Kun Run Biotech (PINK:KURU)

On September 3, 2010, Kun Run Biotechnology, Inc. (the “Company”) entered into a Redemption Agreement by and between the Company and Caduceus Asia Partners, L.P. (“Caduceus”), under the terms of which the Company agreed to redeem all of the 5,228,758 units of the Company (each a “Unit” and together, the “Units”) from Caduceus for a cash consideration of an amount of US$9 million , with each Unit consisting of (A) one share of the Series A Preferred Stock of the Company, par value $0.001 per share (the “Series A Preferred”) and (B) one warrant (each, a “Warrant,” and collectively, the “Warrants”) to purchase 0.30 of a share of Series A Preferred.