<SEC-DOCUMENT>0001144204-12-035284.txt : 20120618
<SEC-HEADER>0001144204-12-035284.hdr.sgml : 20120618
<ACCEPTANCE-DATETIME>20120618170737
ACCESSION NUMBER:		0001144204-12-035284
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20120618
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Cost Associated with Exit or Disposal Activities
ITEM INFORMATION:		Material Impairments
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120618
DATE AS OF CHANGE:		20120618

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NeoStem, Inc.
		CENTRAL INDEX KEY:			0000320017
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090]
		IRS NUMBER:				222343568
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33650
		FILM NUMBER:		12913020

	BUSINESS ADDRESS:	
		STREET 1:		420 LEXINGTON AVENUE
		STREET 2:		SUITE 450
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10170
		BUSINESS PHONE:		212-584-4171

	MAIL ADDRESS:	
		STREET 1:		420 LEXINGTON AVENUE
		STREET 2:		SUITE 450
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10170

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHASE III MEDICAL INC/DE
		DATE OF NAME CHANGE:	20030819

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CORNICHE GROUP INC /DE
		DATE OF NAME CHANGE:	19951117

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FIDELITY MEDICAL INC
		DATE OF NAME CHANGE:	19951025
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v316310_8-k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):&nbsp;&nbsp;June
18, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NEOSTEM, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
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    <TD STYLE="width: 33%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Delaware</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or Other Jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">of Incorporation)</P></TD>
    <TD STYLE="width: 34%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">001-33650</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Commission</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">File Number)</P></TD>
    <TD STYLE="width: 33%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">22-2343568</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(IRS Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>420 Lexington Avenue, Suite 450, New
York, New York&nbsp;10170</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of Principal Executive Offices)(Zip
Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>(212) 584-4180</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant's Telephone Number</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">o</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">x</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">o</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">o</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01. Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Agreement for Divestiture of Erye Interest</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 18, 2012 (the &ldquo;<U>Signing
Date</U>&rdquo;), NeoStem, Inc. (the &ldquo;<U>Company</U>&rdquo; or &ldquo;<U>NeoStem</U>&rdquo;) and its subsidiary, China Biopharmaceuticals
Holdings, Inc. (&ldquo;<U>CBH</U>&rdquo;), entered into an Equity Purchase Agreement (the &ldquo;<U>Agreement</U>&rdquo;) with
Fullbright Finance Limited, a limited liability company organized under the laws of the British Virgin Islands (&ldquo;<U>Fullbright</U>&rdquo;),
Suzhou Erye Economy &amp; Trading Co., Ltd., a limited liability company organized under the laws of the People&rsquo;s Republic
of China (&ldquo;<U>EET</U>&rdquo; and together with Fullbright, each a &ldquo;<U>Purchaser</U>&rdquo; and collectively, the &ldquo;<U>Purchasers</U>&rdquo;),
and Suzhou Erye Pharmaceutical Co., Ltd., a Sino-foreign equity joint venture with limited liability organized under the laws of
the People&rsquo;s Republic of China (&ldquo;<U>Erye</U>&rdquo;), which Agreement provides for the sale by NeoStem and CBH to the
Purchasers (the &ldquo;<U>Erye Sale</U>&rdquo;) of NeoStem&rsquo;s entire 51% ownership interest in Erye (the &ldquo;<U>Erye Interest</U>&rdquo;).
The Agreement has been approved by NeoStem&rsquo;s board of directors. By monetizing its Erye Interest through a divestiture of
this asset to Erye&rsquo;s minority interest holders, NeoStem and its management will now be able to devote greater time and resources
to its cell therapy business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">NeoStem initially acquired its 51% Erye
Interest pursuant to a merger consummated on October 30, 2009. EET, the holder of the 49% ownership interest in Erye, is a party
along with CBH to an Amended and Restated Joint Venture Contract dated October 20, 2009, as amended May 24, 2010 (the &ldquo;<U>Joint
Venture Agreement</U>&rdquo;), which governs the ownership of the respective interests in Erye. Mr. Shi Mingsheng (who is a member
of NeoStem&rsquo;s board of directors, and Chairman of the Board of Erye) and Madam Zhang Jian (who formerly was a Vice President
of Pharmaceutical Operations of NeoStem, and is General Manager of Erye), are principal equity holders of each of Fullbright and
EET.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Erye Sale is expected to close (the
&ldquo;<U>Closing</U>&rdquo;) by fourth quarter 2012, contingent upon the approval of NeoStem&rsquo;s stockholders, receipt of
various PRC regulatory approvals, waiver or non-exercise of certain termination rights and the satisfaction of other closing conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Purchase Price</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The aggregate consideration to be received
by NeoStem at Closing for the purchase, sale and conveyance of NeoStem&rsquo;s 51% Erye Interest, as more specifically described
in the Agreement, is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(A)</TD><TD>cash payments totaling $12,280,000 (the &ldquo;<U>Total Cash Purchase Price</U>&rdquo;), payable in the following manner: (i)
$1,228,000, being 10% of the Total Cash Purchase Price, shall be paid by the Purchasers to NeoStem&rsquo;s subsidiary CBH as soon
as practicable following the Signing Date but in no event later than 15 business days following the Signing Date (the &ldquo;<U>First
Purchase Price Payment</U>&rdquo;); (ii) $2,456,000, being 20% of the Total Cash Purchase Price (the &ldquo;<U>Offshore Second
Purchase Price Payment</U>&rdquo;), shall be paid by the Purchasers into an escrow account outside the PRC (the &ldquo;<U>Offshore
Escrow Account</U>&rdquo;) by the earlier of (x) the end of a seven week period following the Signing Date or (y) the date of submission
(the &ldquo;<U>MOFCOM Transfer Submission Date</U>&rdquo;) of the application seeking the approval of the Erye Sale by the PRC
Ministry of Commerce and/or its local counterparts as applicable (the &ldquo;<U>MOFCOM Transfer Approval</U>&rdquo;) (the Agreement
providing that the Offshore Second Purchase Price Payment shall be released to NeoStem&rsquo;s subsidiary CBH upon the issuance
of the MOFCOM Transfer Approval); (iii) the RMB equivalent of $2,456,000, being 20% of the Total Cash Purchase Price, shall be
paid by the Purchasers into an escrow account inside the PRC (the &ldquo;<U>Onshore Escrow Account</U>&rdquo;) by the earlier of
(x) the end of a seven week period following the Signing Date or (y) the MOFCOM Transfer Submission Date (the &ldquo;<U>Onshore
Second Purchase Price Payment</U>&rdquo;); and (iv) the RMB equivalent of $6,140,000, being 50% of the Total Cash Purchase Price
(the &ldquo;<U>Third Purchase Price Payment</U>&rdquo;), shall be paid by the Purchasers into the Onshore Escrow Account on or
prior to the earlier of (x) the MOFCOM Transfer Submission Date or (y) September 30, 2012 (the &ldquo;<U>Third Purchase Price Payment
Date</U>&rdquo;); provided that if the application seeking MOFCOM Transfer Approval has not been submitted by September 30, 2012
due to any delay in obtaining NeoStem stockholder approval of the Erye Sale, the Third Purchase Price Payment Date shall automatically
be extended for the &ldquo;<U>Delayed Submission Period</U>&rdquo; as defined in the Agreement; <U>plus</U></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(B)</TD><TD>the forfeiture and cancellation of (i) all of the outstanding options to purchase NeoStem common stock which had been issued
to Fullbright, Shi Mingsheng and Madam Zhang Jian, respectively (the &ldquo;<U>Forfeited Options</U>&rdquo;), (ii) warrants to
purchase 640,000 shares of NeoStem common stock which had been issued to Fullbright (the &ldquo;<U>Fullbright Warrants</U>&rdquo;),
and (iii) 1,040,000 shares of NeoStem common stock issued or issuable to Fullbright (the &ldquo;<U>Fullbright Shares</U>&rdquo;,
and together with the Forfeited Options and the Fullbright Warrants, collectively, the &ldquo;<U>NeoStem Securities</U>&rdquo;);
<U>plus</U></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(C)</TD><TD>the cancellation of all of the dividends accrued for the years ended December 31, 2010, 2011 and 2012 that would otherwise
be distributable to CBH by Erye pursuant to the Joint Venture Agreement (it being understood and agreed by the parties that payment
of the consideration for the Erye Sale shall satisfy and discharge in full all of Erye&rsquo;s obligations, debts and liabilities
with respect to such accrued dividends).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As noted above, the Onshore Second
Purchase Price Payment and the Third Purchase Price Payment will initially be deposited in Renminbi (the &ldquo;<U>RMB
Deposit</U>&rdquo;), for which conversion into dollars and repatriation into the United States will be subject to certain
approvals of the PRC State Administration of Foreign Exchange and/or its local counterparts (&ldquo;<U>SAFE</U>&rdquo;).
Pursuant to the Agreement, the Purchasers have agreed to bear the risk of currency fluctuation in respect of the RMB Deposit,
such that CBH receives cash in U.S. dollars in the aggregate amount of the $12,280,000 Total Cash Purchase Price. Upon
completion of requisite SAFE procedures for converting the RMB Deposit, the Purchasers and CBH shall jointly instruct the
escrow agent to release the RMB Deposit in U.S. dollars to CBH, with all interest accrued in respect of the escrowed sums,
and any escrowed cash in excess of the aggregate amount of the Total Cash Purchase Price being returned to Purchasers at
Closing (such excess, the &ldquo;<U>Purchasers Excess Payment</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Agreement contemplates that Purchasers
will obtain the funds to make the Second Purchase Price Payment and the Third Purchase Price Payment through the repayment by Erye
to EET of portions of certain shareholder loans which had been made by EET to Erye (&ldquo;<U>EET Shareholder Loans</U>&rdquo;).
In order to permit Erye to repay portions of the EET Shareholder Loans, the Agreement further contemplates that Erye will seek
to increase its registered capital by converting the capital reserve and capital surplus accumulated as of December 31, 2011 in
the aggregate amount of RMB 72.30 million to paid-in registered capital of Erye (and to amend Erye&rsquo;s Articles of Association
and the Joint Venture Agreement accordingly) which will require certain PRC approvals (the &ldquo;<U>Capital Increase Procedures</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Subject to Closing Conditions</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The consummation of the Erye Sale is subject
to various conditions, including (i) approval by NeoStem&rsquo;s stockholders; (ii) completion by Erye of the Capital Increase
Procedures; (iii) Erye&rsquo;s (a) having obtained MOFCOM Transfer Approval, (b) having completed registration with the PRC State
Administration of Industry and Commerce and/or its local counterparts, as applicable, with respect to the Erye Sale (&ldquo;<U>SAIC
Transfer Registration</U>&rdquo;), and (c) having obtained approval from SAFE for currency exchange in connection with the Erye
Sale (&ldquo;<U>SAFE Transfer Approval</U>&rdquo;); and (iv) the absence of any order, decree or ruling of any applicable governmental
authority preventing the consummation of the Erye Sale; as well as other legal and regulatory requirements. The Agreement provides
that prior to the submission of the application for MOFCOM Transfer Approval, each of Robin L. Smith and Eric Wei shall deliver
a letter providing for their resignation from Erye&rsquo;s board of directors effective upon the MOFCOM Transfer Approval. No assurance
can be given that every closing condition will be satisfied or waived.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>No-Shop</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Following the MOFCOM Transfer Submission
Date, NeoStem and CBH are subject to customary &ldquo;no-shop&rdquo; restrictions on their ability to solicit alternative proposals
from third parties, and to engage in discussions or negotiations with third parties regarding alternative proposals, in respect
of the Erye Interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Termination Events; Termination Fee</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Agreement may be terminated prior to
Closing, by way of certain termination events including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">(i)</TD><TD STYLE="text-align: justify">by mutual consent of the parties;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">(ii)</TD><TD STYLE="text-align: justify">by NeoStem and CBH, on the one hand, or the Purchasers,
on the other hand, if a party fails to perform in a material respect any of its obligations under the Agreement; provided, however,
that a breaching party shall not be permitted to terminate;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD>by the Purchasers for any reason on or prior to the earlier of the MOFCOM Transfer Submission Date or September 30, 2012; <I>provided,
                                                               however, </I>that if the submission of the application for MOFCOM Transfer Approval is delayed as a result of NeoStem&rsquo;s
                                                               not having obtained stockholder approval by the time Erye has completed the Capital Increase Procedures and notified NeoStem
                                                               of its readiness to submit the application for MOFCOM Transfer Approval (the &ldquo;<U>Readiness Notice</U>&rdquo;), such
                                                               that the date on which NeoStem gives Erye notice of its agreement and permission to submit the application for MOFCOM
                                                               Transfer Approval (the &ldquo;<U>Submission Permission Date</U>&rdquo;) would be later than September 30, 2012, then the date
                                                               by which the Purchasers may elect to terminate the Agreement pursuant to this paragraph (iii) shall automatically be extended
                                                               by the &ldquo;<U>Delayed Submission Period</U>&rdquo;, defined as the period between the Readiness Notice and the Submission
                                                               Permission Date;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD>by NeoStem and CBH, solely as a result of their selling the Erye Interest to a third party pursuant to terms and conditions
superior to the terms and conditions as provided in the Agreement (the &ldquo;<U>Third Party Transaction</U>&rdquo;), if required,
as consistent with the fiduciary duties of its board of directors, under Delaware law as supported by the opinion of their legal
counsel; <I>provided,</I> that if NeoStem and CBH terminate the Agreement in the manner described in this paragraph (iv), NeoStem
and CBH shall pay, prior to the effectiveness of such termination pursuant to this paragraph (iv), a breakup fee to the Purchasers
in the aggregate amount of $614,000 (that is, 5% of the total Cash Purchase Price), and all money paid to NeoStem and CBH and/or
deposited into escrow as part of the Total Cash Purchase Price and all NeoStem Securities shall be released and returned to the
Purchasers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">(v)</TD><TD STYLE="text-align: justify">by NeoStem and CBH, if NeoStem has failed to obtain stockholder
approval; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(vi)</TD><TD>by any party, in the event of any order, decree or ruling of any applicable governmental authority preventing the consummation
of the Erye Sale.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event the Agreement is terminated
in the manner provided in paragraph (iii) above, then, (i) the Offshore Second Purchase Price Payment deposited into the Offshore
Escrow Account and the Onshore Second Purchase Price Payment deposited into the Onshore Escrow Account shall be released and returned
to the Purchasers and all NeoStem Securities constituting part of the purchase price shall be returned to Purchasers, but (ii)
the First Purchase Price Payment paid to NeoStem and CBH shall become nonrefundable as liquidated damages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event the Agreement is terminated
in the manner provided in paragraph (v) above, then NeoStem and CBH shall pay to the Purchasers $1,228,000 (that is, 10% of the
Total Cash Purchase Price), as liquidated damages, and all money paid to NeoStem and CBH and/or deposited into escrow as part of
the Total Cash Purchase Price and all NeoStem Securities shall be released and returned to the Purchasers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Governing Law</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Agreement is governed and construed
in accordance with the published laws of the PRC, with the parties agreeing to the venue of the local People&rsquo;s Court in Suzhou,
in the event of a lawsuit filed by NeoStem and CBH, or the Second Intermediary People&rsquo;s Court in Beijing if the lawsuit if
filed by the Purchasers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other Relationships Between the Parties</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">NeoStem initially acquired its 51% Erye
Interest (which is held through NeoStem&rsquo;s subsidiary CBH) pursuant to a merger consummated on October 30, 2009 (&ldquo;<U>Erye
Merger</U>&rdquo;), as described in NeoStem&rsquo;s Current Report on Form 8-K filed with the SEC on November 4, 2009. EET, one
of the Purchasers party to the Agreement, is the holder of the minority 49% ownership interest in Erye, and is a party along with
CBH to the Joint Venture Agreement governing the ownership of the respective interests in Erye. Mr. Shi Mingsheng (who became a
member of NeoStem&rsquo;s board of directors in March 2010 in accordance with the terms of the merger agreement governing the Erye
Merger, and who is Chairman of the Board of Erye) and Madam Zhang Jian (who formerly was Vice President of Pharmaceutical Operations
of NeoStem, and General Manager of Erye), are the principal equity holders of each of Fullbright and EET, the Purchasers pursuant
to the Agreement. Fullbright, together with Mr. Shi and Madame Zhang, beneficially owns approximately 4.0% of the outstanding NeoStem
common stock on the date hereof. Fullbright, Mr. Shi and Madame Zhang have agreed to vote the shares of NeoStem common stock held
by them in favor of the Erye Sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Proxy Statement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the Erye Sale, NeoStem
intends to file with the SEC a proxy statement pertaining to a meeting of stockholders of NeoStem at which NeoStem&rsquo;s stockholders
will be asked to approve the Erye Sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The foregoing descriptions of the terms
of the Agreement do not purport to be complete and are subject to, and qualified in their entirety by reference to, the Agreement,
which is filed herewith as Exhibit 2.1, and is incorporated herein by reference.&nbsp;&nbsp;The provisions of the Agreement, including
the representations and warranties contained therein, are not for the benefit of any party other than the parties to such agreement
and are not intended as a document for investors and the public to obtain factual information about the current state of affairs
of the parties to that document.&nbsp;&nbsp;Rather, investors and the public should look to other disclosures contained in the
Company&rsquo;s filings with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 2.05. Costs Associated with Exit or Disposal Activities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the Company&rsquo;s sale of the Erye Interest, the Company will incur costs that it
estimates will aggregate approximately $1 million, that will include, among other things, costs relating to holding a meeting of
its shareholders in order to approve the sale of the Erye Interest, banker, legal and audit fees and other costs through the closing
of the transaction. In addition, as a result of the sale of the Erye Interest, the Company currently expects to recognize a loss
on disposal estimated at approximately $18 million to $22 million, to be reflected in discontinued operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 2.06. Material Impairments.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">See the disclosure under Item 2.05 of this
Current Report on Form 8-K, which is incorporated by reference into this Item 2.06.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 5.02. Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the terms of the Agreement, Shi Mingsheng
has agreed to resign from NeoStem&rsquo;s board of directors effective on or prior to the Closing of the Erye Sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 8.01. Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 18, 2012, the Company issued a press
release announcing the Agreement described above. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Additional Information and Where to Find It:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the proposed transaction,
the Company will be filing a proxy statement and other relevant documents with the SEC. INVESTORS ARE URGED TO READ THE PROXY STATEMENT
THAT WILL BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS
FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ON THE PROPOSED TRANSACTION. Investors will be able to obtain
the proxy statement (when it is available) and other relevant documents filed with the SEC free of charge at the SEC&rsquo;s website
at www.sec.gov. In addition, copies of the proxy statement (when available) and other documents filed by the Company with the SEC
with respect to the proposed transaction may be obtained free of charge by directing a request to: NeoStem, Inc., 420 Lexington
Avenue, Suite 450, New York, NY 10170, Attn: Catherine M. Vaczy, Vice President and General Counsel, (212) 584-4180.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Participants in the Solicitation:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This Current Report on Form 8-K may be deemed
to be solicitation material in respect of the proposed transaction. The Company and its directors and executive officers may be
deemed to be participants in the solicitation of proxies from the Company&rsquo;s stockholders in connection with the proposed
transaction. Information concerning the Company&rsquo;s directors and executive officers is set forth in the Company&rsquo;s Annual
Report on Form 10-K, filed by the Company with the SEC on March 20, 2012, as amended by Amendment No. 1 on Form 10-K/A, filed by
the Company with the SEC on April 30, 2012. Investors may obtain additional information regarding the interests of such persons
who may, under the rules of the SEC, be considered to be participants in the solicitation of the Company&rsquo;s stockholders in
connection with the proposed transaction by reading the proxy statement when it becomes available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Forward Looking Statements:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: windowtext">This Current
Report on Form 8-K, including Exhibit 99.1 hereto, contains &ldquo;forward-looking&rdquo; statements within the meaning of the
Private Securities Litigation Reform Act of 1995.&nbsp;&nbsp;Forward-looking statements are typically preceded by words such as
&ldquo;believes,&rdquo; &ldquo;expects,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;intends,&rdquo; &ldquo;will,&rdquo; &ldquo;may,&rdquo;
&ldquo;should,&rdquo; or similar expressions, although some forward-looking statements are expressed differently.&nbsp;&nbsp;Forward-looking
statements represent the Company&rsquo;s management judgment regarding future events.&nbsp;&nbsp;Although the Company believes
the expectations reflected in such forward-looking statements are reasonable, the Company can give no assurance that such expectations
will prove to be correct.&nbsp;&nbsp;All statements other than the statements of historical fact included in this Current Report
on Form 8-K are forward-looking statements.&nbsp;&nbsp;The Company cannot guarantee the accuracy of the forward-looking statements,
and you should be aware that the Company&rsquo;s actual results could differ materially from those contained in the forward-looking
statements due to a number of factors. Important factors that might cause such a difference include, but are not limited to, failure
of NeoStem&rsquo;s stockholders to approve the Erye Sale, failure to obtain PRC regulatory approvals in connection with consummation
of the Erye Sale, termination of the Agreement prior to Closing, the Company&rsquo;s need for outside financing to meet capital
requirements, any inability by the Company to maintain its NYSE Amex listing, and other events and factors disclosed previously
and from time to time in the Company&rsquo;s filing with the SEC, including NeoStem&rsquo;s Annual Report on Form 10-K, filed by
the Company with the SEC on March 20, 2012, as amended by Amendment No. 1 on Form 10-K/A, filed by the Company with the SEC on
April 30, 2012, the Company&rsquo;s Quarterly Report on Form 10-Q, filed by the Company with the SEC on May 11, 2012, and other
factors identified from time to time in the Company&rsquo;s periodic filings with the SEC. </FONT>NeoStem does not undertake any
obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01.&nbsp;&nbsp;Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(d)&nbsp;&nbsp;Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibits are filed with this Current Report on
Form 8-K:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 9%; border-bottom: Black 1pt solid; font-weight: bold">Exhibit No.</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 90%; border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Description</TD></TR>
<TR STYLE="background-color: #CCFFCC">
    <TD STYLE="vertical-align: top">2.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Equity Purchase Agreement, dated as of June 18, 2012, by and among NeoStem, Inc., China Biopharmaceuticals Holdings, Inc., Fullbright Finance Limited, Suzhou Erye Economy &amp; Trading Co., Ltd., and Suzhou Erye Pharmaceutical Co., Ltd.</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCFFCC">
    <TD STYLE="vertical-align: top">99.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Press Release of NeoStem, Inc., dated June 18, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly&nbsp;caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold">NEOSTEM, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%">&nbsp;</TD>
    <TD STYLE="width: 25%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 32%">&nbsp;</TD>
    <TD STYLE="width: 15%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.25pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.25pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.25pt">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Catherine M. Vaczy</TD>
    <TD STYLE="padding-bottom: 1.25pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name:</TD>
    <TD COLSPAN="2">Catherine M. Vaczy, Esq.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD COLSPAN="2">Vice President and General Counsel</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dated:&nbsp;&nbsp;June 18, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-2.1
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<DESCRIPTION>EXHIBIT 2.1
<TEXT>
<HTML>
<HEAD>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>EXECUTION VERSION</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">EQUITY PURCHASE
AGREEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Equity Purchase
Agreement (this &ldquo;<U>Agreement</U>&rdquo;) is made and executed as of June 18, 2012 (the &ldquo;<U>Signing Date</U>&rdquo;),
by and among Fullbright Finance Limited, a limited liability company organized under the laws of British Virgin Islands (&ldquo;<U>Fullbright</U>&rdquo;),
Suzhou Erye Economy &amp; Trading Co., Ltd., a limited liability company organized under the laws of the People&rsquo;s Republic
of China (&ldquo;<U>EET</U>&rdquo;; together with Fullbright, each a &ldquo;<U>Purchaser</U>&rdquo; and collectively, the &ldquo;<U>Purchasers</U>&rdquo;),
NeoStem, Inc., a Delaware corporation whose shares of common stock are publicly traded in the United States (&ldquo;<U>NeoStem</U>&rdquo;),
China Biopharmaceuticals Holdings, Inc., a Delaware corporation and a wholly owned subsidiary of NeoStem (the &ldquo;<U>Seller</U>&rdquo;;
together with NeoStem, each a &ldquo;<U>Seller Party</U>&rdquo; and collectively, the &ldquo;<U>Seller Parties</U>&rdquo;), and
Suzhou Erye Pharmaceutical Co., Ltd., a Sino-foreign equity joint venture with limited liability organized under the laws of the
People&rsquo;s Republic of China (the &ldquo;<U>Company</U>&rdquo;; together with the Purchasers and the Seller Parties, each a
&ldquo;<U>Party</U>&rdquo; and collectively, the &ldquo;<U>Parties</U>&rdquo;).</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">W I T N
E S S E T H:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Seller
and EET together own an aggregate of 100% of the registered capital of the Company (the &ldquo;<U>Equity Interest</U>&rdquo;) with
the Seller owning 51% of the Equity Interest (the &ldquo;<U>Erye Interest</U>&rdquo;) and EET owning 49% of the Equity Interest;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Seller
and EET are parties to the Amended and Restated Joint Venture Contract of the Company dated October 20, 2009 (as further amended
on May 24, 2010) (the &ldquo;<U>JV Contract</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, upon the terms
and conditions and for the purchase price and other considerations set forth herein, the Seller Parties desire to sell, transfer
and assign to EET and Fullbright or one of its Affiliates as contemplated by <U>Section 9.9</U> and the Purchasers desire to purchase
from the Seller Parties directly or via one or more Affiliates of theirs all of the Erye Interest; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Parties
desire to provide for the smooth transition of ownership of the Company from the Seller to the Purchasers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, intending
to be legally bound and in consideration of the mutual provisions set forth in this Agreement and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">ARTICLE
1<BR>
</FONT>DEFINITIONS AND CONSTRUCTION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
1.1&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Definitions</U>. Capitalized terms used but not defined herein shall have the meanings
set forth below:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Affiliate</U>&rdquo;
of a Person means a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under
common control with, the first mentioned Person. For purposes of this definition, &ldquo;control&rdquo; shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through
the ownership of voting securities, by contract or otherwise. For the avoidance of doubt, &ldquo;Affiliates&rdquo; of each Party
includes the board of directors and executive officers of such Party; <U>provided</U>, <U>however</U>, (A) the Company shall not
be deemed an &ldquo;Affiliate&rdquo; of the Seller Parties or the Purchasers, and (B) each of Mr. Shi Mingsheng and Madame Zhang
Jian shall not be deemed an &ldquo;Affiliate&rdquo; of the Seller Parties, and shall be deemed as an &ldquo;Affiliate&rdquo; of
the Purchasers, by virtue, and to the extent, of their respective ownership interest in each Purchaser, but not by virtue of their
respective office held in the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Articles
of Association</U>&rdquo; means the Articles of Association of Suzhou Erye Pharmaceutical Co., Ltd., a limited liability company
organized under the laws of the People&rsquo;s Republic of China, dated June 16, 2005, as amended and restated on October 20, 2009,
and further amended on May 24, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Break-up
Fee</U>&rdquo; has the meaning as set forth in <U>Section 7.1(d)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Business
Day</U>&rdquo; means any day other than Saturday, Sunday, public holidays, or any day on which commercial banks in the People&rsquo;s
Republic of China are closed either under applicable law or action of any Governmental Authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Capital Increase</U>&rdquo;
has the meaning as set forth in <U>Section 5.1(d)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Capital Increase
Procedures</U>&rdquo; has the meaning as set forth in <U>Section 5.1(d)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Closing</U>&rdquo;
has the meaning as set forth in <U>Section 2.5</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Closing Date</U>&rdquo;
has the meaning as set forth in <U>Section 2.5</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Common Stock</U>&rdquo;
means common stock of NeoStem, par value US$.001 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Contract</U>&rdquo;
means any contract, agreement, lease, license, commitment, understanding, franchise, warranty, guaranty, mortgage, note, bond or
other instrument or consensual obligation that is legally binding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Delayed Submission
Period</U>&rdquo; has the meaning as set forth in <U>Section 5.1(i)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>EET Shareholder
Loans</U>&rdquo; means the loans in the aggregate principal amount of RMB129.34 million, interests thereon, and other fees, charges
and penalties, if any, related thereto under certain existing loan agreements between EET and the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Employee</U>&rdquo;
means any current director, officer or employee of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Encumbrance</U>&rdquo;
means any lien, pledge, mortgage, deed of trust, security interest, claim, lease, charge, option, right of first refusal, easement,
servitude, proxy, voting trust or agreement, transfer restriction under any shareholder or similar agreement, encumbrance or any
other restriction or limitation whatsoever other than restrictions on the transferability of securities arising under applicable
securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Escrow Accounts</U>&rdquo;
means, collectively, the Onshore Escrow Account and the Offshore Escrow Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Equity Transfer</U>&rdquo;
has the meaning as set forth in section 2.1&ldquo;<U>First Purchase Price Payment</U>&rdquo; has the meaning as set forth in <U>Section
2.2(A)(i)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>First Repayment</U>&rdquo;
has the meaning as set forth in <U>Section 5.1(f)(1)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Fullbright
Proxy</U>&rdquo; has the meaning as set forth in <U>Section 5.1(c)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Governmental
Authority</U>&rdquo; means any national, federal, state, provincial, county, municipal or local government, foreign or domestic,
or the government of any political subdivision of any of the foregoing, or any entity, authority, agency, ministry or other similar
body exercising executive, legislative, judicial, regulatory or administrative authority or functions of or pertaining to government,
including any authority or other quasi-governmental entity established to perform any of such functions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>JV Contract</U>&rdquo;
means the Joint Venture Contract of the Company by and between the Seller and EET dated June 16, 2005, as amended and restated
on October 20, 2009, and further amended on May 24, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Liabilities</U>&rdquo;
of any Person shall mean all obligations and liabilities of such Person (i) for any indebtedness (ii) for the deferred purchase
price of goods or services (other than trade payables or accruals incurred in the ordinary course of business), (iii) under letters
of credit or acceptance facilities, (iv) secured by any lien, claim, charge, mortgage, pledge, security interest, equity, restriction
or other encumbrance on the Company&rsquo;s assets or property or (v) in the nature of guarantees, endorsements (other than for
collection or deposit in the ordinary course of business) and other contingent obligations to purchase, to provide funds for payment,
to supply funds to invest in any Person or otherwise to assure a creditor against loss, including guarantees of the obligations
described in clauses (i) through v) above to any other Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Loss</U>&rdquo;
and &ldquo;<U>Losses</U>&rdquo; have the meanings as set forth in <U>Section 8.1</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>MOFCOM</U>&rdquo;
means the PRC Ministry of Commerce and/or its local counterparts as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>MOFCOM Transfer
Approval</U>&rdquo; has the meaning as set forth in <U>Section 5.1(h)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>MOFCOM Transfer
Submission</U>&rdquo; has the meaning set forth in <U>Section 5.1(h).</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>MOFCOM Transfer
Submission Date</U>&rdquo; has the meaning set forth in <U>Section 5.1(h).</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>NeoStem Shareholder
Approval</U>&rdquo; has the meaning as set forth in <U>Section 5.5</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>NeoStem Securities</U>&rdquo;
has the meaning as set forth in <U>Section 2.2(B)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Person</U>&rdquo;
means an individual, partnership, corporation, limited liability company or any other entity, joint stock company, unincorporated
organization or association, trust or joint venture, or a Governmental Authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>PRC</U>&rdquo;
means the People&rsquo;s Republic of China, excluding for purpose of this Agreement Hong Kong Special Administrative Region, Macau
Special Administrative Region and Taiwan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Purchase
Consideration</U>&rdquo; has the meaning as set forth in <U>Section 2.2</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Purchasers
Excess Payment</U>&rdquo; has the meaning as set forth in <U>Section 2.2(A)(iv)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Replacement
Regulatory Materials</U>&rdquo; has the meaning as set forth in <U>Section 7.2(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Replacement
Regulatory Submissions</U>&rdquo; has the meaning as set forth in <U>Section 7.2(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Total Cash</U>
<U>Purchase Price</U>&rdquo; has the meaning as set forth in <U>Section 2.2(A)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Readiness
Notice</U>&rdquo; has the meaning as set forth in <U>Section 5.1(i)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>RMB Deposit</U>&rdquo;
has the meaning as set forth in <U>Section 2.2(A)(iv)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>SAFE</U>&rdquo;
means the PRC State Administration of Foreign Exchange and/or its local counterparts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>SAFE Transfer
Approval</U>&rdquo; has the meaning set forth in <U>Section 5.1(h)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>SAIC</U>&rdquo;
means the PRC State Administration of Industry and Commerce and/or its local counterparts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>SAIC Transfer
Registration</U>&rdquo; has the meaning as set forth in <U>Section 5.1(h)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Second Purchase
Price Payment</U>&rdquo; means collectively the Offshore Second Purchase Price Payment as defined and as set forth in <U>Section
2.2(A)(ii) </U>and the Onshore Second Purchase Price Payment as defined and as set forth in <U>Section 2.2(A)(iii)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Second Repayment</U>&rdquo;
has the meaning as set forth in <U>Section 5.1(f)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Simplified
Agreement</U>&rdquo; has the meaning as set forth in <U>Section 2.3</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Submission
Permission Date</U>&rdquo; has the meaning as set forth in <U>Section 5.1(i)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Tax Return</U>&rdquo;
means any report, return, declaration, claim for refund, notice, account or information return or statement related to taxes, including
any schedule or attachment thereto, and including any amendment thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Third Purchase
Price Payment</U>&rdquo; has the meaning as set forth in <U>Section 2.2(A)(iv)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Third Purchase
Price Payment Date</U>&rdquo; has the meaning as set forth in <U>Section 2.2(A)(iv)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Third Party
Transaction</U>&rdquo; has the meaning as set forth in <U>Section 7.1(d)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Transactions</U>&rdquo;
means the transactions contemplated under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Transaction
Tax Liability</U>&rdquo; has the meaning as set forth in <U>Section 2.4</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Transfer
Restrictions</U>&rdquo; has the meaning as set forth in <U>Section 2.2(B)</U>.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">ARTICLE
2</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">THE
TRANSFER OF THE EQUITY INTEREST</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
2.1&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Sale and Purchase of Erye Interest</U>. Subject to the terms and conditions provided in this Agreement, the Seller
shall, and NeoStem shall cause the Seller to, sell, transfer and assign to the Purchasers all of the Erye Interest free and clear
of any Encumbrances, and the Purchasers shall purchase and acquire from the Seller all of the Erye Interest free and clear of any
Encumbrances, at a purchase consideration as set forth in Section 2.2 (the &ldquo;<U>Equity Transfer</U>&rdquo;).</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
2.2&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Purchase Consideration; Escrow</U>. Subject to the terms and conditions of this Agreement, the aggregate purchase
consideration for the Erye Interest shall be as set forth below (collectively, the &ldquo;<U>Purchase Consideration</U>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(A)</TD><TD STYLE="text-align: justify">cash payments totaling Twelve Million Two Hundred and Eighty Thousand U.S. Dollars (US$12,280,000)
(the &ldquo;<U>Total Cash Purchase Price</U>&rdquo;) payable in the following manner:</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">One Million Two Hundred and Twenty-Eight Thousand U.S. Dollars (US$1,228,000), being 10% of the
Total Cash Purchase Price, shall be paid by the Purchasers to the Seller by wire transferring such amount to the Seller&rsquo;s
U.S. bank account as designated by the Seller, as soon as practicable following the Signing Date but shall in no event be later
than fifteen (15) Business Days following the Signing Date (the &ldquo;<U>First Purchase Price Payment</U>&rdquo;);</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">Two Million Four Hundred and Fifty Six Thousand U.S. Dollars (US$2,456,000), being 20% of the Total
Cash Purchase Price, shall be paid by the Purchasers into an escrow account outside the PRC (the &ldquo;<U>Offshore Escrow Account</U>&rdquo;)
with HSBC Bank as the escrow agent (or another mutually agreeable agent), pursuant to an escrow agreement in substantially the
form as set forth in <U>Exhibit A</U> attached hereto, by the earlier of (a) the end of a seven week period following the Signing
Date or (b) the MOFCOM Transfer Submission Date (the &ldquo;<U>Offshore Second Purchase Price Payment</U>&rdquo;). Upon issuance
of the MOFCOM Transfer Approval, the Seller and the Purchasers shall jointly instruct the escrow agent of the Offshore Escrow Account
to release such Offshore Second Purchase Price Payment so deposited to the Seller at an account designated by the Seller. Such
amount may be refundable if the Transactions are terminated due to any material breach of this Agreement by any of the Seller Parties.;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">The RMB equivalent of Two Million Four Hundred and Fifty Six Thousand U.S. Dollars (US$2,456,000),
being 20% of the Total Cash Purchase Price, shall be paid by the Purchasers into an escrow account inside the PRC (the &ldquo;<U>Onshore
Escrow Account</U>&rdquo;) with HSBC Bank as the escrow agent (or another mutually agreeable agent), pursuant to an escrow agreement
in substantially the form as set forth in <U>Exhibit B</U> attached hereto, by the earlier of (a) the end of a seven week period
following the Signing Date, or (b) the MOFCOM Transfer Submission Date (the &ldquo;<U>Onshore Second Purchase Price Payment</U>&rdquo;);</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify">The RMB equivalent of Six Million and One Hundred and Forty Thousand U.S. Dollars (US$6,140,000),
being 50% of the Total Cash Purchase Price (the &ldquo;<U>Third Purchase Price Payment</U>&rdquo;), shall be paid by the Purchasers
into the Onshore Escrow Account on or prior to (a) the earlier of the MOFCOM Transfer Submission Date or (b) September 30, 2012
(the &ldquo;<U>Third Purchase Price Payment Date</U>&rdquo;); <U>provided</U>, <U>however</U>, that if the MOFCOM Transfer Submission
has not occurred by September 30, 2012 due to any delay in obtaining the NeoStem Shareholder Approval, the Third Purchase Price
Payment Date shall automatically be extended for the Delayed Submission Period as described in <U>Section 5.1(i)</U>. It is the
Parties&rsquo; understanding that the Purchasers shall take any risks of currency fluctuation of all the RMB of the Onshore Second
Purchase Price Payment and the Third Purchase Price Payment deposited in the Onshore Escrow Account (the &ldquo;<U>RMB Deposit</U>&rdquo;)
so that the Seller receives cash in U.S. dollars of an aggregate of Twelve Million Two Hundred and Eighty Thousand U.S. Dollars
(US$12,280,000). Upon the completion of the necessary SAFE procedures for converting the RMB Deposit by the Company, the Seller
and the Purchasers shall jointly instruct the escrow agent of the Onshore Escrow Account to release such RMB Deposit to an account
designated by both the Seller and the Purchasers for the immediate conversion of the RMB Deposit into U.S. dollar and simultaneous
transfer of the amount so converted to an account designated by the Seller, such that the Seller shall ultimately receive in U.S.
dollar an aggregate of the Onshore Second Purchase Price Payment and the Third Purchase Price Payment. At the Closing, and subject
to the occurrence of, the Closing, (i) all interest accrued on the Cash Purchase Price in both the Offshore Escrow Account and
the Onshore Escrow Account, and (ii) the excess of the aggregate cash amount deposited and received by the Escrow Agent in the
Offshore Escrow Account and any cash amount directly paid to the Seller by the Purchasers over the Total Cash Purchase Price, being
Twelve Million Two Hundred and Eighty Thousand U.S. Dollars (US$12,280,000) (such excess, the &ldquo;<U>Purchasers Excess Payment</U>&rdquo;),
if any, shall be released and returned to the Purchasers by wire transferring funds to an account designated by the Purchasers;
<U>plus</U></TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(B)</TD><TD STYLE="text-align: justify">the forfeiture and cancellation of (i) all of the outstanding options of NeoStem issued to Fullbright,
Mr. Shi Mingsheng and Madame Zhang Jian, respectively (such options, collectively, the &ldquo;<U>Forfeited Options</U>&rdquo;),
(ii) warrants to purchase 640,000 shares of Common Stock issued to Fullbright by NeoStem (the &ldquo;<U>Fullbright Warrants</U>&rdquo;),
and (iii) 1,040,000 shares of Common Stock issued or issuable to Fullbright (the &ldquo;<U>Fullbright Shares</U>&rdquo;, and together
with the Forfeited Options and the Fullbright Warrants, collectively, the &ldquo;<U>NeoStem Securities</U>&rdquo;), which shall
consist of (a) 400,000 shares of Common Stock issued to Fullbright represented by Certificate N1127 dated December 22, 2008, (b)
340,000 shares of Common Stock represented by a certificate for 34,000 shares of Series D Convertible Redeemable Preferred Stock
issued to Fullbright represented by Certificate 023 dated June 30, 2009, and (c) 300,000 shares of Common Stock represented by
a certificate for 30,000 shares of Series D Convertible Redeemable Preferred Stock issued to Fullbright represented by Certificate
024 dated July 6, 2009 (the stock certificates described in the foregoing items B(iii)(a) through (c) evidencing the Fullbright
Shares, collectively, the &ldquo;<U>Fullbright Certificates</U>&rdquo;) effective at, and subject to the occurrence of, the Closing.
Following the Signing Date and prior to the Closing, Fullbright shall not, and it shall cause Mr. Shi Mingsheng and Madame Zhang
Jian to not, sell, transfer, pledge, assign, exercise (if applicable) or otherwise take any action that results or would reasonably
be expected to result in any Encumbrance on any NeoStem Securities (the &ldquo;<U>Transfer Restrictions</U>&rdquo;). At the Closing,
Fullbright shall deliver the Fullbright Certificates, duly endorsed with blank stock power attached, medallion signature guaranteed.
It is understood by the Parties that (A) the Fullbright Shares have previously been provided to NeoStem as security for the performance
of certain indemnification obligations under the Indemnification Agreement dated October 12, 2009, by and among NeoStem, EET, the
Company and certain other parties signatories thereto (the &ldquo;<U>Indemnification Agreement</U>&rdquo;) and that the Fullbright
Certificates are in the physical possession of NeoStem (or its authorized transfer agent, as applicable) in relation thereto, and
(B) none of Fullbright, Mr. Shi Mingsheng and Madame Zhang Jian is in physical possession of the Forfeited Options and the Fullbright
Warrants. Upon the execution of this Agreement and regardless of whether this Agreement is later terminated for any reason, the
Fullbright Shares shall irrevocably be deemed to have been released by NeoStem and the Company from any and all Encumbrance placed
on such shares pursuant to the Indemnification Agreement; <U>provided</U>, that Fullbright shall have provided to the Seller Parties
the documents as required to be provided to the Seller Parties pursuant to <U>Section 5.7</U>, and Fullbright hereby deposits the
Fullbright Shares and the Fullbright Certificates with NeoStem as part of the Purchase Consideration payable to the Seller by the
Purchasers at the Closing; <U>provided</U>, <U>however</U>, that the Fullbright Certificates shall be released and returned to
the Purchasers in accordance with the terms of <U>Section 7.2</U>. At the Closing, (i) Fullbright shall assign the Fullbright Shares
and Fullbright Warrants to NeoStem and shall execute any documents necessary to accomplish such assignment and the Fullbright Certificates
and Fullbright Warrants shall be released to the Seller Parties. At the Closing, each of Fullbright, Mr. Shi Mingsheng and Madame
Zhang Jian shall not be required to make any closing delivery or take further actions with respect to the NeoStem Securities; plus</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(C)</TD><TD STYLE="text-align: justify">At the Closing, the cancellation of all of the dividends accrued for the years ended December 31,
2010, 2011 and 2012, respectively, that would otherwise be distributable to the Seller by the Company pursuant to the JV Contract.
It is understood and agreed by the Parties that the payment of the Purchase Consideration to the Seller Parties by the Purchasers
shall satisfy and discharge in full all the Company&rsquo;s obligations, debts and liabilities with respect to such accrued dividends,
and the Seller Parties shall have no further rights, or claims of any rights, to any such dividends under the JV Contract.</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
2.3&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory Filings and Approvals</U>. The Company agrees to use its commercially reasonable best efforts as promptly
as possible to make regulatory filings and submit information necessary for the purposes of obtaining the MOFCOM Transfer Approval,
effectuating the SAIC Transfer Registration and the Tax Registration, and obtaining the SAFE Transfer Approval, and Fullbright
agrees to use its commercially reasonable best efforts as promptly as possible to make regulatory filings and submit information
necessary for the regulatory approval and/or registration of the Transactions in the British Virgin Islands; <U>provided</U>, that
each of the other Parties agrees to use its commercially reasonable best effort to cooperate with the applicable filing party in
the Regulatory Submission and Approval, and provide information related to such Party as required by the relevant Governmental
Authority for purpose of such regulatory filings and submission. The Purchasers shall be solely responsible for all regulatory
filing fees associated thereto. It is agreed and understood by the Parties that the Company shall submit a simplified version of
this Agreement solely with regard to the Equity Transfer for the purpose of such regulatory filings and submissions in the PRC
(the &ldquo;<U>Simplified Agreement</U>&rdquo;), which Simplified Agreement shall be dated a date after the completion of the Capital
Increase Procedures; <U>provided</U>, that the terms and conditions in the Simplified Agreement shall be consistent with the terms
and conditions in this Agreement, and, in the event of any conflict between the provisions of the Simplified Agreement and this
Agreement, the provisions of this Agreement shall control and prevail.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
2.4&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Certain Taxes and Fees</U>. Subject to the completion of the Capital Increase Procedures, all enterprise income
taxes, stamp duties, other transfer, sales and use taxes, and registration, recording and other fees incurred by any Party as a
result of the consummation of the Transactions payable to the relevant PRC Governmental Authority under the laws of the PRC shall
be paid by EET when due (the &ldquo;<U>Transaction Tax Liability</U>&rdquo;) and in no event shall such Transaction Tax Liability
be borne by the Seller Parties; <U>provided</U>, <U>however</U>, that the Seller Parties (i) shall use their respective commercially
reasonable best efforts to obtain any certificate or other document from any Governmental Authority or any other Person and, upon
request by the Purchasers, take all actions to cooperate with the Purchasers as may be necessary to mitigate, reduce, or eliminate
any tax, fees, charges and penalties that could be imposed (including, without limitation, with respect to the Transactions), and
(ii) shall be responsible for any tax filings related to their respective capital gains on the Transactions. The Purchasers shall,
at their own expense, file all necessary Tax Returns and other documentation with respect to all such Transaction Tax Liability
as required to be filed by them under the laws of the PRC, and, if required by applicable law, the Purchasers shall, and shall
cause the Company to, join in the execution of any such Tax Returns and other documentation.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
2.5&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing</U>. The Erye Interest shall be transferred from
the Seller to the Purchasers, free and clear of any Encumbrances, within two (2) Business Days following the satisfaction or waiver
of all conditions precedent to closing as set forth in <U>Article 6</U> or such other date as the Parties shall otherwise agree
(the consummation of the Equity Transfer, the &ldquo;<U>Closing</U>&rdquo; and the date on which the Closing occurs, the &ldquo;<U>Closing
Date</U>&rdquo;). Subject to the delivery requirement set forth in <U>Section 2.2(B)</U>, the Closing may take place electronically
via the exchange of documents and signatures.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
2.6&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing Deliveries.</U></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Seller
Closing Deliveries</U>. At or prior to the Closing, the Seller or NeoStem, as applicable, shall have delivered or cause to be delivered
to the Purchasers:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">this Agreement, duly executed by the Seller Parties;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">a duly executed certificate of the Chief Executive Officer of the Seller in his or her representative
capacity, dated as of the Closing Date, certifying as to the Seller (A) that true and complete copies of the governing documents
of such entity, as in effect on the Closing Date (including any amendments thereof), are attached thereto, (B) as to the incumbency
and genuineness of the signatures of each officer executing this Agreement, and (C) as to the genuineness of the resolutions (attached
as an exhibit thereto) of the Seller&rsquo;s board of directors and the resolutions of its shareholder(s) (attached as an exhibit
thereto), each authorizing and approving the execution, delivery and performance of this Agreement;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">a duly executed certificate of the Chief Executive Officer of NeoStem in his or her representative
capacity, dated as of the Closing Date, certifying as to NeoStem (A) that true and complete copies of the governing documents of
such entity, as in effect on the Closing Date (including any amendments thereof), are attached thereto, (B) as to the incumbency
and genuineness of the signatures of each officer executing this Agreement, (C) as to the genuineness of the resolutions (attached
as an exhibit thereto) of NeoStem&rsquo;s board of directors authorizing the execution, delivery and performance of this Agreement,
and (D) the approval by the shareholders of NeoStem in accordance with the Governing Documents of such entity and the applicable
rules and regulations in the United States, authorizing and approving the execution, delivery and performance of this Agreement;
and</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify">evidence of release from the Offshore Escrow Account or direct payment by the Seller to the Purchasers
of the Purchasers Excess Payment, if any, to an account designated by the Purchasers, subject to delivery by the Purchasers of
the items set forth in Section 2.6(b)(ii)(a).</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchaser
Closing Deliveries</U>. At or prior to the Closing, the Purchasers shall have delivered or cause to be delivered to the Seller
Parties:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">this Agreement duly executed by each Purchaser;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">(a) evidence of release from the Escrow Account or direct payment to the Seller the Total Cash
Purchase Price by wire transfer of immediately available funds in U.S. dollars to the U.S. account specified by the Seller, and
(b) duly executed assignments and other documents reasonably requested by NeoStem for Fullbright to execute for the assignment
of the Fullbright Shares and the Fullbright Warrants to NeoStem pursuant to <U>Section 2.2(B)</U>; and</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">duly executed resignation letter from Mr. Shi Mingsheng, which shall provide for Mr. Shi&rsquo;s
resignation from the Board of Directors of NeoStem effective on or prior to the Closing; <U>provided</U>, <U>however</U>, that
this clause shall not be interpreted to restrict Mr. Shi&rsquo;s ability from resigning from the Board of Directors of NeoStem
in any matter or fashion prior to the Closing regardless of whether the Closing occurs.</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">ARTICLE
3<BR>
</FONT>REPRESENTATIONS AND WARRANTIES OF THE SELLER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Seller Party represents
and warrants to the Purchasers as of both the Signing Date and the Closing Date as follows:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
3.1&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Organization and Good Standing</U>. Such Seller Party is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
3.2&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authority and Enforceability</U>. Except for any shareholder
approval and related filings as contemplated by <U>Section 5.5</U> with respect solely to NeoStem, (i) the Seller has all requisite
corporate power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement; (ii)
the execution, delivery and performance of this Agreement and the consummation of the Transactions by such Seller Party has been
duly authorized by all necessary action on the part of such Seller Party; (iii) such Seller Party has duly and validly executed
and delivered this Agreement; and (iv) assuming the due authorization, execution and delivery of this Agreement by the Purchasers
and the Company, this Agreement constitutes the valid and binding obligation of such Seller Party enforceable against such Seller
Party in accordance with its terms, subject to (a) laws of general application relating to bankruptcy, insolvency and the relief
of debtors and (b) laws governing specific performance, injunctive relief and other equitable remedies.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
3.3&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No Conflict</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;Except
for any shareholder approval and related filings as contemplated by <U>Section 5.5</U> with respect solely to NeoStem, neither
the execution, delivery and performance of this Agreement by such Seller Party, nor the consummation by such Seller Party of the
Transactions, will (i) conflict with or violate such Seller Party&rsquo;s governing documents, (ii) result in a breach or default
under, or create in any Person the right to terminate, cancel, accelerate or modify, or require any notice, consent or waiver under,
any Contract to which such Seller Party is a party or to which any of the assets or properties of such Seller Party are subject,
or (iii) violate any law or judgment applicable to such Seller Party.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;Except
for any shareholder approval and related filings as contemplated by <U>Section 5.5</U> with respect solely to NeoStem, no consent,
waiver, approval, order, permit, governmental authorization or other authorization of, or declaration or filing with, or notification
to, any Person or Governmental Authority is required on the part of such Seller Party in connection with the execution and delivery
of this Agreement, the compliance by such Seller Party with any of the provisions hereof, or the consummation of the Transactions.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
3.4&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legal Ownership; No Encumbrance</U>. The Seller has valid,
full and entire ownership of the Erye Interest free and clear of any Encumbrance, except as disclosed in NeoStem's filings with
the U.S. Securities and Exchange Commission.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
3.5&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legal Proceedings</U>. There is no proceeding pending or
threatened against such Seller Party that questions or challenges the validity of this Agreement or the ability of such Seller
Party to consummate the Transactions.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">ARTICLE
4<BR>
</FONT>REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Purchaser represents
and warrants to the Seller Parties as of both the Signing Date and the Closing Date as follows:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
4.1&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization and Good Standing</U>. Such Purchaser is a
limited liability company duly organized, validly existing and in good standing under the laws of its place of organization.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
4.2&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authority and Enforceability</U>. Each Purchaser has all
requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement.
The execution, delivery and performance of this Agreement and the consummation of the Transactions have been duly authorized by
all necessary action on the part of such Purchaser. Such Purchaser has duly and validly executed and delivered this Agreement.
Assuming the due authorization, execution and delivery of this Agreement by the Seller Parties, this Agreement constitutes the
valid and binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms, subject to (a)
laws of general application relating to bankruptcy, insolvency and the relief of debtors and (b) laws governing specific performance,
injunctive relief and other equitable remedies.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
4.3&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Purchasers have funds in US dollars or have ready access
to funds in US dollars to enable the Purchasers to make the First Purchase Price Payment, and have or will have the ability to
convert funds in RMB into U.S. dollars to make the Second Purchase Price Payment and Third Purchase Price Payment when due pursuant
to the terms and conditions of this Agreement.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
4.4&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sufficient Funds</U>. The Company has sufficient funds
available out of its working capital to repay the EET Shareholder Loans in accordance with <U>Section 5.1(f)</U> and <U>(g)</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
4.5&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Legal Ownership; No Encumbrance</U>. Each of Fullbright, Mr. Shi Mingsheng and Madame Zhang Jian, has valid, full
and entire ownership of the NeoStem Securities under such Person&rsquo;s name free and clear of any Encumbrance.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
4.6&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Conflict</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;Neither
the execution, delivery and performance of this Agreement by such Purchaser, nor the consummation by such Purchaser of the Transactions,
(i) will conflict with or violate such Purchaser&rsquo;s Governing Documents, (ii) result in a breach or default under, or create
in any Person the right to terminate, cancel, accelerate or modify, or require any notice, consent or waiver under, any Contract
to which such Purchaser is a party or to which any of the assets or properties of such Purchaser are subject, or (iii) violate
any law or judgment applicable to the Purchaser.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;Except
for the Regulatory Submissions and related approvals in the PRC and the British Virgin Islands, if any, no consent, waiver, approval,
order, permit, Governmental Authorization or other authorization of, or declaration or filing with, or notification to, any Person
or Governmental Authority is required on the part of such Purchaser in connection with the execution and delivery of this Agreement,
respectively, the compliance by the Purchasers with any of the provisions hereof, or the consummation of the Transactions.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
4.7&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Legal Proceedings</U>. There is no proceeding pending against such Purchaser that questions or challenges the
validity of this Agreement or that may prevent, delay, make illegal or otherwise interfere with the ability of such Purchaser to
consummate any of the Transactions.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">ARTICLE
5<BR>
</FONT>COVENANTS</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.1&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Access; Cooperation</U>.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;Until
the Closing Date, the Company shall (A) upon reasonable advance notice to the Company by the Seller and during regular business
hours of the Company, allow the Seller and its accountants, counsel, financial advisors and other representatives who are bound
by confidentiality obligations access to, (i) the Company properties and facilities (including all the buildings, structures, fixtures,
appurtenances and improvements erected, attached or located thereon), (ii) the Company&rsquo;s books, financial information (including
working papers and data in the possession of the Company or its independent public accountants, internal audit reports, and &ldquo;management
letters&rdquo; from such accountants with respect to the Company systems of internal control), (iii) Contracts and records of the
Company, (iv) such other materials and information about the Company as the Seller may request, (v) members of management and other
employees of the Company as the Seller may request, and (vi) such information and materials as are necessary for NeoStem to prepare
and file proxy statements and reports under the applicable laws and regulations; and (B) if required by the laws of the PRC, continue
to make ordinary course filings in the PRC related to the Company as well as the Regulatory Submission related to the Transactions,
all in accordance with the JV Contract; <U>provided</U>, that the MOFCOM Transfer Submission shall be made no later than two (2)
Business Days following the Submission Permission Date. Notwithstanding anything to the contrary provided in the foregoing, any
access to the Company by the Seller shall be made in an orderly and peaceful fashion in compliance with the public security and
other laws of the PRC and shall not adversely impact or otherwise disrupt the Company&rsquo;s business operations and management.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;Following
the Closing and until April 15, 2013, upon request by NeoStem with reasonable advance notice, the Company shall provide to NeoStem
all financial and other information, to the extent and only to the extent such financial and other information shall relate to
any matters of the Company prior to the Closing, as may be necessary for NeoStem and the Seller, as applicable, to prepare and
file all reports as required to be filed with the U.S. Securities and Exchange Commission under the applicable laws of the United
States, as well as any Tax Returns. The Company shall provide financial statements for all reporting periods through the Closing
Date for inclusion in NeoStem&rsquo;s financial statements and shall provide access to financial records during this period for
NeoStem and its auditors to review and audit such financial statements as needed for proper inclusion in NeoStem&rsquo;s consolidated
financial statements.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;Fullbright
in its capacity as a shareholder of Common Stock shall vote the shares of Common Stock held by it in favor of the Transactions.
Solely with respect the matters set forth in this Agreement and for purpose of obtaining the NeoStem Shareholder Approval in accordance
with <U>Section 5.5</U>, Fullbright hereby constitutes and appoints the Chief Executive Officer, President, Chief Financial Officer
and General Counsel of NeoStem with full power of substitution, as its proxies, and hereby authorizes each of them to represent
and to vote all of Fullbright&rsquo;s Shares of Common Stock in favor of the matters set forth in this Agreement at any meeting
of NeoStem&rsquo;s shareholders held to consider such matters (the &ldquo;<U>Fullbright Proxy</U>&rdquo;). The Fullbright Proxy
granted pursuant to the immediately preceding sentence is given in consideration of the agreements and covenants of the parties
in connection with the transactions contemplated by this Equity Purchase Agreement and, as such, is coupled with an interest, and
(i) shall be irrevocable unless and until, and (ii) shall automatically expire without any further action from Fullbright on the
date when, the NeoStem Shareholder Approval shall have been obtained or the shareholders of NeoStem shall have failed to approve
this Agreement and the Transaction at any such meeting of NeoStem&rsquo;s shareholders for such a purpose. Fullbright hereto hereby
revokes any and all previous proxies with respect to the Common Stock and shall not hereafter, unless and until the expiration
of the Fullbright Proxy purport to grant any other proxy or power of attorney with respect to any of the Fullbright Shares, deposit
any of the Fullbright Shares into a voting trust or enter into any agreement, arrangement or understanding with any person, directly
or indirectly, to vote, grant any proxy or give instructions with respect to the voting of any of the Fullbright Shares, in each
case, that would contradict with the grant of the<BR>
Fullbright Proxies as set forth in this <U>Section 5.1(c)</U>.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(d)&#9;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the signing of this Agreement by the Parties, the Board of Directors of the Company shall pass resolutions in substantially the
form as set forth on <U>Exhibit C(1)</U> attached hereto, which resolutions shall authorize and approve the Company, immediately
upon the signing of this Agreement, to (i) increase the registered capital of the Company by converting the capital reserve and
capital surplus accumulated as of December 31, 2011 in the aggregate amount of RMB 72.30 million to paid-in registered capital
of the Company (the &ldquo;<U>Capital Increase</U>&rdquo;), and (ii) in connection with the Capital Increase, amend and restate
the Articles of Association of the Company in substantially the form as set forth on <U>Exhibit C(2)</U> attached hereto, and amend
and restate the Joint Venture Contract in substantially the form as set forth on <U>Exhibit C(3)</U> attached hereto (collectively,
the &ldquo;<U>Charter and JV Contract Amendment</U>&rdquo;; and the process and procedures required to be completed by the Company
for purposes of the Capital Increase and the Charter and JV Contract Amendment under the laws of the PRC, the &ldquo;<U>Capital
Increase Procedures</U>&rdquo;), and (iii) authorize and direct the management of the Company to, immediately upon the signing
of this Agreement, apply with MOFCOM for the approval of the Capital Increase, and upon approval thereof, register with the applicable
SAIC with respect to the Capital Increase, and otherwise initiate and complete all other Capital Increase Procedures prior to making
the regulatory submission to MOFCOM and the applicable SAIC for the approval and registration of the Equity Transfer.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(e)&#9;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with the board resolutions as described in paragraph (d) of this Section, the Company shall use its commercially reasonable
best efforts to complete the Capital Increase Procedures as soon as practicable; <U>provided</U>, that the Seller Parties shall
cooperate with the Company in good faith in a timely manner to facilitate the Company&rsquo;s efforts in completing the Capital
Increase Procedures; and <U>provided</U>, <U>further</U>, that the Capital Increase shall not incur any cost, liability or tax
liability to the Seller Parties. It is understood by the Parties that the Seller Parties shall have the sole authority and responsibility
to file any Tax Returns related to their capital gains obligations with respect to the Transactions and that the Purchasers shall
not interfere with such filing. The Purchasers shall indemnify the Seller Parties against and shall hold the Seller Parties harmless
from any PRC tax liabilities on capital gains caused by or resulting from the Capital Increase under the applicable PRC laws.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(f)&#9;&nbsp;&nbsp;&nbsp;&nbsp;On
or prior to the signing of this Agreement by the Parties, the Board of Directors of the Company shall pass resolutions in substantially
the form as set forth on <U>Exhibit D</U> attached hereto, which resolutions shall authorize and direct the Company to repay portions
of the EET Shareholder Loans to EET out of its working capital by wire transfer of immediately available funds to an account designated
by EET in accordance with the schedules set forth below:</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(1)</FONT></TD><TD STYLE="text-align: justify">The RMB equivalent of Four Million Nine Hundred and Twelve Thousand U.S. Dollars (US$4,912,000),
which equals 40% of the Purchase Price on or about the tenth (10th) day prior to the expiration of the seventh (7<SUP>th</SUP>)
week following the Signing Date, which amount shall be immediately used by EET to make the Offshore Second Purchase Price Payment
and Onshore Second Purchase Price Payment in accordance with <U>Section 2.2(A)</U> (the &ldquo;<U>First Repayment</U>&rdquo;);
and</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(2)</FONT></TD><TD STYLE="text-align: justify">The RMB equivalent of Six Million and One Hundred and Forty Thousand U.S. Dollars (US$6,140,000),
which equals 50% of the Total Cash Purchase Price prior to the earlier of the MOFCOM Transfer Submission or September 30th, 2012
(the &ldquo;<U>Second Repayment</U>&rdquo;), which amount shall be immediately used by EET to make the Third Purchase Price Payment
in accordance with Section 2.2(A); and</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(3)</FONT></TD><TD STYLE="text-align: justify">EET shall deposit the First Repayment and Second Repayment into the Offshore Escrow Account and
the Onshore Escrow Account as the Offshore Second Purchase Price Payment, the Onshore Second Purchase Price Payment and the Third
Purchase Price Payment in accordance with <U>Section 2.2(A)</U>.</TD></TR></TABLE>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(g)&#9;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall repay EET the EET Shareholder Loans as authorized by and in accordance with the resolutions of the Board of Directors
of the Company as provided in paragraphs (d) and (f) of this Section. EET hereby agrees that it shall (a) use the First Repayment
and the Second Repayment solely to make payment on the Second Purchase Price Payments and the Third Purchase Price Payment, respectively,
when such payments are due in accordance with <U>Section 2.2(A)</U>, respectively, and (b) in the event the Transaction shall not
have been consummated for any reason, shall promptly return such repayment of EET Shareholder Loans to the Company upon the release
of the Purchase Price to it by the Escrow Agent from the Offshore Escrow Account and Onshore Escrow Account. The Company agrees
that it shall not increase its level of bank debts existing as of the Signing Date as a result of the repayment of the EET Shareholder
Loans as set forth in the foregoing.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(h)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Seller Parties and the Purchasers shall enter into the Simplified Agreement immediately upon the completion of the Capital Increase
Procedures. The Company shall, and NeoStem and EET shall cause the Company to, pass resolutions (i) authorizing and directing the
management of the Company to make regulatory filings and submissions with the relevant Governmental Authorities (collectively,
the &ldquo;<U>Regulatory Submission</U>&rdquo;) for purposes of seeking and obtaining MOFCOM approval of the Equity Transfer (the
&ldquo;<U>MOFCOM Transfer Approval</U>&rdquo;), registering with the applicable SAIC with respect to the Equity Transfer (the &ldquo;<U>SAIC
Transfer Registration</U>&rdquo;), seeking approval from SAFE for the currency exchange in connection with the Equity Transfer
(the &ldquo;<U>SAFE Transfer Approval</U>&rdquo;), and registering with the relevant tax authority with respect to the Equity Transfer
(the &ldquo;<U>Tax Transfer Registration</U>&rdquo;). Any Regulatory Submission made by the Company for the purpose of obtaining
MOFCOM Transfer Approval is referred to herein as the &ldquo;<U>MOFCOM Transfer Submission</U>&rdquo; and the date on which the
MOFCOM Transfer Submission is made is referred to herein as the &ldquo;<U>MOFCOM Transfer Submission Date</U>&rdquo;.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(i)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When
the Company has completed the Capital Increase Procedures pursuant to <U>Section 5.1(e)</U>, the Company shall notify, via electronic
mail transmission, NeoStem of such completion and its readiness to make the MOFCOM Transfer Submission (such notice, the &ldquo;<U>Readiness
Notice</U>&rdquo;). In the event NeoStem has not obtained the NeoStem Shareholder Approval by the time of the Readiness Notice,
the Company shall not make the MOFCOM Transfer Submission until it has been notified by NeoStem, via electronic mail transmission,
of its agreement and permission for the Company to make the MOFCOM Transfer Submission (such date, the &ldquo;<U>Submission Permission
Date</U>&rdquo;). The period between the Readiness Notice and the Submission Permission Date is referred to in this Agreement as
the &ldquo;<U>Delayed Submission Period</U>.&rdquo; Any notice delivered pursuant to this <U>Section 5.1(i)</U> via electronic
mail transmission shall be deemed to have been received on the same date of such delivery unless a system delivery error message
shall have indicated otherwise. If the Submission Permission Date shall be a Saturday, Sunday or any national holiday in the PRC
on which date MOFCOM is not open for business by applicable PRC law, regulations or policies, then the Submission Permission Date
shall be extended to the closest following day on which the applicable MOFCOM is open for business.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(j)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall, and the Purchasers and EET shall cause the Company to, (i) file for the SAIC Transfer Registration within three
(3) Business Days following the date on which the Company shall have received the MOFCOM Transfer Approval, (ii) file for the SAFE
Transfer Approval within three (3) Business Days following the date on which the Company shall have received the SAIC Transfer
Registration, and (iii) file for the Tax Transfer Clearance within three (3) Business Days following the date on which the Company
shall have completed the SAIC Transfer Registration. A representative designated by NeoStem shall have the right to closely monitor
the Company&rsquo;s preparation and filing for all the Regulatory Submissions in the PRC and accompany the Company&rsquo;s employees
in the actual filing of any such Regulatory Submission. With respect to any Regulatory Submission in the PRC, the Company shall
promptly provide to the Seller Parties a copy of any receipt provided by the relevant Governmental Authority evidencing such Regulatory
Submission.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.2&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Operation of the Business of the Company</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
the Closing, except as otherwise set forth in this Agreement or as otherwise consented to by the Seller Parties and the Purchasers
(in each case, which consent may not be unreasonably withheld, conditioned or delayed), the Company shall, and each of the Seller
Parties and EET shall (if within its power to control) cause the Company to (or, as the case may be, not take any action which
would cause the Company not to):</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">conduct its business in the ordinary course of business in all material respects; and</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">use its commercially reasonable best efforts to (A) preserve the present business operations, organization
(including officers and Employees) and goodwill of the Company and (B) preserve the present relationships with Persons having business
dealings with the Company (including customers and suppliers).</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
the Closing, except as otherwise set forth in this Agreement or as otherwise consented to by the Seller Parties and the Purchasers
(in each case, which consent will not be unreasonably withheld, conditioned or delayed), the Company shall not, and each of the
Seller Parties and EET shall cause the Company not to (or, as the case may be, take any action which would cause or permit the
Company to):</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">transfer, issue, sell, dispose or, pledge or encumber any of its equity interests or securities
convertible into any such equity interests, or any options, warrants or rights to acquire any such equity interests, or take any
loans or otherwise incur indebtedness for borrowed money such that the total aggregate indebtedness of the Company (excluding any
accounts receivable and accounts payable incurred in the ordinary course of the Company&rsquo;s business as part of the Company&rsquo;s
working capital) shall exceed the level on June 14, 2012;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">declare, set aside or pay any dividend or other distribution in respect of its equity interests,
whether or not otherwise required pursuant to the terms of the JV Contract, or, except for the EET Loan Repayments as required
under <U>Section 5.1(f)</U>, make payments to EET under or related to loans from EET to the Company;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">effect any recapitalization, reclassification, or any change in the capitalization of the Company,
or amend the terms of any outstanding equity interests of the Company (other than as contemplated under <U>Section 5.1(d)</U>);</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify">terminate, amend, restate, supplement or waive any rights under any material Contract, other than
in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD STYLE="text-align: justify">acquire any material properties or assets or sell, assign, license, transfer, convey, lease or
otherwise dispose of any of the material properties or assets of, or used by, the Company, other than in the ordinary course of
business;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(vi)</TD><TD STYLE="text-align: justify">issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with
respect to (whether directly, contingently or otherwise) any indebtedness from third parties, other than in the ordinary course
of business;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(vii)</TD><TD STYLE="text-align: justify">enter into any commitment for capital expenditures of the Company other than in the ordinary course
of business and consistent with past practice, or increase the compensation level of any board member or consultant;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(viii)</TD><TD STYLE="text-align: justify">except as may be required by the generally accepted accounting principles in the PRC or as a result
of changes in applicable laws and regulations in the PRC, make a change in its accounting or tax reporting principles, methods
or policies except as required by applicable laws and regulations;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(ix)</TD><TD STYLE="text-align: justify">materially change or modify its credit, collection or payment policies or practices, other than
in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(x)</TD><TD STYLE="text-align: justify">change the Company&rsquo;s commercial banks and related signatories in effect on the date hereof;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(xi)</TD><TD STYLE="text-align: justify">take any action which would materially and adversely affect the ability of the Parties to consummate
the Transactions;</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(xii)</TD><TD STYLE="text-align: justify">except as contemplated under this Agreement, make or change any material tax election, settle or
compromise any material tax liability, file any material Tax Return, amend any Tax Return, or enter into any closing or other tax
agreement with a Government Authority; or</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: normal 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(xiii)</TD><TD STYLE="text-align: justify">agree to do anything (A) prohibited by this <U>Section 5.2</U>, or (B) intended to make any of
the representations and warranties of the Seller or Purchaser in this Agreement or untrue or incorrect in any material respect
or could result in any of the conditions to the Closing not being satisfied.</TD></TR></TABLE>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything to the contrary provided herein, this <U>Section 5.2</U> shall not be interpreted to restrict or prohibit the Company
from performing any of its obligations under any existing Contract with respect to which the Company has performance obligations
beyond the Signing Date, or otherwise adversely affect the Company&rsquo;s ability to carry on its normal business operations and
management.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.3&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Consents and Filings; Commercially Reasonable Best Efforts</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms and conditions provided in this <U>Section 5.3</U>, each Seller Party and Purchaser shall use its commercially reasonable
best efforts to assist the Company to obtain at the earliest practicable date all consents, waivers and approvals (including any
approval and/or registration related to the Capital Increase Procedures, the MOFCOM Transfer Approval, the SAIC Transfer Registration,
the SAFE Transfer Approval, and the Tax Transfer Registration) from, and provide all notices to, all necessary Persons, which consents,
waivers, approvals and notices are required to consummate, or in connection with, the Transactions in accordance with this Agreement.
The responsibilities and obligations of each Seller Party and Purchaser to provide assistance under this <U>Section 5.3(a)</U>
shall include, without limitation, executing, delivering, and providing all documentations and authorizations necessary for the
Regulatory Submission. It is understood by the Parties that, subject to the obligations and responsibility to assist as described
in the foregoing sentence, the Seller Parties shall not have any other obligations in providing assistance pursuant to this <U>Section
5.3(a)</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to, and not in limitation of, <U>Section 5.3(a)</U>, each Seller Party and each Purchaser shall use its commercially reasonable
best efforts to (i) take, or cause to be taken, all actions necessary or appropriate to consummate the Transactions and (ii) cause
the fulfillment at the earliest practicable date of all of the conditions to their respective obligations to consummate the Transactions.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.4&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Confidentiality; Public Announcements</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parties agree that the existence and content of this Agreement shall remain confidential until a press release or stock exchange
release is published as agreed upon between the Seller Parties, on the one hand, and the Purchasers, on the other hand. To the
extent that the existence or content of this Agreement is required to be disclosed to any third party, excluding any disclosure
required by the applicable laws and regulations or any applicable Governmental Authority, permission shall be obtained from the
other party.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
announcement or similar publicity such as a press release that the Parties may be required to make public under applicable laws
and regulations with respect to this Agreement or the Transactions shall be issued, if at all, at such time and in such manner
as agreed to by the Parties, it being understood that the Parties may be required to make certain disclosures, filings and announcements
in accordance with applicable U.S. securities laws or securities listings standards, and/or the PRC Governmental Authority as contemplated
under this Agreement and such disclosures, filings and announcements are not subject to the restrictions in this <U>Section 5.4</U>.
Unless contemplated by this Agreement, required by applicable laws and regulations, or otherwise determined by a court of competent
jurisdiction, each Party shall, and shall cause its Affiliates to, keep this Agreement strictly confidential and make no disclosure
thereof to any Person without the prior written consent of the other Parties.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.5&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Shareholder Approval of NeoStem</U>. Upon the signing of this Agreement, NeoStem shall, as promptly as practicable,
seek its shareholder approval of this Agreement and the Transactions in accordance with its Governing Documents and the applicable
laws and regulations (such shareholder approval, the &ldquo;<U>NeoStem Shareholder Approval</U>&rdquo;) and shall promptly notify
the Purchasers and the Company of the result of its shareholder voting with respect to this Agreement and the Transactions.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.6&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No-Shop, Transfer; No Encumbrances on the Erye Interest</U>. Immediately following the MOFCOM Transfer Submission,
the Seller Parties shall not, and they shall not engage in any discussion or enter into any agreement, commitment or understanding
with any third party to, sell, transfer, or assign the Erye Interest, and the Affiliates of the Seller Parties shall not encourage,
facilitate, assist or cause the Seller Parties to enter into any agreement, commitment or understanding or discussion thereof with
any third party to sell, transfer, or assign the Erye Interest. Immediately following the Signing Date, the Seller Parties shall
not take any actions that result, or could reasonably be expected to result, in any Encumbrance on the Erye Interest.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.7&#9;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Purchasers shall provide to NeoStem (i) a copy of the business license of Suzhou Erye Zong He Commerce &amp;
Trade Co., Ltd. (&#33487;&#24030;&#20108;&#21494;&#32508;&#21512;&#21830;&#36152;&#26377;&#38480;&#20844;&#21496;), showing Fullbright
and EET as its equity holders, and (ii) a copy of tax clearance documentation showing that any taxes payable by the Seller in connection
with the transfer by the Seller of its equity interest in Suzhou Erye Zong He Commerce &amp; Trade Co., Ltd. (&#33487;&#24030;&#20108;&#21494;&#32508;&#21512;&#21830;&#36152;&#26377;&#38480;&#20844;&#21496;)
to Fullbright shall have been paid and cleared.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.8&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notification of Certain Matters</U>. Each of the Seller Parties will give notice to the Purchasers and each of
the Purchasers will give notice to the Seller Parties, as promptly as reasonably practicable upon becoming aware of (a) any fact,
change, condition, circumstance, event, occurrence or non-occurrence that has caused or is reasonably likely to cause any representation
or warranty in this Agreement made by it to be untrue or inaccurate in any respect at any time after the date hereof and prior
to the Closing, (b) any material failure on its part to comply with or satisfy any covenant, condition or agreement to be complied
with or satisfied by it hereunder or (c) the institution of or the threat of institution of any proceeding against the Seller Parties,
the Purchasers or the Company related to this Agreement or the Transactions; <U>provided</U> that the delivery of any notice pursuant
to this <U>Section 5.8</U> will not limit or otherwise affect the remedies available hereunder to the party receiving such notice,
or the representations or warranties of, or the conditions to the obligations of, the Parties.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.9&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Further Actions</U>. Subject to the other express provisions of this Agreement, upon the request of any Party,
the other Parties will execute and deliver such other documents, instruments and agreements as the requesting Party may reasonably
require for the purpose of carrying out the intent of this Agreement and the Transactions.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
5.10&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Resignation</U>. Prior to the MOFCOM Transfer Submission, each of Robin L. Smith and Eric Wei shall deliver a
duly executed resignation letter which shall provide for the resignation of each such person from the Company&rsquo;s Board of
Directors, effective upon the Company&rsquo;s obtaining the MOFCOM Transfer Approval.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">ARTICLE
6<BR>
</FONT>CONDITIONS PRECEDENT TO OBLIGATION TO CLOSE</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
6.1&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conditions to the Obligations of the Parties</U>. The obligation of the Parties to consummate the transfer of
the Erye Equity is subject to the satisfaction or waiver, on or prior to the Closing Date, of each of the following conditions:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NeoStem
shall have obtained the NeoStem Shareholder Approval;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall have completed the Capital Increase Procedures;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall have obtained MOFCOM Transfer Approval, completed SAIC Transfer Registration and SAFE Transfer Approval with regard
to the Equity Transfer; and</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(d)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
applicable Governmental Authority shall have enacted, issued, promulgated, enforced or entered any order, decree or ruling (whether
temporary, preliminary or permanent), that is then in effect and that enjoins, restrains, makes illegal or otherwise prohibits
the consummation of the Transactions.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
6.2&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conditions to the Obligations of the Seller Parties</U>. The obligation of the Seller Parties to consummate the
transfer of the Erye Equity is subject to the satisfaction, on or before the Closing Date, of each of the following conditions
(any of which may be waived by the Seller, in whole or in part):</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Seller Parties shall have received each of the closing deliveries as set forth in <U>Section 2.6(b)</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
6.3&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conditions to the Obligations of the Purchasers</U>. The obligation of the Purchasers to consummate the Transactions
is subject to the satisfaction, on or before the Closing Date, of each of the following conditions (any of which may be waived
by the Purchasers, in whole or in part):</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Purchasers shall have received each of the closing deliveries as set forth in <U>Section 2.6(a)</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">ARTICLE
7<BR>
</FONT>TERMINATION</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
7.1&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Termination Events</U>. Subject to Section 7.1(b), this Agreement may, by written notice given before the earlier
of the Closing or any applicable cutoff date as specified below, be terminated:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
mutual consent of the Purchasers, on the one hand, and the Seller Parties, on the other hand;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
the Seller Parties, on the one hand, or the Purchasers, on the other hand, if a Party fails to perform in a material respect any
of its obligations under this Agreement; <U>provided</U>, <U>however</U>, a breaching Party shall not be permitted to terminate
this Agreement;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
the Purchasers for any reason on or prior to the earlier of the MOFCOM Transfer Submission Date or September 30, 2012; <U>provided</U>,
<U>however</U>, that if the MOFCOM Transfer Submission is delayed by NeoStem as described in <U>Section 5.1(i)</U> such that the
Submission Permission Date would be later than September 30, 2012, then the date by which the Purchasers may elect to terminate
this Agreement pursuant to this <U>Section 7.1(c)</U> shall automatically be extended by the Delayed Submission Period.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(d)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
the Seller Parties, solely as a result of the Seller Parties selling the Erye Interest to a third party pursuant to terms and conditions
superior to the terms and conditions as set forth in this Agreement (the &ldquo;<U>Third Party Transaction</U>&rdquo;), if required,
as consistent with the fiduciary duties of its board of directors, under Delaware law as supported by the opinion of the Seller
Parties&rsquo; legal counsel; <U>provided</U>, that if the Seller Parties terminate this Agreement pursuant to this <U>Section
7.1(d)</U>, the Seller Parties shall pay, prior to the effectiveness of the termination pursuant to this <U>Section 7.1(d)</U>,
a breakup fee to the Purchasers in the aggregate amount of Six Hundred and Fourteen Thousand US Dollars (US$614,000), being equal
to 5% of the Total Cash Purchase Price (the &ldquo;<U>Break-up Fee</U>&rdquo;);</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(e)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
the Seller Parties if NeoStem has failed to obtain the NeoStem Shareholder Approval after using all reasonable efforts to satisfy
the conditions of this Agreement; and</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(f)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
any Party, if any applicable Governmental Authority shall have enacted, issued, promulgated, enforced or entered any order, decree
or ruling (whether temporary, preliminary or permanent) that is then in effect and that enjoins, restrains, makes illegal or otherwise
prohibits the consummation of the Transaction.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
7.2&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Effect of Termination, Non-occurrence of Closing and Other Matters</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
this Agreement is terminated pursuant to Section 7.1(a), the Seller Parties, on the one hand, and the Purchasers, on the other
hand, shall mutually determine the effect of such termination.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
this Agreement is terminated due to a Party&rsquo;s failure to perform in a material respect any of its obligations under this
Agreement pursuant to <U>Section 7.1(b)</U>, the non-breaching Party shall be entitled to indemnification for and against all Losses
in accordance with <U>Article 8</U>, including without limitation the refund of any money received by the breaching Party or any
money deposited into the Escrow Accounts by the Purchasers. <U> </U></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Agreement is terminated pursuant to <U>Section 7.1(c)</U>, then, (i) the Offshore Second Purchase Price Payment deposited into
the Offshore Escrow Account by the Purchasers and the Onshore Second Purchase Price Payment deposited into the Onshore Escrow Account
by the Purchasers shall be released and returned to the Purchasers to an account or account(s) designated by the Purchasers and
all Transfer Restrictions on the NeoStem Securities set forth in <U>Section 2.2(B)</U> shall immediately terminate and NeoStem
shall take all necessary actions to remove any such Transfer Restrictions imposed on the NeoStem Securities immediately upon such
termination without further actions by the Purchasers, Mr. Shi Mingsheng or Madame Zhang Jian, as applicable, (ii) NeoStem shall
release and return the Fullbright Certificates and the Fullbright Warrants to Fullbright as soon as practicable but shall in no
event be later than five (5) Business Days following such termination, and (iii) the First Purchase Price Payment paid to the Seller
Parties shall become nonrefundable as liquidated damages but not as penalty, which liquidated damages shall be the sole and exclusive
remedy in law and equity available to the Seller Parties upon such termination by the Purchasers, and <U>Section 8.1</U> shall
not apply. In addition, if this Agreement has been terminated pursuant to <U>Section 7.1(b)</U> by the Seller Parties because of
a material breach of this Agreement by the Purchasers, or if this Agreement has been terminated pursuant to <U>Section 7.1(c)</U>,
the Company shall, and the Seller and EET shall undertake to cause the Company to, upon written request by the Seller Parties,
(A) complete all the regulatory filings and submissions (the &ldquo;<U>Replacement Regulatory Submissions&rdquo;</U>) to the relevant
Chinese Governmental Authorities required for the consummation of the sale of the Erye Interest by the Seller to any third party;
<U>provided,</U> that the Seller Parties shall provide the Company with all the information and documents (the &ldquo;<U>Replacement
Supporting Materials</U>&rdquo;) reasonably required for such regulatory filings and submissions with the relevant Chinese Governmental
Authorities and guarantee the truthfulness of such information and documents. The Company shall make all the Replacement Regulatory
Submissions and complete the related regulatory procedures within 90 Business Days following the Company&rsquo;s receipt of all
the Replacement Supporting Materials (such 90-Business-Day period shall commence on the date when the Chinese Governmental Authorities
have received the first Replacement Regulatory Submission and issued a properly endorsed receipt bearing such date; <U>provided</U>,
that if the Governmental Authority shall, upon receipt of the first Replacement Regulatory Submission and any supplemental submission,
if any, thereafter advise the Company of its requirement for additional information and documentation, then the 90-Business-Day
period shall commence on the date such additional information and documentation are submitted to the Governmental Authority). If
the Seller Parties desire that the Company make regulatory filings and registrations in any situation other than a sale of the
Erye Interest to a third party, the Parties shall approach such regulatory filings and registrations as mutually agreed.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(d)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Seller Parties elect to terminate this Agreement pursuant to <U>Section 7.1(d)</U>, then, prior to the effectiveness of such
termination, the Break-up Fee shall have been paid to the Purchasers as liquidated damages but not as penalty, which liquidated
damages shall be the sole and exclusive remedy in law and equity available to the Purchasers upon the payment of the Break-up Fee
to the Purchasers, and <U>Section 8.2</U> shall not apply. Upon termination of this Agreement pursuant to <U>Section 7.1(d)</U>,
all money paid to the Seller Parties and/or deposited into the Escrow Accounts as part of the Total Cash Purchase Price and all
NeoStem Securities shall be released and returned to the Purchasers as soon as practicable but shall in no event be later than
two (2) Business Days following such termination.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(e)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Agreement is terminated pursuant to <U>Section 7.1(e)</U>, then the Seller Parties shall pay to the Purchasers One Million
Two Hundred and Twenty-Eight Thousand U.S. Dollars (US$1,228,000), being equal to 10% of the Cash Purchase Price, as liquidated
damages but not as penalty, which payment of liquidated damages shall be the sole and exclusive remedy in law and equity available
to the Purchasers upon such termination by the Purchasers and <U>Section 8.2</U> shall not apply. Upon termination of this Agreement
pursuant to <U>Section 7.1(e)</U>, all money paid to the Seller Parties and/or deposited into the Escrow Accounts as part of the
Total Cash Purchase Price and all NeoStem Securities shall be released and returned to the Purchasers as soon as practicable but
shall in no event be later than two (2) Business Days following such termination.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(f)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything to the contrary provided in this <U>Section 7.2</U>, <U>Sections 5.4</U> and <U>7.2</U>, <U>Articles 8</U> and <U>9</U>
shall survive any termination of this Agreement.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">ARTICLE
8<BR>
</FONT>INDEMNIFICATION</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
8.1&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Indemnification by the Purchasers</U>. From and after the Signing Date, the Purchasers shall indemnify the Seller
Parties and their respective Affiliates against, and agree to hold them harmless from, any and all claims, losses, liabilities,
costs and expenses (including expenses in connection with any action, suit or proceeding, whether involving a third party claim
or a claim solely between the Parties) (individually, a &ldquo;<U>Loss</U>&rdquo; and, collectively, &ldquo;<U>Losses</U>&rdquo;),
as incurred (payable promptly upon written request), for or on account of or arising from or in connection with or otherwise with
respect to (i) any breach of any representation or warranty of the Purchasers contained in this Agreement, (ii) any breach of any
covenant or any failure to perform any obligation of the Purchasers contained in this Agreement, (iii) any fees, expenses or other
payments incurred or owed by the Purchasers to any brokers, financial advisors or other comparable persons retained or employed
by it in connection with the Transactions, (iv) any claims, allegations, proceedings, suits, threatened suits and other challenges
with respect to legitimacy and/or fairness of this Agreement and the Transactions made or filed in the PRC, and (v) any Loss arising
out of any Liability based on the facts and circumstances occurred after the Closing, arising out of or in any way related to the
business or operations of the Company, including without limitation any of the following: (A) any action, suit, claim, trial, demand,
investigation, arbitration or other proceeding by any Person against the Company relating to or arising in any way out of the business
or operations of the Company after the Closing; (B) any Liabilities or obligations of the Company, the Seller or any of its Affiliates,
for taxes due in the PRC related in any way to the Company, its business or ownership thereof including all assessments and fines;
and (C) relating to governmental filings or the failure to make required governmental filings after the Closing.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
8.2&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Indemnification by the Seller Parties</U>. From and after the Signing Date, the Seller Parties shall indemnify
the Purchasers and their respective Affiliates against, and agree to hold them harmless from, any Loss, as incurred (payable promptly
upon written request), for or on account of or arising from or in connection with or otherwise with respect to (i) any breach of
any representation or warranty of the Seller Parties contained in this Agreement, (ii) any breach of any covenant or any failure
to perform any obligation of the Seller Parties contained in this Agreement, (iii) any fees, expenses or other payments incurred
or owed by the Seller Parties to any brokers, financial advisors or other comparable persons retained or employed by it in connection
with the transactions contemplated by this Agreement, (iv) any claims, allegations, proceedings, suits, threatened suits and other
challenges with respect to the legitimacy and/or fairness of this Agreement and the Transaction made or filed in the U.S., and
(v) any Loss arising out of any Liability of the Seller Parties after the Closing, arising out of or in any way related to the
business or operations of the Seller Parties, including without limitation any of the following: (A) any action, suit, claim, trial,
demand, investigation, arbitration or other proceeding by any Person relating to or arising in any way of out of the business or
operations of the Seller Parties after the Closing; (C) relating to United States governmental filings or the failure to make required
United States governmental filings after the Closing; and (D) relating to alleged violations of applicable United States federal
or state laws and rules.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in"><FONT STYLE="text-transform: none">ARTICLE
9<BR>
</FONT>GENERAL MATTERS</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
9.1&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Further Assurances</U>. From time to time, as and when requested by any Party, each Party shall execute and deliver,
or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further
or other actions, as such other Party may reasonably deem necessary to consummate the Transactions.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
9.2&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Entire Agreement</U>. This Agreement contains the entire agreement among the Parties with respect to the subject
matter hereof and supersedes all prior and contemporaneous arrangement or understanding with respect thereto.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
9.3&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Counterparts</U>. This Agreement may be executed in any number of counterparts, and each such counterpart hereof
shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
9.4&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Governing Law; Jurisdiction</U>. The formation, validity, interpretation, execution, amendment and termination
of this Agreement shall be government by the published laws of the PRC.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
9.5&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Dispute Resolution.</U></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
dispute between the Seller Parties, on the one hand, and the Purchasers, on the other hand, arising from or in connection with
this Agreement shall be resolved in a lawsuit filed with the local People&rsquo;s Court in Suzhou if the lawsuit is filed by the
Seller Parties or in the Second Intermediary People&rsquo;s Court in Beijing if the lawsuit is filed by the Purchasers. The Parties
agree that this Agreement is signed in both Suzhou and Beijing.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: 1in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the period when a dispute is being resolved, the Parties shall in all other respects continue their implementation of this Agreement.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
9.6&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notice</U>. All notices and other communications under this Agreement must be in writing and are deemed duly delivered
when (a) delivered if delivered personally or by internationally recognized overnight courier service (costs prepaid), or (b) sent
by facsimile or email with confirmation of transmission by the transmitting equipment (or, the first Business Day following such
transmission if the date of transmission is not a Business Day); in each case to the following addresses or facsimile numbers and
marked to the attention of the individual (by name or title) designated below (or to such other address, facsimile number, email
address or individual as a party may designate by notice to the other parties):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>If addressed to
the Seller Parties:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NeoStem, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">420 Lexington Avenue</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Suite 450</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">New York, NY 10170</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The United States of
America</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Attention: Robin L.
Smith, M.D., CEO</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">E-Mail: rsmith@neostem.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With a copy to,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">Lowenstein Sandler
PC<BR>
65 Livingston Avenue<BR>
Roseland, NJ 07068<BR>
The United States of America<BR>
Attention: Alan Wovsaniker, Esq.<BR>
Email: awovsaniker@lowenstein.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">Reed Smith LLP<BR>
355 South Grand Avenue, Suite 2900<BR>
Los Angeles, CA 90071<BR>
The United States of America<BR>
Attention: Jinshu &ldquo;John&rdquo; Zhang<BR>
Email: jzhang@reedsmith.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>If addressed to
the Purchasers:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Fullbright Finance
Limited</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Suzhou Erye Economic
and Trade Co., Ltd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">c/o Suzhou Erye Pharmaceutical
Co., Ltd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">Address:<FONT STYLE="font-family: Times New Roman, Times, Serif">
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">Xiang Cheng District,
Huang Di County, Dong Qiao, An Min Road</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">Suzhou, Jiangsu
Province (zip code: 215131)<BR>
The People&rsquo;s Republic of China</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Attention: Mr. Shi Mingsheng</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">E-Mail: <U>szerye@126.com</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>With a copy to,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Winston &amp; Strawn
LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1515 Nanjing Road
West, Kerry Centre, Suite 3106</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shanghai 200040</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The People&rsquo;s
Republic of China</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Attention: Laura H.
Luo, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Email: lluo@winston.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><B>&nbsp;</B></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><B>If addressed to the
Company:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Suzhou Erye Pharmaceutical
Co., Ltd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">Address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">Xiang Cheng District,
Huang Di County, Dong Qiao, An Min Road</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">Suzhou, Jiangsu
Province (zip code: 215131)&#9;<BR>
The People&rsquo;s Republic of China</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0in">Attention: Mr.
Shi Mingsheng</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">E-Mail: szerye@126.com</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Section
9.7&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Partial Invalidity</U>. If any term or provision of this
Agreement is at any time held to be invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining
terms and provisions of this Agreement, which shall continue to be in full force and effect.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Section
9.8&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Interpretation</U>. All Exhibits and Schedules annexed
hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any
capitalized terms used in any Schedule or Exhibit but not otherwise defined therein shall have the meaning as defined in this
Agreement. When a reference is made in this Agreement to a Section, Exhibit or Schedule, such reference shall be to a Section
of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
9.9&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Assignability; Parties in Interest</U>. This Agreement shall be binding upon, and shall be enforceable by and
inure to the benefit of, the Parties and their respective successors and assigns. This Agreement shall not be assignable by any
Party (by operation of law or otherwise) without the express written consent of the other Parties; except that Fullbright is permitted
to assign this Agreement to one or more of its Affiliates, except for its obligations under Sections 2.2(B), 2.6(b) and 5.1(c).
Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person, other than the Parties hereto, any
right, benefit or remedy of any nature.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Section
9.10&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Language</U>. This Agreement is prepared in both English and Chinese.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[<I>Signature page follows</I>]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>,
this Agreement has been executed as of the date first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">PURCHASERS:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">FULLBRIGHT FINANCE LIMITED</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48%; tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 4%; tab-stops: right lined 6.5in; text-autospace: none">By:</TD>
    <TD STYLE="width: 48%; tab-stops: right lined 6.5in; text-autospace: none; border-bottom: Black 1pt solid">/s/ Shi Mingsheng</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Name: Shi Mingsheng</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Title:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">SUZHOU ERYE ECONOMY &amp; TRADE CO., LTD.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">By:</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; border-bottom: Black 1pt solid">/s/ Shi Mingsheng</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Name: Shi Mingsheng</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Title:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">SELLER PARTIES:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">NEOSTEM INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">By:</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; border-bottom: Black 1pt solid">/s/ Robin L. Smith</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Name: Robin L. Smith., M.D.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Title: Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">CHINA BIOPHARMACEUTICALS HOLDINGS, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">By:</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; border-bottom: Black 1pt solid">/s/ Robin L. Smith</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Name: Robin L. Smith</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Title:</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 238.5pt">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 238.5pt"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">THE COMPANY</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none; font-weight: bold">SUZHOU ERYE PHARMACEUTICAL CO., LTD.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48%; tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 4%; tab-stops: right lined 6.5in; text-autospace: none">By:</TD>
    <TD STYLE="width: 48%; tab-stops: right lined 6.5in; text-autospace: none; border-bottom: Black 1pt solid">/s/ Zhang Jian</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Name: Zhang Jian</TD></TR>
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    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: right lined 6.5in; text-autospace: none">Title:</TD></TR>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">INDEX OF
EXHIBITS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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    <TD STYLE="width: 12%; text-align: justify; text-autospace: none">Exhibit A</TD>
    <TD STYLE="width: 2%; text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 86%; text-align: justify; text-autospace: none">Offshore Purchase Price Escrow Agreement</TD></TR>
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    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD></TR>
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    <TD STYLE="text-align: justify; text-autospace: none">Exhibit B</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">Onshore Purchase Price Escrow Agreement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-autospace: none">Exhibit C</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">(1) Capital Increase Board Resolutions</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">(2) Amended and Restated Articles of Associations related to the Capital Increase</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">(3) Amended and Restated Joint Venture Contract related to the Capital Increase</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-autospace: none">Exhibit D</TD>
    <TD STYLE="text-align: justify; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-autospace: none">EET Shareholder Loan Repayment Board Resolutions</TD></TR>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">NeoStem Signs a Definitive Agreement to Divest Its 51%
Ownership Interest in Suzhou Erye</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">NEW YORK, June 18, 2012 (GLOBE NEWSWIRE) &mdash; NeoStem, Inc.
(NYSE Amex:NBS) (&quot;NeoStem&quot; or the &quot;Company&quot;) today announced that the Company has entered into a definitive
agreement to sell its 51% interest in Suzhou Erye Pharmaceutical Co. Ltd. (&quot;Erye&quot;), a China-based generic pharmaceutical
company, for $12,280,000 in cash and the return to the Company of (i) 1,040,000 shares of the Company's Common Stock and (ii) the
cancellation of 1,170,000 options and 640,000 Common Stock warrants, which collectively represent 1.3% of the Company's fully diluted
issued and outstanding shares. The closing of the transaction is subject to the approval of NeoStem shareholders and certain other
conditions. Closing of the transaction is expected to occur by the fourth quarter of 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&quot;We are pleased to have reached this significant milestone
in our business,&quot; said Dr. Robin L. Smith, Chairman and CEO of NeoStem. &quot;This divestiture will enable NeoStem to bolster
its cash position in the United States, reduce its legal and financial reporting expenditures, simplify its financials and become
a pure play in the rapidly growing cell therapy industry. Consummation of the transaction will also eliminate significant Erye
debt from the Company's balance sheet, which was over $37 million as of March 31, 2012.&quot;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">NeoStem acquired its interest in Erye in October 2009 and was
heralded, at that time, for its innovative business move into the emerging Chinese pharmaceutical industry. In 2011, the Chinese
government imposed new policies affecting price and volume controls of certain pharmaceutical products, including generic antibiotics,
which reduced the division's profitability and positive cash flows. This dampened Erye's operating results and was the catalyst
for NeoStem to begin to evaluate opportunities to monetize its interest in Erye.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The divestiture will enable NeoStem to focus full time on its
goal to emerge as a leader in the cell therapy market. The Company is enrolling patients in its PreSERVE AMR-001 Phase 2 clinical
trial for preserving heart function after a heart attack and expanding its cell therapeutic contract manufacturing business, PCT.
NeoStem also plans to continue to develop and to build on its core capabilities in cell therapy to capitalize on the paradigm shift
that is occurring in medicine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Over one million people in the Unites States suffer a heart
attack annually. One in five people who survive a heart attack dies within a year. Of those individuals that do live, many of them
have worsening heart function over time. NeoStem's Phase 2 therapeutic product candidate, AMR-001, takes stem cells from a person's
own body and injects them one time into the heart through the infarct related artery in order to lay down new blood vessels, with
the intent of preserving heart function. Management remains focused on the key objective of completing enrollment of the PreSERVE
AMR-001 Phase 2 clinical trial in order to have data during the second half of 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>About NeoStem, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">NeoStem, Inc. (&quot;we,&quot; &quot;NeoStem&quot; or the &quot;Company&quot;)
continues to develop and build on its core capabilities in cell therapy to capitalize on the paradigm shift that we see occurring
in medicine. In particular, we anticipate that cell therapy will have a large role in the fight against chronic disease and in
lessening the economic burden that these diseases pose to modern society. Our January 2011 acquisition of Progenitor Cell Therapy,
LLC (&quot;PCT&quot;) provides NeoStem with a foundation in both manufacturing and regulatory affairs expertise. We believe this
expertise, coupled with our existing research capabilities and collaborations, will allow us to achieve our mission of becoming
a premier cell therapy company. Our PCT subsidiary's manufacturing base is one of the few current Good Manufacturing Practices
(&quot;cGMP&quot;) facilities available for contracting in the burgeoning cell therapy industry. Amorcyte, LLC (&quot;Amorcyte&quot;),
which we acquired in October 2011, is developing a cell therapy for the treatment of cardiovascular disease. Amorcyte's lead compound,
AMR-001, represents NeoStem's most clinically advanced therapeutic and Amorcyte is enrolling patients for a Phase 2 trial to investigate
AMR-001's efficacy in preserving heart function after a heart attack. We also expect to begin a Phase 1 clinical trial by 2012/2013
to investigate AMR-001's utility in arresting the progression of congestive heart failure and the associated comorbidities of that
disease. Athelos Corporation (&quot;Athelos&quot;), which is approximately 80%-owned by our subsidiary, PCT, is engaged in collaboration
with Becton-Dickinson that is exploring the earlier stage clinical development of a T-cell therapy for autoimmune conditions. In
addition, our pre-clinical assets include our VSELTM Technology platform as well as our MSC (mesenchymal stem cells) product candidate
for regenerative medicine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For more information on NeoStem, please visit <FONT STYLE="color: windowtext"><U>www.neostem.com</U></FONT><U>.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Forward-Looking Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations,
as of the date of this press release, and involve certain risks and uncertainties. Forward looking statements include statements
herein with respect to whether the Erye divestiture will close successfully and the successful execution of the Company's business
and medical strategy in general, including with respect to the development of AMR-001 and other cell therapies about which no assurance
can be given. The Company's actual results could differ materially from those anticipated in these forward- looking statements
as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected
in forward-looking statements include the &quot;Risk Factors&quot; described in the Company's Annual Report on Form 10-K filed
with the Securities and Exchange Commission on March 20, 2012 and in the Company's periodic filings with the Securities and Exchange
Commission. The Company's further development is highly dependent on future medical and research developments and market acceptance,
which is outside its control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Additional Information and Where to Find It</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the proposed transaction, the Company will
be filing a proxy statement and other relevant documents with the SEC. INVESTORS ARE URGED TO READ THE PROXY STATEMENT THAT WILL
BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED
WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ON THE PROPOSED TRANSACTION. Investors will be able to obtain the
proxy statement (when it is available) and other relevant documents filed with the SEC free of charge at the SEC's website at
<FONT STYLE="color: windowtext"><U>www.sec.gov</U></FONT>. In addition, copies of the proxy statement (when available) and other
documents filed by the Company with the SEC with respect to the proposed transaction may be obtained free of charge by directing
a request to: NeoStem, Inc., 420 Lexington Avenue, Suite 450, New York, NY 10170, Attn: Catherine M. Vaczy, Vice President and
General Counsel, (212) 584-4180.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Participants in the Solicitation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This press release may be deemed to be solicitation material
in respect of the proposed transaction. The Company and its directors and executive officers may be deemed to be participants in
the solicitation of proxies from the Company's stockholders in connection with the proposed transaction. Information concerning
the Company's directors and executive officers is set forth in the Company's Annual Report on Form 10-K, filed by the Company with
the SEC on March 20, 2012, as amended by Amendment No. 1 on Form 10-K/A, filed by the Company with the SEC on April 30, 2012. Investors
may obtain additional information regarding the interests of such persons who may, under the rules of the SEC, be considered to
be participants in the solicitation of the Company's stockholders in connection with the proposed transaction by reading the proxy
statement when it becomes available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <TD STYLE="width: 11%"><FONT STYLE="font-size: 10pt">CONTACT:</FONT></TD>
    <TD STYLE="width: 89%"><FONT STYLE="font-size: 10pt">Trout Group</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Gitanjali Jain Ogawa, Vice President</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Phone: +1-646-378-2949</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Email: &nbsp;gogawa@troutgroup.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">NeoStem, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Robin Smith, CEO</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Phone: +1-212-584-4174</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Email: &nbsp;rsmith@neostem.com</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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