Document:

EXHIBIT
      10.5

    

    LV
      ADMINISTRATIVE SERVICES, INC.

    c/o
      Valens Capital Management, LLC

    335
      Madison Avenue, 10th Floor

    New
      York,
      New York 10017

    

      
        	 	
                September
                  3, 2008

              

      

    

     

    Windswept
      Environmental Group, Inc.

    Trade-Winds
      Environmental Restoration Inc.

    North
      Atlantic Laboratories, Inc.

    Environmental
      Restoration, Inc.

    Restorenet,
      Inc.

    Michael
      O’Reilly

    895
      Waverly Avenue

    Holtsville,
      New York 11742

    Attention:
      Chief Executive Officer

     

    Re: Further
      Assurances

     

    Ladies
      and Gentlemen:

     

    Reference
      is made to (a) the Securities Purchase Agreement, dated as of June 30, 2005
      (as
      amended, restated, modified and/or supplemented from time to time, the
“Purchase
      Agreement”),
      by
      and among Windswept Environmental Group, Inc., a Delaware corporation
      (“Windswept”),
      Trade-Winds Environmental Restoration Inc., a New York corporation
      (“Trade-Winds”),
      North
      Atlantic Laboratories, Inc., a New York corporation (“North
      Atlantic”),
      Environmental Restoration, Inc., a New York corporation (“Environmental
      Restoration”),
      Restorenet, Inc., a New York corporation (“Restorenet”,
      and
      together with Windswept, Trade-Winds, North Atlantic and Environmental
      Restoration, the “Companies”),
      Valens U.S. SPV I, LLC, a Delaware limited liability company (“Valens
      U.S.”),
      as
      assignee of Laurus Master Fund, Ltd. (“Laurus”),
      Valens Offshore SPV I, LTD., a Cayman Islands company (“Valens
      Offshore”),
      as
      assignee of Laurus, and Psource Structured Debt Limited, a Guernsey company
      (“PSource”
and,
      together with Valens U.S. and Valens Offshore as assignees of Laurus Master
      Fund, Ltd., collectively, the “Purchasers”),
      as
      assignee of Laurus, (b) the Letter Agreement, dated as of the date hereof
      (“Letter
      Agreement”),
      among
      Companies, Michael O’Reilly, individually (“Principal”),
      the
      Purchasers and LV Administrative Services, Inc., as agent for the Purchasers
      (the “Agent”)
      and
      (b) all documents, instruments and agreements executed in connection therewith
      (together with the Purchase Agreement and the Letter Agreement, collectively,
      the “Documents”).
      Capitalized terms used but not defined herein shall have the meanings ascribed
      them in the Purchase Agreement or the Letter Agreement, as
      applicable.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    In
      order
      to facilitate the closing of the transactions contemplated by the Letter
      Agreement within the time constraints of the Companies, the Principal, the
      Agent
      and the Purchasers have agreed that certain closing requirements may be waived,
      in whole or in part, as conditions to the disbursement under the Letter
      Agreement. In consideration thereof, the Companies and the Principal have agreed
      to satisfy the following conditions within the time periods and under the
      conditions set forth on the attached schedule (“Schedule
      A”),
      all
      in a manner (and when applicable, evidenced by agreements, instruments and
      documents) satisfactory in form and substance to the Agent.

     

    The
      Companies and the Principal acknowledge and agree that their failure to satisfy
      the requirements set forth on Schedule
      A
      within
      the applicable time limit set forth thereon with respect thereto and/or the
      Companies’ or the Principal’s breach of any provision of this letter agreement
      shall, in each case, constitute an “Event of Default” under and as defined in
      the Documents.

     

    Except
      as
      expressly provided herein, nothing contained herein shall act as a waiver or
      excuse of performance of any obligations contained in the Documents. No waiver,
      modification or amendment of any provision of this agreement shall be effective
      unless specifically made in writing and duly signed by the party to be bound
      thereby. This letter agreement shall be governed by and construed in accordance
      with the laws of the State of New York.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    This
      letter agreement may be executed by the parties hereto in one or more
      counterparts, each of which shall be deemed an original and all of which when
      taken together shall constitute one and the same agreement. Any signature
      delivered by a party by facsimile or electronic transmission shall be deemed
      to
      be an original signature hereto.

    

      
        	 	
                Very
                  truly yours,

              
	 	 
	 	
                LV
                  ADMINISTRATIVE SERVICES, INC.

              
	 	 
	 	
                By: 

              	
                /s/
                  Scott Bluestein

              
	 	 	
                Name:
                  Scott Bluestein

              
	 	 	
                Title:
                  Authorized Signatory

              

      

    

    
    

    The
      foregoing is hereby accepted and agreed to

    as
      of the
      date set forth above:

    

      
        	
                WINDSWEPT
                  ENVIRONMENTAL

                GROUP,
                  INC., a Delaware corporation

              
	 
	
                By:

              	
                /s/
                  Michael O’Reilly

              
	 	
                Name:
                  Michael O’Reilly

              
	 	
                Title:
                  President

              
	 	 
	
                TRADE-WINDS
                  ENVIRONMENTAL

                GROUP,
                  INC.,
                  a
                  New York corporation

              
	 
	
                By:

              	
                /s/
                  Michael O’Reilly

              
	 	
                Name:
                  Michael O’Reilly

              
	 	
                Title:
                  President

              
	 	 
	
                NORTH
                  ATLANTIC LABORATORIES,

                INC.,
                  a
                  New York corporation

              
	 
	
                By:

              	
                /s/
                  Michael O’Reilly

              
	 	
                Name:
                  Michael O’Reilly

              
	 	
                Title:
                  President

              
	 	 
	
                ENVIRONMENTAL
                  RESTORATION,

                INC.,
                  a
                  New York corporation

              
	 
	
                By:

              	
                /s/
                  Michael O’Reilly

              
	 	
                Name:
                  Michael O’Reilly

              
	 	
                Title:
                  President

              

      

      

        
          	
                  SIGNATURE
                    PAGE TO

                
	
                  POST-CLOSING
                    LETTER

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                RESTORENET,
                  INC.,
                  a
                  New York

                corporation

              
	 
	
                By:

              	
                /s/
                  Michael O’Reilly

              
	 	
                Name:
                  Michael O’Reilly

              
	 	
                Title:
                  President 

              
	 	 
	 	
                /s/
                  Michael O’Reilly

              
	
                Michael
                  O’Reilly, Individually

              

      

    

    

      
        	
                SIGNATURE
                  PAGE TO

              
	
                POST-CLOSING
                  LETTER

              

      

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    Schedule
      A

     

    Receipt
      by the Agent of and satisfaction with each of the following in form and
      substance, and reflecting changes deemed necessary by the Agent, satisfactory
      to
      the Agent and its counsel in all respects by September 9, 2008:

     

    1.
      [copies of the Insurance Policies];

     

    2.
      endorsements to the Insurance Policies naming the Agent as an additional
      insured, lender loss payee and mortgagee (as mortgage trustee under the First
      Ship Mortgage dated as of September [ ], 2008) on the Insurance
      Policies;

     

    3.
      original New York Certificate of Title for the New York State titled vessel
      (the
“New York Vessel”) owned by Principal together with all such other documentation
      as Agent shall require to evidence Agent’s status thereon as first
      lienholder;

     

    4.
      all
      such documentation, including without limitation, security agreements, as Agent
      shall require, to evidence the grant by principal of a first priority security
      interest in the New York Vessel together with all such documentation as Agent
      shall require to perfect Agent’s first lien security interest the New York
      Vessel; and

     

    5.
      search
      results for the New York Vessel evidencing that no prior security interests,
      claims or encumbrances cover the New York Vessel.

    

      
        	
                SIGNATURE
                  PAGE TO

              
	
                POST-CLOSING
                  LETTERSECURITIES
      PURCHASE AGREEMENT

    

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      entered into as of September 5, 2008, by and between SJ Electronics, Inc.,
      a
      Nevada corporation (the “Company”),
      Yu
      Ping “Agatha” Shen (“Shen”)
      and
      the investors listed on Exhibit A hereto (each an “Investor” and collectively
      the “Investors”).
      The
      Investors, the Company and Shen are also referred to individually herein as
      a
“Party”
and
      collectively herein as the “Parties.”

    

    

    WITNESSETH:

    

    WHEREAS,
      upon
      the terms and subject to the conditions of this Agreement, the Investors wish
      to
      purchase from the Company and the Company wishes to sell to the Investors,
      the
      Notes (such capitalized term and all other capitalized terms used in this
      Agreement having the meanings provided in Section 1) of the Company to be issued
      by the Company to each Investor in the principal amount set forth on the
      Investor’s signature page to this Agreement;

    

    WHEREAS,
      Shen is
      a holder of 700,000 shares of Common Stock which are duly and validly issued,
      fully paid and non-assessable; 

    

    WHEREAS,
      each
      Investor will receive one share of Common Stock per each dollar invested in
      the
      Notes which shares will be transferred by Shen;

    

    NOW
      THEREFORE, in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the Parties agree as follows:

    

    AGREEMENT

    

    The
      Parties, intending to be legally bound, agree as follows:

    

    
      	1.	
              DEFINITIONS.

            

    

     

    The
      following terms used in this Agreement shall have the meanings set forth
      below.

    

    “1933
      Act”
means
      the Securities Act of 1933, as amended.

    

    “Affiliate”
has
      the
      meaning set forth in Rule 12b-2 of the regulations promulgated under the
      Exchange Act.

    

    “Agreement”
means
      this Securities Purchase Agreement.

    

    “Business”
means
      the business of the Company and its Subsidiaries.

    

    “Business
      Day”
means
      any day other than a Saturday, Sunday or a day on which commercial banks in
      the
      City of New York are authorized or required by law or executive order to remain
      closed.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    “Closing”
has
      the
      meaning set forth in Section
      2(b).

    

    “Closing
      Date”
has
      the
      meaning set forth in Section
      2(b).

    

    “Common
      Stock”
means
      the Common Stock, par value $.001 per share, of the Company.

    

    “Disclosure
      Documents”
has
      the
      meaning set forth in Section
      3(c).

    

    “Entity”
means
      any corporation (including any non profit corporation), general partnership,
      limited partnership, limited liability partnership, joint venture, estate,
      trust, association, company (including any company limited by shares, limited
      liability company or joint stock company), firm, society or other enterprise,
      association, organization or entity.

    

    “Exchange
      Act”
means
      the U.S. Securities Exchange Act of 1934, as amended.

    

    “FINRA”
means
      the Financial Industry Regulatory Authority.

    

    “GAAP”
means
      United States generally accepted accounting principles as in effect as of the
      date of any document purported to be prepared in accordance with GAAP.

    

    “Governmental
      Body”
means
      any (i) nation, region, state, province, county, municipality, city, town,
      village, district or other jurisdiction, (ii) federal, state, provincial,
      local, municipal, foreign or other government, (iii) governmental or
      quasi-governmental authority of any nature (including any governmental agency,
      branch, department or other Entity and any court or other tribunal),
      (iv) multinational organization, (v) body exercising, or entitled to
      exercise, any administrative, executive, judicial, legislative, policy,
      regulatory or taxing authority or power of any nature or (vi) official of
      any of the foregoing.

    

    “Investors”
means
      the investors listed on Exhibit A.

    

    “Law”
means
      any foreign, federal, state and local statute, law, constitution, treaty, rule,
      regulation, by-law, ordinance, code, regulation, resolution, order,
      determination, writ, injunction, awards (including, without limitation, awards
      of any arbitrator), judgment, decree, binding case law, principle of common
      law
      or notice of any Governmental Body (for the avoidance of doubt, including,
      but
      not limited to, the Laws of the United States of America and the People’s
      Republic of China).

    

    “Liabilities”
      includes liabilities or obligations of any nature, whether known or unknown,
      whether absolute, accrued, contingent, choate, inchoate or otherwise, whether
      due or to become due, and whether or not required to be reflected on a balance
      sheet prepared in accordance with GAAP, including any Liability for
      Taxes.

    

    “Material
      Adverse Effect”
means
      a
      material adverse effect on (A) the business, properties, operations, condition
      (financial or other), results of operations or prospects of the Company and
      the
      Subsidiaries, taken as a whole; (B) the validity or enforceability of, or the
      ability of the Company to perform its obligations under, the Transaction
      Documents; or (C) the rights and remedies of the Investors under or in
      connection with the Transaction Documents.

    

    “Party”
and
      “Parties”
have
      the meanings set forth in the preamble to this Agreement.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Person”
means
      an individual or an Entity, including a Governmental Body or any other body
      with
      legal personality separate from its equity holders or members, including if
      established by any Governmental Body.

    

    “Placement
      Agent”
means
      Primary Capital, LLC.

    

    “Proceeding”
means
      any action, arbitration, audit, examination, investigation, claim, demand,
      inquiry, hearing, litigation, suit or appeal (whether civil, criminal,
      administrative, judicial or investigative, whether formal or informal, and
      whether public or private) commenced, brought, conducted, heard by or before
      or
      otherwise involving any Governmental Body or arbitrator.

    

    “Purchase
      Price”
means
      the amount equal to the principal amount of the Note to be purchased by the
      Investor as set forth in Exhibit A.

    

    “Purchase
      Price Escrow Agreement”
has
      the
      meaning set forth in Section
      2(b).

    

    “register”,
      “registered”,
      and
“registration”
refer
      to a registration effected by preparing and filing a registration statement
      or
      statements in compliance with the 1933 Act and pursuant to Rule 415, and the
      declaration or ordering of effectiveness of such registration statement by
      the
      SEC.

    

    “Registration
      Statement”
has
      the
      meaning provided in Section 4(k).

    

    “Regulation
      D”
means
      Regulation D under the 1933 Act.

    

    “Regulation
      S”
means
      Regulation S under the 1933 Act.

    

    “Rule
      144”
means
      Rule 144 promulgated under the 1933 Act or any other similar rule or regulation
      of the SEC that may at any time provide a “safe harbor” exemption from
      registration under the 1933 Act so as to permit a holder to sell securities
      of
      the Company to the public without registration under the 1933 Act.

    

    “Rule
      144A”
means
      Rule 144A under the 1933 Act or any successor rule thereto.

    

    “SEC”
means
      the U.S. Securities and Exchange Commission.

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

    

    “Securities”
means,
      collectively, the Note and the Shares.

    

    “Shares”
has
      the
      meaning provided in Section 2(a).

    

    “Short
      Sales”
shall
      have the meaning provided in Regulation SHO under the Exchange Act as in effect
      on the date of this Agreement (but shall not be deemed to include the location
      and/or reservation of borrowable shares of Common Stock).

    

    “Subsidiary”
means
      any corporation or other entity of which a majority of the capital stock or
      other ownership interests having ordinary voting power to elect a majority
      of
      the board of directors or other persons performing similar functions are at
      the
      time directly or indirectly owned by the Company.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Tax”
means
      any federal, state, local, or foreign income, gross receipts, license, payroll,
      employment, excise, severance, stamp, occupation, premium, windfall profits,
      environmental, customs duties, capital stock, franchise, profits, withholding,
      social security (or similar), unemployment, disability, real property, personal
      property, sales, use, transfer, registration, value added, alternative or add-on
      minimum, estimated, or other tax of any kind whatsoever, including any interest,
      penalty, or addition thereto, whether disputed or not.

    

    “Tax
      Return”
means
      any return, declaration, report, claim for refund, or information return or
      statement required to be supplied to any governmental authority relating to
      Taxes, including any schedule or attachment thereto, and including any amendment
      thereof.

    

    “Transaction
      Documents”
means,
      collectively, this Agreement, the Note, the Purchase Price Escrow Agreement
      and
      the other agreements, instruments and documents contemplated hereby and
      thereby.

    

    
      	2.	
              PURCHASE
                AND SALE OF NOTES; TRANSFER OF COMMON
                STOCK.

            

    

     

    (a)  Purchase
      and Sale of Notes; Transfer of Common Stock.
      Upon
      the
      terms and subject to the conditions of this Agreement, the Investors hereby
      agree to purchase from the Company, and the Company hereby agrees to sell to
      the
      Investors, on the Closing Date, the Notes in the principal amounts set forth
      opposite the names of the Investors in Exhibit A and having the terms and
      conditions as set forth in the form of the Note attached hereto as Annex
      I
      for the
      Purchase Price. 

     

    (i)The
      Notes
      will be offered and sold to the Investors pursuant to Regulation S and/or
      Regulation D under the 1933 Act. Upon original issuance of the Notes, and until
      such time as it is no longer required under the applicable requirements of
      the
      1933 Act, the Notes shall bear the legends relating to the offer and the sale
      of
      the Notes as required by (A) Regulation S under the 1933 Act or (B) any other
      applicable laws or regulations relating to the issuance of the
      Notes.

     

    (ii)
      Upon
      the
      terms and subject to the conditions of this Agreement, Shen hereby agrees to
      transfer to the Investors up to 700,000 shares of Common Stock in the aggregate
      (the “Shares”) with each Investor receiving one share of Common Stock for each
      dollar paid by the Investor for the Note the Investor is purchasing pursuant
      to
      this Agreement. Upon transfer of the Shares, and until such time as it is no
      longer required under the applicable requirements of the 1933 Act, the Shares
      shall bear the legends as required by (A) Regulation S under the 1933 Act,
      (B)
      Regulation S under the 1933 Act or (C) any other applicable laws or regulations
      relating to the Shares.

    

      (b)     
        Closing.
        The
        issuance and sale of the Notes and the transfer of shares of Common Stock
        shall
        occur on the Closing Date at 10 a.m. at the offices of Guzov Ofsink, LLC,
        14th
        Floor,
        600 Madison Avenue, New York, New York 10022 or at such other location and
        time
        as the parties may agree. At the closing, upon the terms and subject to the
        conditions of this Agreement, (1) the Company shall issue and deliver to
        the
        Investors the Notes against payment by the Investors to the Company of an
        amount
        equal to the Purchase Price, (2) as payment in full for the Notes, and against
        delivery of the Notes, the Investors shall have delivered to the Escrow Agent
        the Purchase Price pursuant to that certain escrow agreement, and all amendments
        thereto, by and among the Escrow Agent and the Company, a copy of which is
        attached as Annex
        II
        (such
        agreement, the “Purchase
        Price Escrow Agreement”)
        and
        the Escrow Agent shall have delivered the aggregate Purchase Price for the
        Notes
        to the Company less any fees payable to the Escrow Agent pursuant to the
        Purchase Price Escrow Agreement, and (3) up to 700,000 shares of Common Stock
        shall be transferred by Shen to the Investors (such events, the “Closing”).
        The
        release to the Company of the Purchase Price less all applicable fees shall
        be
        effected in accordance with the terms of this Agreement and the Purchase
        Price
        Escrow Agreement. At the Closing, the Investors and the Company shall deliver
        to
        each other all of the various certificates, instruments, and documents referred
        to in Section 6. 

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      
        	3.	
                REPRESENTATIONS
                  AND WARRANTIES CONCERNING THE COMPANY AND ITS
                  SUBSIDIARIES.

              

      

       

    

    The
      Company represents and warrants to the Investors that the statements contained
      in this Section
      3
      are
      correct and complete as of the date of this Agreement. 

    

    (a)  Organization
      and Standing. The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Nevada, with full and unrestricted corporate
      power and authority to own, operate and lease its assets, to carry on the
      Business (and any other business) as currently conducted (and proposed to be
      conducted), to execute and deliver this Agreement and the Transaction Documents
      and to carry out the transactions contemplated hereby and thereby. The Company
      is duly qualified to do business and is in good standing (to the extent such
      concept is applicable in the relevant jurisdiction) in all jurisdictions in
      which either the ownership or use of the properties owned or used by it, or
      the
      nature of the activities conducted by it, requires such qualification, except
      where the failure to so qualify will not have a Material Adverse Effect. .
      

     

    (b)  Authorization
      of Transaction. The
      Company has full corporate power and authority to execute and deliver this
      Agreement, each of the Transaction Documents, and any applicable ancillary
      agreement and to perform its obligations hereunder and thereunder. The execution
      and delivery of this Agreement and any Transaction Documents by the Company
      and
      the consummation by the Company of the transactions contemplated hereby and
      thereby have been duly authorized by all necessary corporate action on the
      part
      of the Company. This Agreement constitutes the valid and legally binding
      obligation of the Company, enforceable in accordance with its terms and
      conditions, except to the extent that such enforcement may be limited by
      bankruptcy, reorganization, insolvency and other similar Laws and court
      decisions relating to or affecting the enforcement of creditors rights generally
      and by the application of general equitable principles.

     

    (c)  Disclosure
      Documents; Common Stock Trading.

     

    (i) The
      Company has timely filed with, or furnished to, the SEC each form, proxy
      statement or report required to be filed with, or furnished to, the SEC by
      the
      Company pursuant to the Exchange Act since February 14, 2008 (collectively,
      the
“Disclosure
      Documents”).
      To
      the knowledge of the Company, the Disclosure Documents complied, as of the
      date
      of their filing with the SEC, in all respects with the requirements of the
      Securities Act, the Exchange Act and the Sarbanes-Oxley Act of 2002 and the
      rules and regulations promulgated thereunder. The information contained or
      incorporated by reference in the Disclosure Documents was true, complete and
      correct in all material respects as of the respective dates of the filing
      thereof with the SEC and, as of such respective dates, the Disclosure Documents
      did not contain any untrue statement of a material fact or omit to state a
      material fact required to be stated therein or necessary to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading, except to the extent updated or superseded by any Disclosure
      Document subsequently filed by the Company with the SEC prior to the date
      hereof. To the knowledge of the officers of the Company, there is no event,
      fact
      or circumstance that would cause any certification signed by any such officer
      in
      connection with any Disclosure Document pursuant to the requirements of the
      Sarbanes Oxley-Act of 2002 to be untrue, inaccurate or incorrect in any
      respect.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (ii) The
      financial statements of the Company included in the Disclosure Documents have
      been prepared in accordance with the published rules and regulations of the
      SEC
      and in conformity with GAAP applied on a consistent basis throughout the periods
      indicated therein, except as may be indicated therein or in the notes thereto,
      and presented fairly, in all material respects, the consolidated financial
      position of the Company and its Subsidiaries as of the dates indicated, and
      the
      consolidated results of the operations and cash flows of the Company and its
      Subsidiaries for the periods therein specified (except in the case of quarterly
      financial statements for the absence of footnote disclosure and subject, in
      the
      case of interim periods, to normal year-end adjustments).

     

    (iii) The
      Common Stock is validly, properly and effectively registered under the Exchange
      Act in accordance with all applicable federal securities laws and is quoted
      on
      the OTC Bulletin Board. The Company is currently in compliance with all
      applicable FINRA and OTC Bulletin Board requirements and standards. There is
      no
      revocation order, suspension order, injunction or other Proceeding or Law
      (whether issued by the SEC, the FINRA or other Governmental Body) affecting
      the
      effectiveness of the Company’s Exchange Act registration or the trading of the
      Common Stock. The consummation of the transactions contemplated by this
      Agreement and the Transaction Documents do not conflict with, and will not
      result in any violation of, any FINRA or OTC Bulletin Board trading requirement
      or standard applicable to the Company or its Common Stock.

     

    (d)  Absence
      of Litigation.
      To the
      Company’s knowledge, there is no Proceeding pending or threatened by or before
      any Governmental Body against the Company or any of its Subsidiaries. As of
      the
      date hereof, to the Company’s knowledge, there is no Proceeding pending or, to
      the Company’s knowledge, threatened by or before any Governmental Body (i)
      seeking to prevent, hinder, modify or challenge any of the transactions
      contemplated by this Agreement or any of the Transaction Documents, or (ii)
      that
      would cause any of the transactions contemplated by this Agreement or any of
      the
      Transaction Documents to be illegal, invalid, voidable or otherwise
      rescinded.

     

    (e)  Legal
      Compliance.
      Each
      of
      the Company and its Subsidiaries and their respective predecessors and
      Affiliates is currently in compliance and, except to the extent that
      noncompliance will not and could not reasonably be expected to have a material
      adverse effect upon the Business or the financial condition of the Company
      and
      any of its Subsidiaries as currently conducted or proposed to be conducted,
      has
      been in compliance with all applicable Laws, and no Proceeding has been filed
      or
      commenced against any of them alleging any failure so to comply.

    

    (f)  Tax
      Matters. The
      Company and each of its Subsidiaries has made or filed all federal, state and
      foreign income and all other tax returns, reports and declarations required
      by
      any jurisdiction to which it is subject (unless and only to the extent that
      the
      Company and each of its Subsidiaries has set aside on its books provisions
      reasonably adequate for the payment of all unpaid and unreported taxes) and
      has
      paid all taxes and other governmental assessments and charges that are material
      in amount, shown or determined to be due on such returns, reports and
      declarations, except those being contested in good faith and has set aside
      on
      its books provisions reasonably adequate for the payment of all taxes for
      periods subsequent to the periods to which such returns, reports or declarations
      apply. There are no unpaid taxes in any material amount claimed to be due by
      the
      taxing authority of any jurisdiction, and the officers of the Company know
      of no
      basis for any such claim. The Company has not executed a waiver with respect
      to
      the statute of limitations relating to the assessment or collection of any
      foreign, federal, statute or local tax. None of the Company’s tax returns is
      presently being audited by any taxing authority. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (g)  Books
      and Records. The
      books
      of account, minute books, equity record books and other records of the Company
      and its Subsidiaries, all of which have been made available to the Investors
      prior to Closing, are accurate and complete in all material respects and have
      been maintained in accordance with sound business practices. 

     

    (h)  Private
      Offering. Based
      on
      the representations provided by each Investor in Section
      4,
      the
      offer and sale of the Shares to each Investor is, and the offer and sale of
      the
      Securities to the Investors will be, exempt from the registration and prospectus
      delivery requirements of the Securities Act and any other securities Laws.
      Neither the Company nor any Person acting on its behalf has offered or sold
      or
      will offer or sell any securities, or has taken or will take any other action
      (including, without limitation, any offering of securities of the Company under
      circumstances that would require, under the Securities Act, the integration
      of
      such offering with the offer and sale of the Securities) which would subject
      the
      offer and sale of the Securities to the registration provisions of the
      Securities Act.

     

    (i)  Brokers’
      Fees. Except
      for the fees due to the Placement Agent in connection with this offering which
      fees will be paid by the Company at the Closing, neither
      the Company not any of its Subsidiaries, nor any of their shareholders,
      employees, officer or directors, has any Liability to pay any fees or
      commissions or other consideration to any broker, finder, or agent with respect
      to the transactions contemplated by this Agreement, including any Liability
      or
      obligations for which the Investors can become liable or obligated.

     

    (j)  Directing
      Selling Efforts. No
      form
      of “directed selling efforts” (as defined in Rule 902 of Regulation S under the
      1933 Act), general solicitation or general advertising in violation of the
      1933
      Act has been or will be used nor will any offers by means of any directed
      selling efforts in the United States be made by the Investors or any of their
      representatives in connection with the offer and sale of the Notes.

    

    
      	4.	
              REPRESENTATIONS
                AND WARRANTIES OF THE INVESTORS.

            

    

     

    Each
      Investor severally (as to itself only) represents and warrants to the Company
      that the statements contained in this Section
      4
      are
      correct and complete as of the date of this Agreement.

    

    (a)  Organization
      and Standing. Authorization
      of Transaction. Each
      Investor represents and warrants that it is an Entity duly organized and validly
      existing under the laws of its jurisdiction of organization, holding power
      and
      authority to own, operate and lease its assets and to carry on its business
      as
      currently conducted, to execute and deliver this Agreement and the Transaction
      Documents and to carry out the transactions contemplated hereby and
      thereby. Each
      Investor has full corporate or partnership power and authority, as applicable
      (or capacity, if an individual), to execute and deliver this Agreement, the
      Transaction Documents and any applicable ancillary agreement and to perform
      its
      obligations hereunder and thereunder. This Agreement constitutes the valid
      and
      legally binding obligation of the Investor, enforceable in accordance with
      its
      terms and conditions, except to the extent that such enforcement may be limited
      by bankruptcy, reorganization, insolvency and other similar Laws and court
      decisions relating to or affecting the enforcement of creditors’ rights
      generally and by the application of general equitable principles. Except as
      otherwise required by applicable federal or state securities Laws, the Investor
      need not provide any notice to, make any filing with, or obtain any
      authorization, consent, or approval of, any Governmental Body of any other
      Person in order to consummate the transactions contemplated by this Agreement,
      any Transaction Document, or any ancillary agreement.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b)   Circumstances
      of Purchase. 
      The
      Investor is purchasing the Notes for its own account and not with a view towards
      the public sale or distribution thereof within the meaning of the 1933 Act;
      and
      the Investor will acquire any Shares issued to the Investor for its own account
      and not with a view towards the public sale or distribution thereof, within
      the
      meaning of the 1933 Act, and the Investor has no intention of making any
      distribution, within the meaning of the 1933 Act, of the Shares, except in
      compliance with the registration requirements of the 1933 Act or pursuant to
      an
      exemption therefrom. The Investor is acquiring the Securities hereunder in
      the
      ordinary course of its business.

     

    (c)  Brokers’
      Fees.
      The
      Investor has no Liability to pay any fees or commissions or other consideration
      to any broker, finder, or agent with respect to the transactions contemplated
      by
      this Agreement for which the Company or any of its Subsidiaries could become
      liable or obligated.

     

    (d)  No
      Registration. The
      Investor understands that (1) the Notes are being offered and sold to the
      Investors without registration and (2) the Shares are being transferred to
      the
      Investors, in each such case in reliance on one or more exemptions from the
      registration requirements of the 1933 Act, including, without limitation,
      Regulation S and Regulation D, and exemptions from state securities laws and
      that the Company is relying upon the truth and accuracy of, and the Investor’s
      compliance with, the representations, warranties, agreements, acknowledgments
      and understandings of the Investor set forth herein in order to determine the
      availability of such exemptions and the eligibility of the Investor to acquire
      or receive an offer to acquire the Notes and to receive the Shares. The
      Investor (A) agrees that it will not offer, sell or otherwise transfer the
      Note
      or the Shares nor, unless in compliance with the 1933 Act, engage in hedging
      transactions involving such Securities, on or prior to (x) the date which is
      one
      year after the later of the date of the commencement of the offering and the
      date of original issuance (or of any predecessor of any Security proposed to
      be
      transferred by the Investor) and (y) such later date, if any, as may be required
      by applicable law, except (a) to the Company, (b) pursuant to a registration
      statement that has been declared effective under the 1933 Act, (c) for so long
      as any Security is eligible for resale pursuant to Rule 144 under the 1933
      Act,
      (d) for so long as any Security is eligible for resale pursuant to Rule 144A
      under the 1933 Act, to a person it reasonably believes is a “qualified
      institutional buyer” as defined in Rule 144A that purchases for its own account
      or for the account of another qualified institutional buyer to whom notice
      is
      given that the transfer is being made in reliance on Rule 144A, (e) pursuant
      to
      offers and sales to Persons who are not “U.S. Persons” (within the meaning of
      Regulation S) that occur outside the United States within the meaning of
      Regulation S or (f) pursuant to any other available exemption from the
      registration requirements of the 1933 Act, and (B) agrees that it will give
      to
      each person to whom such Security is transferred a notice substantially to
      the
      effect of this paragraph. 

     

    (e)   Investor
      Status. INITIAL
      BELOW IF APPLICABLE. In
      the
      case of an offer made in reliance upon Regulation S, at
      the
      time the Investor was offered the Securities, the Investor was not, and at
      the
      date hereof it is not, a “U.S. Person” (as defined in Rule 902 of Regulation S
      under the 1933 Act),it understands that no action has been or will be taken
      in
      any jurisdiction by the Company that would permit a public offering of the
      Securities in any country or jurisdiction where action for that purpose is
      required and it is not acquiring the Securities for the account or benefit
      of
      any U.S. persons, except in accordance with one or more available exemptions
      from the registration requirements of the 1933 Act or in a transaction not
      subject thereto.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ___________________

    Initial

     

    (f)  Accredited
      Investor Status. Each
      Investor which is acquiring Securities in reliance upon Regulation D is an
      “accredited investor” as defined in Regulation D promulgated under the 1933 Act.
      Each Investor is not required to be registered as a broker-dealer under Section
      15 of the Exchange Act and such Investor is not a broker-dealer, nor an
      affiliate of a broker-dealer.

     

    (g)  Information
      Provided. Each
      Investor and its advisors, if any, have requested, received and considered
      all
      information relating to the business, properties, operations, condition
      (financial or other), results of operations or prospects of the Company and
      information relating to the offer and sale of the Notes deemed relevant by
      them;
      each Investor and its advisors, if any, have been afforded the opportunity to
      ask questions of the Company concerning the terms of the offering of the
      Securities and the business, properties, operations, condition (financial or
      other), results of operations and prospects of the Company and the Subsidiaries.
      Without limiting the generality of the foregoing, the Investor has had the
      opportunity to obtain and to review the Disclosure Documents; in connection
      with
      its decision to purchase the Notes, each Investor has relied solely upon the
      Disclosure Documents, the representations, warranties, covenants and agreements
      of the Company set forth in this Agreement and to be contained in the
      Transaction Documents, as well as any investigation of the Company completed
      by
      the Investor or its advisors; each Investor understands that its investment
      in
      the Securities involves a high degree of risk.

     

    (h)  Investment
      Experience. The
      Investor understands the risks of investing in companies which have their
      business operations domiciled in the People’s Republic of China and that the
      purchase of the Notes involves substantial risk. The
      Investor, either alone or together with its representatives, has such knowledge,
      sophistication and experience in business and financial matters so as to be
      capable of evaluating the merits and risks of the prospective investment in
      the
      Securities, and have so evaluated the merits and risks of such investment.
      The
      Investor is able to bear the economic risk of an investment in the Securities
      and, at the present time, is able to afford a complete loss of such investment.
      The Investor has had the opportunity to ask questions of management of the
      Company.

     

    (i)  Short
      Sales and Confidentiality prior to the Date Hereof. Other
      than the transaction contemplated hereunder, the Investor has not directly
      or
      indirectly, nor has any Person acting on behalf of or pursuant to any
      understanding with the Investor, executed any disposition, including Short
      Sales
      (but not including the location and/or reservation of borrowable shares of
      Common Stock), in the securities of the Company during the period
      commencing from the time that the Investors first received a term sheet from
      the
      Company or any other Person setting forth the material terms of the transactions
      contemplated hereunder until the date hereof (the “Discussion
      Time”).

    

      (j)      
        Non-solicitation and Non-reliance.
        Each
        Investor represents and warrants that he has not been solicited in connection
        with the offering and sale of the Notes and transfer of the Shares by means
        of
        the registration statement on Form S-1 (the “Registration Statement”) filed by
        the Company with the SEC on August 4, 2008 nor has such Investor read such
        Registration Statement or any part thereof. Each Investor further represents
        and
        warrants that he has not relied in any aspect in connection with the offering
        and sale of the Notes and transfer of the Shares on the information that
        was
        made publicly available by the Company by means of the filing of the
        Registration Statement with the SEC.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

        

      
        	5.	
                POST-CLOSING
                  COVENANTS.

              

      

       

    

    The
      Parties agree as follows with respect to the period following the
      Closing.

    

    (a)  Transfer
      Restrictions. 
      Each
      Investor severally acknowledges and agrees that (1) the Notes have not been
      and
      are not being registered under the provisions of the 1933 Act or any state
      securities laws and the Shares have not been and are not being registered under
      the 1933 Act or any state securities laws, and that the Notes may not be
      transferred unless an Investor shall have delivered to the Company such
      representations or certificates as the Company shall reasonably request to
      enable counsel to the Company to be able to deliver an opinion to the transfer
      agent of the Company that the Note to be transferred may be transferred without
      such registration; (2) no sale, conveyance assignment or other transfer of
      the
      Notes or any interest therein may be made except in accordance with the terms
      hereof and thereof; (3) the Shares may not be resold by an Investor unless
      the
      resale has been registered under the 1933 Act or is made pursuant to an
      applicable exemption from such registration and the Company shall have received
      the opinion of counsel provided for in the third to last sentence of this
      Section 5(a); (4) any sale of the Securities made in reliance on Rule 144 may
      be
      made only in accordance with the terms of Rule 144 and further, if the exemption
      provided by Rule 144 is not available, any resale of the Securities under
      circumstances in which the seller, or the Person through whom the sale is made,
      may be deemed to be an underwriter, as that term is used in the 1933 Act, may
      require compliance with some other exemption under the 1933 Act or the rules
      and
      regulations of the SEC thereunder; and (5) the Company is under no obligation
      to
      register the Securities under the 1933 Act or, to comply with the terms and
      conditions of any exemption thereunder. Nothing in any of the Transaction
      Documents shall limit the right of a holder of the Securities to make a bona
      fide pledge thereof to an institutional lender and the Company agrees to
      cooperate with any Investor who seeks to effect any such pledge by providing
      such information and making such confirmations as reasonably
      requested. Provided
      that Rule 144 has not been amended in any material respect between the date
      of
      this Agreement and the delivery thereof, the delivery to the Company of
      a
      signed representation letter in the form of Exhibit 5(a)(1) (the “Investor
      Representation Letter”) shall be sufficient to satisfy the requirement stated in
      clause (1) of this Section 5(a) in the case of a request to remove a restrictive
      legend from the Note or a request to transfer the Note to a third person free
      of
      restrictive legend. If the Company receives a signed Investor Representation
      Letter, then, if required to remove the restrictive legend from the Note or
      facilitate the transfer of the Note free of restrictive legend, within 5
      Business Days after the Investor Representation Letter is given, the Company,
      without charge to any Investor, shall cause its legal counsel to deliver to
      the
      transfer agent or registrar for the Notes an opinion in form and substance
      reasonably satisfactory to the transfer agent or registrar that the restrictive
      legend under the 1933 Act may be removed from the Note and/or that the transfer
      may be made without violating the registration provisions of the 1933
      Act..

     

    (b)  Restrictive
      Legends. 
      (1)
      Each
      Investor severally acknowledges and agrees that the Notes shall bear a
      restrictive legend in substantially the following form (and a stop-transfer
      order may be placed against transfer of the Notes):

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    THE
      ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
      APPLICABLE STATE SECURITIES LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE
      ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER [REGULATION
      S
      (“REGULATION S”)] [REGULATION D (“REGULATION D”)] PROMULGATED UNDER THE ACT. THE
      SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN
      THE
      ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
      THE
      ACT, OR (B) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER, IN
      A
      GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT
      OR
      (II) UNLESS SOLD PURSUANT TO, AND IN ACCORDANCE WITH, RULE 144 OR RULE 144A
      UNDER THE ACT OR OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF
      REGULATION S UNDER THE ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND
      REGULATIONS. NOTWITHSTANDING THE FOREGOING, SUBJECT TO COMPLIANCE WITH
      APPLICABLE SECURITIES LAWS, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
      A
      BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY
      THE
      SECURITIES.

     

    (2) Each
      Investor further severally acknowledges and agrees that until such time, if
      any,
      as the Shares have been registered for resale under the 1933 Act or are eligible
      for resale under Rule 144 under the 1933 Act, the certificates for the Shares
      may bear a restrictive legend in substantially the following form (and a
      stop-transfer order may be placed against transfer of the certificates for
      the
      Shares):

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). THE SECURITIES HAVE BEEN
      ACQUIRED FOR INVESTMENT AND MAY NOT BE RESOLD, TRANSFERRED OR ASSIGNED IN THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
      1933
      ACT OR AN OPINION OF COUNSEL THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933
      ACT.

     

    (3) Certificates
      evidencing the Shares shall not contain any legend (including the legend set
      forth in Section 5(b)(2) hereof): (i) following any sale of such Shares pursuant
      to Rule 144, or (ii) if such legend is not required under applicable
      requirements of the 1933 Act (including judicial interpretations and
      pronouncements issued by the SEC). If such legend is not otherwise required
      under applicable requirements of the 1933 Act (including judicial
      interpretations thereof) then such Shares shall be issued free of all legends.
      

     

    (c)  Transfer
      of Shares.
      The
      Company agrees that no later than ten Trading Days following the Closing, the
      transfer of Shares will be completed and certificates representing Shares,
      as
      applicable, will be issued to each Investor. 

    

    (d)  Debt
      Obligation. 
      So
      long
      as any portion of the Note is outstanding, the Company shall cause its books
      and
      records to reflect the Note as a debt of the Company in its unpaid principal
      amount, shall cause its financial statements to reflect the Note as a debt
      of
      the Company in such amount as shall be the greatest amount permitted in
      accordance with Generally Accepted Accounting Principles.

    

    (e)  Press
      Releases. The
      Company shall, contemporaneously with the closing on the Closing Date or as
      promptly as possible thereafter on the Closing Date, issue a press release
      concerning the transactions contemplated hereby. 

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    (f)  Form
      8-K; Limitation on Information and Investor Obligations. 
      Within
      four Business Days after the Closing Date, the Company will publicly report
      the
      issue and sale of the Notes entered into on or before the Closing Date by filing
      with the SEC a Current Report on Form 8-K under the Exchange Act, which report
      shall describe the material terms of the transactions contemplated hereby and
      thereby and include copies of the forms of the Transaction Documents as exhibits
      to such report.

     

    (g)  Short
      Sales and Confidentiality after the Date Hereof.  Each
      Investor covenants that neither it nor any Affiliates acting on its behalf
      or
      pursuant to any understanding with it will execute any Short Sales during the
      period commencing from the time that the Investor first received a term sheet
      from the Company or any other Person setting forth the material terms of the
      transactions contemplated hereunder and ending on the earlier of (i) the date
      that the transactions contemplated by this Agreement are first publicly
      announced as described in Section 5(f) and (ii) the date, if applicable, that
      this Agreement is terminated pursuant to Section 7(n). The Investor covenants
      that until such time as the transactions contemplated by this Agreement are
      publicly disclosed by the Company as described in Section 5(f) or the earlier
      termination of this Agreement, the Investor will maintain the confidentiality
      of
      all disclosures made to it in connection with this transaction (including the
      existence and terms of this transaction). Notwithstanding the foregoing, the
      Investor does not make any representation, warranty or covenant hereby that
      it
      will not engage in Short Sales in the securities of the Company after the
      earlier of (i) the date that the transactions contemplated by this Agreement
      are
      first publicly announced as described in Section 5(f) and (ii) the date, if
      applicable, that this Agreement is terminated pursuant to Section 7(n).
      Notwithstanding the foregoing, in the case of an Investor that is a
      multi-managed investment vehicle whereby separate portfolio managers manage
      separate portions of such Investor's assets and the portfolio managers have
      no
      direct knowledge of the investment decisions made by the portfolio managers
      managing other portions of such Investor's assets, the covenant set forth above
      shall only apply with respect to the portion of assets managed by the portfolio
      manager that made the investment decision to purchase the Securities covered
      by
      this Agreement.

    

    

    
      	6.	
              CONDITIONS
                TO OBLIGATION TO CLOSE.

            

    

     

    (a)  Conditions
      to Obligation of the Investors.
      The
      obligation of each of the Investors to consummate the transactions to be
      performed by it in connection with the Closing is subject to satisfaction of
      the
      following conditions:

     

    (i) No
      legal
      action, suit or proceeding shall be pending or threatened which seeks to
      restrain or prohibit the transactions contemplated by this
      Agreement;

    

    (ii) The
      representations and warranties of the Company contained in this Agreement shall
      have been true and correct on the date of this Agreement and shall be true
      and
      correct on the Closing Date as if given on and as of the Closing Date (except
      for representations given as of a specific date, which representations shall
      be
      true and correct as of such date), and on or before the Closing Date the Company
      shall have performed all covenants and agreements of the Company contained
      herein or in any of the other Transaction Documents required to be performed
      by
      the Company on or before the Closing Date.

    

    Any
      Investor may waive as to itself any condition specified in this Section
      6(a)
      if it
      executes and delivers to the Company at the Closing a writing so
      stating.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    (b)  Conditions
      to Obligation of the Company.
      The
      obligation of the Company to consummate the transactions to be performed by
      them
      in connection with the Closing is subject to satisfaction of the following
      conditions:

     

    (i) On
      the
      Closing Date, no legal action, suit or proceeding shall be pending or threatened
      which seeks to restrain or prohibit the transactions contemplated by this
      Agreement; and

    

    (ii) The
      representations and warranties of all of the Investors contained in this
      Agreement shall have been true and correct on the date of this Agreement and
      on
      the Closing Date as if made on the Closing Date and on or before the Closing
      Date all of the Investors shall have performed all covenants and agreements
      of
      the Investors contained in this Agreement and required to be performed by the
      Investors on or before the Closing Date.

    

    The
      Company may waive any condition specified in this Section
      6(b)
      if it
      executes and delivers to the Investors at the Closing a writing so
      stating.

    

    
      	7.	
              MISCELLANEOUS.

            

    

     

    (a)  No
      Third Party Beneficiaries.
      This
      Agreement shall not confer any rights or remedies upon any Person other than
      the
      Parties and their respective successors and permitted assigns.

     

    (b)  Entire
      Agreement.
      This
      Agreement (including any Transaction Documents) constitutes the entire agreement
      among the Parties and supersedes any prior understandings, agreements, or
      representations by or among the Parties, written or oral, to the extent they
      related in any way to the subject matter hereof.

     

    (c)  Succession
      and Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties named
      herein and their respective successors and permitted assigns. No Party may
      assign either this Agreement or any of his or its rights, interests, or
      obligations hereunder without the prior written approval of the other Party;
      provided,
      however,
      that
      each Investor may (i) assign any or all of its rights and interests
      hereunder to one or more of its Affiliates and (ii) designate one or more
      of its Affiliates to perform its obligations hereunder (in any or all of which
      cases the Investors shall no longer remain responsible for the performance
      of
      all of its obligations hereunder).

     

    (d)  Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original but all of which together will constitute one and the same
      instrument.

     

    (e)  Headings.
      The
      section headings contained in this Agreement are inserted for convenience only
      and shall not affect in any way the meaning or interpretation of this
      Agreement.

     

    (f)  Notices.
      All
      notices, consents, waivers and other communications under this Agreement must
      be
      in writing and will be deemed given to a Party when (a) delivered to the
      appropriate address by hand or by nationally recognized overnight courier
      service (costs prepaid), (b) sent by facsimile or e-mail with confirmation
      of transmission by the transmitting equipment, or (c) received or rejected
      by the addressee, if sent by certified mail, return receipt requested; in each
      case to the following addresses, facsimile numbers or e-mail addresses and
      marked to the attention of the individual (by name or title) designated below
      (or to such other address, facsimile number, e-mail address or individual as
      a
      party may designate by notice to the other parties):

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    If
      to the
      Investors to the addresses set forth in Exhibit A

    

    If
      to the
      Company or Shen:

    

    SJ
      Electronics, Inc.

    5F,
      No.166, Sinhu 2nd
      Road

    Neihu
      District, Taipei City

    Taiwan

    Attention:
      Agatha Shen

    Telephone
      No.: 011-8862-8791-8838

    Facsimile
      No.: 011-8862-8791-1368

    E-mail:
      Agatha@sjelect.com.tw

    

    with
      a copy (which shall not constitute notice) to: 

    

    Guzov
      Ofsink, LLC

    600
      Madison Avenue, 14th Floor

    New
      York,
      New York 10022

    Attention:
      Darren L. Ofsink

    Telephone
      No.: (212) 371-8008

    Facsimile
      No.: (212) 688-7273

    E-mail:
      dofsink@golawintl.com

    

    (g)  Controlling
      Law; Venue.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without regard to choice of law provisions, statutes,
      regulations or principles of this or any other jurisdiction. Each Party hereby
      irrevocably submits to the exclusive jurisdiction (including personal
      jurisdiction) of the state and federal courts of the State of New York for
      any
      action, suit or proceeding arising in connection with this Agreement, and agrees
      that any such action suit or proceeding shall be brought only in such court
      (and
      waives any objection based on forum non conveniens or any other jurisdiction
      to
      venue therein). Process
      in any Proceeding under this Agreement may be served on any Party anywhere
      in
      the world. 

     

    (h)  Amendments
      and Waivers.
      No
      amendment of any provision of this Agreement shall be valid unless the same
      shall be in writing and signed by the Company and the Investors holding at
      least
      a majority of the principal amount of the Notes then outstanding. 

     

    (i)   Noncontravention.
      To the
      extent that any of the provisions of this Agreement (i) conflicts with, or
      results in any breach of, or constitutes a default under any agreement,
      contract or other arrangement (whether written or oral) to
      which
      the Company or any Subsidiary is a party or by which the Company or its
      Subsidiaries or any of their assets may be bound; or (ii) results in the
      acceleration of any indebtedness of the Company or any Subsidiary, such
      provision shall be invalid and unenforceable, but such provision shall be deemed
      to be modified and in its modified form valid, to the maximum extent to which
      it
      would not so conflict.

     

    (j)   Severability.
      Any
      term
      or provision of this Agreement that is invalid or unenforceable in any situation
      in any jurisdiction shall not affect the validity or enforceability of the
      remaining terms and provisions hereof or the validity or enforceability of
      the
      offending term or provision in any other situation or in any other jurisdiction.
      Furthermore, in lieu of such invalid or unenforceable provision, there shall
      be
      added automatically as part of this Agreement a provision as similar in terms
      to
      such invalid or unenforceable provision as may be possible and be legal, valid
      and enforceable.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (k)  Expenses.
      Each
      of
      the Parties will bear his or its own costs and expenses (including legal fees
      and expenses) incurred in connection with this Agreement and the transactions
      contemplated hereby. 

     

    (l)  Construction.
      The
      Parties have participated jointly in the negotiation and drafting of this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as if drafted jointly by the Parties
      and no presumption or burden of proof shall arise favoring or disfavoring any
      Party by virtue of the authorship of any of the provisions of this Agreement.
      Any reference to any federal, state, local, or foreign statute or law shall
      be
      deemed also to refer to all rules and regulations promulgated thereunder, unless
      the context requires otherwise. The word “including” shall mean including
      without limitation. The Parties intend that each representation, warranty,
      and
      covenant contained herein shall have independent significance. If any Party
      has
      breached any representation, warranty, or covenant contained herein in any
      respect, the fact that there exists another representation, warranty, or
      covenant relating to the same subject matter (regardless of the relative levels
      of specificity) which the Party has not breached shall not detract from or
      mitigate the fact that the Party is in breach of the first representation,
      warranty, or covenant.

     

    (m)  Incorporation
      of Exhibits and Schedules.
      The
      Exhibits and Schedules identified in this Agreement are incorporated herein
      by
      reference and made a part hereof.

     

    (n)  Termination. 
      (1)
      Each
      Investor shall have the right to terminate this Agreement by giving notice
      to
      the Company at any time at or prior to the Closing Date if:

     

    (A) the
      Company shall have failed, refused, or been unable at or prior to the date
      of
      such termination of this Agreement to perform any of its obligations hereunder
      required to be performed prior to the time of such termination;

    

    (B) any
      condition to the Investor’s obligations hereunder is not fulfilled at or prior
      to the time such condition is required to be satisfied; or

    

    (C) the
      Closing shall not have occurred on or before September 30, 2008, other than
      solely by reason of a breach of this Agreement by the Investors.

     

    Any
      such
      termination shall be effective upon the giving of notice thereof by the
      Investors. Upon such termination, the Investor shall have no further obligation
      to the Company hereunder and the Company shall remain liable for any breach
      of
      this Agreement or the other documents contemplated hereby which occurred on
      or
      prior to the date of such termination. 

    

    (2) The
      Company shall have the right to terminate this Agreement by giving notice to
      the
      Investors at any times at or prior to the Closing Date if the Closing shall
      not
      have occurred on or before September 30, 2008, other than solely by reason
      of a
      breach of this Agreement by the Company, so long as the Company is not in breach
      of this Agreement at the time it gives such notice. Any such termination shall
      be effective upon the giving of notice thereof by the Company. Upon such
      termination, neither the Company nor the Investors shall have any further
      obligation to one another hereunder.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (o)  Investor
      Status. 
      The
      Investor is not acting as part of a “group” (as that term is used in Section
      13(d) of the Exchange Act) with any other Person who is or proposes to become
      a
      party to this Agreement, or who is acquiring or holds any Notes, in negotiating
      and entering into this Agreement or purchasing the Notes or acquiring, disposing
      of or voting any of the Shares. The Company hereby confirms that it understands
      and agrees that the Investors are not acting as part of any such
      group.

     

     

     

    

    [Remainder
      of page intentionally left blank

    Signature
      pages follow]

    

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    The
      Parties have executed and delivered this Agreement as of the date indicated
      in
      the first sentence of this Agreement.

    

    

    
      	 	
              SJ
                ELECTRONICS, INC.

              

 

              By:__________________________________

              Name:_____________________________

              Title:______________________________

              

              

              

              

              ______________________________________

              Yu
                Ping “Agatha” Shen

            

    

    

    

    

    [Remainder
      of page intentionally left blank

    Signature
      pages for Investors follow]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

    

    The
      Parties have executed and delivered this Agreement as of the date indicated
      in
      the first sentence of this Agreement.

     

     

    

      
        	
                INVESTOR:

              
	 
	 
	
                (Name
                  of Investor)

              
	 
	 
	
                By:________________________________________________

              
	
                Name:______________________________________________

              
	
                Title:_______________________________________________

              
	 
	
                Principal
                  Amount of the Note:$___________________________

              
	
                Number
                  of Shares:____________________________________

              
	 
	
                Tax
                  ID No.:__________________________________________

              
	 
	 
	
                ADDRESS
                  FOR NOTICE

              
	 
	 

	 

	 

	 

	
                Attention:___________________________________________

              
	
                Tel:________________________________________________

              
	
                Fax:________________________________________________

              
	 
	 
	
                DELIVERY
                  INSTRUCTIONS

              
	
                (if
                  different from above)

              
	 
	 
	 
	 
	 
	
                Attention:__________________________________________

              
	
                Tel:_______________________________________________

              
	
                Fax:_______________________________________________

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