the full amount of the Annual Asset Management Fee to Beijing NB during the Entrusted Period,
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Beijing NB shall be entitled to deduct the shortfall from the Security Deposit and thereafter the
Operator shall be responsible to reinstate the Security Deposit to its original value. The parties
are in the process of preparing the Property Mortgage Agreement and the Property Mortgage
Agreement will be submitted to the relevant PRC authority for registration process.
The Operator shall be responsible for all expenses (including but not limited to rent, utilities and
payroll), liabilities, damages, obligations, disputes arising out of the operation and management
of the Entrusted Assets during the Entrusted Period and shall indemnify Beijing NB for all
economic loss or damage to reputation as a result thereof. In addition, Beijing NB is entitled to
deduct from the Security Deposit the said loss or damage. Since the execution of the Assets
Entrusted Agreement, the Operator has been fulfilling her obligations under the agreement and no
deduction has been made from the Security Deposit.
Rights and Obligations of the Operator
During the Entrusted Period, the Operator shall be entitled to the free use of the "NB Natural
Beauty" and other related trademarks of the Group in the operation of the Natural Beauty spas.
The Operator shall enter into a trademark licensing agreement with the Group and attend to all
necessary registration formalities at the sole costs of the Operator. The parties are in the process
of preparing the Trademark Licensing Agreement. The Company will not receive any consideration
from this agreement, further announcement in respect of the Trademark Licensing Agreement will
be made in compliance with the relevant provisions of the Listing rules if required.
The Assets Entrusted Agreement is irrevocable in nature. If the Operator shall breach the Assets

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