Ann: Distribution agreement with Guangzhou Nuirui, page-5

Material terms of the agreement

1. Guangzhou Nuirui will be the exclusive distributor of Sunnya products to BABEMAX, and non-exclusive distributor for other channels approved by Sunnya.

2. The agreement is for five years, commencing immediately, and can be extended by mutual agreement between the parties.

3. Guangzhou Nuirui agrees to purchase 1.5 million tins of NUERIO Lactoferrin over the next five years, with 100,000 tins in year 1 increasing to 500,000 tins in year 5.

4. The sale price will be the best market price available at the time of Guangzhou Nuirui placing the order with Sunnya.

5. Guangzhou Nuirui must require retailers to charge a retail price of 458CNY (A$91.60 at current exchange rates) per tin.

6. The agreement can be terminated if Guangzhou Nuirui fails to ditribute the products within the nominated sales channels.