Document:

Ardent
Mines Limited

    
      100
Wall Street, 21st
Floor

      New
York, NY 10005, USA

       

      Afrocan
Resources Ltd.

      Head
Office

      1710 -
1177 West Hastings Street

      Vancouver,
B.C., Canada V6E 2L3

      Attention:
 Mr. Brian Barrett, CFO

       

      South
Africa

      4 Martha
Street, Marlboro North

      2063 Johannesburg

       

      
        	
                Re: 

              	
                Exploration
      and Acquisition Agreement

              

      

      Re:  Capri General
Trading Company Limited

       

      Gentlemen:

       

      The
purpose of this Exploration and Acquisition Agreement (this “Agreement”), dated as of the
date set forth on the signature page hereto, is to summarize our recent
discussions and formalize an agreement by and between Ardent Mines Limited
(“Ardent”) -
incorporated in the State of Nevada, U.S.A., and Afrocan Resources Ltd. -
incorporated in British Columbia, Canada (“Afrocan”).

       

      
        	
                1

              	
                Terms
      of the Transaction.

              

      

       

      
        	
                1.1

              	
                The
      Exploration.  Ardent hereby agrees to conduct, and/or pay
      for the conduct of exploration activities at the property covered by
      License No. PL 1761/2001 (previously known as License No. PL 246/94) as
      applied August 14, 2008 (such license is referred to herein as the “Shenda
      License”).  The Shenda License is the mineral rights for
      a property situated approximately 53 kilometers West North West of Kahama
      in the Bukombe District, in the Shinyanga Region of
      Tanzania.  The mining license applied is bound by the
      following coordinates: Point Latitude (S) Longitude (E) A 030 39’
      54.7” 320 07’ 00”; B 030 39’ 54.7” 320 09’ 30”; C 030 41’ 05.2” 320
      09’ 30”; and D 030 41’ 05.2” 320 07’ 00.”  The Shenda License covers
      the mining rights over approximately 10.0 square kilometers (such
      property, the “Shenda
      Property”).

              

      

       

      
        	
                1.2

              	
                Exploration
      Cost.  Ardent shall pay such amounts for the exploration
      of the Shenda Property (such costs, the “Exploration Costs”) as
      the officers and directors of Ardent and Afrocan shall mutually,
      reasonably determine as appropriate in consultation with geologists and
      such other experts as may be reasonably
  necessary.

              

      

       

      
        	
                1.3

              	
                Exploration
      Period.  Ardent’s exploration of the Shenda Property
      shall be conducted over the twelve months from the date hereof, however,
      the period of such exploration may be shortened or extended as Ardent may
      reasonably determine to implement the terms of this
    Agreement.

              

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Ardent
Mines Limited - Afrocan Resources Ltd. -

      Exploration
and Acquisition Agreement

       

      
        	
                1.4

              	
                The
      Acquisition.  In the
      event that Ardent shall ascertain commercially available and commercially
      exploitable reserves, as determined in its sole and reasonable discretion,
      of not less than Four Hundred Thousand (400,000) ounces of gold at the
      Shenda Property (such gold reserves as referred to herein as the “Acquisition Threshold”),
      Ardent shall at Closing (as defined below) acquire from Afrocan 100% of
      all issued and outstanding equity interests (the “Capri Shares”) of Capri
      General Trading Co. Ltd. - incorporated in Tanzania (“Capri”), subject to the
      conditions set forth herein.  Capri is the legal and beneficial
      owner of the Shenda License.

              

      

       

      
        	
                1.5

              	
                Purchase
      Price.  In exchange for the acquisition of the Capri
      Shares, Ardent shall pay to Afrocan at Closing the Purchase Price, as
      defined below.  The Purchase Price shall be equal to the sum of
      (i) the Exploration Costs; and (ii) shares of Ardent having an aggregate
      value of Nine Million U.S. Dollars ($9,000,000) (the “Ardent Shares” and
      together with the Exploration Costs, the “Purchase Price”), with
      the Ardent Shares having the lower of a deemed a value of Five U.S.
      Dollars ($5.00) per share or the average closing price of the publicly
      traded common stock of Ardent on five (5) consecutive days prior to the
      Closing.  In the event that the Exploration Costs exceed Three
      Million U.S. Dollars ($3,000,000), the number of Ardent Shares to be
      delivered shall be reduced accordingly, so that the total value of the
      Purchase Price shall not exceed Twelve Million U.S. Dollars
      ($12,000,000).

              

      

       

      
        	
                1.6

              	
                The Ownership
      Interests.  At the Closing, Capri will own one hundred
      percent (100%) of all mineral rights in the Shenda License.  At
      Closing, no party other than Ardent shall have any right, title or
      interest in the Capri Shares or the Shenda License or any additional
      mineral rights associated with the property covered by the Shenda
      License.  There shall at Closing be no options, or any other
      equity interests, contingent or otherwise, of any nature or kind in the
      Capri Shares or in the Shenda License except for the rights held by
      Ardent.  The Capri Shares and the Shenda License shall be free
      and clear of all indebtedness, liabilities, liens, encumbrances,
      convertible rights, derivative rights, pre-emptive rights and any and all
      other rights, contingent or otherwise of any other
  persons.

              

      

       

      
        	
                1.7

              	
                Financing.  Following
      the Closing, to the extent determined by the officers of Ardent, in their
      reasonable discretion, Ardent shall undertake, on a commercially
      reasonable basis, to raise such funds as are necessary for (i) the
      development of mining operations at the property covered by the Shenda
      License; and (ii) the general operating expenses of Ardent. Such funds
      shall be raised in a private placement of new Ardent common
      stock.

              

      

       

      
        	
                1.8

              	
                Share
      Capitalization.  Afrocan acknowledges that (i) as of the
      date hereof, Ardent is publicly traded company in the United States, with
      14,957,650 shares issued and outstanding; and (ii) it is Ardent’s intent
      to issue additional shares of its common stock subsequent to the date
      hereof, including without limitation, in connection with the Financing
      Shares, for purposes of acquiring other mineral rights, fund raising for
      operations and expansion, and for purposes of compensating employees,
      officers and directors.

              

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      Ardent
Mines Limited - Afrocan Resources Ltd. -

      Exploration
and Acquisition Agreement

       

      
        	
                1.9

              	
                Adjacent Lands.
      Capri has ownership of certain mineral rights on lands adjacent to the
      Shenda License.  Afrocan agrees that Capri will not enter into
      any agreements relative to such adjacent mineral rights prior to the
      Closing so that on the date of the Closing they will still be held by
      Capri in the same state as they are at the date
  hereof.

              

      

       

      
        	
                1.10

              	
                Failure to
      Close.  In the event that Ardent is unable to identify
      gold reserves at the Shenda Property equal to or greater than the
      Acquisition Threshold, Afrocan shall reimburse Ardent for the total
      Exploration Costs incurred.  Pending the receipt of such
      reimbursement, or in the event that Afrocan is unable to pay such funds,
      Ardent shall be granted a lien on the Shenda License equal to the total
      Exploration Costs incurred.  In such event, Ardent shall be
      granted the right to approve or deny any proposed sale of the Shenda
      License, the Capri Shares or any other ownership or royalty interest
      therein until such time as the Exploration Costs are repaid to Ardent in
      full.  In the event that Ardent is not reimbursed within twelve
      (12) months of the completion of its exploration, any and all accumulated
      Exploration Costs will commence accruing interest rate of Eight Percent
      (8%) per annum.

              

      

       

      
        	
                2

              	
                Closing
      Conditions.

              

      

       

      Consummation
of the acquisition of the Capri Shares and the underlying Shenda License will be
subject to the following closing conditions:

       

      
        	
                2.1

              	
                Due Diligence and
      Continuity of Capri.  At the Closing, Capri shall have
      obtained and be in receipt of all necessary consents and approvals of all
      applicable governmental authorities and other third parties having
      jurisdiction or rights in respect of its ownership of the Shenda
      License.  Afrocan shall deliver a legal opinion to Ardent at
      Closing regarding the continuing legal validity of any and all
      governmental authorizations, licenses, permits, and registrations of
      Capri, which Capri then has and which shall remain fully effective
      following the Closing to legally facilitate continuity of Capri’s ordinary
      course of business without impairment of any nature or
      kind.  The Closing shall be subject to completion of final due
      diligence satisfactory to Ardent in its sole discretion.  At the
      Closing there shall not be any material adverse change in regard to the
      corporate status of Capri or in the Shenda License or operations at the
      property of the Shenda License.  At the Closing, Afrocan shall
      represent and warrant to Ardent that Capri has the sole rights with free
      and clear ownership titles to the Shenda License, and no other persons,
      business organizations or governmental entities have any rights or claims
      thereto.

              

      

       

      
        	
                2.2

              	
                Detailed
      Agreements. Afrocan and Ardent will mutually prepare a detailed
      long form agreement (the “Long Form Agreement”)
      supplementing the terms and conditions herein with customary
      representations and warranties, covenants, and other provisions,
      including, without limitation, representations regarding the validity of
      the Capri Shares, the assessment of all gold ore reserves in the Shenda
      License, the status of all governmental licenses, permits, authorizations,
      legal and regulatory compliance to engage in the business of mining, valid
      continuation of all contracts, absence of any material adverse conditions,
      and indemnification provisions covering the
      same.  Notwithstanding anything to the contrary herein, this
      Agreement is fully binding upon the parties and each party may compel
      performance by the other party solely on the basis of the terms and
      conditions set forth herein.  Time is of the
      essence.

              

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      Ardent
Mines Limited - Afrocan Resources Ltd. -

      Exploration
and Acquisition Agreement

       

      
        	
                2.3

              	
                Exclusive
      Dealing.  Capri and Afrocan and any and all of their
      directors, officers, shareholders, agents, representatives, attorneys,
      accountants or their respective immediate relatives shall not directly or
      indirectly take any action to encourage, initiate, solicit, or engage in
      discussions or negotiations with, or provide any information to, any
      entity or person other than Ardent concerning any competing transaction or
      alternate transaction.

              

      

       

      
        	
                2.4

              	
                Closing. In the
      event that the Acquisition Threshold has been met, Afrocan and Ardent
      shall use their best efforts to finalize and sign the Long Form Agreement
      reflecting the terms and conditions herein together with all ancillary
      agreements and accomplish the Closing as soon as reasonably possible after
      such determination, with a target Closing date not later than one
      hundred and twenty (120) days thereafter.  Upon
      satisfaction (or waiver) of the conditions set forth in herein, the
      parties shall exchange ownership of the Capri Shares and the Purchase
      Price, and execute and deliver any and all necessary ancillary documents,
      certificates and instruments required thereof (the “Closing”).

              

      

       

      
        	
                3

              	
                Other
      Terms and Conditions.

              

      

       

      
        	
                3.1

              	
                Carry on in Ordinary
      Course.  Afrocan agrees that from and after the date of
      execution of this Agreement, Capri shall conduct and carry on its
      businesses at the location of the Shenda License only in the ordinary
      course consistent with past practices.  Capri shall not take any
      actions out of the ordinary course of businesses regarding the Shenda
      License.  Neither Afrocan nor Capri shall take any action that
      could reasonably be expected to adversely affect Afrocan’s ability to
      execute, deliver or perform in accordance with this
    Agreement.

              

      

       

      
        	
                3.2

              	
                Each Party to Bear Own
      Expenses.  The parties will each bear their own
      respective expenses incurred in connection with the negotiation,
      preparation and documentation - including the Long Form Agreement - and
      Closing of the transactions contemplated herein, including but not limited
      to all legal fees, expenses and disbursements, provided, however, all
      fees, due diligence and filing costs incurred by Ardent as well as
      on-going corporate expenditures by Ardent related to the acquisition shall
      be paid from proceeds of the Financing
Shares.

              

      

       

      
        	
                3.3

              	
                No Other Agreements;
      Forward Looking Statements; Amendments.  This Agreement
      sets out the parties’ binding agreement and understanding as of this date,
      and there are no other written or oral agreements or understandings among
      the parties.  This Agreement and any and all terms and
      conditions herein may only be waived, modified or amended by a writing
      executed by the parties.  Afrocan acknowledges that Ardent may
      from time to time have other business agreements, and may acquire other
      properties. Provided that when the Long Form Agreement is signed by Ardent
      and Afrocan it will wholly replace this Agreement and the terms in this
      Agreement shall cease to be binding on Ardent and
      Afrocan.  Ardent may engage and pay other professional
      organizations, underwriters and service providers as determined by its
      Board of Directors.  All projections and estimations herein are
      forward looking statements based upon general expectations and are
      provided solely for illustrative purposes only, and no assurances,
      guarantees, or warranties of any nature are made with respect to actual
      outcomes.

              

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      Ardent
Mines Limited - Afrocan Resources Ltd. -

      Exploration
and Acquisition Agreement

       

      
        	
                3.3.1

              	
                Public Company
      Compliance.  Afrocan acknowledges that Ardent is a public
      company and will be required to make detailed disclosures regarding the
      acquisition of Capri (and indirectly the Shenda License), its business,
      its management, its financial condition, risk factors associated with the
      business, and other matters required by the U.S. Securities Act of 1933
      and the U.S. Securities Exchange Act of 1934 (together the “Acts”), and the
      respective rules and regulations promulgated thereunder.  All
      Ardent Shares issued to Afrocan will be restricted securities and will be
      subject to compliance with the Acts, as to which Ardent shall assist
      Afrocan in respect of such compliance thereof.  Afrocan shall
      promptly provide any and all information, in form and substance as
      reasonably requested by Ardent, to the extent necessary to assure
      compliance by Ardent with its filing, disclosure and compliance
      requirements.

              

      

       

      
        	
                3.4

              	
                Confidentiality.
      The parties acknowledge that public companies are subject to specific
      laws, rules and regulations prohibiting “insider trading” and Afrocan
      agrees to not trade in the securities of Ardent until all applicable and
      required public announcements have been made by Ardent.  The
      parties agree to fully comply with any and all applicable securities laws
      and not to trade at any time in any securities on the basis of material
      non-public information or to disclose any transactions involving Ardent,
      Afrocan, Capri, or the Shenda License with any third parties, other than
      to authorized representatives of the parties who shall be under strict
      instructions not to make any further discloses to any other persons until
      after mutually agreement public announcements.  The terms herein
      shall be maintained as strictly confidential by the parties until a
      mutually acceptable press release is prepared regarding the transaction,
      unless prior disclosure is required by applicable law or
      regulation.  Any breach of this covenant of confidentiality
      shall be subject to payment of liquidated damages to Ardent of
      US$2,000,000 (two million U.S. Dollars) (the “Liquidated Damages”),
      which the parties agree shall not be construed as a penalty.  If
      a breaching party fails to pay any and all Liquidated Damages in full
      within five (5) Business Days after the date payable, such party will pay
      interest thereon at a rate of one and one-half percent (1.5%) per month
      (or such lesser maximum amount that is permitted to be paid by applicable
      law) to Ardent, accruing daily from the date such Liquidated Damages are
      due, until such amounts, plus all such interest thereon, are paid in
      full.  Notwithstanding the foregoing, nothing shall preclude any
      party from pursuing or obtaining any available remedies at law, specific
      performance or other equitable relief in accordance with applicable
      law.

              

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      Ardent
Mines Limited - Afrocan Resources Ltd. -

      Exploration
and Acquisition Agreement

       

      
        	
                3.5

              	
                Arbitration.  All
      disputes and controversies arising out of or relating to this Agreement
      shall be finally settled and binding under the Rules of International
      Commercial Dispute Resolution of the American Arbitration Association
      (“ICDR”).  The
      place of arbitration shall be New York City.  The Arbitration
      shall be conducted in English by a single arbitrator appointed in
      accordance with the ICDR rules.  Any award, verdict or
      settlement issued under such arbitration may be entered by any party for
      order of enforcement by any court of competent
      jurisdiction.  The arbitrator shall have no power to take
      interim measures he or she deems necessary, including injunctive relief
      and measures for the protection or conservation of
      property.  The prevailing party shall be reimbursed for all
      fees, costs, expenses and disbursements by the non-prevailing
      party.

              

      

       

      
        	
                3.6

              	
                Construction.  This
      Agreement shall be deemed to have been jointly negotiated and drafted by
      the parties and shall not be construed against either of the parties
      hereto.  Should any portion (word, clause, phrase, sentence,
      paragraph or section) of this Agreement be declared void or unenforceable,
      such portion shall be considered independent and severable from the
      remainder, the validity of which shall remain unaffected.  This
      Agreement shall be governed by and interpreted under the laws of the
      jurisdiction of incorporation of
Ardent.

              

      

       

      
        	
                3.7

              	
                Assignment.  Neither
      this Agreement nor any of the rights, interests or obligations hereunder
      may be assigned by either party hereto, directly or indirectly, by
      operation of law or otherwise, without the prior written consent of the
      other.

              

      

       

      
        	
                3.8

              	
                Notices.  Any
      notice or other communication to any party in connection with this
      Agreement shall be in writing and shall be sent by personal delivery,
      reputable overnight courier with written confirmation of receipt addressed
      to such party at the address of its principal business office, or at such
      other address as such party shall have specified to the other party hereto
      in writing.  Any notice hereof shall be deemed to have been
      given only when delivered.

              

      

       

      
        	
                3.9

              	
                Counterparts.
      This Agreement may be executed in one or more counterparts (with the
      parties agreeing in principle to produce two counterparts), all of which
      together shall constitute one instrument, and each such counterpart may be
      executed and delivered by fax or scan without delivery of the original
      exemplar thereof.

              

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      Ardent
Mines Limited - Afrocan Resources Ltd. -

      Exploration
and Acquisition Agreement

       

      We
respectfully request that if you accept the terms and conditions as set forth in
this Agreement, please countersign and deliver to us a counterpart acceptance of
this Agreement.  Please do not hesitate to contact us if you have any
questions or comments.

       

      Sincerely
yours,

       

      
        
          
            
              	 
      	
                      Ardent Mines Limited

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Leonardo Riera

                    
	
                      Name:

                    	
                      Leonardo Riera

                    
	
                      Title:

                    	
                      President and CEO

                    
	
                      Date:

                    	 
      
	
                      Address for Notices:

                    	
                      100 Wall Street, 21st Floor

                    
	 
      	New
      York, NY 10005 USA
	 	 
	
                      AGREED:

                    	 
      
	 
      	 
      
	 
      	
                      Afrocan Resources Ltd.

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Brian Barrett

                    
	
                      Print Name:

                    	
                      Brian Barrett

                    
	
                      Title:

                    	
                      President and Chief Financial Officer

                    
	
                      Date:

                    	
                      December 12, 2010

                    
	
                      Address for Notices:

                    	
                      Afrocan Resources Ltd. 

                    
	 
      	
                      1710 - 1177 West Hastings Street

                    
	 
      	
                      Vancouver, B.C. V6E 2L3

                    
	 
      	 
      
	 
      	
                      South Africa

                    
	 
      	
                      4 Martha Street, Marlboro North

                    
	 
      	
                      2063 Johannesburg

                    

            

          

        

      

      
        
           

        

        
          7AMENDED
AND RESTATED CALL OPTION AGREEMENT

     

    This
AMENDED AND RESTATED CALL OPTION AGREEMENT (this “Agreement”) is made and
entered into as of February __, 2011 (the “Effective Date”), between
______ (the “Purchaser”)
and Sky Harmony Ecological Technology Limited, a BVI company (the “Seller”) to amend and restate
the Original Agreement, as defined below. Purchaser and Seller are also referred
to herein together as the “Parties” and individually as a
“Party.”

     

    RECITALS

     

    WHEREAS, pursuant to a Call
Option Agreement dated August 26, 2010, between the Purchaser and the Seller
(the “Original
Agreement”), the Seller has granted the Purchaser an option during the
Exercise Period to purchase from the Seller a portion of the 7,473,808 shares of
Common Stock, par value $.001 per share, of China Agricorp, Inc. (the “Agricorp Shares”), a Nevada
corporation (“Agricorp”)
held by the Seller;

    

    WHEREAS, on February 11, 2011,
the Seller consummated a share exchange transaction with American Telstar, Inc.,
a Nevada corporation (“Telstar”), where the Seller
received 7,473,808 shares of Common Stock, par value $0.0001 per share of
Telstar (“Telstar
Shares”) in exchange for its 7,473,808 Agricorp Shares (the “Share Exchange
Transaction”).

    

    WHEREAS, pursuant to certain
Stock Pledge Agreement, as amended, dated February 11, 2011, among China
Agricorp, Robert Brantl (the “Collateral Agent”), the
Purchaser and certain other individuals (the “Stock Pledge Agreement”), the
Purchaser agreed to pledge all shares of Telstar that he/she beneficially
owns.

    

    WHEREAS, the Seller has
determined that it is in its best interest to receive benefits from the
Purchaser’s continuous contribution and commitment to Telstar and/or its
subsidiaries and affiliates (collectively, hereinafter referred to as the “Companies”);

     

    WHEREAS, the Seller desires to
grant to the Purchaser an option to acquire an aggregate of _______________
(________) shares of Common Stock of Telstar to be issued to it (for purposes of
this Agreement, including the Call Option described herein, the “Seller’s Shares”) pursuant to
the terms and conditions set forth herein;

    

    NOW, THEREFORE, the Parties,
in consideration of the foregoing premises and the terms, covenants and
conditions set forth below, and for other good and valuable consideration,
receipt of which is acknowledged, hereby agree as follows:

     

    AGREEMENT

     

    1.    DEFINITIONS;
INTERPRETATION

    

    1.1.     Terms Defined in this
Agreement. The following terms when used in this Agreement shall have the
following definitions:

     

    “Bankruptcy Law” means any Law
of any jurisdiction relating to bankruptcy, insolvency, corporate
reorganization, company arrangement, civil rehabilitation, special liquidation,
moratorium, readjustment of debt, appointment of a conservator, trustee or
receiver, or similar debtor relief.

     

    “Business Day” means any day on
which commercial banks are required to be open in the United
States.

     
 

    “Call Price” means, with
respect to any exercise of the Call Option, $0.0001 per share of the Seller’s
Shares subject to any Call Exercise Notice.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Conditions” means Conditions 1
through 4, as defined below, in the aggregate.

     

    “Condition 1” means the entry
of a binding employment agreement between Mr. Hexi Feng and Telstar for a term
of not less than five years, where Mr. Hexi Feng will serve as the Chief
Executive Officer of Telstar.

    
 

    “Condition 2” means the total
gross revenue of Telstar and its subsidiaries for the fiscal year ended December
31, 2010 is not less than $5,000,000 as determined under United States Generally
Accepted Accounting Principles consistently applied (“US GAAP”).

     

    “Condition 3” means the total
gross revenue of Telstar and its subsidiaries for the fiscal year ended December
31, 2011 is not less than $7,000,000, as determined under US GAAP.

    

    “Condition 4” means the total
gross revenue of Telstar and its subsidiaries for the six-month period ended
June 30, 2012 is not less than $5,000,000, as determined under US
GAAP.

     

    "Distributions" means any cash
proceeds arising from or in respect of, or in exchange for, or accruing to or in
consequence of the Seller’s Shares from the date hereof to the Expiration Date
(as such term is hereinafter defined), including without limitation, the
Dividends.

    

    "Dividends" means the dividends
declared by Telstar and accrued in respect of the Seller’s Shares (whether or
not such dividends shall have been paid and received by the Purchaser or its
Nominee(s)).

     

    “Government Authority” means
any: (a) nation, principality, state, commonwealth, province, territory, county,
municipality, district or other jurisdiction of any nature; (b) federal, state,
local, municipal, foreign or other government; (c) governmental or quasi
governmental authority of any nature (including any governmental division,
subdivision, department, agency, bureau, branch, office, commission, council,
board, instrumentality, officer, official, representative, organization, unit,
body or Person and any court or other tribunal); or (d) individual, Person or
body exercising, or entitled to exercise, any executive, legislative, judicial,
administrative, regulatory, police, military or taxing authority or power of any
nature.

     

    “Law” means any federal, state,
local, municipal, foreign or other law, statute, legislation, constitution,
principle of common law, resolution, ordinance, code, order, edict, decree,
proclamation, treaty, convention, rule, regulation, permit, ruling, directive,
pronouncement, requirement (licensing or otherwise), specification,
determination, decision, opinion or interpretation that is, has been or may in
the future be issued, enacted, adopted, passed, approved, promulgated, made,
implemented or otherwise put into effect by or under the authority of any
Government Authority.

     

    "Nominee" means such person
nominated by the Purchaser in the Transfer Notice to be the transferee of the
Call Option or the Seller’s Shares;

    

    “Person” means any individual,
firm, company, corporation, limited liability company, unincorporated
association, partnership, trust, joint venture, governmental authority or other
entity, and shall include any successor (by merger or otherwise) of such
entity.

     

    “Transfer Notice” means the
notice substantially in the form set out in Appendix
B.

     

    1.2.     Interpretation.

     

    (a)     Certain Terms. The
words “hereof,” “herein,” “hereunder” and similar words refer to this Agreement
as a whole and not to any particular provision of this Agreement. The term
“including” is not limited and means “including without
limitation.”

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    (b)    Section References;
Titles and Subtitles. Unless otherwise noted, all references to Sections
herein are to Sections of this Agreement. The titles, captions and headings of
this Agreement are inserted for convenience of reference only and are not
intended to be a part of or to affect the meaning or interpretation of this
Agreement.

     

    (c)    Reference to Entities,
Agreements, Statutes. Unless otherwise expressly provided herein,
(i) references to a Person include its successors and permitted assigns,
(ii) references to agreements (including this Agreement) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements and other modifications thereto or supplements thereof and
(iii) references to any statute or regulation are to be construed as
including all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting such statute or
regulation.

     

    2.     CALL
OPTION

    

    2.1.    Call Option. The
Purchaser shall have, during the Exercise Period (as defined below), and when a
Condition is met, the right and option to purchase from the Seller, and upon the
exercise of such right and option the Seller shall have the obligation to sell
to the Purchaser or his Nominee(s), a portion of the Seller’s Shares identified
in the Call Exercise Notice (the “Call Option”). Purchaser or
Nominee(s) shall be permitted to purchase, and Seller shall be obligated to
sell, the following number of Seller’s Shares upon the attainment of the
following Conditions:

    

    
      
        
          	
                  Condition

                	 
      	
                  The
      Total Number of the Seller’s Shares as to which there is a Call
      Option

                
	 
      	 
      	 
      
	
                  Condition
      1

                	 
      	 
      
	 
      	 
      	 
      
	
                  Condition
      2

                	 
      	 
      
	 
      	 
      	 
      
	
                  Condition
      3

                	 
      	 
      
	 
      	 
      	 
      
	
                  Condition
      4

                	 
      	 
      

        

      

    

     

    Notwithstanding
anything in this Agreement, in case that the Seller violates any provisions of
this Agreement, the Purchaser shall receive an irrevocable Call Option to any
and all of the Seller’s Shares then held by the Seller, without any regard to
the Conditions being met. The Purchaser shall be entitled to exercise such Call
Option immediately and the Seller shall transfer to the Purchaser or his
Nominee(s) all of the Seller’s Shares immediately upon the Purchaser’s or his
Nominee(s)’s exercise of such Call Option.

    

    2.2.    Call Period. The Call
Option shall be exercisable by Purchaser, by delivering a Call Exercise Notice
at any time during the period (the “Exercise Period”) commencing
on the date hereof and ending at 6:30 p.m. (New York time) on the fifth
anniversary date therefrom (such date or the earlier expiration of the Call
Option is referred to herein as the “Expiration
Date”).

    

    2.3.    Nominees: The
Purchaser may, at any time during the Exercise Period, at his sole discretion,
nominate one or more person(s) (each a “Nominee”) to be the transferee(s) of
whole or part of his Call Option, who shall hold and/or exercise the transferred
Call Option on behalf of the Purchaser, provided that each Nominee has executed
a lock-up agreement in the form required by Telstar prior to exercising the Call
Option.

    

    2.4.    Exercise Process. In
order to exercise the Call Option during the Exercise Period, the Purchaser or
his Nominee(s) shall deliver to the Seller, a written notice of such exercise
substantially in the form attached hereto as Appendix A
(a “Call Exercise
Notice”) to such address or facsimile number as set forth therein. The
Call Exercise Notice shall indicate the number of the Seller’s Shares as to
which the Purchaser or Purchaser’s Nominee(s) is/are then exercising Purchaser’s
Call Option and the aggregate Call Price. Provided the Call Exercise Notice is
delivered in accordance with Section 6.4 to the Seller on or before 6:30 p.m.
(New York time) on a Business Day, the date of exercise (the “Exercise Date”) of the Call
Option shall be the date of such delivery of such Call Exercise Notice. In the
event the Call Exercise Notice is delivered after 6:30 p.m. (New York time) on a
Business Day or on a day which is not a Business Day, the Exercise Date shall be
deemed to be the first Business Day after the date of such delivery of such Call
Exercise Notice. The delivery of a Call Exercise Notice in accordance herewith
shall constitute a binding obligation (a) on the part of the Purchaser or
Purchaser’s Nominee(s) to purchase, and (b) on the part of the Seller to sell,
the Seller’s Shares subject to such Call Exercise Notice in accordance with the
terms of this Agreement.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    2.5.    Call Price. If the
Call Option is exercised pursuant to this Section 2, as payment for the Seller’s
Shares being purchased by the Purchaser or Nominee(s) pursuant to the Call
Option, such Purchaser or Nominee(s) shall pay the aggregate Call Price to the
Seller within fifteen (15) Business Days of the Exercise Date.

     

    2.6     Delivery of the
Shares. Upon the receipt of a Call Exercise Notice, the Seller shall
deliver, or to take all steps necessary to cause to be delivered the Seller’s
Shares being purchased pursuant to such Call Exercise Notice within three (3)
Business Days of the date of a Call Exercise Notice.

    

    2.7    Transfer Notice: In
case that the Purchaser transfers any or all of his Call Option to one or more
Nominees in accordance with Section 2.3 above, the Purchaser shall provide a
Transfer Notice to the Seller.

     

    3.           
 ENCUMBRANCES; TRANSFERS, SET-OFF AND WITHHOLDINGS

    

    3.1.           Encumbrances. Upon
exercise of the Call Option, the Seller’s Shares being purchased shall be sold,
transferred and delivered to the Purchaser free and clear of any claim, pledge,
charge, lien, preemptive rights, restrictions on transfers (except as required
by securities laws of the United States), proxies, voting agreements and any
other encumbrance whatsoever.

     

    3.2           Transfers. Prior to
the Expiration Date, the Seller shall continue to own, free and clear of any
hypothecation, pledge, mortgage or other encumbrance, except pursuant to this
Agreement and except in favor of the Collateral Agent (as defined below) for the
benefit of the Purchaser, such amount of the Seller’s Shares as may be required
from time to time in order for the Purchaser to exercise his Call Option in
full.

     

    3.3.           Set-off. The
Purchaser shall be entitled to receive all of the Seller’s Shares subject to the
exercise of a Call Option, and for the purposes of this Agreement, the Seller
hereby waives, as against the Purchaser or Purchaser’s Nominee(s), all rights of
set-off or counterclaim that would or might otherwise be available to the
Seller.

     

    3.4           Escrow of the Seller’s
Shares.

     

    (a)            Upon
execution of this Agreement, the Seller shall deliver to the Collateral Agent
pursuant to the Stock Pledge Agreement, stock certificates representing the
Seller’s Shares. The stock certificates representing the Seller’s Shares
(together with duly executed stock powers in blank) shall be held by the
Collateral Agent.

     

    (b)            The
Purchaser hereby acknowledges that the Seller’s Shares are subject to the Stock
Pledge Agreement. The Purchaser shall not exercise the Call Option until the
Seller’s Shares are no longer subject to the Stock Pledge Agreement. In the
event that any portion of the Seller’s Shares is foreclosed by the Collateral
Agent pursuant to the Stock Pledge Agreement, the Call Option to purchase such
portion of the Seller’s Shares shall expire immediately.

     

    4.    
REPRESENTATIONS, WARRANTIES AND COVENANTS.

    

    4.1.    Representations and
Warranties by the Seller. The Seller represents and warrants to the
Purchaser that:

     

    (a)           Valid and Binding
Obligations. This Agreement, and all agreements and documents executed
and delivered pursuant to this Agreement, constitute valid and binding
obligations of the Seller, enforceable against such Seller in accordance with
its terms, subject to applicable Bankruptcy Laws and other laws or equitable
principles of general application affecting the rights of creditors
generally.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (b)           No Conflicts. Neither
the execution or delivery of this Agreement by the Seller nor the fulfillment or
compliance by the Seller with any of the terms hereof shall, with or without the
giving of notice and/or the passage of time, (i) conflict with, or result in a
breach of the terms, conditions or provisions of, or constitute a default
under,  any contract or any judgment, decree or order to which Seller
is subject or by which the Seller is bound, or (ii) require any consent,
license, permit, authorization, approval or other action by any Person or
Government Authority which has not yet been obtained or received. The execution,
delivery and performance of this Agreement by the Seller or compliance with the
provisions hereof by the Seller do not, and shall not, violate any provision of
any Law to which the Seller is subject or by which it is bound.

     

    (c)           No Actions. There are
no lawsuits, actions (or to the best knowledge of the Seller, investigations),
claims or demands from any other third party, or other proceedings pending or,
to the best of the knowledge of the Seller, threatened against the Seller which,
if resolved in a manner adverse to the Seller, would adversely affect the right
or ability of the Seller to carry out its obligations set forth in this
Agreement (the “Actions”) as of the execution of this Agreement. The Seller
further warrants and covenants that such actions will not occur after the
execution of this Agreement.

     

    (d)           Title. The Seller
owns the Seller’s Shares free and clear of any claim, pledge, charge, lien,
preemptive rights, restrictions on transfers, proxies, voting agreements and any
other encumbrance whatsoever, except as contemplated by this Agreement. The
Seller has not entered into or is a party to any agreement that would cause the
Seller to not own such Seller’s Shares free and clear of any encumbrance, except
as contemplated by this Agreement.

     

                (e)           Exercise of Rights.
Without first obtaining written instruction from the Purchaser, the Seller will
not exercise any rights in connection with the Seller’s Shares to which the
Seller is entitled as of the date of this Agreement, including but not limited
to voting rights, share transfer right, dividends rights, preemptive right or
any rights in connection with pledge, proxy, charge, lien. The Seller further
warrants and covenants that it will, unconditionally and immediately, exercise
any rights in connection with the Seller’s Shares in compliance with the
Purchaser’s written instruction upon its receipt of such written
instruction.

    

    4.2     Representations and
Warranties by Purchasers. The Purchaser represents and warrants to the
Seller that:

     

    (a)           Valid and Binding
Obligations. This Agreement, and all agreements and documents executed
and delivered pursuant to this Agreement, constitute valid and binding
obligations of the Purchaser, enforceable against the Purchaser in accordance
with its terms, subject to applicable Bankruptcy Laws and other laws or
equitable principles of general application affecting the rights of creditors
generally.

     

    (b)           No Conflicts. Neither
the execution nor delivery of this Agreement by the Purchaser nor the
fulfillment or compliance by the Purchaser with any of the terms hereof shall,
with or without the giving of notice and/or the passage of time, (i) conflict
with, or result in a breach of the terms, conditions or provisions of, or
constitute a default under, any contract or any judgment, decree or order to
which Purchasers are subject or by which Purchasers are bound, or (ii) require
any consent, license, permit, authorization, approval or other action by any
Person or Government Authority which has not yet been obtained or received. The
execution, delivery and performance of this Agreement by the Purchasers or
compliance with the provisions hereof by the Purchasers do not, and shall not,
violate any provision of any Law to which Purchaser are subject or by which are
bound.

     

    (c)           No Actions. There are
no lawsuits, actions (or to the best knowledge of the Purchaser,
investigations), claims or demands or other proceedings pending or, to the best
of the knowledge of the Purchaser, threatened against the Purchaser which, if
resolved in a manner adverse to the Purchaser, would adversely affect the right
or ability of the Purchaser to carry out their obligations set forth in this
Agreement.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
              4.3

            	
              Covenants.

            

    

    

    (a)           Without
the prior written consent of the Purchaser, the Seller shall cause the
Collateral Agent, pursuant to the Stock Pledge Agreement, to vote the Seller’s
Shares such that Telstar shall not, (i) issue or create any new shares, equity,
registered capital, ownership interest, or equity-linked securities, or any
options or warrants that are directly convertible into, or exercisable or
exchangeable for, shares, equity, registered capital, ownership interest, or
equity-linked securities of Telstar, or other similar equivalent arrangements,
(ii) alter the shareholding structure of Telstar, (iii) cancel or otherwise
alter the Seller’s Shares, (iv) amend the charter or the by-laws of Telstar, (v)
liquidate or wind up Telstar, (vi) sell, transfer, assign, hypothecate or
otherwise reduce the value of any assets held by Telstar, including but without
limitation, any and all shares in China Agricorp, Sky Fortune and its
subsidiaries and affiliates or (vi) act or omit to act in such a way that would
be detrimental to the interest of the Purchasers in the Seller’s Shares, (vii)
transfer, assign, pledge, hypothecate or vest any option on his shares in
Telstar to any third party. The Seller shall cause the Companies to disclose to
the Purchasers true copies of all the financial, legal and commercial documents
of the Companies and the resolutions of the shareholders and the board of
directors.

    

    (b)           The
Seller agrees that the Purchaser or his/her Nominee(s) shall be entitled to all
the Distributions in respect of the Seller’s Shares.  In the event
that any such Distributions have been received by the Seller for any reason, the
Seller shall, at the request of the Purchaser, pay an amount equivalent to the
Distributions received by him to the Purchaser or his Nominee(s) at the time of
the exercise of the Call Option by the Purchaser or his Nominee(s).

    

    (c)           The
transaction contemplated hereunder and any information exchanged between the
Parties pursuant to this Agreement will be held in complete and strict
confidence by the concerned Parties and their respective advisors, and will not
be disclosed to any person except: (i) to the Parties’ respective officers,
directors, employees, agents, representatives, advisors, counsel and consultants
that reasonably require such information and who agree to comply with the
obligation of non-disclosure pursuant to this Agreement; (ii) with the express
prior written consent of the other Party; or (iii) as may be required to comply
with any applicable law, order, regulation or ruling, or an order, request or
direction of a government agency; provided, however, that the foregoing shall
not apply to information that: (1) was known to the receiving Party prior to its
first receipt from the other Party; (2) becomes a matter of public knowledge
without the fault of the receiving Party; or (3) is lawfully received by the
Party from a third person with no restrictions on its further
dissemination.

     

    (d)           If
at any time: (i) the Seller fails to deliver the Seller’s Shares in accordance
with the Stock Pledge Agreement and this Agreement, if such failure is not
remedied on or before the third Business Day after notice of such failure is
given to the Seller by the Purchaser; (ii) the Seller fails to comply with or
perform any agreement, covenant or obligation to be complied with or performed
by the Seller in accordance with this Agreement if such failure is not remedied
on or before the third Business Day after notice of such failure is given to the
Seller by the Purchasers; or (iii) the Seller (1) becomes insolvent or is unable
to pay its debts or fails or admits in writing his inability generally to pay
its debts as they become due; (2) makes a general assignment, arrangement or
composition with or for the benefit of its creditors; (3) institutes or has
instituted against it a proceeding seeking a judgment of insolvency or
bankruptcy or any relief under any Bankruptcy Law, (4) seeks or becomes subject
to the appointment of an administrator, provisional liquidator, conservator,
receiver, trustee, custodian or other similar official for it or for all or
substantially all its assets; (5) has a secured party that takes possession of
all or substantially all its assets or has a distress, execution, attachment,
sequestration or other legal process levied, enforced or sued on or against all
or substantially all its assets, (6) causes or is subject to any event with
respect to it which, under the applicable Law, has an analogous effect to any of
the events described in clauses (1) through (5); or (7) takes any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in,
any of the foregoing acts, then the Call Option shall become immediately
exercisable in respect of all of the Seller’s Shares without further regard to
the occurrence of any of the Conditions as per Section 2 of this
Agreement.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    5.     MISCELLANEOUS.

    

    5.1.    Governing Law;
Jurisdiction. This Agreement shall be construed according to, and the
rights of the Parties shall be governed by, the laws of the State of New York,
without reference to any conflict of laws principle that would cause the
application of the laws of any jurisdiction other than New York. Each Party
hereby irrevocably submits to the exclusive jurisdiction of the federal and
state courts sitting in the City of New York, for the adjudication of any
dispute hereunder or in connection herewith, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of such court, that such, suit, action or proceeding is brought in
an inconvenient forum, or that the venue of such suit, action or proceeding is
improper.

     

    5.2.     Successors and
Assigns. No Party may assign this Agreement or any rights or obligations
hereunder without the prior written consent of the other Party. The provisions
hereof shall inure to the benefit of, and be binding upon, the successors and
permitted assigns of the Parties.

     

    5.3.     Entire Agreement;
Amendment. This Agreement constitutes the full and entire understanding
and agreement between and among the Parties with regard to the subject matter
hereof. Any term of this Agreement may be amended only with the written consent
of each Party.

     

    5.4.     Notices and Other
Communications. Any and all notices, requests, demands and other
communications required or otherwise contemplated to be made under this
Agreement shall be in writing and shall be provided by one or more of the
following means and shall be deemed to have been duly given (a) if
delivered personally, when received, (b) if transmitted by facsimile, on
the date of transmission with receipt of a transmittal confirmation, or
(c) if by an internationally recognized overnight courier service, one
Business Day after deposit with such courier service. All such notices,
requests, demands and other communications shall be addressed to such address or
facsimile number as a party may have specified to the other parties in writing
delivered in accordance with this Section 6.4.

     

    5.5.     Delays or Omissions.
No delay or omission to exercise any right, power or remedy accruing to any
Person hereunder, upon any breach or default under this Agreement, shall impair
any such right, power or remedy nor shall it be construed to be a waiver of any
such breach or default, or an acquiescence therein, or of or in any similar
breach or default thereafter occurring; nor shall any waiver of any single
breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any Person hereunder of any breach or default under
this Agreement, or any waiver on the part of any Person of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing and signed by the waiving or
consenting Person.

    

     5.6.     Severability. If any
provision of this Agreement is found to be invalid or unenforceable, then such
provision shall be construed, to the extent feasible, so as to render the
provision enforceable and to provide for the consummation of the transactions
contemplated hereby on substantially the same terms as originally set forth
herein, and if no feasible interpretation would save such provision, it shall be
severed from the remainder of this Agreement, which shall remain in full force
and effect unless the severed provision is essential to the rights or benefits
intended by the Parties. In such event, the Parties shall use best efforts to
negotiate, in good faith, a substitute, valid and enforceable provision or
agreement which most nearly affects the Parties’ intent in entering into this
Agreement.

     

    5.7     Construction. The
language used in this Agreement will be deemed to be the language chosen by the
Parties to express their mutual intent, and no rules of strict construction will
be applied against any Party.

     

    5.8.     Further Assurances.
The Parties shall perform such acts, execute and deliver such instruments and
documents and do all other such things as may be reasonably necessary to effect
the transactions contemplated hereby.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    5.9.     Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument.
Execution and delivery of this Agreement by exchange of facsimile copies bearing
the facsimile signature of a Party shall constitute a valid and binding
execution and delivery of this Agreement by such Party.

     

    [Remainder of the Page Intentionally
Left Blank]

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the
Parties have executed this Agreement as of the date first written
above.

     

    
      
        
          	
                   
       

                	
                  Purchaser:

                
	 
      	 
      
	 
      	 
      
	 
      	
                  Print
      Name:

                

        

      

    

    

    
      
        
          
            
              	
                       
       

                    	
                      Seller:

                    
	 
      	 
      
	 
      	
                      Sky
      Harmony Ecological Technology Limited

                    
	 
      	 
      
	 
      	 
      
	 
      	
                      By:
      Wong  Leung
Hei

                    

            

          

        

      

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    APPENDIX
A

    Form of Exercise
Notice

     

    [Date]

    [________________]
(the “Seller”)

    [________________]

    [________________]

    Attention:
[_______]

    

    
      	
               
      

            	
              Re:

            	
              Call
      Option Agreement dated ____________ (the
      “Call Option
      Agreement”) among the Purchaser named therein, Sky Harmony
      Ecological Technology Limited (“Seller”).

            

    

    

    Dear
Sir:

    

    In
accordance with Section 2.3 of the Call Option Agreement, Purchasers hereby
provides this notice of exercise of the Call Option in the manner specified
below:

    

    
      	
               
      

            	
              (a)

            	
              The
      Purchasers hereby exercises its Call Options with respect to Seller’s
      Shares pursuant to the Call Option
Agreement.

            

    

    
      	
               
      

            	
              (b)

            	
              The
      Purchasers intends to buy [    ] Seller’s Shares and
      shall pay the sum of $____________ to the
  Seller.

            

    

    

    Dated:
_______________, ______

     

    
      
        
          
            	 
      	
                     

                  

          

        

      

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    APPENDIX
B

     
Form of Transfer
Notice

     

    To           :           [                                    ]
(the “Seller”)

    

    From       :           [                                    ]
(the “Purchaser”)

     

    I, the
undersigned, refer to the Call Option Agreement (the "Call Option Agreement") dated
[     ], 2011 among the Purchaser named therein, Sky
Harmony Ecological Technology Limited (“Seller”)  Terms
defined in the Call Option Agreement shall have the same meanings as used
herein.

    

    I hereby
give you notice that I will transfer to [Nominees' names] the
following portion of the Call Option, expressed in terms of the number of
Seller’s Shares represented by the portion of the Call Option transferred in
accordance with the terms and conditions of the Call Option
Agreement,.

    

    
      
        
          
            
              
                	
                        Nominees

                      	 
      	
                        Option Shares to be
    Transferred

                      
	 
      	 
      	 
      
	 
      	 
      	 
      

              

            

          

        

      

    

    

    Dated [ ]

    

    
      
        
          	
                  Yours
      faithfully

                
	 
      
	 
      
	
                  Name:

                
	
                   [Purchaser]

                

        

      

    

     

    
      
         

      

      
        11

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