| 1.  | RETENTION AND      DUTIES. |
|----------|----------------------------|

| 1.1 | Position      and Duties. During the Employment Period (as defined in Section 1.2      below), the Executive shall serve the Company as its Chief Executive      Officer and shall have such powers, duties and obligations consistent with      such position as the Company’s board of directors (the “Board”) shall      determine from time to time.  References to the Board herein      with respect to any determination involving the Executive or his duties,      shall be deemed to exclude the Executive if he is then a member of the      Board. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Executive shall exercise due care as would a good business manager and      faithfully and diligently perform his duties for the Company. The      Executive shall comply with the policies, guidelines, standards, rules and      procedures of the Company, and any additions or amendments thereto, as      they are in effect from time to time during the Employment      Period.  During the Employment Period, the Executive shall      report directly to the Board. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Employment      Period. Subject to earlier termination as provided in Section 3      below, the Employment Period shall be a period of one year commencing on      May 18, 2009 (the “Commencement      Date”), provided that      this Agreement shall be automatically renewed, and the Employment Period      shall be automatically extended, for successive one-year terms unless      either party gives written notice to the other party at least thirty (30)      days prior to the expiration of this Agreement and the Employment Period      (including any renewal and extension thereof) to terminate this Agreement      or modify its terms (provision of such notice shall not be deemed to      constitute a breach, or an earlier termination, of this      Agreement).  The term “Employment Period” shall include any      extension thereof pursuant to the preceding  sentence. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.3 | Location.      The Executive will be based in Tianjin, China.  The Executive      acknowledges that he may be required to travel from time to time in      accordance with the business requirements of the Company in the course of      performing his duties for theCompany. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | Company      Group. Except with      respect to the direct employment of the Executive by the Company, the term      “Company” as used herein with respect to all obligations of the Executive      hereunder shall be deemed to include the Company and all of its      subsidiaries and affiliated entities (collectively, the “Company      Group”). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | Minimum      Time Commitment. During the Employment Period, the Executive shall      hold no employment outside the Company Group and shall devote      substantially all of his business time, attention and skills to the      performance of his duties for the Company. The The Executive hereby      acknowledges that he shall not be entitled to any overtime pay as would      employees who have standard workinghours. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6 | Representations;      No Breach of Contract or other Obligation. In addition to the      representations contained in the Recitals above, Executive hereby      represents to the Company that: (i) the execution and delivery of      this Agreement by the Executive and the performance by the Executive of      his duties hereunder shall not constitute a breach of, or otherwise      contravene, the terms of any other agreement or policy to which the      Executive is a party or otherwise bound; (ii) that the Executive has      no information (including, without limitation, confidential information      and trade secrets) relating to any other person or entity which would      prevent, or be violated by, the Executive entering into this Agreement or      carrying out his duties hereunder;  (iii) that the      Executive is not bound by any confidentiality, trade secret or similar      agreement with any other person or entity; and (iv) Executive is subject      to no fiduciary or other obligation which may affect the performance of      his duties hereunder. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | COMPENSATION AND      BENEFITS. |
|----|---------------------------------|

| 2.1 | Base      Salary. The Executive’s gross base salary for the first twelve (12)      months of the Employment Period shall be at annualized rate of US$144,000.      The Board and/or its Compensation Committee shall review the Executive’s      base salary every twelve (12) months and make appropriate adjustment, in      its discretion. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      base salary shall be paid in accordance with the Company’s regular payroll      practices in effect from time to time, but not less frequently than in      monthly installments. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Bonus      and Other Incentives. During the Employment Period, the Executive      will be eligible to receive bonuses and other incentive payments in      accordance with the terms and conditions of any bonus or other incentive      plans and programs as may be adopted by the Board from time to      time. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.3 | Reimbursement      of Business Expenses. Executive hereby agrees that he shall, within      thirty (30) days prior to then end of each calendar quarter, submit to the      Board an expense budget for following calendar quarter.  The      Executive will be eligible to receive reimbursement for all reasonable      business expenses incurred by the Executive during the course of      performing his duties for the Company under this Agreement which are set      forth in the budget approved by the Board.  To the extent there      are additional expenses, or expenses exceeding the amounts pre-approved by      the Board, Executive shall seek further Board approval for such expenses      to the extent they exceed $1,000. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Vacation      and Other Leave.  During the Employment Period, the      Executive shall be entitled to take paid vacation of three (3) weeks in      each 12 month period taken at such times so as to not materially impede      his duties hereunder.  The Executive shall also be entitled to      all other holiday and leave pay generally available to the executive      officers of the Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | No      Overtime Pay.  The      Executive acknowledges that he shall perform his duties for the Company in      a timely manner, that the compensation and benefits he will be entitled to      receive pursuant to this Agreement will sufficiently compensate him for      his services, and that he will not be entitled to receive any overtime      pay. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | TERMINATION. |
|----|--------------|

| 3.1 | Termination      by the Company. The Executive’s employment by the Company, and the      Employment Period, may be terminated by the Company: (i) for Cause (as      defined immediately below), (ii) with no less than thirty (30) days prior      notice to the Executive, without Cause, (iii) in the event of the      Executive’s death, or (iv) in the event that the Board determines in good      faith that the Executive has a Disability (as defined immediately      below). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      used herein, “Cause” shall      mean, as determined by a majority of the Board (excluding the Executive,      if he is then a member of the Board), (i) any act of embezzlement,      dishonesty or fraud taken by the Executive; (ii) the Executive’s      conviction for a felony or conviction of any crime involving moral      turpitude or that impairs the Executive’s ability to perform his duties;      (iii) the Executive’s improper and material disclosure or use of the any      confidential or proprietary information of the Company or any member of      the Company Group; (iv) the Executive’s breach of any fiduciary duty to      the Company,  (v) the Executive’s failure or refusal      to  perform his duties which, if curable, remains uncured      following thirty (30) days’ written notice to the Executive from the      Company describing such failure or refusal; (vi) Executive’s performance      of any action when specifically instructed not to do so by the Board,      except where required by applicable law, regulation or rule; or (vii)      Executive’s failure to perform any action when instructed to do so by the      Board, except where prohibited by applicable law, regulation or      rule. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      used herein, “Disability”      shall mean a physical or mental impairment which, as determined by the      Board, renders the Executive unable to perform the essential functions of      his employment with the Company, even with reasonable accommodation that      does not impose an undue hardship on the Company, for more than 90 days in      any twelve (12) month period, unless a longer period is required by      applicable laws, in which case that longer period would    apply. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.2 | Termination      by the Executive.  The Executive’s employment by the      Company, and the Employment Period, may be terminated by the Executive      with no less than thirty (30) days prior notice to the Company, provided that      the Executive may provide immediate notice in the event of a Constructive      Termination (as defined immediately below), if not cured within thirty      (30) days after the occurrencethereof. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      used herein, “Constructive      Termination” shall mean, without the Executive’s express written      consent, (i) there is a material reduction in the Executive’s powers,      duties and responsibilities, or (ii) there is a material reduction in the      Executive’s base salary, opportunity for bonus and incentive payments, or      overall benefits package. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Benefits      upon termination. If the Executive’s employment by the Company is      terminated during the Employment Period for any reason by the Company or      by the Executive (in any case, the date that the Executive’s employment by      the Company terminates is referred to as the “Severance      Date”), the Company shall have no further obligation to make or      provide to the Executive, and the Executive shall have no further right to      receive or obtain from the Company, any payments or benefits except as      follows: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | The      Company shall pay the Executive (or, in the event of the Executive’s      death, the Executive’s estate) any base salary, bonus and incentive      payment that had accrued under this Agreement but had not been paid on or      before the Severance Date, and any reimbursement due to the Executive      under this Agreement for expenses incurred by the Executive on or before      the Severance Date. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If,      during the Employment Period, the Executive’s employment with the Company      is terminated as a result of a Constructive Termination or terminated by      the Company without Cause, the Executive shall be entitled to receive an      amount equal to fifty percent (50%) of the Executive’s annualized base      salary as in effect on the Severance Date (the “Severance      Benefit”).  The Company shall pay the Severance Benefit      to the Executive in accordance with the Company’s regular payroll      practices in effect from time to time, but not less frequently than in      monthly installments. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Notice      of termination.  Any termination of the Executive’s      employment under this Agreement shall be communicated by written notice of      termination from the terminating party to the other party. The notice of      termination shall indicate the specific provision(s) of this Agreement      relied upon in effecting thetermination. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.5 | Resignation from the      Board.       Executive      hereby agrees that any termination of this Agreement shall also constitute      submission to the Board of Executive’s resignation from the Board, if the      Executive is a member of the Board at suchtime. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | CONFIDENTIALITY;      NON-COMPETITION;NON-SOLICITATION. |
|----|---------------------------------------------------------|

| 4.1 | Executive’s      acknowledgment.  The Executive agrees and acknowledges      that in order to assure the Company that it will retain its value as a      going concern, it is necessary that the Executive undertakes not to      utilize his special knowledge of the Business and his relationships with      persons and entities in the Business and  relationships with      customers and suppliers to compete with the Company.  The      Executive further acknowledges that: (i) the Company is and will be      engaged in the Business; (ii) the Executive has occupied a position of      trust and confidence with the Company prior to the date of this Agreement      and, during such period the Executive has, and during the term of this      Agreement the Executive will, become familiar with the Company’s trade      secrets and with other proprietary and confidential information concerning      the Company and the Business; (iii) the agreements and covenants contained      in this Section 4 are essential to protect the Company and the goodwill of      the Business; and (iv) the Executive’s employment with the Company has      special, unique and extraordinary value to the Company and the Company      would suffer irreparable harm, for which money damages would not      constitute adequate compensation, if the Executive were to provide      services to any person or entity in violation of the provisions of this      Agreement or otherwise violate any of the terms of this Section      4. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Competitive      activities.  The      Executive hereby agrees that for a period (the “Restricted Period”)      commencing on the date hereof and ending two years following the      termination of the Executive’s employment with the Company for whatever      reason, the Executive shall not, on behalf of himself or any other      individual or group of individuals, firm, company, corporation,      partnership, trust or other entity or enterprise or successor in interest      to any of the foregoing, or any employee, partner, officer, director,      partner, or stockholder of any of the foregoing, directly or indirectly,      as an employee, proprietor, stockholder, partner, consultant, or      otherwise, engage in any business or activity directly competitive with      the Business or any of the business activities of the Company as they are      now, currently proposed to be, or are, at the time in question, undertaken      by the Company, anywhere in the territory of North America or China (the      “Territory”), except as expressly approved by the Board in      writing.  With respect to the Territory, the Executive      specifically acknowledges that the Company has conducted the Business      throughout those areas comprising the Territory and the Company intends to      continue to expand the Business throughout the  Territory. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | Blue-pencil.  If any      court of competent jurisdiction shall at any time deem the term of this      Agreement or any particular covenant contained in this Section 4,      including, without limitation, the Restricted Period, to be too lengthy or      the Territory to be too extensive, the other provisions of this Section 4      shall nevertheless stand, the Restricted Period shall be deemed to be the      longest period permissible by law under the circumstances and the      Territory shall be deemed to comprise the largest territory permissible by      law under the circumstances.  The court in each case shall      reduce the Restricted Period and/or the Territory to permissible duration      or size. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.4 | Confidential      information.  During the      term of this Agreement and for a period of three (3) years thereafter, the      Executive shall keep secret and retain in strictest confidence, and shall      not, without the prior written consent of the Board, furnish, make      available or disclose to any third party or use for the benefit of himself      or any third party, any Confidential Information.  As used in      this Section 4.4, the term “Confidential Information” shall mean any      information relating to the business or affairs of the Company or the      Business, including, but not limited to, information relating to financial      statements, customer identities, potential customers, employees,      suppliers, servicing methods, equipment, programs, strategies and      information, analyses, profit margins or other proprietary information      used by the Company in connection with the Business; provided, however,      that Confidential Information shall not include any information which is      the public domain, becomes generally known in the industry through no      wrongful act on the part of the Executive or as required to be disclosed      by a court of competent jurisdiction.  The Executive      acknowledges that the Confidential Information is vital, sensitive,      confidential and proprietary to theCompany. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Inventions      and other intellectual property.  The      Executive hereby agrees that all right, title and interest in and to all      of the Executive’s “Creations” and work product made during the term of      the Executive’s employment with the Company, whether pursuant to this      Agreement or otherwise, shall belong solely to the Company, whether or not      they are protected or protectable under applicable patent, trademark,      service mark, copyright or trade secret laws.  For purposes of      this Section 5, the term “Creations” shall mean all inventions, designs,      discoveries, books, newsletters, manuscripts, articles, research,      compilations, improvements, and other works which are or may be      copyrighted, trade-marked or patented or otherwise constitute works of      intellectual property which may be protected (including, without      limitation, any information relating to the Company’s software products,      source code, know-how, processes, designs, algorithms, computer programs      and routines, formulae, techniques, developments or experimental work,      works-in-progress, or business trade secrets whether now existing, or      hereafter developed during the term of this Agreement) made or conceived      or reduced to practice by the Company.  The Executive agrees      that all work or other material containing or reflecting any such      Creations shall be deemed work made for hire as defined in Section 101 of      the Copyright Act, 15 U.S.C. Section 101.  If a court of      competent jurisdiction determines that any such works are not works made      for hire, the Executive hereby assigns to the Company all of the      Executive’s right, title and interest, including all rights of copyright,      patent, and other intellectual property rights, to or in such      Creations. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. |  INTERFERENCE WITH      RELATIONSHIPS. |
|----|---------------------------------------------|

| 6.1 | Suppliers,      customers, service providers. During the Restricted Period, the      Executive shall not, directly or indirectly, as employee, agent,      consultant, stockholder, director, partner or in any other individual or      representative capacity intentionally solicit or encourage any present or      future customer, employee, consultant, service provider, stockholder,      officer, director or supplier of or service provider to the Company to      terminate or otherwise alter his, their or its relationship with the      Company in a manner having an adverse effect on the Company or the      Business. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Employees.During      the Restricted Period, the Executive shall not, directly or indirectly, as      employee, agent, consultant, stockholder, director, partner or in any      other individual or representative capacity intentionally solicit or      encourage any employee, consultant or agent of the Company to terminate,      modify or cancel their relationship with the Company or to enter into a      relationship with another company in the  Business. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | RETURN      OF COMPANY MATERIALS UPON TERMINATION.  The Executive      acknowledges that all price lists, sales manuals, catalogs, binders,      customer lists and other customer information, supplier lists, financial      information, business plans, corporate records, working notes, work      product, sales manuals, catalogs, binders and other records or documents      containing any Confidential Information prepared by the Executive or      coming into the Executive’s possession by virtue of the Executive’s      employment by the Company, other than personal information belonging to      the Executive, is and shall remain the property of the Company and that      immediately upon termination of the Executive’s employment hereunder, the      Executive shall return all such items in his possession, together with all      copies thereof, to the Company. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | INDEMNIFICATION.  The Company      hereby covenants and agrees to indemnify and hold harmless the Executive      fully, completely, and absolutely against and in respect to any and all      actions, suits, proceedings, claims, demands, judgments, costs, expenses      (including attorney's fees), losses, and damages resulting from the      Executive's good faith performance of his duties and obligations under the      terms of this Agreement, subject to compliance with any applicable      requirements and limitations improved by the memorandum and articles of      association of the Company as in effect on the date hereof and applicable      law. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | WITHHOLDING      OBLIGATIONS. Notwithstanding anything to the contrary, the Company      may withhold (or cause there to be withheld, as the case may be) from any      amounts otherwise due or payable under or pursuant to this Agreement such      national, provincial, local or any other income, employment or other      taxes, and such portion of social insurance, medical insurance and housing      provident fund, as may be required to be withheld pursuant to any      applicable laws or regulations. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10. | ASSIGNMENT.  This      Agreement is personal in its nature and neither of the parties hereto      shall, without the written consent of the other, assign or transfer this      Agreement or any rights or obligations hereunder; provided,      however, that (i) the Company may assign or transfer this Agreement      or any rights or obligations hereunder to any member of the Company Group      without such consent, and (ii) in the event of a merger,      consolidation, or transfer or sale of all or substantially all of the      assets of the Company with or to any other entities or individuals, this      Agreement shall, subject to the provisions hereof, be binding upon and      inure to the benefit of such successor and such successor shall discharge      and perform all the promises, covenants, duties, and obligations of the      Company hereunder. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | SEVERABILITY.  If      any provision of this Agreement or the application thereof is held      invalid, the invalidity shall not affect other provisions or applications      of this Agreement which can be given effect without the invalid provisions      or applications and to this end the provisions of this Agreement are      declared to be severable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | ENTIRE      AGREEMENT. This Agreement (including the provisions incorporated      herein by reference) constitutes the entire agreement and understanding      between the Executive and the Company regarding the terms of the      Executive’s employment by the Company and supersedes all prior or      contemporaneous oral or written agreements concerning such subject matter.      The Executive acknowledges that he has not entered into this Agreement in      reliance upon any representation, warranty or undertaking which is not set      forth in this Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | AMENDMENT.      This Agreement may not be amended, modified or changed (in whole or in      part), except by a formal, definitive written agreement expressly      referring to this Agreement, which agreement is executed by both of the      parties hereto. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | DISPUTE      RESOLUTION. Both the Executive or the Company shall  have      any dispute or controversy arising under or in connection with this      Agreement settled by arbitration, by providing written notice of such      election to the other party hereto, specifying the nature of the dispute      to be arbitrated.  Such arbitration shall be held before a panel      of three (3) arbitrators at the American Arbitration Association in New      York and pursuant to its Commercial Arbitration Rules then in      effect.  Judgment may be entered on the award of the arbitrators      in any court having competentjurisdiction. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      prevailing  party in any litigation or arbitration seeking to      enforce the provisions of this Agreement shall be entitled to      reimbursement from the other party of all expenses of such litigation or      arbitration, including the reasonable fees and expenses of its legal      representative and necessary costs and disbursements incurred as a result      of such dispute or legalproceeding. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | WAIVER.  Neither      the failure nor any delay on the part of a party to exercise any right,      remedy, power or privilege under this Agreement shall operate as a waiver      thereof, nor shall any single or partial exercise of any right, remedy,      power or privilege preclude any other or further exercise of the same, nor      shall any waiver of any right, remedy, power or privilege with respect to      any occurrence be construed as a waiver of such right, remedy, power or      privilege with respect to any other occurrence. No waiver shall be      effective unless it is in writing and is signed by the party asserted to      have granted such waiver. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16. | NOTICES.      All notices, requests, demands and other communications required or      permitted under this Agreement shall be in writing and shall be deemed to      have been duly given and made if (i) delivered by hand,      (ii) otherwise delivered against receipt therefor, or (iii) sent      by a recognized courier to the last known address of the other      party. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 17. | COUNTERPARTS.      This Agreement may be executed in one or more counterparts, each of which      shall be deemed an original, and all of which together shall constitute      one and the same instrument. This Agreement shall become binding when one      or more counterparts hereof, individually or taken together, shall bear      the signatures of both parties. Photographic copies of such signed      counterparts may be used in lieu of the originals for any      purpose. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | NO      INTERPRETATION AGAINST DRAFTER. Each party recognizes that this      Agreement is a legally binding agreement and acknowledges that it or he      has had the opportunity to consult with legal counsel of choice. In any      construction of the terms of this Agreement, the same shall not be      construed against either party on the basis of that party being the      drafter of such terms. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19. | GOVERNING      LAW.  To the      extent not preempted by U.S. federal law, the provisions of this Agreement      shall be construed and enforced in accordance with the internal,      substantive laws of the State of New York, without regards to the      principles of conflicts of lawsthereof. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| China      New Energy GroupCompany |
|------------------------------------|
|                               |   |
| By:                                |   |
| Name:                              | John      D. Kuhns |
| Title:                             | Director |
|                               |
| Executive                          |
|                               |   |
| Signature:                         |   |
| Name:                              | Yangkan      Chong |

----