EXHIBIT 10.1
 
WAIVER OF PENALTIES RELATED TO REGISTRATION RIGHTS
 
This WAIVER OF PENALTIES RELATED TO REGISTRATION RIGHTS (“WAIVER”) is entered
into as of this 29th day of August, 2007 by and between a CHINA ARCHITECTURAL
ENGINEERING, INC., a Delaware corporation (the “Company”), and the persons
listed on the signature pages hereof (the “Investors”). Undefined terms herein
shall have the meaning set forth in the Subscription Agreement, as defined
below.
 
RECITALS:
 
WHEREAS, the Company and each of the Investors entered into that certain
Subscription Agreement dated October 17, 2007 (“Subscription Agreement”)
pursuant to which the Investors purchased securities of the Company;
 
WHEREAS, the Company, pursuant to Section 4 of the Subscription Agreement,
agreed to use its reasonable best efforts to cause the Registration Statement to
become effective within one hundred eighty (180) days after the Closing Date if
the Registration Statement is subject to a full review by the SEC;
 
WHEREAS, the Subscription Agreement states that Company shall be required to
pay, as liquidated damages, to each of the Subscriber a cash payment (the
“Penalty Payment”) equal to a total of 0.0333% of the Purchase Price of the
Shares sold to the Subscriber for each business day after the 180-day period has
expired until the Registration Statement is declared effective by the SEC;
 
WHEREAS, Section 5.2 of the Subscription Agreement states that the terms of
Section 4 of the Subscription Agreement may be modified without the consent or
approval of all of the Subscribers so long as (i) such modification applies in
the same fashion to the Subscription Agreement of all of the Subscribers in the
Offering and (ii) at least holders of a majority of the Shares sold in the
Offering have given their approval of such modification, which approval shall be
binding on all holders of Shares; and
 
WHEREAS, the undersigned Investors hold an aggregate number of Shares that is
more than a majority of the Shares sold in the Offering and each of the
undersigned Investors and the Company desire to modify Section 4 of the
Subscription Agreement to waive any and all Penalty Payment, and any rights to
any Penalty Payment, under the Subscription Agreement.
 
AGREEMENT:
 
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
promises hereinafter set forth, the parties hereto agree as follows:
 
1. Waiver of Penalty Payment. The Company and the undersigned Investors hereby
agree to remove all references to the Penalty Payment from the Subscription
Agreement, and each of the Investors hereby fully and irrevocably waive the
Penalty Payment, any claim to payment of the Penalty Amount, whether or not
owed, and any and all rights related thereto.
 
2. Conflicts. To the extent there is any conflict between the terms of the
Subscription Agreement and the terms hereof, the terms of this Waiver take
precedence.
 
 
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3. Confirmation of Subscription Agreement. The parties hereto hereby confirm
that the Subscription Agreement, as amended by this Waiver, remains in full
force and effect.
 
4. Miscellaneous. This Waiver may be executed in any number of facsimile
counterparts, each of which shall be an original, but which together constitute
one and the same instrument. The parties expressly agree that all the terms and
provisions hereof shall be construed in accordance with and governed by the laws
of the State of Delaware.

[Signature Pages Follow]

 
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In Witness Whereof, the parties hereto have executed this Waiver as of the date
set forth in the first paragraph hereof.
 
CHINA ARCHITECTURAL ENGINEERING, INC. 
   
By: /s/ Ken Luo Yi

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Name: Ken Luo Yi
Title: Chief Executive Officer  

 
Company Signature Page
 
 
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In Witness Whereof, the parties hereto have executed this Waiver as of the date
set forth in the first paragraph hereof.

       
INVESTOR
 
 
 
 
 
 
 
 
Name of Investor:
 
 
 
 
 
Name of Signatory:
 
 
 
 
 
Title of Signatory:
 
 
 
 
 
Address:
 
 
 
 
 
Telephone:
 
 
Facsimile:
 

 
 
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