Document:

AMENDMENT
      TO THE SERIES B CONVERTIBLE STOCK PURCHASE 

    AGREEMENT

     

    This
      Amendment to the Series B Convertible Preferred Stock Purchase Agreement (the
      “Amendment”) is made as of October 26, 2006, by and among Dolce Ventures, Inc.,
      a Utah corporation (the “Company”),
      Vision Opportunity Master Fund, Ltd., and each of the other parties set forth
      on
      the signature page hereto (collectively, the “Purchasers”).

     

    Recitals

     

    WHEREAS,
      on September 7, 2006, the Company and the Purchasers entered into a Series
      B
      Convertible Preferred Stock Purchase Agreement (the “Stock Purchase Agreement”),
      Section 3.21 of which requires that the Company deposit an aggregate of
      3,245,784 shares of Common Stock in an escrow account, as adjustment shares,
      to
      be issued to the Series B Purchasers in proportion to their purchases of the
      Preferred Shares if the Company fails to meet certain revenue targets for its
      fiscal year 2006 or 2007, and in each such failure, the Company shall issue
      or
      cause to be issued from the Adjustment Account 1,622,892 Adjustment Shares
      under
      certain conditions;

     

    WHEREAS,
      the amount of the Adjustment Shares was established and agreed to by the parties
      based on a total financing of $12,800,000, as originally contemplated by the
      parties to the Stock Purchase Agreement, through a series of private offerings
      of shares of Series B Convertible Preferred Stock of the Company;

     

    WHEREAS,
      the total amount of the private financing of the Company was $9,281,600;

     

    WHEREAS,
      the parties hereto have agreed that the amount of the Adjustment Shares under
      Section 3.21 of the Stock Purchase Agreement should be reduced proportionally,
      and Schedule 3.8 to the Stock Purchase Agreement which provides for the use
      of
      proceeds of the financing should be amended, each to reflect the reduced amount
      of the total financing; and 

     

    WHEREAS,
      the parties hereto have agreed to amend the Stock Purchase Agreement as
      hereinafter set forth; and

     

    NOW,
      THEREFORE, in consideration of the mutual terms, conditions and other agreements
      set forth herein, the parties hereto hereby agree as follows:

     

    Section
      1. Amendment to the Stock Purchase Agreement.
      

    

    A.
      The
      parties agree that Section 3.21 of the Stock Purchase Agreement is amended
      to
      read in its entirety as follows:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Section
      3.21 Revenue Targets. The Company shall establish an adjustment escrow account
      (the “Adjustment
      Account”)
      in its
      name in which the Company shall deposit 2,353,518 shares of Common Stock to
      be
      issued to the Purchasers, along with each other purchaser of Series B
      Convertible Preferred Stock in an Additional Series B Financing (collectively,
      the “Series
      B Purchasers”),
      as
      adjustment shares (the “Adjustment
      Shares”)
      with
      respect to the Company’s audited earnings after taxes. The Adjustment Account
      shall be managed by a third party law firm acting as escrow agent for such
      purpose. In the event that (A) the Company’s earnings after taxes for its 2006
      fiscal year is less than $5,795,000 or (B) (i) if, by the end of its 2007 fiscal
      year the Company has raised not less than $20,000,000 through the exercise
      of
      warrants or through an equity or debt offering (the “Capital
      Condition”),
      the
      Company’s earnings after taxes for its 2007 fiscal year is less than $9,120,000
      or (ii) if the Capital Condition has not been met, the Company’s earnings after
      taxes for its 2007 fiscal year is less than $7,900,000, the Company shall issue
      or cause to be issued from the Adjustment Account in each instance 1,176,756
      Adjustment Shares; provided,
      however,
      that if
      by the end of its 2007 fiscal year the Company has met the Capital Condition
      by
      procuring not less then $20,000,000 in debt financing, the Company shall issue
      or cause to be issued one-half of the Adjustment Shares that would otherwise
      be
      due. The
      Adjustment Shares shall be issued to the
      Series B Purchasers in proportion to their purchases of the Preferred Shares
      promptly following public disclosure that such revenue target has not been
      achieved. In
      addition, if the Company shall determine to proceed with the preparation and
      filing of a registration statement under the Securities Act in connection with
      the proposed offer and sale of any of its securities by it or any of its
      security holders (other than a registration statement on Form S-4, S-8 or
      other limited purpose form), then the Company will cause all Adjustment Shares
      issued pursuant to this Section 3.21 to be included in such registration
      statement, all to the extent requisite to permit the resale by the Series B
      Purchasers of such Adjustment Shares.”

    

    A.
      The
      parties agree that Schedule 3.8 to the Stock Purchase Agreement is amended
      to
      read in its entirety as follows:

    

    SCHEDULE
      3.8

    

    Use
      of Proceeds 

     

    The
      following Use of Proceeds schedule assumes the use by the Company of $1.64
      million of its existing funds in addition to the total amount raised in the
      closings of the sale of Preferred Stock and Warrants.

    

    
      	 	 	
              (Millions)

            	 
	
              New
                Gas Distribution Terminals

            	 	
              $

            	
              1.24

            	 
	
              Industrial
                Projects

            	 	
              $

            	
              0.4

            	 
	
              New
                Small City Projects

            	 	
              $

            	
              1.48

            	 
	
              New
                Connections at Existing Small Cities

            	 	
              $

            	
              4.26

            	 
	
              New
                Connections at Existing Mid-Sized Cities

            	 	
              $

            	
              0.74

            	 
	
              Offering
                and Closing Costs

            	 	
              $

            	
              2.80

            	 
	
              Total

            	 	
              $

            	
              10.92

            	 

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    Section
      2. Effect on Transaction Documents.
      Except
      as expressly set forth above, all of the terms and conditions of the Transaction
      Documents and any agreements, documents and instruments signed by the Company
      and any Purchaser in connection therewith shall continue in full force and
      effect after the execution of this Waiver and shall not be in any way changed,
      modified or superseded by the terms set forth herein. 

    

    Section
      3. Miscellaneous.
      

     

    A.
      Amendments and Waivers.
      The
      provisions of this Waiver, including the provisions of this sentence, may not
      be
      amended, modified or supplemented, and waivers or consents to departures from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of a majority of the Registrable
      Securities outstanding. 

     

    B.
      Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be delivered as set forth in the Stock Purchase
      Agreement Agreement. 

     

    C.
      Successors and Assigns.
      This
      Waiver shall inure to the benefit of and be binding upon the successors and
      permitted assigns of each of the parties. 

     

    D.
      Execution and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other parties
      hereto, it being understood that all parties need not sign the same counterpart.
      In the event that any signature is delivered by facsimile transmission, such
      signature shall create a valid binding obligation of the party executing (or
      on
      whose behalf such signature is executed) the same with the same force and effect
      as if such facsimile signature were the original thereof.

     

    E.
      Governing Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be determined in accordance with the provisions of
      the
      Stock Purchase Agreement Agreement.

     

    F.
      Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    G.
      Headings.
      The
      headings in this Agreement are for convenience only, do not constitute a part
      of
      the Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed and delivered this Amendment as
      of
      the date first written above.

     

    
      	 	 	 
	 	DOLCE
              VENTURES,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

              

              Name:

              Title:

            

    
      	 	 	 
	 	PURCHASERS:
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

              

              Name:

              Title:

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    
      
        
        

      

      
        6Unassociated Document

     

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE

    

    AGREEMENT

     

     

    Dated
      as of October 20, 2006

     

     

    among

     

     

    DOLCE
      VENTURES INC.

     

     

    and

     

     

    THE
      PURCHASERS LISTED ON EXHIBIT A

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

    
      
        	 	
                PAGE

              
	
                ARTICLE
                  I Purchase and Sale of Preferred Stock

              	
                3

              
	
                Section
                  1.1

              	
                Purchase
                  and Sale of Stock and Warrants

              	
                3

              
	
                Section
                  1.2

              	
                Regulation
                  D

              	
                1

              
	
                Section
                  1.3

              	
                Conversion
                  Shares

              	
                1

              
	
                Section
                  1.4

              	
                Closing

              	
                2

              
	
                Section
                  1.5

              	
                Share
                  Exchange Transaction 

              	
                2

              
	
                ARTICLE
                  II Representations and Warranties

              	
                5

              
	
                Section
                  2.1

              	
                Representations
                  and Warranties of the Company

              	
                5

              
	
                Section
                  2.2

              	
                Representations
                  and Warranties of the Purchasers

              	
                15

              
	
                ARTICLE
                  III Covenants

              	
                18

              
	
                Section
                  3.1

              	
                Securities
                  Compliance

              	
                18

              
	
                Section
                  3.2

              	
                Registration
                  and Listing

              	
                18

              
	
                Section
                  3.3

              	
                Compliance
                  with Laws

              	
                19

              
	
                Section
                  3.4

              	
                Keeping
                  of Records and Books of Account

              	
                19

              
	
                Section
                  3.5

              	
                Reporting
                  Requirements

              	
                19

              
	
                Section
                  3.6

              	
                Amendments

              	
                19

              
	
                Section
                  3.7

              	
                Other
                  Agreements.

              	
                17

              
	
                Section
                  3.8

              	
                Use
                  of Proceeds

              	
                18

              
	
                Section
                  3.9

              	
                Reservation
                  of Shares

              	
                18

              
	
                Section
                  3.10

              	
                Transfer
                  Agent Instructions

              	
                20

              
	
                Section
                  3.11

              	
                Disposition
                  of Assets

              	
                18
                  

              
	
                Section
                  3.12

              	
                Reporting
                  Status

              	
                19
                  

              
	
                Section
                  3.13

              	
                Disclosure
                  of Transaction 

              	
                19
                  

              
	
                Section
                  3.14

              	
                Disclosure
                  of Material Information

              	
                19
                  

              
	
                Section
                  3.15

              	
                Pledge
                  of Securities

              	
                19

              
	
                Section
                  3.16

              	
                Form
                  SB-2 Eligibility

              	
                19

              
	
                Section
                  3.17

              	
                Board
                  Observer Rights 

              	
                20

              
	
                Section
                  3.18

              	
                DTC

              	
                20

              
	
                Section
                  3.19

              	
                Investor
                  and Public Relations

              	
                20

              
	
                Section
                  3.20

              	
                Lock-Up
                  Agreement

              	
                20

              
	
                Section
                  3.21

              	
                Revenue
                  Targets 

              	
                20

              
	
                Section
                  3.22

              	
                Adjustments
                  for Issuance of Additional Shares 

              	
                21

              
	
                Section
                  3.23

              	
                Subsequent
                  Financings

              	
                21

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                ARTICLE
                  IV Conditions

              	
                24

              
	
                Section
                  4.1

              	
                Conditions
                  Precedent to the Obligation of the Company to Sell the
                  Shares

              	
                24

              
	
                Section
                  4.2

              	
                Conditions
                  Precedent to the Obligation of the Purchasers to Purchase the
                  Shares

              	
                25

              
	
                ARTICLE
                  V Stock Certificate Legend

              	
                27

              
	
                Section
                  5.1

              	
                Legend

              	
                27

              
	
                ARTICLE
                  VI Indemnification

              	
                29

              
	
                Section
                  6.1

              	
                General
                  Indemnity

              	
                29

              
	
                Section
                  6.2

              	
                Indemnification
                  Procedure

              	
                29

              
	
                ARTICLE
                  VII Miscellaneous

              	
                30

              
	
                Section
                  7.1

              	
                Fees
                  and Expenses

              	
                30

              
	
                Section
                  7.2

              	
                Specific
                  Enforcement, Consent to Jurisdiction.

              	
                30

              
	
                Section
                  7.3

              	
                Entire
                  Agreement; Amendment

              	
                31

              
	
                Section
                  7.4

              	
                Notices

              	
                31

              
	
                Section
                  7.5

              	
                Waivers

              	
                32

              
	
                Section
                  7.6

              	
                Headings

              	
                29

              
	
                Section
                  7.7

              	
                Successors
                  and Assigns

              	
                29

              
	
                Section
                  7.8

              	
                No
                  Third Party Beneficiaries

              	
                32

              
	
                Section
                  7.9

              	
                Governing
                  Law

              	
                32

              
	
                Section
                  7.10

              	
                Survival

              	
                32

              
	
                Section
                  7.11

              	
                Counterparts

              	
                32

              
	
                Section
                  7.12

              	
                Publicity

              	
                32

              
	
                Section
                  7.13

              	
                Severability

              	
                33

              
	
                Section
                  7.14

              	
                Further
                  Assurances

              	
                33

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT 

     

    This
      SERIES B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT (the “Agreement”)
      is
      dated as of October 20, 2006 by and among Dolce Ventures, Inc., a Utah
      corporation (the “Company”),
      and
      each of the Purchasers of shares of Series B Convertible Preferred Stock of
      the
      Company whose names are set forth on Exhibit
      A
      hereto
      (individually, a “Purchaser”
and
      collectively, the “Purchasers”).

    

    The
      parties hereto agree as follows:

     

    ARTICLE
      I

     

    Purchase
      and Sale of Preferred Stock

     

    Section
      1.1 Purchase
      and Sale of Stock and Warrants.
      Subject
      to the terms and conditions hereof and in consideration of and in express
      reliance upon the representations, warranties, covenants, terms and conditions
      of this Agreement, the Company agrees to issue and sell, for an aggregate
      purchase price of $ 2,404,800 (the “Purchase
      Price”),
      to
      the Purchasers, and the Purchasers, severally but not jointly, agree to
      purchase: 

     

    (i) the
      number of shares of the Company’s Series B Convertible Preferred Stock, par
      value $.001 per share and a purchase price of $2.74 per share (the “Preferred
      Shares”),
      convertible into shares of the Company’s common stock, par value $.001 per share
      (the “Common
      Stock”),
      in
      the amounts set forth opposite such Purchaser’s name on Exhibit
      A
      hereto.
      The designation, rights, preferences and other terms and provisions of the
      Series B Convertible Preferred Stock are set forth in the Certificate of
      Designations of the Relative Rights and Preferences of the Series B Convertible
      Preferred Stock attached hereto as Exhibit
      B,
      as
      amended or corrected from time to time hereafter (the “Certificate
      of Designations”),
      

     

    (ii) Series
      A
      Warrants, in substantially the form attached hereto as Exhibit
      C-1
      (the
“Series
      A Warrants”),
      to
      purchase the number of shares of Common Stock equal to one hundred percent
      (100%) of the number of Preferred Shares purchased by each Purchaser pursuant
      to
      the terms of this Agreement, as set forth opposite such Purchaser’s name on
Exhibit
      A
      hereto,
      and 

     

    (iii) Series
      B
      Warrants, in substantially the form attached hereto as Exhibit
      C-2
      (the
“Series
      B Warrants”),
      to
      purchase the number of shares of Common Stock equal to fifty percent (50%)
      of
      the number of Preferred Shares purchased by each Purchaser pursuant to the
      terms
      of this Agreement, as set forth opposite such Purchaser’s name on Exhibit
      A
      hereto.

     

    (iv) Series
      J
      Warrants, in substantially the form attached hereto as Exhibit
      C-3
      (the
“Series
      J Warrants”),
      to
      purchase the number of shares of Common Stock equal to one hundred percent
      (100%) of the number of Preferred Shares purchased by each Purchaser pursuant
      to
      the terms of this Agreement, as set forth opposite such Purchaser’s name on
Exhibit
      A
      hereto,

     

    (v) Series
      C
      Warrants, in substantially the form attached hereto as Exhibit
      C-4
      (the
“Series
      C Warrants”),
      to
      purchase the number of shares of Common Stock equal to one hundred percent
      (100%) of the number of Preferred Shares purchased by each Purchaser pursuant
      to
      the terms of this Agreement, as set forth opposite such Purchaser’s name on
Exhibit
      A
      hereto,
      and 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (vi) Series
      D
      Warrants, in substantially the form attached hereto as Exhibit
      C-5
      (the
“Series
      D Warrants”
and,
      together with the Series A Warrants, the Series B Warrants, the Series J
      Warrants and the Series C Warrants, the “Warrants”),
      to
      purchase the number of shares of Common Stock equal to fifty percent (50%)
      of
      the number of Preferred Shares purchased by each Purchaser pursuant to the
      terms
      of this Agreement, as set forth opposite such Purchaser’s name on Exhibit
      A
      hereto.

     

    (b) Each
      of
      the Series A, Series B, Series C and Series D Warrants shall expire five (5)
      years following the Closing Date (as defined in Section 1.3 below). The Series
      J
      Warrant shall expire one (1) year following the Closing Date. Each of the
      Warrants shall have an exercise price per share equal to the Warrant Price
      (as
      defined in the applicable Warrant). 

     

     

    Section
      1.2 Regulation
      D.
      The
      Company and the Purchasers are executing and delivering this Agreement in
      accordance with and in reliance upon the exemption from securities registration
      afforded by Rule 506 of Regulation D (“Regulation
      D”)
      as
      promulgated by the United States Securities and Exchange Commission (the
“Commission”)
      under
      the Securities Act of 1933, as amended (the “Securities
      Act”)
      or
      Section 4(2) of the Securities Act.

     

    Section
      1.3 Conversion
      Shares.
      The
      Company has authorized and has reserved and covenants to continue to reserve,
      free of preemptive rights and other similar contractual rights of stockholders,
      such number of shares of Common Stock as shall from time to time be sufficient
      to effect the conversion of all of the Preferred Shares and exercise of the
      Warrants then outstanding. Any shares of Common Stock issuable upon conversion
      of the Preferred Shares and exercise of the Warrants (and such shares when
      issued) are herein referred to as the “Conversion
      Shares”
and
      the
      "Warrant
      Shares",
      respectively. The Preferred Shares, the Conversion Shares and the Warrant Shares
      are sometimes collectively referred to as the “Shares”.

     

    Section
      1.4 Closing.
      The
      closing of the purchase and sale of the Preferred Shares and the Warrants to
      be
      acquired by the Purchasers from the Company under this Agreement shall take
      place at the time and place as mutually agreed to by the parties hereto;
provided,
      that
      all of the conditions set forth in Article IV hereof and applicable to the
      Closing shall have been fulfilled or waived in accordance herewith (the
      "Closing
      Date").
      The
      Purchasers acknowledge and agree that the Company may consummate the sale of
      additional Preferred Shares and Warrants to other purchasers, on terms
      substantially similar to the terms of this Agreement and the other Transaction
      Documents (as defined in Section 2.1(b) hereof), which closing(s) shall occur
      no
      later than October 20, 2006, for an aggregate purchase price of up to
      $11,123,200 and a per share purchase price of $2.74 (an “Additional
      Series B Financing”).
      Subject to the terms and conditions of this Agreement, at the Closing the
      Company shall deliver or cause to be delivered to each Purchaser (x) a
      certificate for the number of Preferred Shares set forth opposite the name
      of
      such Purchaser on Exhibit
      A
      hereto,
      (y) its Warrants to purchase such number of shares of Common Stock as is set
      forth opposite the name of such Purchaser on Exhibit
      A
      attached
      hereto and (z) any other documents required to be delivered pursuant to Article
      IV hereof. At the Closing, unless otherwise instructed by the Company, each
      Purchaser shall deliver its Purchase Price by wire transfer to the following
      account:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Beneficiary
      Bank: HSBC, Hong Kong 

    SWIFT
      Address: HSBC HKHH HKH

    BENEFICIARY'S
      NAME: Gas Investment China Co Ltd

    BENEFICIARY'S
      A/C No: 110-735479-838(USD)

    Bank
      Address: 1 Queen's Road Central, Hong Kong

     

    ARTICLE
      II

     

    Representations
      and Warranties

     

    Section
      2.1 Representations
      and Warranties of the Company.
      The
      Company hereby represents and warrants to the Purchasers, as of the date hereof
      and the Closing Date (except as set forth on the Schedule of Exceptions attached
      hereto with each numbered Schedule corresponding to the section number herein),
      as follows:

     

    (a) Organization,
      Good Standing and Power.
      The
      Company is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of Utah and has the requisite corporate
      power to own, lease and operate its properties and assets and to conduct its
      business as it is now being conducted. The Company does not have any
      subsidiaries except as set forth in the Company’s Form 10-KSB for the year ended
      December 31, 2005, including the accompanying financial statements (the
“Form
      10-KSB”),
      or in
      the Company’s Form 10-QSB for the fiscal quarters ended June 30, 2006, March 31,
      2006 and September 30, 2005 (collectively, the “Form
      10-QSB”),
      or on
Schedule
      2.1(g)
      hereto.
      Except as set forth on Schedule 2.1(a), the Company and each such subsidiary
      is
      duly qualified as a foreign corporation to do business and is in good standing
      in every jurisdiction in which the nature of the business conducted or property
      owned by it makes such qualification necessary except for any jurisdiction(s)
      (alone or in the aggregate) in which the failure to be so qualified will not
      have a Material Adverse Effect (as defined in Section 2.1(c) hereof) on the
      Company’s financial condition.

     

    (b) Authorization;
      Enforcement.
      The
      Company has the requisite corporate power and authority to enter into and
      perform this Agreement, the Registration Rights Agreement in the form attached
      hereto as Exhibit
      D
      (the
“Registration
      Rights Agreement”),
      the
      Lock-Up Agreement (as defined in Section 3.20 hereof) in the form attached
      hereto as Exhibit
      H,
      the
      Irrevocable Transfer Agent Instructions (as defined in Section 3.10), the
      Certificate of Designation, and the Warrants (collectively, the “Transaction
      Documents”)
      and to
      issue and sell the Shares and the Warrants in accordance with the terms hereof.
      The execution, delivery and performance of the Transaction Documents by the
      Company and the consummation by it of the transactions contemplated hereby
      and
      thereby have been duly and validly authorized by all necessary corporate action,
      and no further consent or authorization of the Company or its Board of Directors
      or stockholders is required. This Agreement has been duly executed and delivered
      by the Company. The other Transaction Documents will have been duly executed
      and
      delivered by the Company at the Closing. Each of the Transaction Documents
      constitutes, or shall constitute when executed and delivered, a valid and
      binding obligation of the Company enforceable against the Company in accordance
      with its terms, except as such enforceability may be limited by applicable
      bankruptcy, insolvency, reorganization, moratorium, liquidation,
      conservatorship, receivership or similar laws relating to, or affecting
      generally the enforcement of, creditor’s rights and remedies or by other
      equitable principles of general application. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Capitalization.
      The
      authorized capital stock of the Company and the shares thereof currently issued
      and outstanding as of the date hereof are set forth on Schedule
      2.1(c)
      hereto.
      All of the outstanding shares of the Common Stock and the Preferred Shares
      have
      been duly and validly authorized. Except as pursuant to or permitted under
      the
      transactions, agreements or documents described in the Company’s Current Report
      on Form 8-K (the “Initial Form 8-K”) filed with the Commission on September 13,
      2006 and the amendments to such agreements or documents (collectively, the
      “Initial Transaction Documents”), no shares of Common Stock are entitled to
      preemptive rights or registration rights. Except as pursuant to or permitted
      under the Initial Transaction Documents, there are no outstanding options,
      warrants, scrip, rights to subscribe to, call or commitments of any character
      whatsoever relating to, or securities or rights convertible into, any shares
      of
      capital stock of the Company. Except for the Initial Transaction Documents,
      there are no contracts, commitments, understandings, or arrangements by which
      the Company is or may become bound to issue additional shares of the capital
      stock of the Company or options, securities or rights convertible into shares
      of
      capital stock of the Company. Except for the Initial Transaction Documents,
      the
      Company is not a party to any agreement granting registration or anti-dilution
      rights to any person with respect to any of its equity or debt securities.
      Except for the Initial Transaction Documents, the Company is not a party to,
      and
      it has no knowledge of, any agreement restricting the voting or transfer of
      any
      shares of the capital stock of the Company. The offer and sale of all capital
      stock, convertible securities, rights, warrants, or options of the Company
      issued prior to the Closing complied with all applicable Federal and state
      securities laws, and, except as pursuant to or permitted under the Initial
      Transaction Documents, no stockholder has a right of rescission or claim for
      damages with respect thereto which would have a Material Adverse Effect (as
      defined below). The Company has furnished or made available to the Purchasers
      true and correct copies of the Company’s Articles of Incorporation as in effect
      on the date hereof (the “Articles”),
      and
      the Company’s Bylaws as in effect on the date hereof (the “Bylaws”).
      For
      the purposes of this Agreement, “Material
      Adverse Effect”
means
      any material adverse effect on the business, operations, properties, prospects,
      or financial condition of the Company and its subsidiaries and/or any condition,
      circumstance, or situation that would prohibit or otherwise materially interfere
      with the ability of the Company to perform any of its obligations under this
      Agreement in any material respect.

     

    (d) Issuance
      of Shares.
      The
      Preferred Shares and the Warrants to be issued at the Closing have been duly
      authorized by all necessary corporate action and the Preferred Shares, when
      paid
      for or issued in accordance with the terms hereof, shall be validly issued
      and
      outstanding, fully paid and nonassessable and entitled to the rights and
      preferences set forth in the Certificate of Designation. When the Conversion
      Shares and the Warrant Shares are issued in accordance with the terms of the
      Certificate of Designations and the Warrants, respectively, such shares will
      be
      duly authorized by all necessary corporate action and validly issued and
      outstanding, fully paid and nonassessable, and the holders shall be entitled
      to
      all rights accorded to a holder of Common Stock. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated herein
      and
      therein do not and will not (i) violate any provision of the Company’s Articles
      or Bylaws, (ii) conflict with, or constitute a default (or an event which with
      notice or lapse of time or both would become a default) under, or give to others
      any rights of termination, amendment, acceleration or cancellation of, any
      agreement, mortgage, deed of trust, indenture, note, bond, license, lease
      agreement, instrument or obligation to which the Company is a party or by which
      it or its properties or assets are bound, (iii) create or impose a lien,
      mortgage, security interest, charge or encumbrance of any nature on any property
      of the Company under any agreement or any commitment to which the Company is
      a
      party or by which the Company is bound or by which any of its respective
      properties or assets are bound, or (iv) result in a violation of any federal,
      state, local or foreign statute, rule, regulation, order, judgment or decree
      (including Federal and state securities laws and regulations) applicable to
      the
      Company or any of its subsidiaries or by which any property or asset of the
      Company or any of its subsidiaries are bound or affected, except, in all cases
      other than violations pursuant to clauses (i) and (iv) above, for such
      conflicts, defaults, terminations, amendments, accelerations, cancellations
      and
      violations as would not, individually or in the aggregate, have a Material
      Adverse Effect. The business of the Company and its subsidiaries is not being
      conducted in violation of any laws, ordinances or regulations of any
      governmental entity, except for possible violations which singularly or in
      the
      aggregate do not and will not have a Material Adverse Effect. The Company is
      not
      required under Federal, state or local law, rule or regulation to obtain any
      consent, authorization or order of, or make any filing or registration with,
      any
      court or governmental agency in order for it to execute, deliver or perform
      any
      of its obligations under the Transaction Documents, or issue and sell the Shares
      and the Warrants in accordance with the terms hereof or thereof (other than
      any
      filings which may be required to be made by the Company with the Commission
      or
      state securities administrators subsequent to the Closing, any registration
      statement which may be filed pursuant hereto, and the Certificate of
      Designation); provided
      that,
      for purposes of the representation made in this sentence, the Company is
      assuming and relying upon the accuracy of the relevant representations and
      agreements of the Purchasers herein.

     

    (f) Commission
      Documents, Financial Statements.
      The
      Common Stock is registered pursuant to Section 12(b) or 12(g) of the Securities
      Exchange Act of 1934, as amended the “Exchange
      Act”),
      and
      the Company has timely filed all reports, schedules, forms, statements and
      other
      documents required to be filed by it with the Commission pursuant to the
      reporting requirements of the Exchange Act, including material filed pursuant
      to
      Section 13(a) or 15(d) of the Exchange Act (all of the foregoing including
      filings incorporated by reference therein being referred to herein as the
“Commission
      Documents”).
      The
      Company has delivered or made available to each of the Purchasers at the request
      of such Purchaser true and complete copies of the Commission Documents. The
      Company has not provided to the Purchasers any material non-public information
      or other information which, according to applicable law, rule or regulation,
      was
      required to have been disclosed publicly by the Company but which has not been
      so disclosed, other than with respect to the transactions contemplated by this
      Agreement. At the times of their respective filings, the Form 10-KSB and the
      Form 10-QSB complied in all material respects with the requirements of the
      Exchange Act and the rules and regulations of the Commission promulgated
      thereunder and other federal, state and local laws, rules and regulations
      applicable to such documents, and, as of their respective dates, none of the
      Form 10-KSB and the Form 10-QSB contained any untrue statement of a material
      fact or omitted to state a material fact required to be stated therein or
      necessary in order to make the statements therein, in light of the circumstances
      under which they were made, not misleading. The financial statements of the
      Company included in the Commission Documents comply as to form in all material
      respects with applicable accounting requirements and the published rules and
      regulations of the Commission or other applicable rules and regulations with
      respect thereto. Such financial statements have been prepared in accordance
      with
      United States generally accepted accounting principles (“GAAP”)
      applied on a consistent basis during the periods involved (except (i) as may
      be
      otherwise indicated in such financial statements or the notes thereto or (ii)
      in
      the case of unaudited interim statements, to the extent they may not include
      footnotes or may be condensed or summary statements), and fairly present in
      all
      material respects the financial position of the Company and its subsidiaries
      as
      of the dates thereof and the results of operations and cash flows for the
      periods then ended (subject, in the case of unaudited statements, to normal
      year-end audit adjustments).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g) Subsidiaries.
      Schedule
      2.1(g)
      hereto
      sets forth each subsidiary of the Company, showing the jurisdiction of its
      incorporation or organization and showing the percentage of the Company’s
      ownership. For the purposes of this Agreement, “subsidiary”
shall
      mean any corporation or other entity of which at least a majority of the
      securities or other ownership interest having ordinary voting power (absolutely
      or contingently) for the election of directors or other persons performing
      similar functions are at the time owned directly or indirectly by the Company
      and/or any of its other subsidiaries. All of the outstanding shares of capital
      stock of each subsidiary directly and indirectly held by the Company have been
      duly authorized and validly issued, and are fully paid and nonassessable. Other
      than as contemplated by the Transaction Documents and the Initial Transaction
      Documents there are no outstanding preemptive, conversion or other rights,
      options, warrants or agreements granted or issued by or binding upon any
      subsidiary for the purchase or acquisition of any shares of capital stock of
      any
      subsidiary or any other securities convertible into, exchangeable for or
      evidencing the rights to subscribe for any shares of such capital stock. Other
      than as contemplated by the Transaction Documents and the Initial Transaction
      Documents, neither the Company nor any subsidiary is subject to any obligation
      (contingent or otherwise) to repurchase or otherwise acquire or retire any
      shares of the capital stock of any subsidiary or any convertible securities,
      rights, warrants or options of the type described in the preceding sentence.
      Other than the Initial Transaction Documents, neither the Company nor any
      subsidiary is party to, nor has any knowledge of, any agreement restricting
      the
      voting or transfer of any shares of the capital stock of any
      subsidiary.

     

    (h) No
      Material Adverse Change.
      Since
      December 31, 2005, the Company has not experienced or suffered any Material
      Adverse Effect that has not been disclosed to the Purchasers.

     

    (i) No
      Undisclosed Liabilities.
      Neither
      the Company nor any of its subsidiaries has any liabilities, obligations, claims
      or losses (whether liquidated or unliquidated, secured or unsecured, absolute,
      accrued, contingent or otherwise) other than those incurred in the ordinary
      course of the Company’s or its subsidiaries respective businesses since December
      31, 2005 and which, individually or in the aggregate, do not or would not have
      a
      Material Adverse Effect on the Company or its subsidiaries.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (j) No
      Undisclosed Events or Circumstances.
      To the
      Company’s knowledge, no event or circumstance has occurred or exists with
      respect to the Company or its subsidiaries or their respective businesses,
      properties, prospects, operations or financial condition, which, under
      applicable law, rule or regulation, requires public disclosure or announcement
      by the Company but which has not been so publicly announced or
      disclosed.

     

    (k) Indebtedness.
      The
      Form 10-KSB, Form 10-QSB and the financials statements of Beijing Zhong Ran
      Wei
      Ye Gas Co., Ltd. (“Beijing
      Gas”)
      for
      the six months ended June 30, 2006 and the fiscal years ended December 31,
      2005
      and 2004, sets forth as of the dates and periods indicated on such form and
      financial statements, all outstanding secured and unsecured Indebtedness of
      the
      Company or any subsidiary, or for which the Company or any subsidiary has
      commitments. For the purposes of this Agreement, “Indebtedness”
shall
      mean (a) any liabilities for borrowed money or amounts owed in excess of
      $100,000 (other than trade accounts payable incurred in the ordinary course
      of
      business), (b) all guaranties, endorsements and other contingent obligations
      in
      respect of Indebtedness of others, whether or not the same are or should be
      reflected in the Company’s balance sheet (or the notes thereto), except
      guaranties by endorsement of negotiable instruments for deposit or collection
      or
      similar transactions in the ordinary course of business; and (c) the present
      value of any lease payments in excess of $25,000 due under leases required
      to be
      capitalized in accordance with GAAP. Except as set forth on Schedule
      2.1(k),
      neither
      the Company nor any subsidiary is in default with respect to any
      Indebtedness.

     

    (l) Title
      to Assets.
      Each of
      the Company and the subsidiaries has good and marketable title to, or valid
      leasehold interest in, free and clear of all mortgages, pledges, charges, liens,
      security interests or other encumbrances, all properties and assets (i)
      purportedly owned or used by them as reflected in the Form 10-KSB, or (ii)
      or
      necessary for the conduct of their business as currently conducted, except
      for
      those disclosed in the Form 10-KSB or such that, individually or in the
      aggregate, do not cause a Material Adverse Effect.

     

    (m) Actions
      Pending.
      There
      is no action, suit, claim, investigation, arbitration, alternate dispute
      resolution proceeding or any other proceeding pending or, to the knowledge
      of
      the Company, threatened against the Company or any subsidiary which questions
      the validity of this Agreement or any of the other Transaction Documents or
      the
      transactions contemplated hereby or thereby or any action taken or to be taken
      pursuant hereto or thereto. There is no action, suit, claim, investigation,
      arbitration, alternate dispute resolution proceeding or any other proceeding
      pending or, to the knowledge of the Company, threatened, against or involving
      the Company, any subsidiary or any of their respective properties or assets.
      There are no outstanding orders, judgments, injunctions, awards or decrees
      of
      any court, arbitrator or governmental or regulatory body against the Company
      or
      any subsidiary or any executive officers or directors of the Company or
      subsidiary in their capacities as such.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (n) Compliance
      with Law.
      The
      business of the Company and the subsidiaries has been and is presently being
      conducted in accordance with all applicable federal, state and local
      governmental laws, rules, regulations and ordinances, except for such
      noncompliance that, individually or in the aggregate, would not cause a Material
      Adverse Effect. Except as set forth on Schedule 2.1(n), the Company and each
      of
      its subsidiaries have all franchises, permits, licenses, consents and other
      governmental or regulatory authorizations and approvals necessary for the
      conduct of its business as now being conducted by it unless the failure to
      possess such franchises, permits, licenses, consents and other governmental
      or
      regulatory authorizations and approvals, individually or in the aggregate,
      could
      not reasonably be expected to have a Material Adverse Effect.

     

    (o) Taxes.
      The
      Company and each of the subsidiaries has accurately prepared and filed all
      federal, state and other tax returns required by law to be filed by it, has
      paid
      or made provisions for the payment of all taxes shown to be due and all
      additional assessments, and adequate provisions have been and are reflected
      in
      the financial statements of the Company and the subsidiaries for all current
      taxes and other charges to which the Company or any subsidiary is subject and
      which are not currently due and payable. None of the federal income tax returns
      of the Company or any subsidiary have been audited by the Internal Revenue
      Service. Except as may result from the transactions contemplated under the
      Transaction Documents and the Initial Transaction Documents, the Company has
      no
      knowledge of any additional assessments, adjustments or contingent tax liability
      (whether federal or state) of any nature whatsoever, whether pending or
      threatened against the Company or any subsidiary for any period, nor of any
      basis for any such assessment, adjustment or contingency.

     

    (p) Certain
      Fees.
      Except
      as described in the Initial Form 8-K and set forth on Schedule
      2.1(p)
      hereto,
      no brokers, finders or financial advisory fees or commissions will be payable
      by
      the Company or any subsidiary or any Purchaser with respect to the transactions
      contemplated by this Agreement.

     

    (q) Disclosure.
      Except
      as set forth on Schedule
      2.1(q)
      hereto,
      neither this Agreement or the Schedules hereto nor any other documents,
      certificates or instruments furnished to the Purchasers by or on behalf of
      the
      Company or any subsidiary in connection with the transactions contemplated
      by
      this Agreement contain any untrue statement of a material fact or omit to state
      any material fact necessary in order to make the statements made herein or
      therein, in the light of the circumstances under which they were made herein
      or
      therein, not false or misleading.

     

    (r) Operation
      of Business.
      The
      Company and each of the subsidiaries owns or possesses all patents, trademarks,
      domain names (whether or not registered) and any patentable improvements or
      copyrightable derivative works thereof, websites and intellectual property
      rights relating thereto, service marks, trade names, copyrights, licenses and
      authorizations as set forth in the Form 10-KSB, and all rights with respect
      to
      the foregoing, which are necessary for the conduct of its business as now
      conducted without any conflict with the rights of others, except where the
      failure to so own or possess would not have a Material Adverse
      Effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (s) Environmental
      Compliance.
      Since
      their inception, neither the Company, nor any of its subsidiaries have been,
      in
      violation of any applicable law relating to the environment or occupational
      health and safety, where such violation would have a material adverse effect
      on
      the business or financial condition of any of the Company and its Subsidiaries.
      Each of Company and its Subsidiaries has operated all facilities and properties
      owned, leased or operated by it in material compliance with the Environmental
      Laws. As used herein, “Environmental
      Laws”
means
      all applicable laws governing, regulating or otherwise affecting the
      environment, health or safety. 

     

    (t) Books
      and Record Internal Accounting Controls.
      The
      books and records of the Company and its subsidiaries accurately reflect in
      all
      material respects the information relating to the business of the Company and
      the subsidiaries, the location and collection of their assets, and the nature
      of
      all transactions giving rise to the obligations or accounts receivable of the
      Company or any subsidiary. The Company and each of its subsidiaries maintain
      a
      system of internal accounting controls sufficient, in the judgment of the
      Company, to provide reasonable assurance that (i) transactions are executed
      in
      accordance with management’s general or specific authorizations, (ii)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with GAAP and to maintain asset accountability, (iii)
      access to assets is permitted only in accordance with management’s general or
      specific authorization and (iv) the recorded accountability for assets is
      compared with the existing assets at reasonable intervals and appropriate
      actions is taken with respect to any differences.

     

    (u) Material
      Agreements.
      The
      Company and each of its subsidiaries has in all material respects performed
      all
      the obligations required to be performed by them to date under any written
      or
      oral contract, instrument, agreement, commitment, obligation, plan or
      arrangement (a copy of which would be required to be filed with the Commission
      as an exhibit to a registration statement on Form S-3 or applicable form if
      the
      Company or any subsidiary were registering securities under the Securities
      Act),
      have received no notice of default and are not in default under any such
      agreement now in effect, the result of which could cause a Material Adverse
      Effect. Except as restricted under applicable laws and regulations, the
      incorporation documents, certificates of designations, the Initial Transaction
      Documents, or the Transaction Documents, no written or oral contract,
      instrument, agreement, commitment, obligation, plan or arrangement of the
      Company or of any subsidiary limits or shall limit the payment of dividends
      on
      the Preferred Shares, the Company’s other preferred stock, if any, or its Common
      Stock.

     

    (v) Transactions
      with Affiliates.
      Except
      as set forth in the Commission Documents and the Initial Form 8-K and the
      Initial Transaction Documents, there are no loans, leases, agreements,
      contracts, royalty agreements, management contracts or arrangements or other
      continuing transactions between (a) the Company or any subsidiary on the one
      hand, and (b) on the other hand, any officer, employee, consultant or director
      of the Company, or any of its subsidiaries, or any person owning any capital
      stock of the Company or any subsidiary or any member of the immediate family
      of
      such officer, employee, consultant, director or stockholder or any corporation
      or other entity controlled by such officer, employee, consultant, director
      or
      stockholder, or a member of the immediate family of such officer, employee,
      consultant, director or stockholder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (w) Securities
      Act of 1933.
      Based
      in material part upon the representations herein of the Purchasers, the Company
      has complied and will comply with all applicable federal and state securities
      laws in connection with the offer, issuance and sale of the Shares and the
      Warrants hereunder. Neither the Company nor anyone acting on its behalf,
      directly or indirectly, has or will sell, offer to sell or solicit offers to
      buy
      any of the Shares, the Warrants or similar securities to, or solicit offers
      with
      respect thereto from, or enter into any preliminary conversations or
      negotiations relating thereto with, any person, or has taken or will take any
      action so as to bring the issuance and sale of any of the Shares and the
      Warrants in violation of the registration provisions of the Securities Act
      and
      applicable state securities laws. Neither the Company nor any of its affiliates,
      nor any person acting on its or their behalf, has engaged in any form of general
      solicitation or general advertising (within the meaning of Regulation D under
      the Securities Act) in connection with the offer or sale of any of the Shares
      and the Warrants.

     

    (x) Governmental
      Approvals.
      Except
      for the filing of any notice prior or subsequent to the Closing Date that may
      be
      required under applicable state and/or Federal securities laws (which if
      required, shall be filed on a timely basis) of the United States and/or
      applicable laws of the People’s Republic of China, including, without
      limitation, the filing of a Form D, a current report on Form 8-K, a registration
      statement or statements pursuant to the Registration Rights Agreement, and
      the
      filing of the Certificate of Designation with the Secretary of State for the
      State of Utah, no authorization, consent, approval, license, exemption of,
      filing or registration with any court or governmental department, commission,
      board, bureau, agency or instrumentality, domestic or foreign, is or will be
      necessary for, or in connection with, the execution or delivery of the Preferred
      Shares and the Warrants, or for the performance by the Company of its
      obligations under the Transaction Documents.

     

    (y) Employees;
      Labor Relations.
      Neither
      the Company nor any subsidiary has any collective bargaining arrangements or
      agreements covering any of its employees, except as set forth on Schedule
      2.1(y)
      hereto
      and as disclosed in the Commission Documents. Except as set forth on
Schedule
      2.1(y)
      hereto
      and as disclosed in the Commission Documents, neither the Company nor any
      subsidiary has any employment contract, agreement regarding proprietary
      information, non-competition agreement, non-solicitation agreement,
      confidentiality agreement, or any other similar contract or restrictive
      covenant, relating to the right of any officer, employee or consultant to be
      employed or engaged by the Company or such subsidiary required to be disclosed
      in the Commission Documents that is not so disclosed. Since December 31, 2005,
      no officer, consultant or key employee of the Company or any subsidiary whose
      termination, either individually or in the aggregate, would be reasonably likely
      to have a Material Adverse Effect, has terminated or, to the knowledge of the
      Company, has any present intention of terminating his or her employment or
      engagement with the Company or any subsidiary. Except
      as
      could not reasonably be expected to have a Material Adverse Effect, (i) neither
      the Company nor any of its Subsidiaries is engaged in any unfair labor practice,
      (ii) there is no strike, labor dispute, slowdown or stoppage pending or, to
      the
      knowledge of the Company, threatened against the Company or any of its
      Subsidiaries, and (iii) neither the Company nor any of its Subsidiaries is
      a
      party to any collective bargaining agreement or contract.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (z) Absence
      of Certain Developments.
      Except
      as may be disclosed in the Commission Documents, since December 31, 2005,
      neither the Company nor any subsidiary has:

     

    (i) issued
      any stock, bonds or other corporate securities or any rights, options or
      warrants with respect thereto;

     

    (ii) borrowed
      any amount or incurred or become subject to any liabilities (absolute or
      contingent) except current liabilities incurred in the ordinary course of
      business which are comparable in nature and amount to the current liabilities
      incurred in the ordinary course of business during the comparable portion of
      its
      prior fiscal year, as adjusted to reflect the current nature and volume of
      the
      Company’s or such subsidiary’s business;

     

    (iii) discharged
      or satisfied any lien or encumbrance or paid any obligation or liability
      (absolute or contingent), other than current liabilities paid in the ordinary
      course of business;

     

    (iv) declared
      or made any payment or distribution of cash or other property to stockholders
      with respect to its stock, or purchased or redeemed, or made any agreements
      so
      to purchase or redeem, any shares of its capital stock;

     

    (v) sold,
      assigned or transferred any other tangible assets, or canceled any debts or
      claims, except in the ordinary course of business;

     

    (vi) sold,
      assigned or transferred any patent rights, trademarks, trade names, copyrights,
      trade secrets or other intangible assets or intellectual property rights, or
      disclosed any proprietary confidential information to any person except to
      customers in the ordinary course of business or to the Purchasers or their
      representatives;

     

    (vii) suffered
      any substantial losses or waived any rights of material value, whether or not
      in
      the ordinary course of business, or suffered the loss of any material amount
      of
      prospective business;

     

    (viii) made
      any
      changes in employee compensation except in the ordinary course of business
      and
      consistent with past practices;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ix) made
      capital expenditures or commitments therefor that aggregate in excess of
      $100,000;

     

    (x) entered
      into any other transaction other than in the ordinary course of business, or
      entered into any other material transaction, whether or not in the ordinary
      course of business;

     

    (xi) made
      charitable contributions or pledges in excess of $25,000;

     

    (xii) suffered
      any material damage, destruction or casualty loss, whether or not covered by
      insurance;

     

    (xiii) experienced
      any material problems with labor or management in connection with the terms
      and
      conditions of their employment;

     

    (xiv) effected
      any two or more events of the foregoing kind which in the aggregate would be
      material to the Company or its subsidiaries; or

     

    (xv) entered
      into an agreement, written or otherwise, to take any of the foregoing
      actions.

     

    (aa) Public
      Utility Holding Company Act and Investment Company Act Status.
      The
      Company is not a “holding company” or a “public utility company” as such terms
      are defined in the Public Utility Holding Company Act of 1935, as amended.
      The
      Company is not, and as a result of and immediately upon the Closing will not
      be,
      an “investment company” or a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940, as
      amended.

     

    (bb) ERISA.
      No
      liability to the Pension Benefit Guaranty Corporation has been incurred with
      respect to any Plan (as defined below) by the Company or any of its subsidiaries
      which is or would be materially adverse to the Company and its subsidiaries.
      The
      execution and delivery of this Agreement and the issuance and sale of the
      Preferred Shares will not involve any transaction which is subject to the
      prohibitions of Section 406 of ERISA or in connection with which a tax could
      be
      imposed pursuant to Section 4975 of the Internal Revenue Code of 1986, as
      amended, provided that, if any of the Purchasers, or any person or entity that
      owns a beneficial interest in any of the Purchasers, is an “employee pension
      benefit plan” (within the meaning of Section 3(2) of ERISA) with respect to
      which the Company is a “party in interest” (within the meaning of Section 3(14)
      of ERISA), the requirements of Sections 407(d)(5) and 408(e) of ERISA, if
      applicable, are met. As used in this Section 2.1(ac), the term “Plan”
shall
      mean an “employee pension benefit plan” (as defined in Section 3 of ERISA) which
      is or has been established or maintained, or to which contributions are or
      have
      been made, by the Company or any subsidiary or by any trade or business, whether
      or not incorporated, which, together with the Company or any subsidiary, is
      under common control, as described in Section 414(b) or (c) of the
      Code.

     

    (cc) Dilutive
      Effect.
      The
      Company understands and acknowledges that its obligation to issue Conversion
      Shares upon conversion of the Preferred Shares in accordance with this Agreement
      and the Certificate of Designation and its obligations to issue the Warrant
      Shares upon the exercise of the Warrants in accordance with this Agreement,
      the
      Warrants, and the Initial Transaction Documents, is, in each case, absolute
      and
      unconditional regardless of the dilutive effect that such issuance may have
      on
      the ownership interest of other
      stockholders of the Company.

     

    (dd) No
      Integrated Offering.
      Other
      than as pursuant to the Initial Transaction Documents, neither the Company,
      nor
      any of its affiliates, nor any person acting on its or their behalf, has
      directly or indirectly made any offers or sales of any security or solicited
      any
      offers to buy any security under circumstances that would cause the offering
      of
      the Shares pursuant to this Agreement to be integrated with prior offerings
      by
      the Company for purposes of the Securities Act which would prevent the Company
      from selling the Shares pursuant to Rule 506 under the Securities Act, or any
      applicable exchange-related stockholder approval provisions, nor will the
      Company or any of its affiliates or subsidiaries take any action or steps that
      would cause the offering of the Shares to be integrated with other
      offerings.
      The
      Company does not have any registration statement pending before the Commission
      or currently under the Commission’s review and since February
      1, 2006, the Company has not offered or sold any of its equity securities or
      debt securities convertible into shares of Common Stock other than as pursuant
      to the Initial Transaction Documents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ee) Sarbanes-Oxley
      Act.
      The
      Company is in compliance with the applicable provisions of the Sarbanes-Oxley
      Act of 2002 (the “Sarbanes-Oxley
      Act”),
      and
      the rules and regulations promulgated thereunder, that are effective, and
      intends to comply with other applicable provisions of the Sarbanes-Oxley Act,
      and the rules and regulations promulgated thereunder, upon the effectiveness
      of
      such provisions.

     

    (ff) Independent
      Nature of Purchasers.
      The
      Company acknowledges that the obligations of each Purchaser under the
      Transaction Documents are several and not joint with the obligations of any
      other Purchaser, and no Purchaser shall be responsible in any way for the
      performance of the obligations of any other Purchaser under the Transaction
      Documents. The Company acknowledges that the decision of each Purchaser to
      purchase securities pursuant to this Agreement has been made by such Purchaser
      independently of any other purchase and independently of any information,
      materials, statements or opinions as to the business, affairs, operations,
      assets, properties, liabilities, results of operations, condition (financial
      or
      otherwise) or prospects of the Company or of its Subsidiaries which may have
      made or given by any other Purchaser or by any agent or employee of any other
      Purchaser, and no Purchaser or any of its agents or employees shall have any
      liability to any Purchaser (or any other person) relating to or arising from
      any
      such information, materials, statements or opinions. The Company acknowledges
      that nothing contained herein, or in any Transaction Document, and no action
      taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute
      the Purchasers as a partnership, an association, a joint venture or any other
      kind of entity, or create a presumption that the Purchasers are in any way
      acting in concert or as a group with respect to such obligations or the
      transactions contemplated by the Transaction Documents. The Company acknowledges
      that each Purchaser shall be entitled to independently protect and enforce
      its
      rights, including without limitation, the rights arising out of this Agreement
      or out of the other Transaction Documents, and it shall not be necessary for
      any
      other Purchaser to be joined as an additional party in any proceeding for such
      purpose. The Company acknowledges that for reasons of administrative convenience
      only, the Transaction Documents have been prepared by counsel for one of the
      Purchasers and such counsel does not represent all of the Purchasers but only
      such Purchaser and the other Purchasers have retained their own individual
      counsel with respect to the transactions contemplated hereby.  The Company
      acknowledges that it has elected to provide all Purchasers with the same terms
      and Transaction Documents for the convenience of the Company and not because
      it
      was required or requested to do so by the Purchasers. 

     

    (gg) Transfer
      Agent.
      The
      name, address, telephone number, fax number, contact person and email address
      of
      the Company’s current transfer agent is set forth on Schedule
      2.1(gg)
      hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      2.2 Representations
      and Warranties of the Purchasers.
      Each of
      the Purchasers hereby makes the following representations and warranties to
      the
      Company with respect solely to itself and not with respect to any other
      Purchaser:

    (a) Organization
      and Standing of the Purchasers.
      If the
      Purchaser is an entity, such Purchaser is a corporation or partnership duly
      incorporated or organized, validly existing and in good standing under the
      laws
      of the jurisdiction of its incorporation or organization.

     

    (b) Authorization
      and Power.
      Each
      Purchaser has the requisite power and authority to enter into and perform this
      Agreement and each of the other Transaction Documents to which such Purchaser
      is
      a party, and to purchase the Preferred Shares and Warrants being sold to it
      hereunder. The execution, delivery and performance of this Agreement and each
      of
      the other Transaction Documents to which such Purchaser is a party, by such
      Purchaser and the consummation by it of the transactions contemplated hereby
      and
      thereby have been duly authorized by all necessary corporate or partnership
      action, and no further consent or authorization of such Purchaser or its Board
      of Directors, stockholders, or partners, as the case may be, is required. Each
      of the Transaction Documents to which such Purchaser is a party has been duly
      authorized, executed and delivered by such Purchaser and constitutes, or shall
      constitute when executed and delivered, a valid and binding obligation of the
      Purchaser enforceable against the Purchaser in accordance with the terms
      thereof.

     

    (c) No
      Conflicts.
      The
      execution, delivery and performance of this Agreement and each of the other
      Transaction Documents to which such Purchaser is a party and the consummation
      by
      such Purchaser of the transactions contemplated hereby and thereby or relating
      hereto do not and will not (i) result in a violation of such Purchaser’s charter
      documents or bylaws or other organizational documents or (ii) conflict with,
      or
      constitute a default (or an event which with notice or lapse of time or both
      would become a default) under, or give to others any rights of termination,
      amendment, acceleration or cancellation of any agreement, indenture or
      instrument or obligation to which such Purchaser is a party or by which its
      properties or assets are bound, or result in a violation of any law, rule,
      or
      regulation, or any order, judgment or decree of any court or governmental agency
      applicable to such Purchaser or its properties (except for such conflicts,
      defaults and violations as would not, individually or in the aggregate, have
      a
      material adverse effect on such Purchaser). Such Purchaser is not required
      to
      obtain any consent, authorization or order of, or make any filing or
      registration with, any court or governmental agency in order for it to execute,
      deliver or perform any of its obligations under this Agreement or each of the
      other Transaction Documents to which such Purchaser is a party or to purchase
      the Preferred Shares or acquire the Warrants in accordance with the terms
      hereof, provided that for purposes of the representation made in this sentence,
      such Purchaser is assuming and relying upon the accuracy of the relevant
      representations and agreements of the Company herein.

     

    (d) Acquisition
      for Investment.
      Each
      Purchaser is acquiring the Preferred Shares and the Warrants solely for its
      own
      account for the purpose of investment and not with a view to or for sale in
      connection with distribution. Each Purchaser does not have a present intention
      to sell the Preferred Shares or the Warrants, nor a present arrangement (whether
      or not legally binding) or intention to effect any distribution of the Preferred
      Shares or the Warrants to or through any person or entity; provided,
      however,
      that by
      making the representations herein and subject to Section 2.2(h) below, such
      Purchaser does not agree to hold the Shares or the Warrants for any minimum
      or
      other specific term and reserves the right to dispose of the Shares or the
      Warrants at any time in accordance with Federal and state securities laws
      applicable to such disposition. Each Purchaser acknowledges that it is able
      to
      bear the financial risks associated with an investment in the Preferred Shares
      and the Warrants and that it has been given full access to such records of
      the
      Company and the subsidiaries and to the officers of the Company and the
      subsidiaries and received such information as it has deemed necessary or
      appropriate to conduct its due diligence investigation and has sufficient
      knowledge and experience in investing in companies similar to the Company in
      terms of the Company’s stage of development so as to be able to evaluate the
      risks and merits of its investment in the Company. Each Purchaser further
      acknowledges that such Purchaser understands the risks of investing in companies
      domiciled and/or which operate primarily in the People’s Republic of China and
      that the purchase of the Shares and Warrants involves substantial
      risks.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) Status
      of Purchasers.
      Such
      Purchaser is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act. Such Purchaser is not required to be registered as
      a
      broker-dealer under Section 15 of the Exchange Act and such Purchaser is not
      a
      broker-dealer.

     

    (f) Disclosure
      of Information.
      Each
      Purchaser hereby specifically acknowledges that such Purchaser has been provided
      a copy of the document attached hereto as Exhibit
      G
      (the
“Disclosure
      Document”),
      and
      has reviewed and fully understands the information contained in the Disclosure
      Document, including, without limitation, the risks associated in making an
      investment in the Company and its business. Each Purchaser acknowledges that
      such Purchaser has had full access to all the information it considers necessary
      or appropriate to make an informed investment decision with respect to the
      Shares and Warrants to be purchased under this Agreement. Each Purchaser further
      acknowledges that such Purchaser has had the opportunity to ask questions of
      and
      receive answers from, or obtain additional information from, the executive
      officers of the Company concerning the financial and other affairs of the
      Company and each of its subsidiaries, and to the extent deemed necessary in
      light of such Purchaser’s personal knowledge of the affairs of the Company and
      each of its subsidiaries, such Purchaser has asked such questions and received
      answers to the full satisfaction of such Purchaser, and such Purchaser desires
      to invest in the Company. In making the decision to invest in the Company and
      its business, each Purchaser hereby specifically acknowledges that such
      Purchaser relied solely on the Disclosure Document and has not relied on any
      oral representation made by the Company, or any subsidiary or any officer,
      director, employee or agent of any of them.

     

    (g) No
      General Solicitation.
      Each
      Purchaser acknowledges that the Preferred Shares and the Warrants were not
      offered to such Purchaser by means of any form of general or public solicitation
      or general advertising, or publicly disseminated advertisements or sales
      literature, including (i) any advertisement, article, notice or other
      communication published in any newspaper, magazine, or similar media, or
      broadcast over television or radio, or (ii) any seminar or meeting to which
      such
      Purchaser was invited by any of the foregoing means of
      communications.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h) Rule
      144.
      Such
      Purchaser understands that the Shares must be held indefinitely unless such
      Shares are registered under the Securities Act or an exemption from registration
      is available. Such Purchaser acknowledges that such Purchaser is familiar with
      Rule 144 of the rules and regulations of the Commission, as amended, promulgated
      pursuant to the Securities Act (“Rule
      144”),
      and
      that such person has been advised that Rule 144 permits resales only under
      certain circumstances. Such Purchaser understands that to the extent that Rule
      144 is not available, such Purchaser will be unable to sell any Shares without
      either registration under the Securities Act or the existence of another
      exemption from such registration requirement.

     

    (i) No
      Registration.
      Other
      than as contemplated herein and in the Registration Rights Agreement, such
      Purchaser understands that the Conversion Shares and the Warrants Shares have
      not been registered under the Securities Act or any state securities laws.
      Such
      Purchaser understands that the Shares are being offered and sold in reliance
      on
      a transactional exemption from the registration requirement of Federal and
      state
      securities laws and the Company is relying upon the truth and accuracy of the
      representations, warranties, agreements, acknowledgments and understandings
      of
      such Purchaser set forth herein in order to determine the applicability of
      such
      exemptions and the suitability of such Purchaser to acquire the
      Shares.

     

    (j) Independent
      Investment.
      Except
      as may be disclosed in any filings with the Commission by the Purchasers under
      Section 13 and/or Section 16 of the Exchange Act, no Purchaser has agreed to
      act
      with any other Purchaser for the purpose of acquiring, holding, voting or
      disposing of the Shares purchased hereunder for purposes of Section 13(d) under
      the Exchange Act, and each Purchaser is acting independently with respect to
      its
      investment in the Shares.

     

    ARTICLE
      III

     

    Covenants

     

    The
      Company covenants with each of the Purchasers as follows, which covenants are
      for the benefit of the Purchasers and their permitted assignees (as defined
      herein).

     

    Section
      3.1 Securities
      Compliance.
      The
      Company shall notify the Commission in accordance with their rules and
      regulations, of the transactions contemplated by any of the Transaction
      Documents, including filing a Form D with respect to the Preferred Shares,
      Warrants, Conversion Shares and Warrant Shares as required under Regulation
      D,
      filing of a current report on Form 8-K, and shall take all other necessary
      action and proceedings as may be required and permitted by applicable law,
      rule
      and regulation, for the legal and valid issuance of the Preferred Shares, the
      Warrants, the Conversion Shares and the Warrant Shares to the Purchasers or
      subsequent holders. 

     

    Section
      3.2 Registration
      and Listing.
      The
      Company shall cause its Common Stock to continue to be registered under Sections
      12(b) or 12(g) of the Exchange Act, to comply in all respects with its reporting
      and filing obligations under the Exchange Act, to comply with all requirements
      related to any registration statement filed pursuant to this Agreement, and
      to
      not take any action or file any document (whether or not permitted by the
      Securities Act or the rules promulgated thereunder) to terminate or suspend
      such
      registration or to terminate or suspend its reporting and filing obligations
      under the Exchange Act or Securities Act, except as permitted herein. The
      Company will take all action necessary to continue the quotation of its Common
      Stock on the OTC
      Bulletin Board or other exchange or market on which the Common Stock is trading.
      Subject to the terms of the Transaction Documents, the Company further covenants
      that it will take such further action as the Purchasers may reasonably request,
      all to the extent required from time to time to enable the Purchasers to sell
      the Shares without registration under the Securities Act within the limitation
      of the exemptions provided by Rule 144 promulgated under the Securities Act.
      Upon the request of the Purchasers, the Company shall deliver to the Purchasers
      a written certification of a duly authorized officer as to whether it has
      complied with such requirements.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.3 Compliance
      with Laws.
      The
      Company shall comply, and cause each subsidiary to comply, with all applicable
      laws, rules, regulations and orders, noncompliance with which could have a
      Material Adverse Effect.

     

    Section
      3.4 Keeping
      of Records and Books of Account.
      The
      Company shall keep and cause each subsidiary to keep adequate records and books
      of account, in which complete entries will be made in accordance with GAAP
      consistently applied, reflecting all financial transactions of the Company
      and
      its subsidiaries, and in which, for each fiscal year, all proper reserves for
      depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
      purposes in connection with its business shall be made.

     

    Section
      3.5 Reporting
      Requirements.
      If the
      Commission ceases making periodic reports filed under the Exchange Act available
      via the Internet, then at a Purchaser’s request the Company shall furnish the
      following to such Purchaser so long as such Purchaser shall be obligated
      hereunder to purchase the Preferred Shares or shall beneficially own any
      Shares:

     

    (a) Quarterly
      Reports filed with the Commission on Form 10-QSB as soon as practical after
      the
      document is filed with the Commission, and in any event within five (5) days
      after the document is filed with the Commission;

     

    (b) Annual
      Reports filed with the Commission on Form 10-KSB as soon as practical after
      the
      document is filed with the Commission, and in any event within five (5) days
      after the document is filed with the Commission; and

     

    (c) Copies
      of
      all notices and information, including without limitation notices and proxy
      statements in connection with any meetings, that are provided to holders of
      shares of Common Stock, contemporaneously with the delivery of such notices
      or
      information to such holders of Common Stock.

     

    Section
      3.6 Amendments.
      The
      Company shall not amend or waive any provision of the Articles or Bylaws of
      the
      Company in any way that would adversely affect the liquidation preferences,
      dividends rights, conversion rights, voting rights or redemption rights of
      the
      Preferred Shares; provided,
      however,
      that
      while the Preferred Shares are outstanding, any creation and issuance of another
      series of Junior Stock (as defined in the Certificate of Designation) or any
      other class or series of equity securities which by its terms shall rank on
      parity with the Preferred Shares shall not be deemed to materially and adversely
      affect such rights, preferences or privileges.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.7 Other
      Agreements.
      The
      Company shall not enter into any agreement in which the terms of such agreement
      would restrict or impair the right or ability to perform of the Company or
      any
      subsidiary under any Transaction Document.

     

    Section
      3.8 Use
      of
      Proceeds.
      The
      net
      proceeds from the sale of the Shares hereunder and any cash exercise of the
      Warrants issued hereunder shall be used by the Company for capital expenditures
      on tangible assets and gas distribution rights and land rights and not to redeem
      any Common Stock or securities convertible, exercisable or exchangeable into
      Common Stock or to settle any outstanding litigation. The proceeds of the sale
      of the Shares hereunder shall be used as set forth on Schedule
      3.8
      hereto.

     

    Section
      3.9 Reservation
      of Shares.
      So long
      as any of the Preferred Shares or Warrants remain outstanding, the Company
      shall
      take all action necessary to at all times have authorized, and reserved for
      the
      purpose of issuance, such number of shares of Common Stock as sufficient to
      provide for the issuance of the Conversion Shares and the Warrant
      Shares.

     

    Section
      3.10 Transfer
      Agent Instructions.
      The
      Company shall issue irrevocable instructions to its transfer agent, and any
      subsequent transfer agent, to issue certificates, registered in the name of
      each
      Purchaser or its respective nominee(s), for the Conversion Shares and the
      Warrant Shares in such amounts as specified from time to time by each Purchaser
      to the Company upon conversion of the Preferred Shares or exercise of the
      Warrants in the form of Exhibit
      E
      attached
      hereto (the “Irrevocable
      Transfer Agent Instructions”).
      Prior
      to registration of the Conversion Shares and the Warrant Shares under the
      Securities Act, all such certificates shall bear the restrictive legend
      specified in Section 5.1 of this Agreement. The Company warrants that no
      instruction other than the Irrevocable Transfer Agent Instructions referred
      to
      in this Section 3.10 will be given by the Company to its transfer agent and
      that
      the Shares shall otherwise be freely transferable on the books and records
      of
      the Company as and to the extent provided in this Agreement and the Registration
      Rights Agreement. If a Purchaser provides the Company with an opinion of
      counsel, in a generally acceptable form, to the effect that a public sale,
      assignment or transfer of the Shares may be made without registration
      under the Securities Act or the Purchaser provides the Company with reasonable
      assurances that the Shares can be sold pursuant to Rule 144 without any
      restriction as to the number of securities acquired as of a particular date
      that
      can then be immediately sold, the Company shall permit the transfer, and, in
      the
      case of the Conversion Shares and the Warrant Shares, promptly instruct its
      transfer agent to issue one or more certificates in such name and in such
      denominations as specified by such Purchaser and without any restrictive legend.
      The Company acknowledges that a breach by it of its obligations under this
      Section 3.10 will cause irreparable harm to the Purchasers by vitiating the
      intent and purpose of the transaction contemplated hereby. Accordingly, the
      Company acknowledges that the remedy at law for a breach of its obligations
      under this Section 3.10 will be inadequate and agrees, in the event of a
      breach or threatened breach by the Company of the provisions of this Section
      3.10, that the Purchasers shall be entitled, in addition to all other available
      remedies, to an order and/or injunction restraining any breach and requiring
      immediate issuance and transfer, without the necessity of showing economic
      loss
      and without any bond or other security being required.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.11 Disposition
      of Assets.
      So long
      as the Preferred Shares remain outstanding, neither the Company nor any
      subsidiary shall sell, transfer or otherwise dispose of any of its properties,
      assets and rights including, without limitation, its software and intellectual
      property, to any person except for sales to customers in the ordinary course
      of
      business or with the prior written consent of the holders of a majority of
      the
      Preferred Shares then outstanding.

     

    Section
      3.12 Reporting
      Status. So
      long
      as a Purchaser beneficially owns any of the Shares, the Company shall timely
      file all reports required to be filed with the Commission pursuant to the
      Exchange Act, and the Company shall not terminate its status as an issuer
      required to file reports under the Exchange Act even if the Exchange Act or
      the
      rules and regulations thereunder would permit such termination. 

     

    Section
      3.13 Disclosure
      of Transaction.
      The
      Company shall file with the Commission a Current Report on Form 8-K (the
“Form
      8-K”)
      describing the material terms of the transactions contemplated hereby (and
      attaching as exhibits thereto this Agreement, the Registration Rights Agreement,
      the Certificate of Designation, the Lock-Up Agreement, the form of each series
      of Warrant) as soon as practicable following the Closing Date but in no event
      more than four (4) Trading Day following such Closing Date, which Press Release
      and Form 8-K shall be subject to prior review and comment by the Purchasers.
      "Trading
      Day"
      means
      any day during which the OTC Bulletin Board (or other principal exchange on
      which the Common Stock is traded) shall be open for trading. 

     

    Section
      3.14 Disclosure
      of Material Information.
      The
      Company covenants and agrees that neither it nor any other person acting on
      its
      behalf has provided or will provide any Purchaser or its agents or counsel
      with
      any information that the Company believes constitutes material non-public
      information, unless prior thereto such Purchaser shall have executed a written
      agreement regarding the confidentiality and use of such information.  The
      Company understands and confirms that each Purchaser shall be relying on the
      foregoing representations in effecting transactions in securities of the
      Company.

     

    Section
      3.15 Pledge
      of Securities.
      The
      Company acknowledges and agrees that the Shares may be pledged by a Purchaser
      in
      connection with a bona fide
      margin
      agreement or other loan or financing arrangement that is secured by the Common
      Stock. The pledge of Common Stock shall not be deemed to be a transfer, sale
      or
      assignment of the Common Stock hereunder, and no Purchaser effecting a pledge
      of
      Common Stock shall be required to provide the Company with any notice thereof
      or
      otherwise make any delivery to the Company pursuant to this Agreement or any
      other Transaction Document; provided that a Purchaser and its pledgee shall
      be
      required to comply with the provisions of Article V hereof in order to effect
      a
      sale, transfer or assignment of Common Stock to such pledgee. At the Purchasers'
      expense, the Company hereby agrees to execute and deliver such documentation
      as
      a pledgee of the Common Stock may reasonably request in connection with a pledge
      of the Common Stock to such pledgee by a Purchaser.

     

    Section
      3.16 Form
      SB-2 Eligibility.
      The
      Company currently meets the "registrant eligibility" and transaction
      requirements set forth in the general instructions to Form SB-2 applicable
      to
      "resale" registrations on Form SB-2 and the Company shall file all reports
      required to be filed by the Company with the Commission in a timely
      manner.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.17 Intentionally
      left blank.

     

    Section
      3.18 DTC.
      Not
      later than the effective date of the Registration Statement (as defined in
      the
      Registration Rights Agreement), the Company shall cause its Common Stock to
      be
      eligible for transfer with its transfer agent pursuant to the Depository Trust
      Company Automated Securities Transfer Program. 

     

    Section
      3.19 Intentionally
      left blank.

     

    Section
      3.20 Lock-Up
      Agreement.
      The
      persons listed on Schedule
      3.20
      attached
      hereto shall be subject to the terms and provisions of a lock-up agreement
      in
      substantially the form of Exhibit
      H
      hereto
      (the “Lock-Up
      Agreement”),
      which
      shall provide the manner in which such persons may sell, transfer or dispose
      of
      their shares of Common Stock.

     

    Section
      3.21 Revenue
      Targets.
      The
      Company shall establish an adjustment escrow account (the “Adjustment
      Account”)
      in its
      name in which the Company shall deposit 2,353,518 shares of Common Stock to
      be
      issued to the Purchasers, along with each other purchaser of Series B
      Convertible Preferred Stock in an Additional Series B Financing (collectively,
      the “Series
      B Purchasers”),
      as
      adjustment shares (the “Adjustment
      Shares”)
      with
      respect to the Company’s audited earnings after taxes. The Adjustment Account
      shall be managed by a third party law firm acting as escrow agent for such
      purpose. In the event that (A) the Company’s earnings after taxes for its 2006
      fiscal year is less than $5,795,000 or (B) (i) if, by the end of its 2007 fiscal
      year the Company has raised not less than $20,000,000 through the exercise
      of
      warrants or through an equity or debt offering (the “Capital
      Condition”),
      the
      Company’s earnings after taxes for its 2007 fiscal year is less than $9,120,000
      or (ii) if the Capital Condition has not been met, the Company’s earnings after
      taxes for its 2007 fiscal year is less than $7,900,000, the Company shall issue
      or cause to be issued from the Adjustment Account in each instance 1,176,756
      Adjustment Shares; provided,
      however,
      that if
      by the end of its 2007 fiscal year the Company has met the Capital Condition
      by
      procuring not less then $20,000,000 in debt financing, the Company shall issue
      or cause to be issued one-half of the Adjustment Shares that would otherwise
      be
      due. The
      Adjustment Shares shall be issued to the
      Series B Purchasers in proportion to their purchases of the Preferred Shares
      promptly following public disclosure that such revenue target has not been
      achieved. In
      addition, if the Company shall determine to proceed with the preparation and
      filing of a registration statement under the Securities Act in connection with
      the proposed offer and sale of any of its securities by it or any of its
      security holders (other than a registration statement on Form S-4, S-8 or
      other limited purpose form), then the Company will cause all Adjustment Shares
      issued pursuant to this Section 3.21 to be included in such registration
      statement, all to the extent requisite to permit the resale by the Series B
      Purchasers of such Adjustment Shares. 

     

    Section
      3.22  Adjustments
      for Issuance of Additional Shares of Common Stock.
      In the
      event the Company, shall, at any time within two (2) years following the date
      hereof, issue or sell any additional shares of Common Stock (“Additional
      Shares of Common Stock”),
      at a
      price per share less than $2.74 or without consideration, then the Conversion
      Rate (as defined in the Certificate of Designation) will be adjusted so that
      the
      number of shares of Common Stock issuable upon such conversion of the Preferred
      Shares shall be increased in proportion to such increase in outstanding shares
      of Common Stock and to ensure the Series B Purchasers, in the aggregate,
      acquired the Required Percentage (as defined in the Certificate of Designation)
      of Common Stock. In the event the Company, shall, at any time within two (2)
      years following the date hereof, shall issue any securities convertible into
      or
      exchangeable for, directly or indirectly, Common Stock ("Convertible
      Securities"),
      other
      than the Preferred Shares or the Company’s Series A Preferred Stock, or any
      rights or warrants or options to purchase any such Common Stock or Convertible
      Securities (collectively, the "Common
      Stock Equivalents")
      shall
      be issued or sold, and the price per share for which Additional Shares of Common
      Stock may be issuable pursuant to any such Common Stock Equivalent shall be
      less
      than $2.74, or if, after any such issuance of Common Stock Equivalents, the
      price per share for which Additional Shares of Common Stock may be issuable
      thereafter is amended or adjusted, and such price as so amended shall be less
      than $2.74, then the Conversion Rate will be adjusted so that the number of
      shares of Common Stock issuable on such Conversion of the Preferred Shares
      shall
      be increased in proportion to such increase in outstanding shares of Common
      Stock and to ensure the Series B Purchasers, in the aggregate, acquired the
      Required Percentage of Common Stock. The terms of this Section 3.21 shall not
      apply to securities issued in connection with a Permitted Financing (as defined
      in Section 3.23 (b) below).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.23 Subsequent
      Financings.
      (a)
       For
      a
      period of two (2) years following
      the
      effective date of the registration statement providing for the resale of the
      Conversion Shares and the Warrant Shares,
      the
      Company covenants and agrees to promptly notify (in no event later than five
      (5)
      business days after making or receiving an applicable offer) in writing (a
      "Rights
      Notice")
      the
      Series B Purchasers of the terms and conditions of any proposed offer or sale
      to
      any third party by the Company, of Common Stock or any debt or equity securities
      convertible, exercisable or exchangeable into Common Stock (a “Subsequent
      Financing”).
      The
      Rights Notice shall describe, in reasonable detail, the proposed Subsequent
      Financing, the names and investment amounts of all investors participating
      in
      the Subsequent Financing, the proposed closing date of the Subsequent Financing,
      which shall be within twenty (20) calendar days from the date of the Rights
      Notice, and all of the terms and conditions thereof
      and
      proposed definitive documentation to be entered into in connection
      therewith.
      The
      Rights Notice shall provide each Series B Purchaser an option (the “Rights
      Option”)
      during
      the ten (10) Trading Days following delivery of the Rights Notice (the
“Option
      Period”)
      to
      inform the Company whether such Series B Purchaser will purchase up
      to its
      pro rata portion of all or a portion of the securities being
      offered in such Subsequent Financing on the same, absolute terms and conditions
      as contemplated by such Subsequent Financing. If
      any
      Series B Purchaser elects not to participate in such Subsequent Financing,
      the
      other Series B Purchasers may participate on a pro-rata basis so long as such
      participation in the aggregate does not exceed the total Purchase Price
      hereunder. For
      purposes of this Section, all references to “pro
      rata”
means,
      for any Series B Purchaser electing to participate in such Subsequent Financing,
      the percentage obtained by dividing (x) the number of Preferred Shares purchased
      by such Purchaser at the Closing plus the number of shares of Series B
      Convertible Preferred Stock purchased by the Series B Purchasers at the
      closing(s) of an Additional Series B Financing by (y) the total number of all
      of
      the Preferred Shares purchased by all of the participating Purchasers at the
      Closing plus the number of shares of Series B Convertible Preferred Stock
      purchased by the Series B Purchasers at the closing(s) of an Additional Series
      B
      Financing. Delivery
      of any Rights Notice constitutes a representation and warranty by the Company
      that there are no other material terms and conditions, arrangements, agreements
      or otherwise except for those disclosed in the Rights Notice, to provide
      additional compensation to any party participating in any proposed Subsequent
      Financing, including, but not limited to, additional compensation based on
      changes in the Purchase Price or any type of reset or adjustment of a purchase
      or conversion price or to issue additional securities at any time after the
      closing date of a Subsequent Financing. If the Company does not receive notice
      of exercise of the Rights Option from the Series B Purchasers within the Option
      Period, the Company shall have the right to close the Subsequent Financing
      on
      the scheduled closing date with a third party; provided
      that all
      of the material terms and conditions of the closing are the same as those
      provided to the Series B Purchasers in the Rights Notice. If the closing of
      the
      proposed Subsequent Financing does not occur on that date, any closing of the
      contemplated Subsequent Financing or any other Subsequent Financing shall be
      subject to all of the provisions of this Section 3.23(a), including, without
      limitation, the delivery of a new Rights Notice. The provisions of this Section
      3.23(a) shall not apply to issuances of securities in a Permitted
      Financing. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      For
      purposes of this Agreement, a Permitted Financing (as defined hereinafter)
      shall
      not be considered a Subsequent Financing. A "Permitted
      Financing"
      shall
      mean (i) securities issued pursuant to a bona fide firm underwritten public
      offering of the Company’s securities, (ii) securities issued pursuant to the
      conversion or exercise of convertible or exercisable securities issued or
      outstanding on or prior to the date hereof or issued pursuant to this Agreement
      (so long as the conversion or exercise price in such securities are not amended
      to lower such price and/or adversely affect the Series B Purchasers), (iii)
      the
      Warrant Shares, (iv) securities issued (other than for cash) in connection
      with
      an acquisition of the Company, (v) any warrants issued to the placement agent
      for the transactions contemplated by this Agreement, (vi) securities issued
      in
      connection with strategic license agreements and other partnering arrangements
      so long as such issuances are not for the purpose of raising capital and the
      Company has received the prior written consent of the Series B Purchasers,
      and
      (vii) the issuance of Common Stock or the issuance or grants of options to
      purchase Common Stock pursuant to the Company’s stock option plans and employee
      stock purchase plans and which have been approved by the Company’s Board of
      Directors so long as such issuances in the aggregate do not exceed ten percent
      (10%) of the Company’s issued and outstanding Common Stock as of the Closing
      Date. 

     

    ARTICLE
      IV 

    

    CONDITIONS

     

    Section
      4.1 Conditions
      Precedent to the Obligation of the Company to Sell the Shares.
      The
      obligation hereunder of the Company to issue and sell the Preferred Shares
      and
      the Warrants to the Purchasers is subject to the satisfaction or waiver, at
      or
      before the Closing, of each of the conditions set forth below. These conditions
      are for the Company’s sole benefit and may be waived by the Company at any time
      in its sole discretion.

     

    (a) Accuracy
      of Each Purchaser’s Representations and Warranties.
      Each of
      the representations and warranties of each Purchaser in this Agreement and
      each
      of the other Transaction Documents to which such Purchaser is a party shall
      be
      true and correct in all material respects as of the date when made and as of
      the
      Closing Date as though made at that time, except for representations and
      warranties that are expressly made as of a particular date, which shall be
      true
      and correct in all material respects as of such date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Performance
      by the Purchasers.
      Each
      Purchaser shall have performed, satisfied and complied in all respects with
      all
      covenants, agreements and conditions required by this Agreement to be performed,
      satisfied or complied with by such Purchaser at or prior to the
      Closing.

     

    (c) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction which prohibits the consummation of any
      of
      the transactions contemplated by this Agreement. 

     

    (d) Delivery
      of Purchase Price.
      The
      Purchase Price for the Preferred Shares and Warrants has been delivered to
      the
      Company at the Closing Date.

     

    (e) Delivery
      of Transaction Documents.
      The
      Transaction Documents have been duly executed and delivered by the Purchasers
      to
      the Company. 

     

    (f) Intentionally
      left blank. 

     

    Section
      4.2 Conditions
      Precedent to the Obligation of the Purchasers to Purchase the
      Shares.
      The
      obligation hereunder of each Purchaser to acquire and pay for the Preferred
      Shares and the Warrants is subject to the satisfaction or waiver, at or before
      the Closing, of each of the conditions set forth below. These conditions are
      for
      each Purchaser’s sole benefit and may be waived by such Purchaser at any time in
      its sole discretion.

     

    (a) Accuracy
      of the Company’s Representations and Warranties.
      Each of
      the representations and warranties of the Company in this Agreement and each
      of
      the other Transaction Documents shall be true and correct in all respects as
      of
      the date when made and as of the Closing Date as though made at that time
      (except for representations and warranties that are expressly made as of a
      particular date), which shall be true and correct in all respects as of such
      date.

     

    (b) Performance
      by the Company.
      The
      Company shall have performed, satisfied and complied in all respects with all
      covenants, agreements and conditions required by this Agreement to be performed,
      satisfied or complied with by the Company at or prior to the
      Closing.

     

    (c) No
      Suspension, Etc.
      Quotation of the Common Stock shall not have been suspended by the Commission
      or
      the OTC Bulletin Board (except for any suspension of trading of limited duration
      agreed to by the Company, which suspension shall be terminated prior to the
      Closing), and, at any time prior to the Closing Date, trading in securities
      generally as reported by Bloomberg Financial Markets (“Bloomberg”)
      shall
      not have been suspended or limited, or minimum prices shall not have been
      established on securities whose trades are reported by Bloomberg, or on the
      New
      York Stock Exchange, nor shall a banking moratorium have been declared either
      by
      the United States or New York State authorities, nor shall there have occurred
      any material outbreak or escalation of hostilities or other national or
      international calamity or crisis of such magnitude in its effect on, or any
      material adverse change in any financial market which, in each case, in the
      judgment of such Purchaser, makes it impracticable or inadvisable to purchase
      the Preferred Shares.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction which prohibits the consummation of any
      of
      the transactions contemplated by this Agreement.

     

    (e) No
      Proceedings or Litigation.
      No
      action, suit or proceeding before any arbitrator or any governmental authority
      shall have been commenced, and no investigation by any governmental authority
      shall have been threatened, against the Company or any subsidiary, or any of
      the
      officers, directors or affiliates of the Company or any subsidiary seeking
      to
      restrain, prevent or change the transactions contemplated by this Agreement,
      or
      seeking damages in connection with such transactions.

     

    (f) Certificate
      of Designation of Rights and Preferences.
      Prior
      to the Closing, the Certificate of Designation in the form of Exhibit
      B
      attached
      hereto shall have been filed with the Secretary of State of Utah.

     

    (g) Opinion
      of Counsel.
      At the
      Closing, the Purchasers shall have received an opinion of counsel to the
      Company, dated the date of such Closing, in the form of Exhibit
      F
      hereto,
      and such other certificates and documents as the Purchasers or its counsel
      shall
      reasonably require incident to such Closing.

     

    (h) Registration
      Rights Agreement.
      At the
      Closing, the Company shall have executed and delivered the Registration Rights
      Agreement to each Purchaser.

     

    (i) Stock
      Certificates; Warrants.
      The
      Company shall have executed and delivered to the Purchasers the certificates
      (in
      such denominations as such Purchaser shall request) for the Preferred Shares
      and
      the Warrants being acquired by such Purchaser at the Closing (in such
      denominations as such Purchaser shall request).

     

    (j) Resolutions.
      The
      Board of Directors of the Company shall have adopted resolutions consistent
      with
      Section 2.1(b) hereof in a form reasonably acceptable to such Purchaser (the
      "Resolutions").

     

    (k) Reservation
      of Shares.
      As of
      the Closing Date, the Company shall have reserved out of its authorized and
      unissued Common Stock, solely for the purpose of effecting the conversion of
      the
      Preferred Shares and the exercise of the Warrants, a number of shares of Common
      Stock equal to the aggregate number of Conversion Shares issuable upon
      conversion of the Preferred Shares issued or to be issued pursuant to this
      Agreement and the number of Warrant Shares issuable upon exercise of the number
      of Warrants issued or to be issued pursuant to this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (l) Transfer
      Agent Instructions.
      As of
      the Closing Date, the Irrevocable Transfer Agent Instructions, in the form
      of
Exhibit
      E
      attached
      hereto, shall have been delivered to and acknowledged in writing by the
      Company’s transfer agent.

     

    (m) Secretary’s
      Certificate.
      The
      Company shall have delivered to such Purchaser a secretary’s certificate, dated
      as of the Closing Date, as to (i) the Resolutions, (ii) the Articles, (iii)
      the
      Bylaws, (iv) the Certificate of Designation, each as in effect at the Closing,
      and (iv) the authority and incumbency of the officers of the Company executing
      the Transaction Documents and any other documents required to be executed or
      delivered in connection therewith.

     

    (n) Officer’s
      Certificate.
      The
      Company shall have delivered to the Purchasers a certificate of an executive
      officer of the Company, dated as of the Closing Date, confirming the accuracy
      of
      the Company’s representations, warranties and covenants as of such Closing Date
      and confirming the compliance by the Company with the conditions precedent
      set
      forth in this Section 4.2 as of such Closing Date.

     

    (o) Material
      Adverse Effect.
      No
      Material Adverse Effect shall have occurred at or before the Closing Date.
      

     

    (p) Intentionally
      left blank 

     

    (q) Audited
      Financial Statements.
      On or
      prior to the Closing Date, the Company shall have delivered to the Purchasers
      the audited financial statements of Beijing Gas for the fiscal years ended
      December 31, 2005 and 2004 prepared by Samuel H. Wong & Co.,
      LLP.

     

    (r) Initial
      Form 8-K.
      On or
      prior to the Closing Date, the Company shall have delivered to the Purchasers
      the Initial Form 8-K as filed with the Commission pursuant to Section 3.13
      hereof, upon request of the Purchasers.

     

    (s) Lock-Up
      Agreement.
      On or
      prior to the Closing Date, the persons listed on Schedule
      3.20
      attached
      hereto shall have executed and delivered the Lock-Up Agreement to the
      Purchasers. 

     

     

    ARTICLE
      V

     

    Stock
      Certificate Legend

     

    Section
      5.1 Legend.
      Each
      certificate representing the Preferred Shares and the Warrants, and, if
      appropriate, securities issued upon conversion thereof, shall be stamped or
      otherwise imprinted with a legend substantially in the following form (in
      addition to any legend required by applicable state securities or “blue sky”
laws):

     

    THESE
      SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
      OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
      DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
      STATE SECURITIES LAWS OR DOLCE VENTURES INC. SHALL HAVE RECEIVED AN OPINION
      OF
      COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER
      THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Company agrees to reissue certificates representing any of the Conversion Shares
      and the Warrant Shares, without the legend set forth above if at such time,
      prior to making any transfer of any such securities, such holder thereof shall
      give written notice to the Company describing the manner and terms of such
      transfer and removal as the Company may reasonably request. Such proposed
      transfer and removal will not be effected until: (a) either (i) the Company
      has
      received an opinion of counsel reasonably satisfactory to the Company, to the
      effect that the registration of the Conversion Shares or the Warrant Shares
      under the Securities Act is not required in connection with such proposed
      transfer, (ii) a registration statement under the Securities Act covering such
      proposed disposition has been filed by the Company with the Commission and
      has
      become effective under the Securities Act, (iii) the Company has received other
      evidence reasonably satisfactory to the Company that such registration and
      qualification under the Securities Act and state securities laws are not
      required, or (iv) the holder provides the Company with reasonable assurances
      that such security can be sold pursuant to Rule 144 under the Securities Act;
      and (b) either (i) the Company has received an opinion of counsel reasonably
      satisfactory to the Company, to the effect that registration or qualification
      under the securities or "blue sky" laws of any state is not required in
      connection with such proposed disposition, or (ii) compliance with applicable
      state securities or "blue sky" laws has been effected or a valid exemption
      exists with respect thereto. The Company will respond to any such notice from
      a
      holder within five (5) business days. In the case of any proposed transfer
      under
      this Section 5.1, the Company will use reasonable efforts to comply with any
      such applicable state securities or "blue sky" laws, but shall in no event
      be
      required, (x) to qualify to do business in any state where it is not then
      qualified, (y) to take any action that would subject it to tax or to the general
      service of process in any state where it is not then subject, or (z) to comply
      with state securities or “blue sky” laws of any state for which registration by
      coordination is unavailable to the Company. The restrictions on transfer
      contained in this Section 5.1 shall be in addition to, and not by way of
      limitation of, any other restrictions on transfer contained in any other section
      of this Agreement. Whenever
      a
      certificate representing the Conversion Shares or Warrant Shares is required
      to
      be issued to a Purchaser without a legend, in lieu of delivering physical
      certificates representing the Conversion Shares or Warrant Shares (provided
      that a registration statement under the Securities Act providing for the resale
      of the Warrant Shares and Conversion Shares is then in effect),
      the
      Company shall cause its transfer agent to electronically transmit the Conversion
      Shares or Warrant Shares to a Purchaser by crediting the account of such
      Purchaser's Prime Broker with the Depository Trust Company (“DTC”)
      through its Deposit Withdrawal Agent Commission (“DWAC”)
      system
      (to the extent not inconsistent with any provisions of this
      Agreement).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VI

     

    Indemnification

     

    Section
      6.1 General
      Indemnity.
      The
      Company agrees to indemnify and hold harmless the Purchasers (and their
      respective directors, officers, managers, partners, members, shareholders,
      affiliates, agents, successors and assigns) from and against any and all losses,
      liabilities, deficiencies, costs, damages and expenses (including, without
      limitation, reasonable attorneys’ fees, charges and disbursements) incurred by
      the Purchasers as a result of any inaccuracy in or breach of the
      representations, warranties or covenants made by the Company herein. Each
      Purchaser severally but not jointly agrees to indemnify and hold harmless the
      Company and its directors, officers, managers, affiliates, agents, successors
      and assigns from and against any and all losses, liabilities, deficiencies,
      costs, damages and expenses (including, without limitation, reasonable
      attorneys’ fees, charges and disbursements) incurred by the Company as result of
      any inaccuracy in or breach of the representations, warranties or covenants
      made
      by such Purchaser herein. The maximum aggregate liability of each Purchaser
      pursuant to its indemnification obligations under this Article VI shall not
      exceed the portion of the Purchase Price paid by such Purchaser hereunder.
      

     

    Section
      6.2 Indemnification
      Procedure.
      Any
      party entitled to indemnification under this Article VI (an “indemnified party”)
      will give written notice to the indemnifying party of any matters giving rise
      to
      a claim for indemnification; provided, that the failure of any party entitled
      to
      indemnification hereunder to give notice as provided herein shall not relieve
      the indemnifying party of its obligations under this Article VI except to the
      extent that the indemnifying party is actually prejudiced by such failure to
      give notice. In case any action, proceeding or claim is brought against an
      indemnified party in respect of which indemnification is sought hereunder,
      the
      indemnifying party shall be entitled to participate in and, unless in the
      reasonable judgment of the indemnified party a conflict of interest between
      it
      and the indemnifying party may exist with respect of such action, proceeding
      or
      claim, to assume the defense thereof with counsel reasonably satisfactory to
      the
      indemnified party. In the event that the indemnifying party advises an
      indemnified party that it will contest such a claim for indemnification
      hereunder, or fails, within thirty (30) days of receipt of any indemnification
      notice to notify, in writing, such person of its election to defend, settle
      or
      compromise, at its sole cost and expense, any action, proceeding or claim (or
      discontinues its defense at any time after it commences such defense), then
      the
      indemnified party may, at its option, defend, settle or otherwise compromise
      or
      pay such action or claim. In any event, unless and until the indemnifying party
      elects in writing to assume and does so assume the defense of any such claim,
      proceeding or action, the indemnified party’s costs and expenses arising out of
      the defense, settlement or compromise of any such action, claim or proceeding
      shall be losses subject to indemnification hereunder. The indemnified party
      shall cooperate fully with the indemnifying party in connection with any
      negotiation or defense of any such action or claim by the indemnifying party
      and
      shall furnish to the indemnifying party all information reasonably available
      to
      the indemnified party which relates to such action or claim. The indemnifying
      party shall keep the indemnified party fully apprised at all times as to the
      status of the defense or any settlement negotiations with respect thereto.
      If
      the indemnifying party elects to defend any such action
      or
      claim, then the indemnified party shall be entitled to participate in such
      defense with counsel of its choice at its sole cost and expense. The
      indemnifying party shall not be liable for any settlement of any action, claim
      or proceeding effected without its prior written consent. Notwithstanding
      anything in this Article VI to the contrary, the indemnifying party shall not,
      without the indemnified party’s prior written consent, settle or compromise any
      claim or consent to entry of any judgment in respect thereof which imposes
      any
      future obligation on the indemnified party or which does not include, as an
      unconditional term thereof, the giving by the claimant or the plaintiff to
      the
      indemnified party of a release from all liability in respect of such claim.
      The
      indemnification required by this Article VI shall be made by periodic payments
      of the amount thereof during the course of investigation or defense, as and
      when
      bills are received or expense, loss, damage or liability is incurred, so long
      as
      the indemnified party irrevocably agrees to refund such moneys if it is
      ultimately determined by a court of competent jurisdiction that such party
      was
      not entitled to indemnification. The indemnity agreements contained herein
      shall
      be in addition to (a) any cause of action or similar rights of the indemnified
      party against the indemnifying party or others, and (b) any liabilities the
      indemnifying party may be subject to pursuant to the law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII

     

    Miscellaneous

     

    Section
      7.1 Fees
      and Expenses.
      Except
      as otherwise set forth in this Agreement and the other Transaction Documents,
      each party shall pay the fees and expenses of its advisors, counsel, accountants
      and other experts, if any, and all other expenses, incurred by such party
      incident to the negotiation, preparation, execution, delivery and performance
      of
      this Agreement.  

     

    Section
      7.2 Specific
      Enforcement, Consent to Jurisdiction. 

     

    (a) The
      Company and the Purchasers acknowledge and agree that irreparable damage would
      occur in the event that any of the provisions of this Agreement or the other
      Transaction Documents were not performed in accordance with their specific
      terms
      or were otherwise breached. It is accordingly agreed that the parties shall
      be
      entitled to an injunction or injunctions to prevent or cure breaches of the
      provisions of this Agreement and to enforce specifically the terms and
      provisions hereof or thereof, this being in addition to any other remedy to
      which any of them may be entitled by law or equity.

     

    (b) Each
      of
      the Company and the Purchasers (i) hereby irrevocably submits to the
      jurisdiction of the United States District Court sitting in the Southern
      District of New York and the courts of the State of New York located in New
      York
      county for the purposes of any suit, action or proceeding arising out of or
      relating to this Agreement or any of the other Transaction Documents or the
      transactions contemplated hereby or thereby and (ii) hereby waives, and agrees
      not to assert in any such suit, action or proceeding, any claim that it is
      not
      personally subject to the jurisdiction of such court, that the suit, action
      or
      proceeding is brought in an inconvenient forum or that the venue of the suit,
      action or proceeding is improper. Each of the Company and the Purchasers
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address in effect for notices to
      it
      under this Agreement and agrees that such service shall constitute good and
      sufficient service of process and notice thereof. Nothing in this Section 7.2
      shall affect or limit any right to serve process in any other manner permitted
      by law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      7.3 Entire
      Agreement; Amendment.
      This
      Agreement and the Transaction Documents contains the entire understanding and
      agreement of the parties with respect to the matters covered hereby and thereby,
      except as specifically set forth herein or in the Transaction Documents, neither
      the Company nor any of the Purchasers makes any representations, warranty,
      covenant or undertaking with respect to such matters and they supersede all
      prior understandings and agreements with respect to said subject matter, all
      of
      which are merged herein. No provision of this Agreement may be waived or amended
      other than by a written instrument signed by the Company and the holders of
      at
      least seventy-five percent (75%) of the Preferred Shares then outstanding,
      and
      no provision hereof may be waived other than by an a written instrument signed
      by the party against whom enforcement of any such amendment or waiver is sought.
      No such amendment shall be effective to the extent that it applies to less
      than
      all of the holders of the Preferred Shares then outstanding. No consideration
      shall be offered or paid to any person to amend or consent to a waiver or
      modification of any provision of any of the Transaction Documents unless the
      same consideration is also offered to all of the parties to the Transaction
      Documents or holders of Preferred Shares, as the case may be.

     

    Section
      7.4 Notices.
      Any
      notice, demand, request, waiver or other communication required or permitted
      to
      be given hereunder shall be in writing and shall be effective (a) upon hand
      delivery by telex (with correct answer back received), telecopy or facsimile
      at
      the address or number designated below (if delivered on a business day during
      normal business hours where such notice is to be received), or the first
      business day following such delivery (if delivered other than on a business
      day
      during normal business hours where such notice is to be received) or (b) on
      the
      second business day following the date of mailing by express courier service,
      fully prepaid, addressed to such address, or upon actual receipt of such
      mailing, whichever shall first occur. The addresses for such communications
      shall be:

    

    
      	
              If
                to the Company:

            	
              c/o
                Beijing Zhong Ran Wei Ye Gas Co., Ltd. 

              N0.18
                Zhong Guan Cun Dong St.

              Haidian
                District

              Beijing,
                China

              Attention:
                Chen Fang

              Tel.
                No.: 011-86-10-82600527

              Fax
                No.: 011-010-82600042

            
	 	 
	
              with
                copies to:

            	
              GUZOV
                OFSINK, LLC

              600
                Madison Avenue, 14th Floor

              New
                York, New York 10022

              Attention:
                Darren Ofsink

              Tel.
                No.: (212) 371-8008, ext. 127

              Fax
                No.: (212)
                688-7273

            
	 	 
	
              If
                to any Purchaser:

            	
              At
                the address of such Purchaser set forth on Exhibit
                A
                to
                this Agreement, with copies to Purchaser’s counsel, if any, as set forth
                on Exhibit
                A
                or
                as specified in writing by such Purchaser

            
	 	 
	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Any
      party
      hereto may from time to time change its address for notices by giving at least
      ten (10) days written notice of such changed address to the other party
      hereto.

     

    Section
      7.5 Waivers.
      No
      waiver by either party of any default with respect to any provision, condition
      or requirement of this Agreement shall be deemed to be a continuing waiver
      in
      the future or a waiver of any other provisions, condition or requirement hereof,
      nor shall any delay or omission of any party to exercise any right hereunder
      in
      any manner impair the exercise of any such right accruing to it
      thereafter.

     

    Section
      7.6 Headings.
      The
      article, section and subsection headings in this Agreement are for convenience
      only and shall not constitute a part of this Agreement for any other purpose
      and
      shall not be deemed to limit or affect any of the provisions
      hereof.

     

    Section
      7.7 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and assigns.  

     

    Section
      7.8 No
      Third Party Beneficiaries.
      This
      Agreement is intended for the benefit
      of the parties hereto and their respective permitted successors and assigns
      and
      is not for the benefit of, nor may any provision hereof be enforced by, any
      other person.

     

    Section
      7.9 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without giving effect to any of the conflicts
      of
      law principles which would result in the application of the substantive law
      of
      another jurisdiction. This Agreement shall not be interpreted or construed
      with
      any presumption against the party causing this Agreement to be
      drafted.

     

    Section
      7.10 Survival.
      The
      representations and warranties of the Company and the Purchasers shall survive
      the execution and delivery hereof and the Closings hereunder for a period of
      two
      years following the Closing Date.

     

    Section
      7.11 Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other parties
      hereto, it being understood that all parties need not sign the same counterpart.
      In the event that any signature is delivered by facsimile transmission, such
      signature shall create a valid binding obligation of the party executing (or
      on
      whose behalf such signature is executed) the same with the same force and effect
      as if such facsimile signature were the original thereof.

     

    Section
      7.12 Publicity.
      The
      Company agrees that it will not disclose, and will not include in any public
      announcement, the name of the Purchasers without the consent of the Purchasers
      unless and until such disclosure is required by law or applicable regulation,
      and then only to the extent of such requirement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      7.13 Severability.
      The
      provisions of this Agreement and the Transaction Documents are severable and,
      in
      the event that any court of competent jurisdiction shall determine that any
      one
      or more of the provisions or part of the provisions contained in this Agreement
      or the Transaction Documents shall, for any reason, be held to be invalid,
      illegal or unenforceable in any respect, such invalidity, illegality or
      unenforceability shall not affect any other provision or part of a provision
      of
      this Agreement or the Transaction Documents and such provision shall be reformed
      and construed as if such invalid or illegal or unenforceable provision, or
      part
      of such provision, had never been contained herein, so that such provisions
      would be valid, legal and enforceable to the maximum extent
      possible.

     

    Section
      7.14 Further
      Assurances.
      From
      and after the date of this Agreement, upon the request of any Purchaser or
      the
      Company, each of the Company and the Purchasers shall execute and deliver such
      instrument, documents and other writings as may be reasonably necessary
      or desirable to confirm and carry out and to effectuate fully the intent and
      purposes of this Agreement and each of the other Transaction
      Documents.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed by their respective authorized officer as of the date first above
      written.

     

     

    
      	 	 	 
	 	
              DOLCE
                VENTURES INC. 

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title 

    

     

    
      	 	 	 
	 	
              PURCHASERS:

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title 

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      A to the

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

        

    
      
        	
                Names
                  and Addresses

              	
                Number
                  of Preferred Shares

              	
                Dollar
                  Amount of

              
	
                of
                  Purchasers

              	
                & Warrants
                  Purchased

              	
                Investment

              
	 	 	 
	
                Vision
                  Opportunity Master Fund, Ltd.

              	
                Preferred
                  Shares: 729,927

              	
                $2,000,000

              
	
                20
                  W 55th St., 5th floor 

              	
                Series
                  A Warrants: 729,927

              	 
	
                New
                  York, NY 10019

              	
                Series
                  B Warrants: 364,964

              	 
	
                Tax
                  ID: 27-0120759

              	
                Series
                  J Warrants: 664,452

              	 
	
                 

              	
                Series
                  C Warrants: 664,452

              	 
	
                 

              	
                Series
                  D Warrants: 332,226

              	 
	 	 	 
	
                Nite
                  Capital LP

              	
                Preferred
                  Shares:  127,737 

              	
                $350,000

              
	
                100
                  East Cook Avenue

              	
                Series
                  A Warrants: 127,737

              	 
	
                Suite
                  201

              	
                Series
                  B Warrants: 63,869

              	 
	
                Libertyville,
                  IL 60048

              	
                Series
                  J Warrants: 116,279

              	 
	
                TAX
                  ID: 20-1487251

              	
                Series
                  C Warrants: 116,279

              	 
	
                Series
                  D Warrants: 58,140

              	 	 
	 	 	 
	
                Ijaz
                  Malik

              	
                Preferred
                  Shares:  20,000 

              	
                $54,800

              
	
                58
                  West 58th Street

              	
                Series
                  A Warrants: 20,000

              	 
	
                New
                  York NY 10019

              	
                Series
                  B Warrants: 10,000

              	 
	 	
                Series
                  J Warrants: 18,206

              	 
	 	
                Series
                  C Warrants: 18,206

              	 
	
                 

              	
                Series
                  D Warrants: 9,103

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

    

    EXHIBIT
      B to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF CERTIFICATE OF DESIGNATION

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C-1 to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF SERIES A WARRANT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C-2 to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF SERIES B WARRANT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C-3 to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF SERIES J WARRANT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C-4 to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF SERIES C WARRANT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C-5 to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF SERIES D WARRANT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF REGISTRATION RIGHTS AGREEMENT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

    

    DOLCE
      VENTURES INC.

    

     

    as
      of
      September ___, 2006

     

    [Name
      and
      address of Transfer Agent]

    Attn:
      _____________

    

     

    Ladies
      and Gentlemen:

     

    Reference
      is made to that certain Series B Convertible Preferred Stock Purchase Agreement
      (the “Purchase
      Agreement”),
      dated
      as of September ___, 2006, by and among Dolce Ventures Inc., a Utah corporation
      (the “Company”),
      and
      the purchasers named therein (collectively, the “Purchasers”)
      pursuant to which the Company is issuing to the Purchasers shares of its Series
      B Convertible Preferred Stock, par value $.001 per share, (the “Preferred
      Shares”)
      and
      warrants (the “Warrants”)
      to
      purchase shares of the Company’s common stock, par value $.001 per share (the
“Common
      Stock”).
      This
      letter shall serve as our irrevocable authorization and direction to you
      provided that you are the transfer agent of the Company at such time) to issue
      shares of Common Stock upon conversion of the Preferred Shares (the
“Conversion
      Shares”)
      and
      exercise of the Warrants (the “Warrant
      Shares”)
      to or
      upon the order of a Purchaser from time to time upon (i) surrender to you of
      a
      properly completed and duly executed Conversion Notice or Exercise Notice,
      as
      the case may be, in the form attached hereto as Exhibit I and Exhibit II,
      respectively, (ii) in the case of the conversion of Preferred Shares, a copy
      of
      the certificates (with the original certificates delivered to the Company)
      representing Preferred Shares being converted or, in the case of Warrants being
      exercised, a copy of the Warrants (with the original Warrants delivered to
      the
      Company) being exercised (or, in each case, an indemnification undertaking
      with
      respect to such share certificates or the warrants in the case of their loss,
      theft or destruction), and (iii) delivery of a treasury order or other
      appropriate order duly executed by a duly authorized officer of the Company.
      So
      long as you have previously received (x) written confirmation from counsel
      to
      the Company that a registration statement covering resales of the Conversion
      Shares or Warrant Shares, as applicable, has been declared effective by the
      Securities and Exchange Commission (the “SEC”)
      under
      the Securities Act of 1933, as amended (the “1933
      Act”),
      and
      no subsequent notice by the Company or its counsel of the suspension or
      termination of its effectiveness and (y) a copy of such registration statement,
      and if the Purchaser represents in writing that the Conversion Shares or the
      Warrant Shares, as the case may be, were sold pursuant to the Registration
      Statement, then certificates representing the Conversion Shares and the Warrant
      Shares, as the case may be, shall not bear any legend restricting transfer
      of
      the Conversion Shares and the Warrant Shares, as the case may be, thereby and
      should not be subject to any stop-transfer restriction. Provided, however,
      that
      if you have not previously received those items and representations listed
      above, then the certificates for the Conversion Shares and the Warrant Shares
      shall bear the legend substantially as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT”), OR ANY STATE
      SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
      REGISTERED UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS, OR
      AN
      OPINION OF COUNSEL HAS BEEN PROVIDED THAT REGISTRATION OF SUCH SECURITIES UNDER
      THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
      LAWS
      IS NOT REQUIRED.”

     

    and,
      provided further, that the Company may from time to time notify you to place
      stop-transfer restrictions on the certificates for the Conversion Shares and
      the
      Warrant Shares in the event a registration statement covering the Conversion
      Shares and the Warrant Shares is subject to amendment for events then
      current.

     

    A
      form of
      written confirmation from counsel to the Company that a registration statement
      covering resales of the Conversion Shares and the Warrant Shares has been
      declared effective by the SEC under the 1933 Act is attached hereto as Exhibit
      III. Further, the legal opinion should indicate if the Conversion Shares or
      Warrant Shares can be issued directly from the transfer agent without
      restrictive legend as an original issue. 

     

    Please
      be
      advised that the Purchasers are relying upon this letter as an inducement to
      enter into the Purchase Agreement and, accordingly, each Purchaser is a third
      party beneficiary to these instructions.

     

    Please
      execute this letter in the space indicated to acknowledge your agreement to
      act
      in accordance with these instructions. Should you have any questions concerning
      this matter, please contact me at ___________.

     

     

     

    
      	 	Very truly yours,
	 	 
	 	DOLCE VENTURES
              INC.
	 	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 
	 	 	 

    

     

    
      	
              ACKNOWLEDGED
                AND AGREED:

            	 
	 	 	 
	[TRANSFER
              AGENT]	 
	 	 	 
	By:
              	 	 
	Name:	 	 
	Title:	 	 
	Date:	 	 
	 	 	 

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      I

     

    DOLCE
      VENTURES INC.

    CONVERSION
      NOTICE

    

    Reference
      is made to the Certificate of Designation of the Relative Rights and Preferences
      of the Series B Preferred Stock of Dolce Ventures, Inc., as amended and
      corrected from time to time (the “Certificate of Designations”). In accordance
      with and pursuant to the Certificate of Designation, the undersigned hereby
      elects to convert the number of shares of Series B Preferred Stock, par value
      $.001 per share (the “Preferred Shares”), of Dolce Ventures Inc., a Utah
      corporation (the “Company”), indicated below into shares of Common Stock, par
      value $.001 per share (the “Common Stock”), of the Company, by tendering the
      stock certificate(s) representing the share(s) of Preferred Shares specified
      below as of the date specified below.

     

    
      	
              Date
                of Conversion: 

            	______________________________________ 
	 	 	 
	
              Number
                of Preferred Shares to be converted:  

            	 	 
	 	 	 
	
              Stock
                certificate no(s). of Preferred Shares to be converted:  

            	 	 
	 	 	 
	
              The
                Common Stock have been sold pursuant to the Registration Statement
                (as
                defined in the Registration Rights 

            
	Agreement): YES
              ____               
              NO____
	 	 	 
	
              Please
                confirm the following information:

            	 	 
	 	 	 
	
              Conversion
                Price: 

            	______________________________________
	 	 	 
	
              Number
                of shares of Common Stock to
                be issued: 

            	______________________________________
	 	 	 
	Number of shares of Common
              Stock
              beneficially owned or deemed beneficially owned by the Holder on the
              Date
              of Conversion: __________________________
	 	 	 
	 Please
              issue the Common Stock into which the Preferred Shares are being converted
              and, if applicable, any check drawn on an account of the Company in
              the
              following name and to the following address:
	 	 	 
	Issue to:	______________________________________
	 	 	 
	Facsimile Number: 	______________________________________
	 	 	 
	Authorization: 	______________________________________
	 	By:
              ________________________________
	 	Title: 
              ________________________________
	 	 	 
	 	 	 
	Dated:	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      II

     

    FORM
      OF EXERCISE NOTICE

     

    DOLCE
      VENTURES INC.

    

    The
      undersigned _______________, pursuant to the provisions of the within Warrant,
      hereby elects to purchase _____ shares of Common Stock of Dolce Ventures Inc.
      covered by the within Warrant.

     

    
      	Dated:
              _________________  	Signature ___________________________	 
	 	 	Address   _____________________	 
	 	 	             
              _____________________	 

    

     

    Number
      of
      shares of Common Stock beneficially owned or deemed beneficially owned by the
      Holder on the date of Exercise: _________________________

    

    ASSIGNMENT

    

    FOR
      VALUE
      RECEIVED, _________________ hereby sells, assigns and transfers unto
      __________________ the within Warrant and all rights evidenced thereby and
      does
      irrevocably constitute and appoint _____________, attorney, to transfer the
      said
      Warrant on the books of the within named corporation.

     

    
      	Dated:
              _________________  	Signature ___________________________	 
	 	 	Address   _____________________	 
	 	 	             
              _____________________	 

    

     

    PARTIAL
      ASSIGNMENT

    

    FOR
      VALUE
      RECEIVED, _________________ hereby sells, assigns and transfers unto
      __________________ the right to purchase _________ shares of Warrant Stock
      evidenced by the within Warrant together with all rights therein, and does
      irrevocably constitute and appoint ___________________, attorney, to transfer
      that part of the said Warrant on the books of the within named
      corporation.

     

    
      	Dated:
              _________________  	Signature ___________________________	 
	 	 	Address   _____________________	 
	 	 	             
              _____________________	 

    

     

    FOR
      USE
      BY THE ISSUER ONLY:

    

    This
      Warrant No. W-_____ canceled (or transferred or exchanged) this _____ day of
      ___________, _____, shares of Common Stock issued therefor in the name of
      _______________, Warrant No. W-_____ issued for ____ shares of Common Stock
      in
      the name of _______________.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      III

     

    FORM
      OF NOTICE OF EFFECTIVENESS

    OF
      REGISTRATION STATEMENT

     

    [Name
      and
      address of Transfer Agent]

    Attn:
      _____________

    

    Re: Dolce
      Ventures Inc. 

     

    Ladies
      and Gentlemen:

     

    We
      are
      counsel to Dolce Ventures Inc., a Utah corporation (the “Company”),
      and
      have represented the Company in connection with that certain Series B
      Convertible Preferred Stock Purchase Agreement (the “Purchase
      Agreement”),
      dated
      as of September ___, 2006, by and among the Company and the purchasers named
      therein (collectively, the “Purchasers”)
      pursuant to which the Company issued to the Purchasers shares of its Series
      B
      Convertible Preferred Stock, par value $.001 per share, (the “Preferred
      Shares”)
      and
      warrants (the “Warrants”)
      to
      purchase shares of the Company’s common stock, par value $.001 per share (the
“Common
      Stock”).
      Pursuant to the Purchase Agreement, the Company has also entered into a
      Registration Rights Agreement with the Purchasers (the “Registration
      Rights Agreement”),
      dated
      as of September ___, 2006, pursuant to which the Company agreed, among other
      things, to register the Registrable Securities (as defined in the Registration
      Rights Agreement), including the shares of Common Stock issuable upon conversion
      of the Preferred Shares and exercise of the Warrants, under the Securities
      Act
      of 1933, as amended (the “1933
      Act”).
      In
      connection with the Company’s obligations under the Registration Rights
      Agreement, on ________________, 2006, the Company filed a Registration Statement
      on Form SB-2 (File No. 333-________) (the “Registration
      Statement”)
      with
      the Securities and Exchange Commission (the “SEC”)
      relating to the resale of the Registrable Securities which names each of the
      present Purchasers as a selling stockholder thereunder.

     

    In
      connection with the foregoing, we advise you that a member of the SEC’s staff
      has advised us by telephone that the SEC has entered an order declaring the
      Registration Statement effective under the 1933 Act at [ENTER
      TIME OF EFFECTIVENESS]
      on
[ENTER
      DATE OF EFFECTIVENESS]
      and we
      have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that
      any stop order suspending its effectiveness has been issued or that any
      proceedings for that purpose are pending before, or threatened by, the SEC
      and
      accordingly, the Registrable Securities are available for resale under the
      1933
      Act pursuant to the Registration Statement.

     

     

    
      	 	Very truly yours,
	 	 	 
	 	
              [COMPANY
                COUNSEL]

            
	 	 
	 	By:  	 
	 	 	 

    

     

    cc: [LIST
      NAMES OF PURCHASERS]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      F to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF OPINION OF COUNSEL

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    DISCLOSURE
      DOCUMENT

    

    The
      Current Report of the Company on Form 8-K as filed with the Commission on
      September 13, 2006. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H to the 

    SERIES
      B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT FOR 

    DOLCE
      VENTURES INC.

    

    FORM
      OF LOCK-UP AGREEMENT

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