as far as possible, to a desired
distribution level (i.e. Distribution Centres, CDCs, Community hospitals, and etc.), of a particular batch or a series of batches of the Product which has left the control of Sinovac and has been found to be in violation of Sinovac or local
regulatory standards, or where the safety, efficacy, purity or quality of the Product is questionable. 
 “Working Day” shall mean
Monday to Friday, excluding any national holidays. 
  

	2	PROMOTION BY GSK 

  

	2.1	Sinovac shall grant to GSK an exclusive right to promote the Product in the Territory to Customers other than the “Tender Sales” during the term of this Agreement.

  

	2.2	GSK shall promote the Product in the Territory in accordance with the provisions of this Agreement. 

  

	2.3	Notwithstanding provisions of Art.2.1 and 2.2 hereunder, for the avoidance of doubt, GSK shall not engage in Tender Sales on its own without prior consent from Sinovac.

  

	2.4	Each party shall appoint a project leader to liaise with the other regarding the Promotion hereunder. 

  

	 2.5
	 The parties shall, review and agree with the initial Guaranteed Annual Sales for that calendar year before May 31
st of each year. GSK shall confirm Final Guaranteed Annual Sales afterwards, with fluctuation of +/-20% of the initial Guaranteed Annual Sales, but
no later than Jun 30th of each year. In case GSK fails to confirm the Final Guaranteed Annual Sales, the initial Guaranteed Annual Sales shall
become final. 

  

	3	RESPONSIBILITIES OF Sinovac 

  

	3.1	Sinovac shall be solely responsible for applying for and maintaining Marketing Authorisations for the Product in the Territory and for any correspondence with any Regulatory
Authority in the Territory. Costs relating to the application, variation and maintenance of the Marketing Authorisations shall be borne by Sinovac or its relevant Affiliates. Sinovac shall also, where required, inform the Regulatory Authorities that
the GSK is authorised to Promote the Product in the Territory. 

  

 4 

	3.2	Sinovac shall be solely responsible for all pricing negotiations of the Product and for the commercial terms on which it will sell the Product to Customers.

  

	3.3	Sinovac shall provide GSK with relevant clinical, technical and promotional information relating to the Product at its cost throughout the term of this Agreement.

  

	3.4	Sinovac shall be solely responsible for manufacture, packaging and getting official lot release of the Product at its own cost. 

  

	3.5	Sinovac shall be solely responsible for ensuring the Product is (1) manufactured and supplied in compliance with the Laws; (2) of good quality with any expiry date for
usage that is at least 9 months subsequent to the date the Products are delivered. 

  

	3.6	Sinovac shall be responsible for receiving orders from and invoicing the Customers of the Product. For the avoidance of doubt, Sinovac shall only receive orders from GSK through LSP
and supply the Product to LSP in Beijing after the Products are released by NICPBP. Delivery to LSP shall be ex-Sinovac factory. 

  

	3.7	Sinovac shall be responsible for timely supplying the Product according to the Guaranteed Annual Sales and the Targeted Delivery Schedule as set out in Schedule 2 hereto.

  

	3.8	Sinovac shall enter into an Exclusive Logistics Service Agreement with LSP for the Product. Sinovac shall not change or terminate LSP’s service without prior consent from GSK,
which consent cannot be unreasonably withheld or delayed. 

  

	3.9	Sinovac shall provide a half-day training every year to persons designated by GSK with respect of the Product. The number and identity of the trainers and trainees, and the subject
matter of the training shall be agreed by the Parties one (1) month prior to the training. 

  

 5 

	3.10	Sinovac shall be responsible for preparing documentation for the listing & bidding of the Product. GSK may use such documentation free of charge for the listing &
binding of the Product. 

  

	3.11	Sinovac shall continue to administer and fund all existing, currently planned and future clinical trials associated with the Product. 

  

	3.12	Sinovac shall review all promotional materials prepared by GSK to be used in connection with this Agreement. Such review shall be completed within 3 working days of the submission
of the materials by GSK. 

  

	3.13	Sinovac shall be fully responsible for any and all Product Liabilities of the Product. 

  

	3.14	Sinovac shall be fully responsible for receiving and handling product returns. 

  

	3.15	All product-related responsibilities including but not limited to the aforementioned points shall be born by Sinovac, unless specifically defined as responsibilities of GSK or LSP.

  

	3.16	During the term of this Agreement, unless as otherwise expressly agreed by GSK in writing, Sinovac shall refrain from entering into any product distribution or promotion agreement
with any third party on Sinovac’s product that directly competes with GSK on seasonal adult flu vaccine in the Territory; During the term of this Agreement, unless as otherwise expressly agreed by Sinovac in writing, GSK shall refrain from
entering into any agreement as distribution or promotion service provider with any third party for seasonal flu vaccine products. For the purpose the clarity, such third party shall not include any Affiliates of GSK. 

  

	3.17	Sinovac agrees that for any other seasonal flu vaccine developed by it and to be launched in the Territory (“New Product”), GSK shall have a right of first refusal to an
exclusive promotional right (other than Tender Sales). Should the Parties fail to reach an Exclusive Promotion Agreement on the New Product in 3 months upon Sinovac’s offer, Sinovac shall have the right to negotiate and reach agreement with
third party for the New Product provided however with the terms and conditions not favorable than those offered to GSK. 

  

 6 

	4	RESPONSIBILITIES OF GSK 

  

	4.1	GSK shall ensure that for the performance of this Agreement both its own conduct and that of its employees shall comply strictly with (1) Laws, (2) the Foreign Corrupt
Practices Act, and (3) GSK policies and procedures for marketing and promotion of pharmaceutical and vaccine products. 

  

	4.2	GSK shall provide Sinovac with monthly sales report of the Product (ex LSP) within ten (10) working days following the end of each month. 

  

	4.3	GSK shall ensure that any requests for information relating to the Product from any Regulatory Authorities in the Territory will be transmitted to Sinovac for reply within 24 hours.

  

	4.4	GSK agrees to cause the Guaranteed Annual Sales to be achieved in each year, but it being understood that GSK has no liability for the failure to achieve the Guaranteed Annual Sales
except as expressly set forth in Schedule 2. 

  

	4.5	GSK shall be responsible at its cost for providing training to its people with respect of the Product. 

  

	4.6	GSK shall be responsible for Customer service for the Product, including but not limiting to handling Customers’ enquires and complaints of the Product.

  

	4.7	Except where otherwise specifically provided, GSK shall bear all costs incurred by it in connection with this Agreement, including without limitation salary and related costs of its
employees, organizing or sponsoring scientific meetings with respect to the Product and any other cost associated with the Promotion. 

  

	4.8	GSK shall provide at its cost all promotional and educational materials, including detail aids, for use by its people in the Promotion of the Product. GSK shall be entitled to
include its name and logo in addition to Sinovac’s name and logo on all such materials to the extent permitted by and in accordance with Laws. 

  

	4.9	GSK shall submit the promotional materials to Sinovac for medical review and approval prior to use. GSK may not use any promotional materials, advertise or otherwise make
representations about the Product without Sinovac’s prior written approval, which approval will not be unreasonably withheld or delayed. 

  

	4.10	GSK shall be responsible for assisting Sinovac on bidding and listing activities for the Product 

  

 7 

	4.11	Notwithstanding the provision of 2.1 hereunder, for the Tender Sales as agreed by Sinovac and GSK in advance, Sinovac shall handle the project with support from GSK. Sinovac shall
pay Service Fee to GSK for such Tender Sales according to Schedule 1 hereto. 

  

	4.12	GSK shall inform Sinovac without delay of any fact or circumstance, whether of legal, scientific or other nature, which may affect the marketing of the Product in the Territory,
including – without limitation – information concerning side effects, adverse reactions and uses for non-approved indications; shall notify Sinovac any information concerning any serious or unexpected adverse event, quality issue and any
infringement of Intellectual property; and shall promptly notify Sinovac of any directions, instructions or advice from the governmental authorities related to such event. 

  

	4.13	GSK expressly acknowledges that (i) any orders from Customers for the Product will be subject to Sinovac’s acceptance, in its sole discretion, of such orders and the
availability, from time to time, of the Product, to the extent the cumulative orders solicited by GSK for a certain period exceeds the amount guaranteed to be delivered by Sinovac for that period; and (ii) except as otherwise provided under
4.14 hereunder, Sinovac has no responsibility or liability whatsoever to GSK with respect to the continued availability of the Product beyond the Guaranteed Annual Sales as set forth in or agreed pursuant to Schedule II. For the amount of Product
beyond the Guaranteed Annual Sales which order has been accepted by Sinovac, in case that Sinovac cancels the order, Sinovac shall notify GSK at least 2 weeks prior to the delivery time. In case Sinovac fails to provide such two (2) weeks’
notice to GSK, The Product of canceled order can not be used for Tender Sales without permission from GSK. For the amount of Product beyond the Guaranteed Annual Sales which order has been accepted by Sinovac, in case that the delivery is delayed by
Sinovac, Sinovac shall notify GSK at least 1 week prior to the delivery time. In case Sinovac fails to provide such one (1) week’s notice to GSK, the Product of delayed order can not be used for Tender Sales without the permission from
GSK. 

  

	4.14	 GSK has no authority to bind Sinovac by contract or otherwise. GSK acknowledges and agrees that the relationship arising from this Agreement does not constitute or
create a general agency, joint venture, partnership, employee relationship or 

  

 8 

	 	 
franchise between Sinovac and GSK. GSK shall identify itself as an authorized representative of Sinovac only with respect to the Product covered by this
Agreement and shall otherwise identify itself as an independent business. Unless specifically authorized in writing, neither Sinovac nor GSK shall make any express or implied agreements, guarantees or representations, or incur any debt, in the name
of or on behalf of the other. 

  

	5	SERVICE FEES 

  

	5.1	Sinovac shall calculate the Service Fees due to GSK in accordance with Schedule 1 on a monthly basis and shall send the calculation to GSK within five [ 5 ] working days of the end
of the month. 

  

	5.2	GSK shall within three [ 3 ] working days of receipt of the calculation referred to in Clause 5.1 send an invoice to Sinovac for the amount of the Service Fees due in accordance
with the calculation. 

  

	5.3	Payment of the invoices will be made by Sinovac to GSK within thirty [30] days upon receipt of payment collection from LSP and the appropriate invoice for the amount due.

  

	6	ADVERSE EVENT 

  

	6.1	Both Sinovac and GSK agrees to notify each other any information concerning any serious or unexpected adverse event associated with the clinical use, studies, investigations, tests
and marketing of the product, whether or not determined to be attributable to the Product. 

  

	6.2	Sinovac shall be fully responsible for adverse event reporting to the authorities and the handling of adverse events according to the Laws. GSK shall support Sinovac for handling
and reporting provided that Sinovac shall compensate GSK for cost occurred, if any. Such costs include any compensation to vaccinees or subjects, any attorney fees incurred by GSK and approved by Sinovac, as well as all related costs to required
inspection including but not limited to expert consultancy fees, inspection fees, etc. 

  

 9 

	6.3	In the event that GSK is aware of a claim being made against Sinovac by any third party arising from the supply and / or use of the Product, GSK will immediately inform Sinovac so
that it may decide whether to participate in or undertake the defense of any legal proceedings. 

  

	7	SAFETY DATA EXCHANGE 

  

	7.1	GSK and Sinovac shall comply with the Safety Data Exchange Agreement set out in Schedule 3 hereto (“SDEA”). 

  

	7.2	If either Party becomes aware of action that may or will be or has been taken by a Regulatory Authority for safety reasons connected with the Product, it shall immediately and in
any event no later than twenty-four (24) hours after becoming aware of such action notify the other Party in writing with available details regarding the same. 

  

	8	TRADE MARKS 

  

	8.1	Sinovac shall be fully responsible for the securing, maintenance and protection of the Trademarks and shall, in its absolute discretion, take legal actions at its own expense to
protect the Trademarks from third party infringements or other violations. 

  

	8.2	GSK shall promptly notify Sinovac in writing of any uses that have come to its attention which may constitute an actual or threatened infringement, imitation or other violation of
the Trademarks. 

  

	8.3	Except for the purpose of performing this Agreement, GSK shall have no rights under this Agreement in or to the Trademarks, and shall not during the term of this Agreement, or
thereafter, represent that it is the owner or licensee of the Trademarks, whether or not such Trade Mark is registered. 

  

	8.4	The Product shall be promoted only under the Trademarks. 

  

	8.5	GSK shall not at any time register, or cause to be registered, in its name or in the name of another, or use or employ during or after the terms of this Agreement, the Trademarks or
any trade mark, name or design resembling or similar to the Trademarks for any goods or services in the Territory. 

  

 10 

	8.6	GSK agrees that upon termination or expiration of this Agreement, it will discontinue forthwith all use of the Trademarks and shall not thereafter directly or indirectly promote,
sell or distribute any Products bearing the Trademarks or trademarks, names or designs confusingly similar to the Trademarks, nor shall GSK otherwise use trade marks, names or designs confusingly similar to the Trademarks. 

 

	9	PRODUCT RECALL 

  

	9.1	Sinovac shall maintain and cause LSP to maintain a Product Recall Procedure so as to enable it to trace back with minimum delay Customers within the Territory who have purchased or
been supplied with the Product. Sinovac shall provide a copy of this procedure to GSK. 

  

	9.2	Any recall of the Product shall be at the sole discretion of Sinovac who shall bear the cost of any such recall. 

  

	9.3	Sinovac shall be fully responsible for disposal of Products recalled and/or returned. 

  

	9.4	GSK agrees to co-operate with Sinovac in any recall of the Product by providing Sinovac with reasonable assistance at Sinovac’s request. 

  

	10	CONFIDENTIALITY 

  

	10.1	All Information and materials supplied by one party to the other party hereunder whether before or after the date hereof shall be used only for the purposes of this Agreement by the
Parties. 

  

	10.2	Any and all confidential information supplied by one party to the other pursuant to this Agreement shall be kept strictly confidential by the receiving party both during and after
the termination of this Agreement except to the extent that: 

  

	 	10.2.1	it was already in the receiving party’s possession at the date of receipt from the other party; or 

  

 11 

	 	10.2.2	it is in or shall subsequently come into the public domain through no fault of the receiving party; or 

  

	 	10.2.3	is subsequently disclosed to the receiving party by a third party not receiving the same from any source, directly or indirectly connected to the disclosing party;

  

	 	10.2.4	is required to be disclosed by the receiving party to governmental authorities by law or governmental regulations and in particular to health authorities in the Territory.

  

	11	INDEMNITIES 

  

	11.1	GSK will, subject to Clause 11.2 below, indemnify and hold harmless and keep indemnified and held harmless Sinovac against any and all losses, liabilities, costs, claims,
demands, expenses and fees (including reasonable legal and other professional fees) actions, proceedings and damages suffered or incurred by Sinovac of whatever nature arising out of any willful misconduct of GSK (including its personnel, whether or
not approved) or any finding against Sinovac of breach of any Laws in the Territory as a result of action taken or omitted to have been taken by GSK or its employees in the performance of their activities hereunder. 

  

	11.2	Sinovac will, subject to Clause 11.1 above, indemnify and hold harmless and keep indemnified and held harmless GSK against all and any losses, liabilities, costs, claims, demands,
expenses and fees (including reasonable legal and other professional fees), actions, proceedings and damages suffered or incurred by GSK of whatsoever nature arising as a result of any claim, suit or proceeding made or brought against GSK based upon
the manufacture and sale of the Product or resulting from use by GSK of any materials which are furnished by Sinovac to GSK hereunder, unless such materials have not been used by GSK and its employees in accordance with any instructions of Sinovac.

  

 12 

	11.3	Sinovac will indemnify GSK against any direct legal costs GSK should defend itself as a consequence of the Product Liability and/or any act or omissions on Sinovac’s part.

  

	11.4	The party granting an indemnity under this Clause in relation to any particular claim will have the option to control any litigation resulting from such claim or the related
negotiations. 

  

	11.5	Except to the extent set forth herein, Sinovac has no liability to GSK for lost revenue or lost profit that might have been earned hereunder but for the inability, delay or failure
of Sinovac to provide the Product to any Customer solicited by GSK, or in the event of discontinuation of the Product, or for delay in acceptance of or rejection of any order for the Product. 

  

	11.6	Except to the extend set forth herein, GSK shall have no liability to Sinovac for lost revenue or lost profit that might have been earned hereunder. 

  

	12	FORCE MAJEURE 

 Neither of the parties shall be
liable or shall be in breach of any provision of this Agreement for any failure or omission on its part to perform any obligations because of force majeure, including, but not limited to, war, riot, fire, explosion, flood, accident or breakdown of
machinery, strike or other labour disturbances, acts of God or changes in law or any other cause beyond the reasonable control of that party and unless conclusive evidence to the contrary is provided, the party so affected shall, upon giving written
notice to the other party, be excused from such performance to the extent and for the duration of such prevention, restriction, interference or delay, provided that the affected party shall use its reasonable efforts to avoid or remove such causes
of non-performance and shall continue performance with the utmost dispatch whenever such causes are removed. When such circumstances arise, Sinovac and GSK shall discuss what, if any, modification of the terms of this Agreement may be required in
order to arrive at an equitable solution. Sinovac or GSK may if such force majeure continues for more than three (3) months terminate this Agreement forthwith on giving notice in writing to the other in which event neither Sinovac nor GSK shall
be liable to the other by reason of such termination save as otherwise expressly referred to herein. 
  

 13 

	13	TERM ( All ) 

 Subject to the provisions of Clause 14 hereof, the Agreement shall commence on the Effective Date and shall continue for a period of [***]† and thereafter shall continue automatically for another [***]† unless and until either party has given to the
other not less than six (6) month notice in writing of termination. 
  

	14	TERMINATION 

  

	14.1	If either party commits any breach of the terms or conditions of this Agreement and does not take steps to remedy the breach (if capable of remedy) or offer compensation therefore
within thirty (30) days of written notice from the other party, then the other party may terminate this Agreement immediately by notice. 

  

	14.2	If either party compounds or makes arrangements with its creditors or goes into liquidation other than for the purpose of a bona fide reconstruction or a receiver or manager is
appointed in respect of the whole or any part of its business then the other party may terminate this Agreement immediately by notice. Each party agrees to give the other party notice in writing of any such change within fourteen (14) days of
it becoming effective. 

  

	14.3	If there is a change in the Control of Sinovac ownership or the ownership of the Product, GSK shall have the sole discretion to terminate this Agreement with thirty (30) days
written notice. If there is change in the control of GSK ownership, Sinovac shall have the sole discretion to terminate this Agreement with thirty (30) days written notice. 

  

	 †
	 This portion of the service agreement has been omitted and filed separately with the Securities and Exchange Commission,
pursuant to Rule 24b-2. 

  

 14 

	14.4	GSK shall be entitled to terminate the Agreement with thirty (30) days written notice to Sinovac if there is a significant mandatory change in retail price of the Product by
the Regulatory Authorities and the parties fail to agree with change in the Service Fee in thirty (30) days upon the formal announcement or notice by the Authorities. 

  

	 14.5
	 Sinovac shall be entitled to terminate the Agreement with thirty (30) days written notice to GSK if that, after
Year 2007, the parties fail to reach agreement with Guaranteed Annual Sales according to Article 2.5 or both parties cannot reach agreement regarding the Service Fees to GSK, provided however that Sinovac shall not be entitled to terminate this
Agreement if GSK commits to a Guaranteed Annual Sales that is [***]†, and both parties reach the agreement regarding the Service Fees paid to
GSK. For the avoidance of doubt, in case there is an Avian Flu outbreak, this clause shall not be applied when the Parties discuss and agree with the Guaranteed Annual Sales for the following year. 

  

	15	EFFECTS OF TERMINATION 

  

	15.1	Within ten (10) working days of termination of this Agreement for any of reason either party shall return to the other party all copies of Information and materials obtained
from Sinovac. 

  

	15.2	On expiry or earlier termination of this Agreement the provisions of Clauses 4.3, 8.3, 8.5, 8.6, 10, 11, 17.1 and 20 and shall remain in full force and effect, together with such
provisions that Schedule 3 determines will survive termination of this Agreement. 

  

	15.3	The expiration or termination of this Agreement shall not affect any obligation of the Parties arising from any provision of this Agreement prior to the expiration or termination.

  

	 †
	 This portion of the service agreement has been omitted and filed separately with the Securities and Exchange Commission,
pursuant to Rule 24b-2. 

  

 15 

	15.4	Unless as otherwise provided under this Agreement, neither party shall be entitled to any compensation from the other party with respect to the termination for any reason of this
Agreement. 

  

	16	ASSIGNMENT AND SUB-CONTRACTING 

  

	16.1	Neither party shall assign or sub-contract its rights or obligations under this Agreement to any third party without the consent of the other party. 

  

	17	SEVERABILITY 

  

	17.1	In the event that any portion of this Agreement shall be held illegal, void or ineffective, the remaining portions hereof shall remain in full force and effect.

  

	17.2	If any of the terms or provisions of this Agreement are in conflict with any applicable statute or rule of law, then such terms or provisions shall be deemed inoperative to the
extent that they may conflict therewith and shall be deemed to be modified but only to the extent required to conform with such statute or rule of law. 

  

	17.3	In the event that the terms and conditions of this Agreement are materially altered as a result of Clauses 17.1 or 17.2, GSK and Sinovac will renegotiate in good faith the terms and
conditions of this Agreement to resolve any inequities. 

  

	18	NOTICES 

  

	18.1	Any notice required to be given under this Agreement shall be in writing and delivered or sent to the address of the other Party indicated at the beginning of this Agreement or to
such other address as the addressee shall have furnished in writing to the addresser. 

  

	18.2	The words “in writing” (and cognate expressions) whenever used in this Agreement shall be deemed to include any communications sent by letter, telegram, cablegram,
facsimile or electronic mail. 

  

 16 

	19	AMENDMENTS AND ENTIRE AGREEMENT; WAIVER 

  

	19.1	All amendments to this Agreement will be agreed in writing and signed by both parties. 

  

	19.2	This Agreement constitutes the entire agreement between the parties hereto in respect of its subject matter and supersedes and extinguishes all previous representations, warranties,
understandings, negotiations, arrangements and agreements, whether in writing or oral. 

  

	19.3	Each party acknowledges that it has not been induced to enter into this Agreement by any representation or warranty other than those expressly contained in this Agreement and,
having negotiated and freely entered into this Agreement. 

  

	19.4	Schedules to the Agreement shall be an integrated part of this Agreement and shall have the same legal effect. 

  

	19.5	The waiver by either Party of a breach of any of the provisions of this Agreement by the other shall not be construed as a waiver of any succeeding breach of the same or other
provisions; nor shall any delay or omission by either Party in exercising any right that it may have under this Agreement operate as a waiver of any breach of default of the other party. 

  

	20	GOVERNING LAW AND DISPUTE RESOLUTION 

  

	20.1	The Agreement shall be governed by the Laws of the People’s Republic of China. 

  

	20.2	In case any dispute cannot be resolved through friendly consultation by the parties, it shall be submitted to the China International Economic and Trade Arbitration Committee
(“CIETAC”) under its then valid arbitration procedures and rules. The arbitration shall take place in Beijing, China. The arbitration tribunal shall be of 3 arbitrators: each party shall appoint one arbitrator and these 2 arbitrators shall
appoint the chairman of the tribunal. The language to be used in the arbitration proceedings shall be Chinese. The arbitration award shall be final and binding on the PARTIES. 

  

 17 

	21	ENTIRE AGREEMENT 

 This Agreement shall be executed
in two (2) counterparts, each of which shall be deemed an original. Each party shall hold one counterpart. 
  

	22	LANGUAGE 

  

	22.1	This Agreement and its Schedules are written in English and Chinese and both languages all originals shall have the equal validity. In case there is any discrepancy between the
Chinese and English version, the Chinese version shall prevail. 

  

 18 

 AS WITNESS the hands of the duly authorised representatives of the parties hereto the day and year first before written.

 For and on behalf of GlaxoSmithKline (China) Investment Co., Ltd. (seal) 
  

			
	Signed by:	 	 /s/ Amy Huang

	Position:	 	VP & Area Director, China/Hong Kong
	Date:	 	July 30, 2007

 For and on behalf of Sinovac Beijing Co., Ltd. (seal) 
  

			
	Signed by:	 	 /s/ Weidong Yin

	Position:	 	General Manager
	Date:	 	

  

 19 

 SCHEDULE 1 
 SERVICE FEES 
  

	1	The Service Fee for sales in 2007 shall be calculated as follows: 

  

	 	 •
	 For sales between 0 to and including [***]†,[***]† 

  

	 	 •
	 For sales from [***]† to and including [***]†,[***]† 

  

	 	 •
	 For sales over [***]†, to be mutually agreed by GSK and Sinovac 

 For the years from 2008 till 2011, during the first half of each
calendar year, GSK and Sinovac shall discuss and agree with the Service Fee for that calendar year based upon the principle that both parties share gains and loss caused by, but not limited to, the following factors: 
  

	 	•	Guaranteed Annual Sales 

  

	 	•	production efficiency of Sinovac 

  

	 	•	raw materials price fluctuation 

  

	 	•	mandatory change in retail price 

  

	 2.
	 Sinovac shall pay Service Fee to GSK for the Tender Sales which is generated jointly by Sinovac and GSK at
[***]† within thirty (30) days upon it receives payments from the tender Customers for the Product. 

  

	3.	During the term of the Agreement, if a significant mandatory change in retail price of the Product is made by the Authorities, GSK and Sinovac shall review and agree with the
Service Fee within thirty (30) days of the formal announcement or notice by the Authorities. Should there be any agreed change(s) on the Service Fee, amendment is to be signed and considered as part of the Agreement. The revised Service Fee
shall take effect for subsequent supplies. 

  

	 †
	 This portion of the service agreement has been omitted and filed separately with the Securities and Exchange Commission,
pursuant to Rule 24b-2. 

  

 20 

 SCHEDULE 2 
 GUARANTEED ANNUAL SALES AND TARGETED DELIVERY SCHEDULE 
 Article 1 Guaranteed Annual Sales 
  

	1.1	Guaranteed Annual Sales of 2007/08 flu season shall be: 

  

					
	Dose ‘000	  	Sales in 2007/08 Flu Season
	 	  	Guaranteed	 	Upside
		  	[***]†	 	[***]†

  

	 1.2
	 The Guaranteed Annual Sales volume of 2007 will be the actual doses delivered by Sinovac prior to the last date of the
Targeted Delivery Schedule, i.e. August 31st of 2007, or [***]†, whichever is smaller. 

  

	1.3	Estimated Sales of the following years is as follows: 

  

									
	Dose ‘000	  	2008	 	2009	 	2010	 	2011
	Product	  	[***]†
	 	[***]†
	 	[***]†
	 	[***]†

  

	 1.4
	 GSK and Sinovac shall, during the first half of the calendar year, review and agree with the Guaranteed Annual Sales and
Targeted Delivery Date for that calendar year. The Guranteed Annual Sales after 2007 shall not be less than [***]†.

  

	1.5	Except as provided under Art.1.7 hereof, GSK shall be subject to a penalty if it fails to achieve the Guaranteed Annual Sales. Penalty for each unsold dose will be calculated as
follows: 

 [***]†
 
  

	1.6	GSK shall pay the penalty in thirty (30) days from the last date of the Targeted Delivery Schedule of that calendar year. 

  

	 †
	 This portion of the service agreement has been omitted and filed
separately with the Securities and Exchange Commission, pursuant to Rule 24b-2. 

  

 21 

	1.7	In case a demand reduction is forecasted by GSK before the Targeted Delivery Date, GSK may instruct LSP to cancel such order with Sinovac and Sinovac shall not deliver the cancelled
volume to LSP: 

  

	 	 •
	 	 if GSK, through LSP, makes such cancel 2 months prior to the Targeted Delivery date Schedule of that order,
[***]† and the logistic service fee per canceled dose shall be reduced from the penalty of unsold guaranteed dose;

  

	 	•	 	 if GSK, through LSP, makes such cancel in less than 2 months but 2 weeks prior to the Targeted Deliver Date Schedule of that order, the logistic service fee shall
be reduced from the penalty of unsold guaranteed dose for any unsold guaranteed dose; 

  

	 	•	 	 if GSK, through LSP, makes such cancel in less than 2 weeks prior to the Targeted Deliver Schedule of that order, and if the Products of the canceled amount are not
delivered to LSP, the logistic service fee shall be reduced from the penalty of unsold guaranteed dose for any canceled dose. 

  

	1.8	No Service Fee will be paid to GSK for returned products. 

  

	Article 2	Product Return for Upside Amount 

 Once the product is
returned, Sinovac shall confirm the return of the Product with LSP. The associated logistic fee paid shall be evenly shared by Sinovac and GSK. 
  

	Article 3	Delivery 

  

	3.1	Delivery by Sinovac shall be ex-warehouse of Sinovac. LSP shall pick up the Product at Sinovac warehouse in Beijing. 

  

	 †
	 This portion of the service agreement has been omitted and filed separately with the Securities and Exchange Commission,
pursuant to Rule 24b-2. 

  

 22 

	3.2	For 2007 Sales, delivery shall start in August 2007 according to the following delivery schedule: 

  

											
	Month	 	[***]†	 	[***]†
						
	 Presentation
  
 (000’ dose)
	 	[***]†	 	[***]†	 	[***]†	 	[***]†	 	[***]†
						
	[***]†	 	[***]†	 	[***]†	 	[***]†	 		 	
						
	[***]† 	 		 		 		 	[***]†	 	[***]†

  

	 3.3
	 Any additional order beyond the 2007 Guaranteed Annual Sales should be placed with Sinovac BY July 30th 2007. 

  

	3.4	For delivery beyond the Guaranteed Annual Sales, GSK grants Sinovac two (2) weeks as buffer to confirmed delivery schedule. 

  

	3.5	Targeted Delivery Schedule for the following years shall be agreed by the parties when the Guaranteed Annual Sales is discussed and agreed according to 1.4.

  

	Article 4	Guaranteed Product Supply 

  

	4.1	Sinovac shall be subject to penalty if it fails to deliver the Product according to the agreed Targeted Delivery Schedule. 

  

	 	•	In the case that such delay exceeds 14 days after the targeted delivery date, the late-deliver doses will be deducted from the Guaranteed Annual Sales accordingly.

  

	 †
	 This portion of the service agreement has been omitted and filed separately with the Securities and Exchange Commission,
pursuant to Rule 24b-2. 

  

 23 

	 	 •
	 In case that such delay exceeds 30 days after the targeted delivery date, Sinovac shall pay [***]† of the Service Fee as liquidation damages for guaranteed amount specified in Schedule 1 to GSK for the undelivered doses and such doses will be deducted
from the Guarantee Annual Sales accordingly. For the purpose of clarity, when the delayed Product is actually delivered, such delivery shall be deemed as a new order. 

  

	4.2	In case Sinovac fails to confirm with LSP the orders for the Guaranteed Annual Sales in 1 working day upon receipt from LSP which leads to the insecure of such orders by LSP, the
unsecured doses shall be deducted from the Guaranteed Annual Sales accordingly. 

  

	 †
	 This portion of the service agreement has been omitted and filed separately with the Securities and Exchange Commission,
pursuant to Rule 24b-2. 

  

 24 

 SCHEDULE 3 
 SAFETY DATA EXCHANGE AGREEMENT 
  

	1.	Definitions 

 Terms used in this Schedule shall have the meanings
given to them in Clause 1 of the Agreement, unless otherwise defined below. All other terms will have the meanings given to them below. 
  

	 	a.	Abuse 

 Persistent or sporadic intentional
excessive use of a Product by a vaccinee accompanied by harmful physical and/ or psychological effects. 
  

	 	b.	Adverse Event or AE 

 An Adverse Event or AE is any
untoward medical occurrence in a vaccinee who has been administered a Product, where the untoward medical occurrence is temporally associated with the use of the Product, whether or not considered related to the Product. An AE can therefore be any
unfavourable and unintended sign (including an abnormal laboratory finding) symptom or disease (new or exacerbated) temporally associated with the use of a Product, including failure to produce expected benefits (i.e. lack of efficacy), and adverse
events associated with circumstances of Abuse or Misuse. 
  

	 	c.	Confidential Information 

 Any non-public
information furnished by one Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) in connection with these terms or generated pursuant to these terms that is, or which the Disclosing Party designates or would
reasonably regard as being confidential. 
  

	 	d.	Day 

 A calendar day. 
  

 25 

	e.	Misuse 

 Use of a Product in a way that is not in
accordance with its Marketing Authorisation accompanied by harmful physical and/or psychological effects. 
  

	1.6	Pregnancy Report 

 A report of pregnancy in a
vaccinee to whom a Product has been administered or a report of a pregnancy where the father is a vaccinee to whom a Product has been administered. 
  

	1.7	Receipt 

 The point at which GSK (including any of
GSK’s personnel) becomes aware of a report of an AE or a Pregnancy Report. For the purposes of this definition, “personnel” includes those persons employed by GSK or persons engaged by GSK for the provision of services. 
  

	2.	Exchange of AEs and Pregnancy Reports 

 GSK shall
provide Sinovac with all information regarding AEs and Pregnancy Reports which it receives arising from any source, in the form in which it is received, immediately upon, and in any event no later than twenty-four (24) hours (or three
(3) Days in the event the time period would expire during a weekend or public holiday) of Receipt. 
  

	3.	Secure email exchange 

  

	3.1	GSK shall ensure that to the extent any Confidential Information is provided by email, that those emails and any attachments sent to Sinovac are encrypted using the Tumbleweed
Secure E-mail Encryption Service. GSK shall during the term of this Agreement maintain all subscriptions, payments, certificates and arrangements necessary for continued access to and use of the Tumbleweed secure email encryption service.

  

	3.2	Where GSK or Sinovac is unable to encrypt its e-mails, information under this Schedule shall be exchanged to Sinovac by facsimile transmission or any other means as agreed by the
parties. 

  

 26 

	4.	Tracking AEs and Pregnancy Reports 

  

	4.1	GSK will ensure that each AE and Pregnancy Report from any source that is provided by GSK (including follow-up data) to Sinovac shall bear: 

  

	 	4.1.1	The date of its receipt by GSK, 

  

	 	4.1.2	An unique reference number assigned by GSK, 

  

	 	4.1.3	A description of the original source of the AE or Pregnancy Report (whether healthcare professional, consumer, Regulatory Authority, literature or otherwise).

  

	5.	Follow up of AEs and Pregnancy Reports 

 GSK shall
notify Sinovac of any follow up information about AEs and Pregnancy Reports exchanged under Clause 2 which it receives and/or of which it becomes aware in respect of the Product to which it has rights in the Territory. Such notification shall
be made in the same timelines set out in Clause 2 above. 
  

	6.	Regulatory Authority and other Enquiries 

  

	6.1	GSK shall notify Sinovac forthwith of the receipt of an enquiry from, or the notification of an issue by, a Regulatory Authority, a healthcare professional or a consumer relating to
the Product that is directed to it concerning any safety issue. In each case, GSK shall provide Sinovac with all available information it has regarding the enquiry/issue. 

  

	6.2	Responses to any such queries received by GSK will be prepared by Sinovac and provided to the enquiring Regulatory Authority within any actual or implied timeframe set by the
enquiring Regulatory Authority for the receipt of a response, and to any healthcare professional or consumer as soon as is reasonably practicable. 

  

	7.	Audits/Adverse findings by Regulatory Authorities 

  

	7.1	 Provided that such audits are requested at reasonable and objectively justifiable times/intervals and that the scope of such audits is reasonable having regard to
their intended purpose, Sinovac shall be entitled to conduct audits to assess GSK’s compliance with the terms of this Schedule. Provided that Sinovac has given GSK no less than fourteen (14) Days’ prior 

  

 27 

	 	 
written notice of its intent to audit, GSK shall ensure that Sinovac may enter onto the premises at which relevant functions are conducted by it or on its
behalf in order that Sinovac may conduct a full and proper audit through the inspection of relevant documentation, compliance metrics, systems and personnel interviews. 

  

	7.2	GSK shall afford Sinovac all reasonable co-operation in the conduct of audits under Clause 7.1. 

  

	8.	Obligations Surviving Termination of this Schedule 

 The following provisions shall survive termination or expiry of this Schedule: 
  

	8.1	Provided Sinovac shall cover GSK’s reasonable costs of cooperating, GSK shall not unreasonably withhold, refuse or delay a request for assistance in respect of litigation,
arbitration or other means of dispute resolution, or in respect of a request for information from a Regulatory Authority or to secure compliance with a law or regulation. 

  

	8.2	Each Party shall provide the other with appropriate follow-up data in respect of information provided under this Schedule (safety data exchange agreement). 

 

	9.	Notification/Notices 

  

	9.1	Except as otherwise expressly provided for in this Schedule, where a term of this Schedule requires the provision, exchange, supply or delivery of data or information or the giving
of notice to a Party, such provision, exchange, supply or delivery of data or information or giving of notice shall be in writing and made to the relevant contact listed at Appendix 1, or in any revision of Appendix 1. Where possible, notices shall
be given by email in encrypted form in accordance with Clause 3 to the email addresses specified in Appendix 1 to this Schedule as may be changed by either Party upon written notice to the other Party from time to time, and those notices shall be
deemed to have been delivered on the date of delivery. Where encrypted email notification is not possible, the notices shall be delivered by fax and delivery shall be deemed to have taken place on the date of successful transmission, provided such
notices are transmitted to the fax numbers specified in Appendix 1 to this Schedule, as may be changed by either Party upon written notice to the other Party from time to time. The terms “notice”, “notify” and
“notification” shall be construed in this Agreement in the context of this Clause 10. 

  

 28 

	9.2	Each Party shall use all reasonable endeavours to notify the other in writing of changes to the contact list in Appendix 1 within fourteen (14) days of the effective date of
the change. 

  

	10.	Language for Safety Data Exchange 

 The Parties
shall exchange safety information relating to the Product in both English and Chinese. 
  

 29 

 Appendix 1 
 Contact Details 
 For GSK 
  

					
	General enquiries	 	[***]†	 	[***]†
			
	Spontaneous cases	 	[***]†	 	[***]†
			
	Clinical cases	 	[***]†	 	[***]†
			
	Local labeling	 	[***]†	 	[***]†
			
	Core Safety Information	 	[***]†	 	[***]†

 For Sinovac 
  

					
	For general enquiries	 	[***]†	 	[***]†
			
	For spontaneous cases	 	[***]†	 	[***]†
	 	 
			
		 	[***]†	 	[***]†
			
	For clinical cases	 	[***]†	 	[***]† 
	 	 
			
		 	[***]†	 	[***]†
			
	Core Safety Information	 	[***]†	 	[***]†

  

	 †
	 This portion of the service agreement has been omitted and filed separately with the Securities and Exchange Commission,
pursuant to Rule 24b-2. 

  

 30

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