Document:

Exhibit 10.1

                            SHARE EXCHANGE AGREEMENT
                            ------------------------

         This SHARE EXCHANGE AGREEMENT (this "Agreement"), dated as of September
7, 2006, is by and among BTHC III, Inc., a Delaware  corporation (the "Parent"),
SUTOR  STEEL  TECHNOLOGY  CO.,  LTD,  a  British  Virgin  Islands  company  (the
"Company"),   and  the  Stockholders  of  the  Company   signatory  hereto  (the
"Stockholders"). Each of the parties to this Agreement are individually referred
to herein as a "Party" and collectively, as the "Parties."

                                   BACKGROUND
                                   ----------

         The Company has 50,000 shares of capital  stock (the  "Company  Stock")
outstanding, all of which are held by the Stockholders. Each of the Stockholders
is the record and beneficial  owner of the number of shares of Company Stock set
forth opposite such  Stockholder's  name on Exhibit A. Each of the  Stockholders
has agreed to transfer  all of his,  her or its  (hereinafter  "its")  shares of
Company  Stock in exchange for a number of newly issued  shares of Common Stock,
par value $0.001 per share, of the Parent (the "Parent Stock") that will, in the
aggregate, constitute at least 50.1% of the issued and outstanding capital stock
of the Parent on a fully-diluted  basis as of and immediately after the Closing,
and after giving  effect to the  Financing  (as defined in Section 7.12 hereof).
The number of shares of Parent Stock to be received by each Stockholder shall be
listed opposite such  Stockholder's  name on Exhibit A, which Exhibit A, will be
in the form attached to this  Agreement and mutually  agreed upon by the parties
at or prior to the Closing.  The aggregate number of shares of Parent Stock that
will be reflected on Exhibit A is referred to herein as the (the "Shares").

         The  exchange  of  Company  Stock  for  Parent  Stock  is  intended  to
constitute a  reorganization  within the meaning of Section  368(a)(1)(B) of the
Internal  Revenue Code of 1986 (the  "Code"),  as amended or such other tax free
reorganization exemptions that may be available under the Code.

         The Board of Directors  of the Parent and the Company  have  determined
that it is desirable to effect this plan of reorganization and share exchange.

                                    AGREEMENT
                                    ---------

                  NOW THEREFORE, the parties agree as follows:

                                    ARTICLE I

                               Exchange of Shares
                               ------------------

         SECTION 1.01.  Exchange by Stockholders.  At the Closing (as defined in
Section 1.02), each of the Stockholders shall sell, transfer, convey, assign and
deliver to the Parent its Company  Stock free and clear of all Liens (as defined
below) in exchange for the Parent Stock to be listed on Exhibit A opposite  such
Stockholder's name.

         SECTION 1.02. Closing.  The closing (the "Closing") of the transactions
contemplated  hereby  (the  "Transactions")  shall take place at the  offices of
Thelen Reid & Priest LLP in Washington, DC commencing at 9:00 a.m. local time on

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the second  business day following the  satisfaction or waiver of all conditions
to the  obligations of the parties to consummate the  Transactions  contemplated
hereby (other than  conditions  with respect to actions the  respective  parties
will take at the Closing itself), or such other date and time as the parties may
mutually determine (the "Closing Date").

                                   ARTICLE II

                 Representations and Warranties of Stockholders
                 ----------------------------------------------

         Each of the Stockholders  hereby severally (and not jointly) represents
and warrants to the Parent with respect to itself, as follows:

         SECTION 2.01. Good Title.  The Stockholder is the record and beneficial
owner, and has good title to its Company Stock,  with the right and authority to
sell and  deliver  such  Company  Stock.  Upon  delivery of any  certificate  or
certificates duly assigned,  representing the same as herein contemplated and/or
upon  registering  of the Parent as the new owner of such  Company  Stock in the
share  register  of the  Company,  the Parent  will  receive  good title to such
Company  Stock,  free  and  clear of all  liens,  security  interests,  pledges,
equities and claims of any kind, voting trusts, stockholder agreements and other
encumbrances (collectively, "Liens").

         SECTION 2.02. Organization.  Each Stockholder that is an entity is duly
organized and validly existing in its jurisdiction of organization.

         SECTION 2.03.  Power and Authority.  Each Stockholder that is an entity
has the legal power and  authority to execute and deliver this  Agreement and to
perform  its  obligations  hereunder.  All  acts  required  to be  taken  by the
Stockholders to enter into this Agreement and to carry out the Transactions have
been properly  taken.  This  Agreement  constitutes  a legal,  valid and binding
obligation  of  the  Stockholder,   enforceable   against  such  Stockholder  in
accordance with the terms hereof.

         SECTION  2.04.  No  Conflicts.  The  execution  and  delivery  of  this
Agreement by the  Stockholder  and the  performance  by the  Stockholder  of its
obligations  hereunder in accordance with the terms hereof: (i) will not require
the  consent  of any  third  party  or any  federal,  state,  local  or  foreign
government  or any court of  competent  jurisdiction,  administrative  agency or
commission  or other  governmental  authority  or  instrumentality,  domestic or
foreign ("Governmental  Entity") under any statutes,  laws,  ordinances,  rules,
regulations,  orders, writs,  injunctions,  judgments, or decrees (collectively,
"Laws"); (ii) will not violate any Laws applicable to such Stockholder and (iii)
will not violate or breach any contractual  obligation to which such Stockholder
is a party.

         SECTION  2.05.  No Finder's  Fee. The  Stockholder  has not created any
obligation for any finder's,  investment  banker's or broker's fee in connection
with the Transactions.

         SECTION  2.06.  Purchase  Entirely  for Own  Account.  The Parent Stock
proposed to be  acquired  by the  Stockholder  hereunder  will be  acquired  for
investment  for  its  own  account,  and  not  with a  view  to  the  resale  or
distribution of any part thereof,  and the Stockholder has no present  intention
of selling or otherwise distributing the Parent Stock, except in compliance with
applicable securities laws.

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         SECTION 2.07. Available Information. The Stockholder has such knowledge
and  experience  in  financial  and  business  matters  that  it is  capable  of
evaluating the merits and risks of investment in the Parent.

         SECTION 2.08. Non-Registration.  The Parties understand that the Parent
Stock has not been registered  under the Securities Act of 1933, as amended (the
"Securities  Act") and,  if issued in  accordance  with the  provisions  of this
Agreement,   will  be  issued  by  reason  of  a  specific  exemption  from  the
registration  provisions of the Securities  Act which depends upon,  among other
things,  the bona fide nature of the  investment  intent and the accuracy of the
Stockholder's  representations as expressed herein. The  non-registration  shall
have  no  prejudice  with  respect  to  any  rights,  interests,   benefits  and
entitlements  attached to the Parent Stock in accordance with the Parent charter
documents or the laws of its jurisdiction of incorporation.

         SECTION 2.09. Restricted Securities.  The Stockholder  understands that
the  Parent  Stock  is  characterized  as  "restricted   securities"  under  the
Securities Act inasmuch as this Agreement  contemplates that, if acquired by the
Stockholder pursuant hereto, the Parent Stock would be acquired in a transaction
not involving a public offering.  The Stockholder  further  acknowledges that if
the Parent Stock is issued to the  Stockholder in accordance with the provisions
of this  Agreement,  such Parent  Stock may not be resold  without  registration
under  the  Securities  Act or the  existence  of an  exemption  therefrom.  The
Stockholder  represents that it is familiar with Rule 144 promulgated  under the
Securities Act, as presently in effect,  and understands the resale  limitations
imposed thereby and by the Securities Act.

         SECTION 2.10. Legends. It is understood that the Parent Stock will bear
the  following  legend or one that is  substantially  similar  to the  following
legend:

                  THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE
                  SECURITIES  ACT OF 1933  (THE  "SECURITIES  ACT")  OR
                  UNDER APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
                  SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED OF UNLESS
                  REGISTERED   UNDER   THE   SECURITIES   ACT  AND  ANY
                  APPLICABLE  STATE  SECURITIES  LAWS  OR  PURSUANT  TO
                  AVAILABLE EXEMPTIONS FROM SUCH REGISTRATION, PROVIDED
                  THAT THE SELLER DELIVERS TO THE COMPANY AN OPINION OF
                  COUNSEL (WHICH OPINION IS REASONABLY  SATISFACTORY TO
                  THE  COMPANY)  CONFIRMING  THE  AVAILABILITY  OF SUCH
                  EXEMPTION.   THESE   SECURITIES  MAY  BE  PLEDGED  IN
                  CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY
                  SUCH SECURITIES TO THE EXTENT PERMITTED BY APPLICABLE
                  FEDERAL AND STATE SECURITIES LAWS.

                  (a) Any legend required by the "blue sky" laws of any state to
         the extent such laws are  applicable to the  securities  represented by
         the certificate so legended.

         SECTION 2.11.  Accredited  Investor.  The Stockholder is an "accredited
investor"  within the meaning of Rule 501 under the  Securities  Act and was not
organized for the specific purpose of acquiring the Parent Stock.

                                   ARTICLE III

                  Representations and Warranties of the Company
                  ---------------------------------------------

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         The Company  represents and warrants to the Parent that,  except as set
forth in the Company  Disclosure  Letter (as defined  below,  and  regardless of
whether or not the Company Disclosure Letter is referenced below with respect to
any  particular  representation  or  warranty),  which will be  delivered by the
Company to the Parent in  accordance  with  Section  7.09 hereof  (the  "Company
Disclosure Letter"):

         SECTION 3.01. Organization, Standing and Power. Each of the Company and
its  subsidiaries  (the  "Company  Subsidiaries")  is  duly  organized,  validly
existing and in good standing under the laws of the  jurisdiction in which it is
organized  and  has  the  corporate   power  and  authority  and  possesses  all
governmental  franchises,   licenses,  permits,   authorizations  and  approvals
necessary to enable it to own, lease or otherwise hold its properties and assets
and  to  conduct  its  businesses  as  presently  conducted,   other  than  such
franchises,  licenses, permits,  authorizations and approvals the lack of which,
individually  or in the  aggregate,  has not had and  would  not  reasonably  be
expected to have a material  adverse effect on the Company,  a material  adverse
effect on the  ability  of the  Company to perform  its  obligations  under this
Agreement or on the ability of the Company to  consummate  the  Transactions  (a
"Company Material Adverse Effect").  The Company and each Company  Subsidiary is
duly  qualified  to do  business  in each  jurisdiction  where the nature of its
business or its ownership or leasing of its properties  make such  qualification
necessary  except  where the  failure  to so  qualify  would not  reasonably  be
expected to have a Company Material Adverse Effect. The Company has delivered to
the  Parent  true  and  complete  copies  of  the  memorandum  and  articles  of
association of the Company and such other constituent instruments of the Company
as may exist, each as amended to the date of this Agreement (as so amended,  the
"Company Constituent Instruments"),  and the comparable charter,  organizational
documents and other constituent instruments of each Company Subsidiary,  in each
case as amended through the date of this Agreement.

         SECTION 3.02. Company Subsidiaries; Equity Interests.

                  (a)  The  Company   Disclosure   Letter   lists  each  Company
         Subsidiary and its jurisdiction of organization. Except as specified in
         the Company  Disclosure  Letter,  all the outstanding shares of capital
         stock or  equity  investments  of each  Company  Subsidiary  have  been
         validly issued and are fully paid and  nonassessable  and are as of the
         date of  this  Agreement  owned  by the  Company,  by  another  Company
         Subsidiary or by the Company and another Company  Subsidiary,  free and
         clear of all Liens.

                  (b) Except for its interests in the Company Subsidiaries,  the
         Company  does not as of the date of this  Agreement  own,  directly  or
         indirectly,   any  capital  stock,  membership  interest,   partnership
         interest,  joint  venture  interest  or other  equity  interest  in any
         person.

         SECTION 3.03.  Capital  Structure.  The authorized capital stock of the
Company consists of 50,000 ordinary shares of which,  50,000 ordinary shares are
issued and outstanding. Except as set forth above, no shares of capital stock or
other  voting  securities  of the Company are issued,  reserved  for issuance or
outstanding.  Except as specified in the Company  Disclosure Letter, the Company
is the sole  record and  beneficial  owner of all of the issued and  outstanding
capital stock of each Company Subsidiary.  All outstanding shares of the capital
stock of the Company and each Company  Subsidiary are duly  authorized,  validly
issued,  fully paid and  nonassessable and not subject to or issued in violation
of any purchase option, call option,  right of first refusal,  preemptive right,
subscription  right or any similar right under any  provision of the  applicable

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corporate  laws  of  the  British  Virgin  Islands,   the  Company   Constituent
Instruments or any Contract (as defined in Section 3.05) to which the Company is
a party or otherwise bound.  Except as set forth in this section 3.03 and in the
Company Disclosure Letter, there are not any bonds,  debentures,  notes or other
indebtedness of Company or any Company  Subsidiary  having the right to vote (or
convertible into, or exchangeable  for,  securities having the right to vote) on
any matters on which holders of Company Stock or the common stock of any Company
Subsidiary may vote ("Voting  Company  Debt").  Except as set forth above, as of
the  date of this  Agreement,  there  are not  any  options,  warrants,  rights,
convertible  or  exchangeable   securities,   "phantom"   stock  rights,   stock
appreciation  rights,  stock-based  performance units,  commitments,  Contracts,
arrangements  or  undertakings  of any kind to which the  Company or any Company
Subsidiary  is a party  or by  which  any of them is bound  (i)  obligating  the
Company or any  Company  Subsidiary  to issue,  deliver or sell,  or cause to be
issued,  delivered or sold,  additional  shares of capital stock or other equity
interests in, or any security  convertible  or exercisable  for or  exchangeable
into any  capital  stock of or other  equity  interest  in,  the  Company or any
Company  Subsidiary or any Voting Company Debt,  (ii)  obligating the Company or
any Company  Subsidiary to issue,  grant,  extend or enter into any such option,
warrant, call, right, security, commitment, Contract, arrangement or undertaking
or (iii) that give any person the right to receive any economic benefit or right
similar to or derived from the economic benefits and rights occurring to holders
of the capital stock of the Company or of any Company Subsidiary.  Except as set
forth in the Company Disclosure Letter, as of the date of this Agreement,  there
are not any  outstanding  contractual  obligations of the Company to repurchase,
redeem or otherwise acquire any shares of capital stock of Parent.

         SECTION 3.04. Authority;  Execution and Delivery;  Enforceability.  The
Company has all requisite  corporate  power and authority to execute and deliver
this Agreement and to consummate the Transactions. The execution and delivery by
the  Company  of this  Agreement  and the  consummation  by the  Company  of the
Transactions have been duly authorized and approved by the Board of Directors of
the Company and no other  corporate  proceedings  on the part of the Company are
necessary to authorize  this Agreement and the  Transactions.  When executed and
delivered,  this Agreement will be enforceable against the Company in accordance
with its terms.

         SECTION 3.05. No Conflicts; Consents.

                  (a) Except as set forth in the Company  Disclosure Letter, the
         execution and delivery by the Company of this  Agreement  does not, and
         the  consummation  of the  Transactions  and compliance  with the terms
         hereof and thereof will not,  conflict with, or result in any violation
         of or default (with or without notice or lapse of time, or both) under,
         or give rise to a right of termination, cancellation or acceleration of
         any obligation or to loss of a material benefit under, or result in the
         creation  of any  Lien  upon any of the  properties  or  assets  of the
         Company or any  Company  Subsidiary  under,  any  provision  of (i) the
         Company   Constituent   Instruments  or  the   comparable   charter  or
         organizational  documents of any Company Subsidiary,  (ii) any material
         contract,  lease, license,  indenture,  note, bond, agreement,  permit,
         concession,  franchise or other  instrument (a "Contract") to which the
         Company or any Company  Subsidiary  is a party or by which any of their
         respective  properties  or  assets  is bound or  (iii)  subject  to the
         filings and other matters referred to in Section 3.05(b),  any material
         judgment,  order or decree  ("Judgment")  or material Law applicable to

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         the Company or any Company Subsidiary or their respective properties or
         assets,  other than,  in the case of clauses (ii) and (iii) above,  any
         such items that,  individually  or in the  aggregate,  have not had and
         would not  reasonably  be expected to have a Company  Material  Adverse
         Effect.

                  (b) Except as set forth in the Company  Disclosure  Letter and
         except for required filings with the Securities and Exchange Commission
         (the "SEC") and applicable "Blue Sky" or state securities  commissions,
         no material consent, approval,  license, permit, order or authorization
         ("Consent") of, or registration,  declaration or filing with, or permit
         from, any Governmental  Entity is required to be obtained or made by or
         with  respect to the Company or any Company  Subsidiary  in  connection
         with the execution,  delivery and  performance of this Agreement or the
         consummation of the Transactions.

         SECTION 3.06. Taxes.

                  (a) Each of the Company and each Company Subsidiary has timely
         filed, or has caused to be timely filed on its behalf,  all Tax Returns
         required to be filed by it, and all such Tax Returns are true, complete
         and  accurate,  except  to  the  extent  any  failure  to  file  or any
         inaccuracies  in  any  filed  Tax  Returns,   individually  or  in  the
         aggregate,  have not had and would not reasonably be expected to have a
         Company Material Adverse Effect.  All Taxes shown to be due on such Tax
         Returns, or otherwise owed, have been timely paid, except to the extent
         that any failure to pay, individually or in the aggregate,  has not had
         and would not reasonably be expected to have a Company Material Adverse
         Effect.  There are no unpaid taxes in any material amount claimed to be
         due by the taxing  authority of any  jurisdiction,  and the officers of
         the Company know of no basis for any such claim.

                  (b) The Company  Financial  Statements  (as defined in Section
         3.15) reflect an adequate  reserve for all Taxes payable by the Company
         and the Company  Subsidiaries  (in addition to any reserve for deferred
         Taxes to reflect timing differences between book and Tax items) for all
         Taxable periods and portions thereof through the date of such financial
         statements.  No deficiency with respect to any Taxes has been proposed,
         asserted or assessed against the Company or any Company Subsidiary, and
         no  requests  for  waivers  of the time to  assess  any such  Taxes are
         pending,  except to the  extent  any such  deficiency  or  request  for
         waiver,  individually  or in the  aggregate,  has not had and would not
         reasonably be expected to have a Company Material Adverse Effect.

                  (c) For purposes of this Agreement:

         "Taxes"  includes all forms of taxation,  whenever  created or imposed,
and whether of the United States or elsewhere,  and whether  imposed by a local,
municipal,  governmental,  state, foreign, federal or other Governmental Entity,
or in  connection  with any  agreement  with  respect  to Taxes,  including  all
interest, penalties and additions imposed with respect to such amounts.

         "Tax Return" means all federal,  state,  local,  provincial and foreign
Tax returns, declarations, statements, reports, schedules, forms and information
returns and any amended Tax return relating to Taxes.

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         SECTION 3.07. Benefit Plans.

                  (a) Except as set forth in the Company  Disclosure Letter, the
         Company does not have or maintain any collective  bargaining  agreement
         or any bonus, pension, profit sharing, deferred compensation, incentive
         compensation,  stock ownership,  stock purchase,  stock option, phantom
         stock,  retirement,  vacation,  severance,  disability,  death benefit,
         hospitalization,  medical or other plan,  arrangement or  understanding
         (whether or not legally binding)  providing  benefits to any current or
         former  employee,  officer or  director  of the  Company or any Company
         Subsidiary (collectively, "Company Benefit Plans"). Except as set forth
         in the  Company  Disclosure  Letter,  as of the date of this  Agreement
         there are not any severance or termination  agreements or  arrangements
         between the Company or any Company Subsidiary and any current or former
         employee, officer or director of the Company or any Company Subsidiary,
         nor  does the  Company  or any  Company  Subsidiary  have  any  general
         severance plan or policy.

                  (b) Since June 30,  2006,  there has not been any  adoption or
         amendment  in any  material  respect  by  the  Company  or any  Company
         Subsidiary of any Company Benefit Plan.

         SECTION 3.08. Litigation.  There is no action, suit, inquiry, notice of
violation, proceeding (including any partial proceeding such as a deposition) or
investigation pending or threatened in writing against or affecting the Company,
any  subsidiary or any of their  respective  properties  before or by any court,
arbitrator,   governmental  or  administrative   agency,   regulatory  authority
(federal,  state,  county,  local or foreign),  stock market,  stock exchange or
trading  facility  ("Action")  which (i)  adversely  affects or  challenges  the
legality,  validity or  enforceability of any of this Agreement or the Shares or
(ii)  could,  if there  were an  unfavorable  decision,  individually  or in the
aggregate,  have or  reasonably  be  expected  to result  in a Company  Material
Adverse  Effect.  Neither the Company nor any  subsidiary,  nor any  director or
officer  thereof (in his or her capacity as such), is or has been the subject of
any Action involving a claim or violation of or liability under federal or state
securities laws or a claim of breach of fiduciary duty.

         SECTION 3.09.  Compliance  with  Applicable  Laws.  The Company and the
Company Subsidiaries are in compliance with all applicable Laws, including those
relating  to  occupational  health and safety  and the  environment,  except for
instances of noncompliance that, individually and in the aggregate, have not had
and would not reasonably be expected to have a Company  Material Adverse Effect.
Except  as set forth in the  Company  Disclosure  Letter,  the  Company  has not
received any written communication during the past two years from a Governmental
Entity  that  alleges  that the  Company is not in  compliance  in any  material
respect with any  applicable  Law.  This Section 3.09 does not relate to matters
with respect to Taxes, which are the subject of Section 3.06.

         SECTION  3.10.  Brokers;  Schedule  of Fees and  Expenses.  No  broker,
investment  banker,  financial  advisor  or  other  person  is  entitled  to any
broker's,  finder's,  financial  advisor's or other similar fee or commission in
connection with the Transactions based upon arrangements made by or on behalf of
the Company.

         SECTION 3.11. Contracts.  Except as disclosed in the Company Disclosure
Letter,  there are no Contracts  that are material to the business,  properties,
assets,  condition (financial or otherwise),  results of operations or prospects

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of the Company and its  subsidiaries  taken as a whole.  Neither the Company nor
any Company  Subsidiary  is in violation of or in default  under (nor does there
exist any condition which upon the passage of time or the giving of notice would
cause such a violation of or default  under) any Contract to which it is a party
or by  which  it or any  of its  properties  or  assets  is  bound,  except  for
violations  or  defaults  that  would  not,  individually  or in the  aggregate,
reasonably be expected to result in a Company Material Adverse Effect.

         SECTION  3.12.  Title  to  Properties.  Except  as  set  forth  in  the
Disclosure Letter, the Company and the Company  Subsidiaries do not own any real
property.  Each of the Company and the Company Subsidiaries has sufficient title
to, or valid  leasehold  interests in, all of its  properties and assets used in
the conduct of its businesses. All such assets and properties, other than assets
and  properties  in which the  Company or any of the  Company  Subsidiaries  has
leasehold interests,  are free and clear of all Liens other than those set forth
in the Company Disclosure Letter and except for Liens that, in the aggregate, do
not and will not  materially  interfere  with the ability of the Company and the
Company Subsidiaries to conduct business as currently conducted.

         SECTION  3.13.  Intellectual  Property.  The  Company  and the  Company
Subsidiaries  own, or are validly  licensed or otherwise  have the right to use,
all patents,  patent rights,  trademarks,  trademark rights,  trade names, trade
name  rights,   service  marks,  service  mark  rights,   copyrights  and  other
proprietary  intellectual  property rights and computer programs  (collectively,
"Intellectual  Property  Rights")  which  are  material  to the  conduct  of the
business  of the  Company and the  Company  Subsidiaries  taken as a whole.  The
Company Disclosure Letter sets forth a description of all Intellectual  Property
Rights  which are material to the conduct of the business of the Company and the
Company  Subsidiaries  taken as a whole.  There are no claims pending or, to the
knowledge  of the  Company,  threatened  that the  Company or any of the Company
Subsidiaries  is infringing or otherwise  adversely  affecting the rights of any
person with regard to any  Intellectual  Property Right. To the knowledge of the
Company, no person is infringing the rights of the Company or any of the Company
Subsidiaries with respect to any Intellectual Property Right.

         SECTION 3.14.  Labor  Matters.  There are no  collective  bargaining or
other  labor  union  agreements  to  which  the  Company  or any of the  Company
Subsidiaries  is a party or by which any of them is  bound.  No  material  labor
dispute exists or, to the knowledge of the Company,  is imminent with respect to
any of the employees of the Company.

         SECTION 3.15.  Financial  Statements.  Prior to the Closing the Company
will deliver to the Parent its audited consolidated financial statements for the
fiscal  years ended June 30,  2006,  2005 and 2004  (collectively,  the "Company
Financial  Statements").  Upon delivery,  the Company Financial  Statements will
have been prepared in accordance with generally accepted  accounting  principles
applied on a consistent  basis  throughout  the periods  indicated.  The Company
Financial  Statements will fairly present in all material respects the financial
condition and  operating  results of the Company,  as of the dates,  and for the
periods,  indicated therein.  The Company will not have any material liabilities
or obligations,  contingent or otherwise, other than (i) liabilities incurred in
the  ordinary  course  of  business  subsequent  to  June  30,  2006,  and  (ii)
obligations  under contracts and commitments  incurred in the ordinary course of
business and not required under generally accepted  accounting  principles to be
reflected  in  the  Company   Financial   Statements,   which,  in  both  cases,
individually and in the aggregate would not be reasonably  expected to result in
a Company Material Adverse Effect.

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         SECTION 3.16.  Insurance.  The Company and its subsidiaries are insured
by insurers of recognized financial responsibility against such losses and risks
in accordance with any applicable laws under their  respective  jurisdictions of
organization and in such amounts as are customary in the businesses in which the
Company and its  subsidiaries are engaged and in the geographic areas where they
engage in such businesses. The Company has no reason to believe that it will not
be able to renew its and its subsidiaries'  existing  insurance  coverage as and
when such coverage  expires or to obtain similar  coverage from similar insurers
as may be necessary to continue its business on terms consistent with market for
the Company's and such subsidiaries' respective lines of business.

         SECTION 3.17. Transactions With Affiliates and Employees. Except as set
forth in the Company Disclosure Letter and Company Financial Statements, none of
the officers or  directors of the Company and, to the  knowledge of the Company,
none of the  employees  of the Company is  presently a party to any  transaction
with the  Company or any  subsidiary  (other  than for  services  as  employees,
officers and directors),  including any contract, agreement or other arrangement
providing for the furnishing of services to or by,  providing for rental of real
or personal property to or from, or otherwise  requiring payments to or from any
officer,  director or such  employee or, to the  knowledge  of the Company,  any
entity in which any officer,  director,  or any such  employee has a substantial
interest or is an officer, director, trustee or partner.

         SECTION  3.18.  Internal  Accounting  Controls.  The  Company  and  its
subsidiaries  maintain a system of internal  accounting  controls  sufficient 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 generally accepted  accounting  principles 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  action is taken with respect to any differences.  The
Company has established  disclosure  controls and procedures for the Company and
designed  such  disclosure  controls  and  procedures  to ensure  that  material
information relating to the Company,  including its subsidiaries,  is made known
to the officers by others within those  entities.  The  Company's  officers have
evaluated the  effectiveness  of the Company's  controls and  procedures.  Since
December  31,  2005,  there have been no  significant  changes in the  Company's
internal  controls or, to the Company's  knowledge,  in other factors that could
significantly affect the Company's internal controls.

         SECTION 3.19. Solvency. Based on the financial condition of the Company
as of the closing date (and assuming that the closing shall have occurred),  (i)
the Company's  fair saleable value of its assets exceeds the amount that will be
required to be paid on or in respect of the Company's  existing  debts and other
liabilities  (including known contingent  liabilities) as they mature,  (ii) the
Company's  assets do not constitute  unreasonably  small capital to carry on its
business  for the  current  fiscal year as now  conducted  and as proposed to be
conducted including its capital needs taking into account the particular capital
requirements  of the business  conducted by the Company,  and projected  capital
requirements and capital  availability  thereof, and (iii) the current cash flow
of the Company, together with the proceeds the Company would receive, were it to
liquidate all of its assets,  after taking into account all anticipated  uses of
the cash,  would be  sufficient  to pay all amounts on or in respect of its debt

                                       9
<PAGE>

when such amounts are required to be paid.  The Company does not intend to incur
debts  beyond its ability to pay such debts as they mature  (taking into account
the timing and amounts of cash to be payable on or in respect of its debt).

         SECTION  3.20.  Application  of Takeover  Protections.  The Company has
taken all necessary action, if any, in order to render  inapplicable any control
share acquisition, business combination, poison pill (including any distribution
under a rights  agreement) or other similar  anti-takeover  provision  under the
Company's charter documents or the laws of its state of incorporation that is or
could become  applicable to the Stockholders as a result of the Stockholders and
the Company  fulfilling their  obligations or exercising their rights under this
Agreement,  including,  without  limitation,  the issuance of the Shares and the
Stockholders' ownership of the Shares.

         SECTION 3.21. No Additional  Agreements.  The Company does not have any
agreement  or  understanding   with  any   Stockholders   with  respect  to  the
transactions  contemplated  by this  Agreement  other than as  specified in this
Agreement.

         SECTION  3.22.  Investment  Company.  The Company is not, and is not an
affiliate of, and  immediately  following  the Closing will not have become,  an
"investment  company" within the meaning of the Investment  Company Act of 1940,
as amended.

         SECTION 3.23. Disclosure.  The Company confirms that neither it nor any
person  acting on its behalf has  provided  any  Stockholder  or its  respective
agents or counsel with any  information  that the Company  believes  constitutes
material,  non-public  information  except insofar as the existence and terms of
the proposed  transactions  hereunder may constitute such information and except
for  information  that will be disclosed by the Parent under a current report on
Form 8-K  filed  within  one  business  days  after  the  Closing.  The  Company
understands  and  confirms  that the  Stockholders  will  rely on the  foregoing
representations  and  covenants in effecting  transactions  in securities of the
Company. All disclosure provided to the Stockholders  regarding the Company, its
business and the transactions  contemplated hereby, furnished by or on behalf of
the Company (including the Company's representations and warranties set forth in
this Agreement) are true and correct and do not contain any untrue  statement of
a material  fact or omit to state any material  fact  necessary in order to make
the statements made therein, in light of the circumstances under which they were
made, not misleading.

         SECTION 3.24. Information Supplied. None of the information supplied or
to be supplied by the Company for inclusion or incorporation by reference in the
notice that is required to be sent to the stockholders of the Parent pursuant to
Rule 14f-1 (the "14f-1 Notice") promulgated under the Securities Exchange Act of
1934 (the  "Exchange  Act") will, at the date it is first mailed to the Parent's
stockholders,  contain any untrue  statement of a material fact or omit to state
any material  fact  required to be stated  therein or necessary in order to make
the statements therein, in light of the circumstances under which they are made,
not misleading.

         SECTION 3.25. Absence of Certain Changes or Events. Except as disclosed
in the Company Financial  Statements or in the Company Disclosure  Letter,  from
June 30,  2006 to the date of this  Agreement,  the Company  has  conducted  its
business only in the ordinary course, and during such period there has not been:

                  (a) any change in the assets, liabilities, financial condition
         or operating results of the Company or any Company  Subsidiary,  except
         changes in the ordinary course of business that have not caused, in the
         aggregate, a Company Material Adverse Effect;

                                       10
<PAGE>

                  (b) any damage, destruction or loss, whether or not covered by
         insurance, that would have a Company Material Adverse Effect;

                  (c) any waiver or  compromise  by the  Company or any  Company
         Subsidiary of a valuable right or of a material debt owed to it;

                  (d) any  satisfaction  or  discharge  of any lien,  claim,  or
         encumbrance  or payment of any obligation by the Company or any Company
         Subsidiary,   except  in  the  ordinary  course  of  business  and  the
         satisfaction  or discharge  of which would not have a Company  Material
         Adverse Effect;

                  (e) any  material  change to a material  Contract by which the
         Company or any Company  Subsidiary or any of its  respective  assets is
         bound or subject;

                  (f) any mortgage,  pledge, transfer of a security interest in,
         or lien, created by the Company or any Company Subsidiary, with respect
         to any of its material properties or assets, except liens for taxes not
         yet due or  payable  and liens  that  arise in the  ordinary  course of
         business  and do not  materially  impair the  Company's or such Company
         Subsidiary's ownership or use of such property or assets;

                  (g) any loans or guarantees made by the Company or any Company
         Subsidiary  to or  for  the  benefit  of  its  employees,  officers  or
         directors,  or any  members  of their  immediate  families,  other than
         travel  advances and other advances made in the ordinary  course of its
         business;

                  (h) any  alteration of the  Company's  method of accounting or
         the identity of its auditors;

                  (i) any  declaration or payment of dividend or distribution of
         cash or other property to Stockholders  or any purchase,  redemption or
         agreements to purchase or redeem any shares of Company Stock;

                  (j) any issuance of equity securities to any officer, director
         or affiliate,  except pursuant to existing  Company stock option plans;
         or

                  (k)  any  arrangement  or  commitment  by the  Company  or any
         Company  Subsidiary  to do any of the things  described in this Section
         3.25.

         SECTION 3.26.  No  Undisclosed  Events,  Liabilities,  Developments  or
Circumstances. No event, liability,  development or circumstance has occurred or
exists,  or  is  contemplated  to  occur  with  respect  to  the  Company,   its
subsidiaries or their respective business, properties,  prospects, operations or
financial condition, that would be required to be disclosed by the Company under
applicable  securities  laws on a registration  statement on Form S-1 filed with
the SEC  relating to an issuance and sale by the Company of its Common Stock and
which has not been publicly announced.

         SECTION 3.27. Foreign Corrupt Practices.  Neither the Company,  nor any
of its subsidiaries,  nor, to the Company's  knowledge,  any director,  officer,
agent,  employee or other  person  acting on behalf of the Company or any of its

                                       11
<PAGE>

subsidiaries has, in the course of its actions for, or on behalf of, the Company
(i) used any corporate funds for any unlawful contribution,  gift, entertainment
or other unlawful expenses relating to political activity;  (ii) made any direct
or indirect unlawful payment to any foreign or domestic  government  official or
employee  from  corporate  funds;  (iii)  violated  or is in  violation  of  any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv)
made any unlawful bribe, rebate,  payoff,  influence payment,  kickback or other
unlawful payment to any foreign or domestic government official or employee.

                                   ARTICLE IV

                  Representations and Warranties of the Parent
                  --------------------------------------------

         The Parent  represents and warrants to each of the Stockholders and the
Company that, except as set forth in the reports,  schedules,  forms, statements
and other documents filed by Parent with the SEC and publicly available prior to
the date of the Agreement  (the "Filed Parent SEC  Documents") or in the letter,
which will be  delivered  by the Parent to the Company and the  Stockholders  in
accordance with Section 7.09 hereof (the "Parent Disclosure Letter"):

         SECTION  4.01.  Organization,   Standing  and  Power.  Parent  is  duly
organized,  validly existing and in good standing under the laws of the State of
Delaware  and  has  full  corporate   power  and  authority  and  possesses  all
governmental  franchises,   licenses,  permits,   authorizations  and  approvals
necessary to enable it to own, lease or otherwise hold its properties and assets
and  to  conduct  its  businesses  as  presently  conducted,   other  than  such
franchises,  licenses, permits,  authorizations and approvals the lack of which,
individually  or in the  aggregate,  has not had and  would  not  reasonably  be
expected to have a material  adverse effect on Parent, a material adverse effect
on the ability of Parent to perform its  obligations  under this Agreement or on
the ability of Parent to consummate the Transactions (a "Parent Material Adverse
Effect"). Parent is duly qualified to do business in each jurisdiction where the
nature of its business or their ownership or leasing of its properties make such
qualification  necessary and where the failure to so qualify would reasonably be
expected to have a Parent Material  Adverse Effect.  Parent has delivered to the
Company true and complete copies of the certificate of  incorporation of Parent,
as amended to the date of this Agreement (as so amended,  the "Parent Charter"),
and the  Bylaws of  Parent,  as  amended  to the date of this  Agreement  (as so
amended, the "Parent Bylaws").

         SECTION  4.02.  Subsidiaries;  Equity  Interests.  Parent does not own,
directly or indirectly,  any capital  stock,  membership  interest,  partnership
interest, joint venture interest or other equity interest in any person.

         SECTION 4.03. Capital Structure. The authorized capital stock of Parent
consists of  40,000,000  shares of Parent  Common  Stock,  par value  $0.001 per
share, and 10,000,000  shares of preferred stock, par value $0.001 per share. As
of the date  hereof (i)  500,000  shares of Parent  Common  Stock are issued and
outstanding,  (ii) no shares of  preferred  stock are  outstanding  and (iii) no
shares  of  Parent  Common  Stock or  preferred  stock are held by Parent in its
treasury.  Except as set forth above, no shares of capital stock or other voting
securities  of Parent were issued,  reserved for  issuance or  outstanding.  All
outstanding  shares of the capital stock of Parent are, and all such shares that
may be issued  prior to the date hereof will be when  issued,  duly  authorized,
validly  issued,  fully paid and  nonassessable  and not subject to or issued in
violation  of  any  purchase  option,  call  option,  right  of  first  refusal,
preemptive right, subscription right or any similar right under any provision of

                                       12
<PAGE>

the General  Corporation Law of the State of Delaware,  the Parent Charter,  the
Parent  Bylaws or any Contract to which  Parent is a party or  otherwise  bound.
There  are not any  bonds,  debentures,  notes or other  indebtedness  of Parent
having the right to vote (or convertible into, or exchangeable  for,  securities
having the right to vote) on any matters on which holders of Parent Common Stock
may vote ("Voting  Parent Debt").  Except as set forth above,  as of the date of
this  Agreement,  there are not any options,  warrants,  rights,  convertible or
exchangeable  securities,  "phantom" stock rights,  stock  appreciation  rights,
stock-based   performance  units,   commitments,   Contracts,   arrangements  or
undertakings  of any kind to which Parent is a party or by which it is bound (i)
obligating Parent to issue, deliver or sell, or cause to be issued, delivered or
sold,  additional  shares of capital stock or other equity  interests in, or any
security  convertible or exercisable for or exchangeable  into any capital stock
of or  other  equity  interest  in,  Parent  or any  Voting  Parent  Debt,  (ii)
obligating  Parent  to  issue,  grant,  extend  or enter  into any such  option,
warrant, call, right, security, commitment, Contract, arrangement or undertaking
or (iii) that give any person the right to receive any economic benefit or right
similar to or derived from the economic benefits and rights occurring to holders
of the capital stock of the Parent. As of the date of this Agreement,  there are
not any outstanding contractual  obligations of Parent to repurchase,  redeem or
otherwise acquire any shares of capital stock of Parent.  Except as set forth in
Schedule  4.03,  the  Parent  is not a  party  to  any  agreement  granting  any
securityholder of the Parent the right to cause the Parent to register shares of
the capital stock or other securities of the Parent held by such  securityholder
under the Securities Act. The stockholder  list to be provided at closing to the
Company  shall be a current  shareholder  list  generated by its stock  transfer
agent, and such list shall accurately  reflect all of the issued and outstanding
shares of the Parent's Common Stock.

         SECTION 4.04. Authority;  Execution and Delivery;  Enforceability.  The
execution and delivery by the Parent of this Agreement and the  consummation  by
the Parent of the  Transactions  have been duly  authorized  and approved by the
Board of Directors of the Parent and no other corporate  proceedings on the part
of the  Parent,  except  for the  filing  of a  Certificate  of  Completion  (as
hereinafter  defined),  are  necessary  to  authorize  this  Agreement  and  the
Transactions.  This Agreement  constitutes a legal, valid and binding obligation
of the  Parent,  enforceable  against  the Parent in  accordance  with the terms
hereof.

         SECTION 4.05. No Conflicts; Consents.

                  (a) Except as set forth in the Parent Disclosure  Letter,  the
         execution and delivery by Parent of this  Agreement,  does not, and the
         consummation of  Transactions  and compliance with the terms hereof and
         thereof  will not,  conflict  with,  or result in any  violation  of or
         default (with or without  notice or lapse of time,  or both) under,  or
         give rise to a right of  termination,  cancellation  or acceleration of
         any obligation or to loss of a material benefit under, or to increased,
         additional,  accelerated or guaranteed  rights or  entitlements  of any
         person  under,  or result in the  creation  of any Lien upon any of the
         properties  or assets of Parent  under,  any  provision  of (i)  Parent
         Charter or Parent Bylaws, (ii) any material Contract to which Parent is
         a party or by which any of its  properties  or assets is bound or (iii)
         subject  to the  filings  and  other  matters  referred  to in  Section
         4.05(b),  any material Judgment or material Law applicable to Parent or
         its  properties or assets,  other than, in the case of clauses (ii) and
         (iii) above,  any such items that,  individually  or in the  aggregate,
         have not had and  would not  reasonably  be  expected  to have a Parent
         Material Adverse Effect.

                                       13
<PAGE>

                  (b) No  Consent  of, or  registration,  declaration  or filing
         with,  or  permit  from,  any  Governmental  Entity is  required  to be
         obtained or made by or with  respect to Parent in  connection  with the
         execution,   delivery  and   performance   of  this  Agreement  or  the
         consummation  of the  Transactions,  other than the (A) filing with the
         SEC of a 14f-1  Notice  and (B) filing  with the SEC of  reports  under
         Sections 13 and 16 of the  Exchange  Act,  and (C) filings  under state
         "blue sky" laws, as may be required in connection  with this  Agreement
         and the Transactions.

         SECTION 4.06. SEC Documents; Undisclosed Liabilities.

                  (a) Parent has filed all reports, schedules, forms, statements
         and other  documents  required to be filed by Parent with the SEC since
         April 4, 2006,  pursuant  to  Sections  13(a),  14 (a) and 15(d) of the
         Exchange Act (the "Parent SEC Documents").

                  (b) As of its respective filing date, each Parent SEC Document
         complied in all material respects with the requirements of the Exchange
         Act and the rules and  regulations  of the SEC  promulgated  thereunder
         applicable to such Parent SEC Document,  and did not contain any untrue
         statement of a material  fact or omit 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.  Except to the extent  that  information  contained  in any
         Parent SEC  Document has been  revised or  superseded  by a later filed
         Parent SEC  Document,  none of the Parent SEC  Documents  contains  any
         untrue statement of a material fact or omits to state any 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 consolidated  financial statements of Parent
         included in the Parent SEC Documents  comply as to form in all material
         respects  with  applicable  accounting  requirements  and the published
         rules  and  regulations  of the SEC with  respect  thereto,  have  been
         prepared in  accordance  with the U.S.  generally  accepted  accounting
         principals  ("GAAP") (except, in the case of unaudited  statements,  as
         permitted  by the  rules  and  regulations  of the  SEC)  applied  on a
         consistent  basis  during  the  periods  involved  (except  as  may  be
         indicated  in the notes  thereto) and fairly  present the  consolidated
         financial  position of Parent and its  consolidated  subsidiaries as of
         the dates thereof and the consolidated  results of their operations and
         cash flows for the periods  shown  (subject,  in the case of  unaudited
         statements, to normal year-end audit adjustments).

                  (c)  Except as set forth in the Filed  Parent  SEC  Documents,
         Parent  has  no  liabilities  or  obligations  of any  nature  (whether
         accrued, absolute,  contingent or otherwise) required by GAAP to be set
         forth on a balance sheet of Parent or in the notes thereto.  The Parent
         Disclosure Letter sets forth all financial and contractual  obligations
         and  liabilities  (including any  obligations to issue capital stock or
         other  securities  of the parent) due after the date hereof.  As of the
         date hereof the Parent has total liabilities of less than $30,000,  all
         of which  liabilities  shall be paid off at or prior to the Closing and
         shall in no event remain  liabilities of the Parent, the Company or the
         Stockholders following the Closing.

         SECTION 4.07. Information Supplied. None of the information supplied or
to be supplied by Parent for  inclusion  or  incorporation  by  reference in the
14f-1 Notice will, at the date it is first mailed to the Parent's  stockholders,

                                       14
<PAGE>

contain any untrue  statement  of a material  fact or omit to state any material
fact required to be stated  therein or necessary in order to make the statements
therein,  in  light  of  the  circumstances  under  which  they  are  made,  not
misleading.

         SECTION 4.08. Absence of Certain Changes or Events. Except as disclosed
in the Filed Parent SEC Documents or in the Parent Disclosure  Letter,  from the
date of the most  recent  audited  financial  statements  included  in the Filed
Parent SEC  Documents to the date of this  Agreement,  Parent has  conducted its
business only in the ordinary course, and during such period there has not been:

                  (a) any change in the assets, liabilities, financial condition
         or  operating  results of the Parent from that  reflected in the Parent
         SEC Documents,  except changes in the ordinary  course of business that
         have not caused, in the aggregate, a Parent Material Adverse Effect;

                  (b) any damage, destruction or loss, whether or not covered by
         insurance, that would have a Parent Material Adverse Effect;

                  (c) any waiver or compromise by the Parent of a valuable right
         or of a material debt owed to it;

                  (d) any  satisfaction  or  discharge  of any lien,  claim,  or
         encumbrance or payment of any  obligation by the Parent,  except in the
         ordinary course of business and the  satisfaction or discharge of which
         would not have a Parent Material Adverse Effect;

                  (e) any  material  change to a material  Contract by which the
         Parent or any of its assets is bound or subject;

                  (f) any material  change in any  compensation  arrangement  or
         agreement with any employee, officer, director or stockholder;

                  (g)  any  resignation  or  termination  of  employment  of any
         officer of the Parent;

                  (h) any mortgage,  pledge, transfer of a security interest in,
         or lien,  created by the Parent,  with  respect to any of its  material
         properties or assets, except liens for taxes not yet due or payable and
         liens  that  arise  in  the  ordinary  course  of  business  and do not
         materially  impair the Parent's  ownership  or use of such  property or
         assets;

                  (i) any loans or  guarantees  made by the Parent to or for the
         benefit of its  employees,  officers  or  directors,  or any members of
         their immediate families, other than travel advances and other advances
         made in the ordinary course of its business;

                  (j)  any  declaration,  setting  aside  or  payment  or  other
         distribution  in respect of any of the Parent's  capital stock,  or any
         direct or indirect redemption, purchase, or other acquisition of any of
         such stock by the Parent;

                  (k) any alteration of the Parent's method of accounting or the
         identity of its auditors;

                                       15
<PAGE>

                  (l) any issuance of equity securities to any officer, director
         or affiliate, except pursuant to existing Parent stock option plans; or

                  (m) any  arrangement  or commitment by the Parent to do any of
         the things described in this Section 4.08.

         SECTION 4.09. Taxes.

                  (a) Parent has timely filed,  or has caused to be timely filed
         on its behalf, all Tax Returns required to be filed by it, and all such
         Tax Returns are true,  complete and accurate,  except to the extent any
         failure  to  file  or  any  inaccuracies  in  any  filed  Tax  Returns,
         individually or in the aggregate, have not had and would not reasonably
         be expected to have a Parent Material  Adverse Effect.  All Taxes shown
         to be due on such Tax Returns, or otherwise owed, has been timely paid,
         except to the extent  that any failure to pay,  individually  or in the
         aggregate,  has not had and would not  reasonably be expected to have a
         Parent Material Adverse Effect.

                  (b) The most  recent  financial  statements  contained  in the
         Filed Parent SEC  Documents  reflect an adequate  reserve for all Taxes
         payable by Parent (in  addition to any reserve  for  deferred  Taxes to
         reflect timing differences  between book and Tax items) for all Taxable
         periods  and  portions  thereof  through  the  date of  such  financial
         statements.  No deficiency with respect to any Taxes has been proposed,
         asserted or assessed against Parent, and no requests for waivers of the
         time to assess  any such  Taxes are  pending,  except to the extent any
         such  deficiency  or  request  for  waiver,   individually  or  in  the
         aggregate,  has not had and would not  reasonably be expected to have a
         Parent Material Adverse Effect.

                  (c) There are no Liens for Taxes (other than for current Taxes
         not yet due and  payable) on the assets of Parent.  Parent is not bound
         by any agreement with respect to Taxes.

         SECTION 4.10. Absence of Changes in Benefit Plans. From the date of the
most  recent  audited  financial  statements  included  in the Filed  Parent SEC
Documents  to the date of this  Agreement,  there has not been any  adoption  or
amendment  in any  material  respect  by  Parent  of any  collective  bargaining
agreement  or  any  bonus,  pension,  profit  sharing,   deferred  compensation,
incentive compensation,  stock ownership,  stock purchase, stock option, phantom
stock,   retirement,    vacation,   severance,    disability,   death   benefit,
hospitalization, medical or other plan, arrangement or understanding (whether or
not legally  binding)  providing  benefits  to any  current or former  employee,
officer or director of Parent (collectively,  "Parent Benefit Plans"). As of the
date  of  this   Agreement   there   are   not   any   employment,   consulting,
indemnification, severance or termination agreements or arrangements between the
Parent and any  current or former  employee,  officer or director of the Parent,
nor does the Parent have any general severance plan or policy.

         SECTION 4.11. ERISA Compliance;  Excess Parachute Payments.  The Parent
does not, and since its inception never has,  maintained,  or contributed to any
"employee  pension  benefit  plans"  (as  defined  in  Section  3(2) of  ERISA),
"employee  welfare  benefit  plans" (as defined in Section 3(1) of ERISA) or any
other Parent  Benefit  Plan for the benefit of any current or former  employees,
consultants, officers or directors of Parent.

                                       16
<PAGE>

         SECTION 4.12.  Litigation.  Except as disclosed in the Filed Parent SEC
Documents  or in the  Parent  Disclosure  Letter,  there is no Action  which (i)
adversely affects or challenges the legality,  validity or enforceability of any
of this  Agreement  or the Shares or (ii)  could,  if there were an  unfavorable
decision,  individually  or in the aggregate,  have or reasonably be expected to
result  in a  Parent  Material  Adverse  Effect.  Neither  the  Parent  nor  any
subsidiary,  nor any  director  or officer  thereof  (in his or her  capacity as
such),  is or has been the subject of any Action  involving a claim or violation
of or liability  under federal or state  securities laws or a claim of breach of
fiduciary duty.

         SECTION 4.13.  Compliance with Applicable Laws.  Except as disclosed in
the Filed Parent SEC Documents or in the Parent Disclosure Letter,  Parent is in
compliance  with all applicable  Laws,  including those relating to occupational
health and safety and the  environment,  except for  instances of  noncompliance
that,  individually and in the aggregate,  have not had and would not reasonably
be expected to have a Parent Material Adverse Effect. Except as set forth in the
Filed Parent SEC Documents or in the Parent  Disclosure  Letter,  Parent has not
received any written communication during the past two years from a Governmental
Entity that alleges  that Parent is not in  compliance  in any material  respect
with any  applicable  Law.  The  Parent  is in  compliance  with  all  effective
requirements of the  Sarbanes-Oxley  Act of 2002, as amended,  and the rules and
regulations   thereunder,   that  are   applicable  to  it,  except  where  such
noncompliance  could not have or  reasonably  be  expected to result in a Parent
Material  Adverse  Effect.  This  Section  4.13 does not relate to matters  with
respect to Taxes, which are the subject of Section 4.09.

         SECTION  4.14.  Contracts.  Except as disclosed in the Parent Filed SEC
Documents, there are no Contracts that are material to the business, properties,
assets,  condition (financial or otherwise),  results of operations or prospects
of the  Parent  taken as a whole.  Parent is not in  violation  of or in default
under (nor does there exist any condition  which upon the passage of time or the
giving of notice would cause such a violation of or default  under) any Contract
to which it is a party or by which  it or any of its  properties  or  assets  is
bound, except for violations or defaults that would not,  individually or in the
aggregate, reasonably be expected to result in a Parent Material Adverse Effect.

         SECTION 4.15.  Title to Properties.  Parent has good title to, or valid
leasehold  interests in, all of its properties and assets used in the conduct of
its businesses. All such assets and properties, other than assets and properties
in which the Parent  has  leasehold  interests,  are free and clear of all Liens
other than those set forth in the Parent  Disclosure Letter and except for Liens
that,  in the  aggregate,  do not and will  not  materially  interfere  with the
ability of the Parent to conduct  business as  currently  conducted.  Parent has
complied in all material respects with the terms of all material leases to which
it is a party and under  which it is in  occupancy,  and all such  leases are in
full force and effect.  Parent enjoys peaceful and undisturbed  possession under
all such material leases.

         SECTION  4.16.  Intellectual  Property.  Parent  owns,  or  is  validly
licensed or otherwise  has the right to use, all  Intellectual  Property  Rights
which are  material  to the  conduct of the  business  of the Parent  taken as a
whole. The Parent Disclosure Letter sets forth a description of all Intellectual
Property  Rights which are material to the conduct of the business of the Parent
taken as a whole.  Except as set forth in the Parent Disclosure Letter no claims
are pending or, to the  knowledge of the Parent,  threatened  that the Parent is
infringing or otherwise adversely affecting the rights of any person with regard
to any Intellectual Property Right. To the knowledge of the Parent, no person is
infringing  the rights of the Parent with respect to any  Intellectual  Property
Right.

                                       17
<PAGE>

         SECTION 4.17.  Labor  Matters.  There are no  collective  bargaining or
other  labor union  agreements  to which the Parent is a party or by which it is
bound.  No material labor dispute exists or, to the knowledge of the Parent,  is
imminent with respect to any of the employees of the Parent.

         SECTION 4.18. Market Makers.  The Parent has at least two market makers
for its common  shares and such market makers have obtained all permits and made
all  filings  necessary  in order for such  market  makers to continue as market
makers of the Parent.

         SECTION 4.19. Transactions With Affiliates and Employees. Except as set
forth in the Filed Parent SEC Documents and Parent  Disclosure  Letter,  none of
the  officers or  directors  of the Parent and, to the  knowledge of the Parent,
none of the employees of the Parent is presently a party to any transaction with
the Parent or any subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for
the  furnishing  of services to or by,  providing for rental of real or personal
property to or from,  or  otherwise  requiring  payments to or from any officer,
director or such  employee  or, to the  knowledge  of the Parent,  any entity in
which any officer,  director, or any such employee has a substantial interest or
is an officer, director, trustee or partner.

         SECTION 4.20.  Internal  Accounting  Controls.  The Parent  maintains a
system  of  internal   accounting  controls  sufficient  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  generally
accepted  accounting  principles  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 action
is taken with respect to any differences.  The Parent has established disclosure
controls and procedures for the Parent and designed such disclosure controls and
procedures  to ensure that material  information  relating to the Parent is made
known to the officers by others  within those  entities.  The Parent's  officers
have evaluated the effectiveness of the Parent's controls and procedures.  Since
December  31,  2005,  there have been no  significant  changes  in the  Parent's
internal  controls or, to the Parent's  knowledge,  in other  factors that could
significantly affect the Parent's internal controls.

         SECTION 4.21. Solvency.  Based on the financial condition of the Parent
as of the closing date (and assuming that the closing shall have occurred),  (i)
the Parent's fair saleable  value of its assets  exceeds the amount that will be
required to be paid on or in respect of the  Parent's  existing  debts and other
liabilities  (including known contingent  liabilities) as they mature,  (ii) the
Parent's  assets do not  constitute  unreasonably  small capital to carry on its
business  for the  current  fiscal year as now  conducted  and as proposed to be
conducted including its capital needs taking into account the particular capital
requirements  of the business  conducted by the Parent,  and  projected  capital
requirements and capital  availability  thereof, and (iii) the current cash flow
of the Parent,  together with the proceeds the Parent would receive,  were it to
liquidate all of its assets,  after taking into account all anticipated  uses of
the cash,  would be  sufficient  to pay all amounts on or in respect of its debt
when such amounts are  required to be paid.  The Parent does not intend to incur
debts  beyond its ability to pay such debts as they mature  (taking into account
the timing and amounts of cash to be payable on or in respect of its debt).

                                       18
<PAGE>

         SECTION 4.22. Application of Takeover Protections. The Parent has taken
all necessary action, if any, in order to render  inapplicable any control share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover  provision under the Parent's
charter  documents  or the laws of its state of  incorporation  that is or could
become  applicable to the  Stockholders as a result of the  Stockholders and the
Parent  fulfilling  their  obligations  or  exercising  their  rights under this
Agreement,  including,  without  limitation,  the issuance of the Shares and the
Stockholders' ownership of the Shares.

         SECTION 4.23. No  Additional  Agreements.  The Parent does not have any
agreement  or  understanding   with  the   Stockholders   with  respect  to  the
transactions  contemplated  by this  Agreement  other than as  specified in this
Agreement.

         SECTION  4.24.  Investment  Company.  The Parent is not,  and is not an
affiliate of, and  immediately  following  the Closing will not have become,  an
"investment  company" within the meaning of the Investment  Company Act of 1940,
as amended.

         SECTION 4.25.  Disclosure.  The Parent confirms that neither it nor any
person  acting on its behalf has  provided  any  Stockholder  or its  respective
agents or counsel  with any  information  that the Parent  believes  constitutes
material,  non-public  information  except insofar as the existence and terms of
the proposed  transactions  hereunder may constitute such information and except
for  information  that will be disclosed by the Parent under a current report on
Form  8-K  filed  within  one  business  days  after  the  Closing.  The  Parent
understands  and  confirms  that the  Stockholders  will  rely on the  foregoing
representations  and  covenants in effecting  transactions  in securities of the
Parent.  All disclosure  provided to the Stockholders  regarding the Parent, its
business and the transactions  contemplated hereby, furnished by or on behalf of
the Parent (including the Parent's  representations  and warranties set forth in
this Agreement) are true and correct and do not contain any untrue  statement of
a material  fact or omit to state any material  fact  necessary in order to make
the statements made therein, in light of the circumstances under which they were
made, not misleading.

         SECTION 4.26. Certain Registration Matters.  Except as specified in the
Parent  Disclosure  Letter and Filed  Parent SEC  Documents,  the Parent has not
granted  or agreed to grant to any person  any  rights  (including  "piggy-back"
registration  rights) to have any securities of the Parent  registered  with the
SEC or any other governmental authority that have not been satisfied.

         SECTION 4.27. Listing and Maintenance Requirements.  The Parent is, and
has no reason to believe that it will not in the foreseeable  future continue to
be, in compliance  with the listing and maintenance  requirements  for continued
listing of the Parent Stock on the trading  market on which the Parent Stock are
currently  listed or quoted.  The  issuance  and sale of the  Shares  under this
Agreement does not contravene the rules and regulations of the trading market on
which the Parent Stock are  currently  listed or quoted,  and no approval of the
stockholders  of the Parent is  required  for the Parent to issue and deliver to
the Stockholders the Shares contemplated by this Agreement.

         SECTION 4.28.  No  Undisclosed  Events,  Liabilities,  Developments  or
Circumstances. No event, liability,  development or circumstance has occurred or
exists, or is contemplated to occur with respect to the Parent, its subsidiaries
or their respective  business,  properties,  prospects,  operations or financial
condition, that would be required to be disclosed by the Parent under applicable
securities  laws on a  registration  statement  on Form S-1  filed  with the SEC
relating to an issuance and sale by the Parent of its Common Stock and which has
not been publicly announced.

                                       19
<PAGE>

         SECTION 4.29. Foreign Corrupt Practices. Neither the Parent, nor any of
its subsidiaries,  nor, to the Parent's knowledge, any director, officer, agent,
employee  or  other  person  acting  on  behalf  of  the  Parent  or  any of its
subsidiaries  has, in the course of its actions for, or on behalf of, the Parent
(i) used any corporate funds for any unlawful contribution,  gift, entertainment
or other unlawful expenses relating to political activity;  (ii) made any direct
or indirect unlawful payment to any foreign or domestic  government  official or
employee  from  corporate  funds;  (iii)  violated  or is in  violation  of  any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv)
made any unlawful bribe, rebate,  payoff,  influence payment,  kickback or other
unlawful payment to any foreign or domestic government official or employee.

                                    ARTICLE V

                                   Deliveries
                                   ----------

         SECTION 5.01. Deliveries of the Stockholders.

                  (a)  Concurrently  herewith each  Stockholder is delivering to
         the Parent this Agreement executed by the Stockholder.

                  (b) On Closing  date,  each  Stockholder  shall deliver to the
         Parent:

                           (i) certificates representing its Company Stock; and

                           (ii) duly  executed  stock powers for transfer by the
                  Stockholder of its Company Stock to the Parent.

         SECTION 5.02. Deliveries of the Parent.

                  (a) Concurrently herewith, the Parent is delivering:

                           (i) to each Stockholder and to the Company, a copy of
                  this Agreement executed by Parent;

                           (ii) to the Company,  a certificate  from the Parent,
                  signed by its Secretary or Assistant Secretary certifying that
                  the attached copies of the Parent  Charter,  Parent Bylaws and
                  resolutions of the Board of Directors of the Parent  approving
                  the Agreement and the Transactions, are all true, complete and
                  correct and remain in full force and effect;

                  (b) At or prior to the Closing, the Parent shall deliver:

                           (i)  to the  Company,  a  letter  of  resignation  of
                  Timothy  Halter  from all  offices  he holds  with the  Parent
                  effective upon the Closing and from his position as a director
                  of the Parent  that will  become  effective  upon the 10th day
                  following  the mailing by the Parent to its  stockholders  the
                  14f-1 Notice;

                                       20
<PAGE>

                           (ii) to the  Company,  evidence of the election of Ni
                  Guoxiang as a director and as the Chief Executive  Officer and
                  President of the Parent effective upon the Closing;

                           (iii)  to  the  Company,  such  pay-off  letters  and
                  releases  relating to liabilities as the Company shall request
                  and such  pay-off  letters and  releases  shall be in form and
                  substance satisfactory to the Company; and

                           (iv) to the Company the results of UCC, judgment lien
                  and tax lien searches with respect to the Parent,  the results
                  of which indicate no liens on the assets of the Parent.

                  (c) On Closing date, the Parent shall deliver:

                           (i) to each  Stockholder,  certificates  representing
                  the  new  shares  of  Parent   Common  Stock  issued  to  such
                  Stockholder as set forth on Exhibit A; and

                           (ii)  to  the   Company,   consent   letters  of  the
                  accounting  firms  of  Parent   confirming  each  such  firm's
                  respective  consent  to  the  use  by the  Parent  of  reports
                  prepared by such firm  regarding the  financial  statements of
                  the Parent in all future  registration  statements  filed with
                  the SEC.

         SECTION 5.03. Deliveries of the Company.

                  (a)  Concurrently  herewith,  the Company is delivering to the
         Parent:

                           (i) this Agreement executed by Company; and

                           (ii) a  certificate  from the Company,  signed by its
                  authorized  officer certifying that the attached copies of the
                  Company  Constituent  Instruments and resolutions of the Board
                  of Directors of the Company  approving  the  Agreement and the
                  Transactions are all true,  complete and correct and remain in
                  full force and effect.

                                   ARTICLE VI

                              Conditions to Closing
                              ---------------------

         SECTION  6.01.  Stockholder  and  Company  Conditions  Precedent.   The
obligations of the  Stockholders  and the Company to enter into and complete the
Closing is subject,  at the option of the Stockholders  and the Company,  to the
fulfillment on or prior to the Closing Date of the following conditions.

                  (a)  Representations  and Covenants.  The  representations and
         warranties of the Parent  contained in this Agreement  shall be true in
         all material respects on and as of the Closing Date with the same force
         and effect as though  made on and as of the  Closing  Date.  The Parent
         shall have  performed  and complied in all material  respects  with all
         covenants and agreements  required by this Agreement to be performed or
         complied with by the Parent on or prior to the Closing Date. The Parent
         shall  have  delivered  to  the   Stockholders   and  the  Company,   a
         certificate, dated the Closing Date, to the foregoing effect.

                                       21
<PAGE>

                  (b) Litigation.  No action, suit or proceeding shall have been
         instituted  before  any court or  governmental  or  regulatory  body or
         instituted  or  threatened by any  governmental  or regulatory  body to
         restrain,  modify or prevent the carrying out of the Transactions or to
         seek damages or a discovery order in connection with such Transactions,
         or which has or may have, in the  reasonable  opinion of the Company or
         any   Stockholders,   a  materially   adverse  effect  on  the  assets,
         properties,  business, operations or condition (financial or otherwise)
         of the Parent or the Company.

                  (c) No Material Adverse Change.  There shall not have been any
         occurrence,  event,  incident,  action,  failure to act, or transaction
         since December 31, 2005 which has had or is reasonably  likely to cause
         a Parent Material Adverse Effect.

                  (d) Post-Closing  Capitalization.  At, and immediately  after,
         the Closing,  the authorized  capitalization,  and the number of issued
         and  outstanding  shares of the  capital  stock of the  Company and the
         Parent,  on a  fully-diluted  basis,  as  indicated on a schedule to be
         delivered  by  the  Parties  at or  prior  to  the  Closing,  shall  be
         acceptable to the Stockholders in their sole and absolute discretion.

                  (e) SEC  Reports.  The Parent shall have filed all reports and
         other documents  required to be filed by Parent under the U.S.  federal
         securities laws through the Closing Date.

                  (f) OTCBB  Quotation.  The Parent  shall have  maintained  its
         status   as  a   Company   whose   common   stock  is   quoted  on  the
         Over-the-Counter  Bulletin  Board and no reason  shall  exist as to why
         such status shall not continue immediately following the Closing.

                  (g) Deliveries. The deliveries specified in Section 5.02 shall
         have been made by the Parent.

                  (h) No  Suspensions  of  Trading  in  Parent  Stock;  Listing.
         Trading in the Parent Stock shall not have been suspended by the SEC or
         any trading market  (except for any  suspensions of trading of not more
         than one  trading  day  solely  to  permit  dissemination  of  material
         information  regarding  the  Parent)  at any  time  since  the  date of
         execution  of this  Agreement,  and the Parent Stock shall have been at
         all times since such date listed for trading on a trading market.

                  (i) Satisfactory Completion of Due Diligence.  The Company and
         the  Stockholders  shall have  completed  their legal,  accounting  and
         business due  diligence of the Parent and the results  thereof shall be
         satisfactory  to the  Company  and the  Stockholders  in their sole and
         absolute discretion.

                  (j) Delivery of Audit  Report and  Financial  Statements.  The
         Company shall have completed the Company Financial Statements and shall
         have  received an audit report from an  independent  audit firm that is
         registered with the Public Company Accounting  Oversight Board relating
         to the fiscal years ended June 30, 2006, 2005 and 2004.

                                       22
<PAGE>

                  (k)  Completion  of  Financing.  The  Financing (as defined in
         Section  7.12 below)  shall have been  completed  or shall be completed
         simultaneously with the Closing.

                  (l)  Delivery of PRC Legal  Opinion.  The  Company  shall have
         received an opinion from its legal counsel in the People's  Republic of
         China that confirms the legality under Chinese law of the restructuring
         being effected by the Company in connection with the  Transactions  and
         that is otherwise  satisfactory to the Company,  the Stockholders,  the
         Parent and the investors investing in the Financing.

                  (m)  Agreement  as to  Exchange  Ratio.  The  Company  and the
         Stockholders  shall have agreed with the Parent  regarding the exchange
         ratio of shares of Parent Stock for Shares of Company Stock and each of
         the Parties shall have mutually  agreed on the  completion of Exhibit A
         hereto.

         SECTION 6.02.  Parent  Conditions  Precedent.  The  obligations  of the
Parent to enter into and complete  the Closing is subject,  at the option of the
Parent,  to the  fulfillment  on or prior to the Closing  Date of the  following
conditions, any one or more of which may be waived by the Parent in writing.

                  (a)  Representations  and Covenants.  The  representations and
         warranties  of the  Stockholders  and  the  Company  contained  in this
         Agreement  shall  be true  in all  material  respects  on and as of the
         Closing Date with the same force and effect as though made on and as of
         the Closing Date. The Stockholders and the Company shall have performed
         and complied in all material respects with all covenants and agreements
         required by this  Agreement  to be  performed  or complied  with by the
         Stockholders  and the  Company  on or prior to the  Closing  Date.  The
         Company  shall  have   delivered  to  the  Parent,   if  requested,   a
         certificate, dated the Closing Date, to the foregoing effect.

                  (b) Litigation.  No action, suit or proceeding shall have been
         instituted  before  any court or  governmental  or  regulatory  body or
         instituted  or  threatened by any  governmental  or regulatory  body to
         restrain,  modify or prevent the carrying out of the Transactions or to
         seek damages or a discovery order in connection with such Transactions,
         or which has or may have, in the  reasonable  opinion of the Parent,  a
         materially  adverse  effect  on  the  assets,   properties,   business,
         operations or condition (financial or otherwise) of the Parent.

                  (c) No Material Adverse Change.  There shall not have been any
         occurrence,  event,  incident,  action,  failure to act, or transaction
         since December 31, 2005 which has had or is reasonably  likely to cause
         a Company Material Adverse Effect.

                  (d) Deliveries.  The deliveries  specified in Section 5.01 and
         Section 5.03 shall have been made by the  Stockholders and the Company,
         respectively.

                  (e) Audited Financial  Statements and Form 10 Disclosure.  The
         Company  shall  have  provided  the Parent  and the  Stockholders  with
         reasonable  assurances  that the Parent will be able to comply with its
         obligation to file a current report on Form 8-K within one (1) business
         days   following  the  Closing   containing   the   requisite   audited
         consolidated financial statements of the Company and the requisite Form
         10-type disclosure regarding the Company.

                                       23
<PAGE>

                  (f) Post-Closing  Capitalization.  At, and immediately  after,
         the Closing,  the authorized  capitalization,  and the number of issued
         and  outstanding  shares of the  capital  stock of the  Company and the
         Parent,  on a  fully-diluted  basis,  as  indicated on a schedule to be
         delivered  by  the  Parties  at or  prior  to  the  Closing,  shall  be
         acceptable to the Parent in its sole and absolute discretion.

                  (g) Satisfactory Completion of Due Diligence. The Parent shall
         have completed its legal,  accounting and business due diligence of the
         Company  and  the   Stockholders  and  the  results  thereof  shall  be
         satisfactory to the Parent in its sole and absolute discretion.

                  (h) Delivery of Audit  Report and  Financial  Statements.  The
         Company shall have completed the Company Financial Statements and shall
         have  received an audit report from an  independent  audit firm that is
         registered with the Public Company Accounting  Oversight Board relating
         to the fiscal  years ended June 30, 2006,  2005 and 2004.  The form and
         substance of the  Financial  Statements  shall be  satisfactory  to the
         Parent in its sole and absolute discretion.

                  (i)  Completion  of  Financing.  The  Financing (as defined in
         Section  7.12 below)  shall have been  completed  or shall be completed
         simultaneously with the Closing.

                  (j)  Delivery  of PRC Legal  Opinion.  The  Parent  shall have
         received an opinion from the  Company's  legal  counsel in the People's
         Republic of China that  confirms the legality  under Chinese law of the
         restructuring  being  effected  by the Company in  connection  with the
         Transactions  and that is otherwise  satisfactory  to the Company,  the
         Stockholders, the Parent and the investors investing in the Financing.

                  (k)  Agreement  as to  Exchange  Ratio.  The  Company  and the
         Stockholders  shall have agreed with the Parent  regarding the exchange
         ratio of shares of Parent Stock for Shares of Company Stock and each of
         the Parties shall have mutually  agreed on the  completion of Exhibit A
         hereto.

                  (l)  Registration  Rights  Agreement.  The Company  shall have
         entered  into a  registration  rights  agreement  with such  parties as
         indicated by the Parent and the form and substance of such registration
         rights agreement shall be reasonably satisfactory to the Parent.

                                   ARTICLE VII

                                    Covenants
                                    ---------

         SECTION  7.01.   Preparation  of  the  14f-1  Notice;  Blue  Sky  Laws;
Certificate of Completion.

                  (a) As soon  as  possible  following  the  Closing  and in any
         event,  within two  business  days  thereafter,  the Company and Parent

                                       24
<PAGE>

         shall prepare and file with the SEC the 14f-1 Notice in connection with
         the  consummation of this  Agreement.  The Parent shall cause the 14f-1
         Notice  to be  mailed  to the  Parent's  stockholders  as  promptly  as
         practicable thereafter.

                  (b) Parent shall take any action (other than  qualifying to do
         business  in any  jurisdiction  in  which  it is not now so  qualified)
         required  to be taken under any  applicable  state  securities  laws in
         connection  with the issuance of Parent Stock in  connection  with this
         Agreement.

                  (c) Within 3 business  days of the  Closing,  the Parent shall
         have filed with the United  States  Bankruptcy  Court for the  Northern
         District of Texas,  Dallas  Division,  a Certificate of Completion (the
         "Certificate of Completion") evidencing the closing of the transactions
         contemplated  herein and for the  purpose of  satisfying  the  Parent's
         final obligation under its confirmed plan of bankruptcy.

         SECTION 7.02. Public Announcements. Parent and the Company will consult
with each other before issuing, and provide each other the opportunity to review
and comment upon, any press release or other public  statements  with respect to
the Agreement and the Transactions and shall not issue any such press release or
make any such  public  statement  prior to such  consultation,  except as may be
required by  applicable  Law,  court process or by  obligations  pursuant to any
listing agreement with any national securities exchange.

         SECTION  7.03.  Fees and  Expenses.  All fees and expenses  incurred in
connection with this Agreement shall be paid by the Party incurring such fees or
expenses, whether or not this Agreement is consummated.

         SECTION  7.04.  Continued  Efforts.  Each Party shall use  commercially
reasonable efforts to (a) take all action reasonably necessary to consummate the
Transactions,  and (b) take such steps and do such acts as may be  necessary  to
keep  all of its  representations  and  warranties  true and  correct  as of the
Closing  Date  with the same  effect  as if the  same  had been  made,  and this
Agreement had been dated, as of the Closing Date.

         SECTION  7.05.  Conduct of  Business.  During the period  from the date
hereof  through the Closing  Date,  Parent and the Company  shall carry on their
respective  businesses  in the ordinary and usual  course  consistent  with past
practice.

         SECTION 7.06. Exclusivity.  The Parent shall not (i) solicit, initiate,
or encourage the submission of any proposal or offer from any person relating to
the  acquisition of any capital stock or other voting  securities of the Parent,
or any assets of the Parent  (including any acquisition  structured as a merger,
consolidation,  share exchange or other business combination),  (ii) participate
in any  discussions or  negotiations  regarding,  furnish any  information  with
respect to,  assist or  participate  in, or  facilitate  in any other manner any
effort or  attempt by any  person to do or seek any of the  foregoing,  or (iii)
take any other action that is inconsistent  with the  Transactions  and that has
the effect of avoiding the Closing  contemplated hereby. The Parent shall notify
the Company  immediately if any person makes any proposal,  offer,  inquiry,  or
contact with respect to any of the foregoing.

         SECTION  7.07.  Filing of 8-K and Press  Release.  Parent  shall  file,
within one  business day of the Closing  Date, a current  report on Form 8-K and
attach as exhibits all relevant  agreements with the SEC disclosing the terms of
this Agreement and other requisite  disclosure  regarding the  Transactions  and

                                       25
<PAGE>

including the requisite audited consolidated financial statements of the Company
and the requisite  Form 10 disclosure  regarding the Company.  In addition,  the
Parent  shall issue a press  release  prior to 9:30 a.m.  (New York Time) on the
business  day  following  the  Closing  Date,  announcing  the  closing  of  the
transaction.

         SECTION 7.08.  Furnishing of  Information.  As long as any  Stockholder
owns the Shares,  the Parent  covenants to timely file (or obtain  extensions in
respect  thereof  and file  within the  applicable  grace  period)  all  reports
required  to be filed  by the  Parent  after  the date  hereof  pursuant  to the
Exchange  Act.  As long as any  Stockholder  owns  Shares,  if the Parent is not
required to file reports  pursuant to such laws,  it will prepare and furnish to
the  Stockholders  and make publicly  available in  accordance  with Rule 144(c)
promulgated  by the SEC pursuant to the Securities  Act, such  information as is
required  for the  Stockholder  to sell the Shares  under  Rule 144.  The Parent
further  covenants that it will take such further action as any holder of Shares
may reasonably  request,  all to the extent required from time to time to enable
such person to sell the Shares  without  registration  under the  Securities Act
within the limitation of the exemptions provided by Rule 144.

         SECTION  7.09.   Preparation   of  Disclosure   Letters.   The  Parties
acknowledge  and agree  that (i)  neither  the  Company  nor the  Parent has yet
delivered  the  Company  Disclosure  Letter  or the  Parent  Disclosure  Letter,
respectively,  and (ii) none of the Company, the Stockholders nor the Parent has
completed  its  respective  due  diligence  investigation  of the  Parent or the
Company and the  Stockholders,  respectively,  nor has any of them been provided
with copies of, nor had an opportunity to review, the items to be referred to on
the Company  Disclosure Letter or the Parent Disclosure  Letter. The Company and
the Stockholders  shall deliver to the Parent the Company  Disclosure Letter and
the  Parent  shall  deliver  to the  Company  and the  Stockholders  the  Parent
Disclosure  Letter,  including  copies of all  agreements,  and other  documents
referred to thereon, in final form within at least 10 business days prior to the
Closing.  The Parent, on the one hand, and the Company and the Stockholders,  on
the other hand,  shall have 10 business days  following  delivery of the Company
Disclosure  Letter  and the Parent  Disclosure  Letter,  along with all  related
agreements and other documents  referred to thereon,  respectively,  in which to
terminate this Agreement if the Parent or the Company and the  Stockholders,  as
the case may be, object to any information  contained in such disclosure letters
or the contents of any such  agreement or other  document and the Parties cannot
agree on mutually satisfactory modifications thereto.

         SECTION 7.10. Access.  Each Party shall permit  representatives of each
other Party to have full access to all premises,  properties,  personnel, books,
records  (including Tax records),  contracts,  and documents of or pertaining to
such Party.

         SECTION 7.11. Preservation of Business. From the date of this Agreement
until the Closing Date, each of the Company and the Parent shall operate only in
the  ordinary  and  usual  course of  business  consistent  with  past  practice
(provided, however, that Parent shall not issue any securities without the prior
written consent of the Company),  and shall use reasonable commercial efforts to
(a) preserve intact its respective business organization,  (b) preserve the good
will and  advantageous  relationships  with  customers,  suppliers,  independent
contractors,  employees  and other  Persons  material  to the  operation  of its
respective business, and (c) not permit any action or omission which would cause
any of its respective  representations or warranties  contained herein to become
inaccurate  or any of its  respective  covenants  to be breached in any material
respect.

                                       26
<PAGE>

         SECTION  7.12.  Financing.  Parent  shall use  commercially  reasonable
efforts to raise at least $25  million  in an equity  financing  transaction  on
terms  that  are  satisfactory  to  the  Company  and  the   Stockholders   (the
"Financing"),  which  Financing  shall be  consummated  simultaneously  with the
Closing.

                                  ARTICLE VIII

                                  Miscellaneous
                                  -------------

         SECTION 8.01. Notices. All notices, requests, claims, demands and other
communications  under this  Agreement  shall be in  writing  and shall be deemed
given upon receipt by the Parties at the  following  addresses (or at such other
address for a Party as shall be specified by like notice):

         If to the Parent, to:

         BTHC III, INC.
         12890 Hilltop Road
         Argyle, Texas 76226
         Attention:  Timothy Halter
         Facsimile: (972) 233 - 0300

         If to the Company, to:

         SUTOR STEEL TECHNOLOGY CO., LTD
         Dongbang Industrial Park
         Huaye Road No.8,Changshu,Jiangsu,China
         Attention: Chairman
         Facsimile: (86-512) 52687771

         If to Stockholders at the addresses set forth in Exhibit A hereto.

         with a copy to:

         Thelen, Reid & Priest, LLP
         701 Eighth Street, N.W.
         Washington, D.C.  20001
         Attention:  Louis A. Bevilacqua, Esq.
         Facsimile: (202) 654-1804

         SECTION 8.02.  Amendments;  Waivers;  No Additional  Consideration.  No
provision  of this  Agreement  may be  waived  or  amended  except  in a written
instrument signed by the Company, Parent and the Stockholders holding a majority
of the Shares. No waiver 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  subsequent  default  or a waiver  of any other
provision,  condition or requirement  hereof, nor shall any delay or omission of
either Party to exercise any right  hereunder in any manner  impair the exercise
of any such right. No consideration  shall be offered or paid to any Stockholder
to  amend or  consent  to a  waiver  or  modification  of any  provision  of any
transaction  document  unless  the same  consideration  is also  offered  to all
Stockholders who then hold Shares.

                                       27
<PAGE>

         SECTION 8.03. Termination.

                  (a)  Termination of Agreement.  The Parties may terminate this
         Agreement as provided below:

                           (i) The Company,  the Stockholders and the Parent may
                  terminate this Agreement by mutual written consent at any time
                  prior to the Closing;

                           (ii) The  Parent  may  terminate  this  Agreement  by
                  giving written notice to the Company and the  Stockholders  at
                  any time prior to the  Closing (A) in the event the Company or
                  any  of  the   Stockholders   have   breached   any   material
                  representation,   warranty,  or  covenant  contained  in  this
                  Agreement in any material respect, the Parent has notified the
                  Company and/or the Stockholders of the breach,  and the breach
                  has  continued  without cure for a period of twenty days after
                  the notice of  breach,  or (B) if the  Closing  shall not have
                  occurred on or before May 31, 2007 by reason of the failure of
                  any condition  precedent under Section 6.02 hereof (unless the
                  failure results primarily from the Parent itself breaching any
                  representation,   warranty,  or  covenant  contained  in  this
                  Agreement); and

                           (iii) The Company may  terminate  this  Agreement  by
                  giving  written  notice to the Parent at any time prior to the
                  Closing (A) in the event the Parent has  breached any material
                  representation,   warranty,  or  covenant  contained  in  this
                  Agreement  in any material  respect,  the Company has notified
                  the Parent of the breach, and the breach has continued without
                  cure for a period of twenty days after the notice of breach or
                  (B) if the  Closing  shall not have  occurred on or before May
                  31, 2007, by reason of the failure of any condition  precedent
                  under  Section  6.01  hereof   (unless  the  failure   results
                  primarily  from the  Company  or the  Stockholders  themselves
                  breaching any representation,  warranty, or covenant contained
                  in this Agreement).

                  (b)  Effect  of  Termination.  If any  Party  terminates  this
         Agreement pursuant to Section 8.03(a) above, all rights and obligations
         of the Parties  hereunder shall terminate  without any Liability of any
         Party to any other Party to consummate its obligations  hereunder or to
         complete the  transactions  contemplated by this Agreement,  except for
         any Liability of any Party then in breach.

         SECTION  8.04.  Replacement  of  Securities.   If  any  certificate  or
instrument  evidencing any Shares is mutilated,  lost, stolen or destroyed,  the
Parent  shall issue or cause to be issued in exchange and  substitution  for and
upon  cancellation  thereof,  or in lieu  of and  substitution  therefor,  a new
certificate  or  instrument,  but  only  upon  receipt  of  evidence  reasonably
satisfactory to the Parent of such loss,  theft or destruction and customary and
reasonable  indemnity,  if requested.  The applicants  for a new  certificate or
instrument under such  circumstances  shall also pay any reasonable  third-party
costs associated with the issuance of such replacement  Shares. If a replacement
certificate or instrument evidencing any Shares is requested due to a mutilation
thereof,  the Parent may  require  delivery  of such  mutilated  certificate  or
instrument as a condition precedent to any issuance of a replacement.

         SECTION 8.05.  Remedies.  In addition to being entitled to exercise all
rights provided herein or granted by law, including recovery of damages, each of
the  Stockholders,   Parent  and  the  Company  will  be  entitled  to  specific

                                       28
<PAGE>

performance  under this Agreement.  The Parties agree that monetary  damages may
not be adequate  compensation  for any loss  incurred by reason of any breach of
obligations  described in the  foregoing  sentence and hereby agrees to waive in
any action for specific  performance  of any such  obligation the defense that a
remedy at law would be adequate.

         SECTION  8.06.  Independent  Nature of  Stockholders'  Obligations  and
Rights. The obligations of each Stockholder under this Agreement are several and
not joint with the  obligations  of any other  Stockholder,  and no  Stockholder
shall be  responsible in any way for the  performance of the  obligations of any
other  Stockholder  under this  Agreement.  The decision of each  Stockholder to
acquire  Shares  pursuant to this  Agreement  has been made by such  Stockholder
independently of any other Stockholder.  Nothing contained herein, and no action
taken by any  Stockholder  pursuant  hereto,  shall be deemed to constitute  the
Stockholders as a partnership, an association, a joint venture or any other kind
of entity,  or create a presumption  that the Stockholders are in any way acting
in concert or as a group with respect to such  obligations  or the  transactions
contemplated herein. Each Stockholder acknowledges that no other Stockholder has
acted as agent for such  Stockholder  in connection  with making its  investment
hereunder and that no Stockholder will be acting as agent of such Stockholder in
connection  with monitoring its investment in the Shares or enforcing its rights
under this  Agreement.  Each  Stockholder  shall be  entitled  to  independently
protect and enforce its rights,  including without limitation the rights arising
out of this Agreement,  and it shall not be necessary for any other  Stockholder
to be joined as an additional party in any proceeding for such purpose.  Each of
the  Company  and  Parent  acknowledge  that each of the  Stockholders  has been
provided with this same Agreement for the purpose of closing a transaction  with
multiple  Stockholders  and not because it was required or requested to do so by
any Stockholder.

         SECTION 8.07. Limitation of Liability.  Notwithstanding anything herein
to the contrary,  each of the Parent and the Company  acknowledge and agree that
the  liability  of a  Stockholder  arising  directly  or  indirectly,  under any
transaction  document  of any and every  nature  whatsoever  shall be  satisfied
solely  out of the assets of such  Stockholder,  and that no  trustee,  officer,
other  investment  vehicle or any other  affiliate  of such  Stockholder  or any
investor,  shareholder  or  holder  of shares  of  beneficial  interest  of such
Stockholder shall be personally liable for any liabilities of such Stockholder.

         SECTION  8.08.  Interpretation.  When  a  reference  is  made  in  this
Agreement to a Section,  such reference  shall be to a Section of this Agreement
unless  otherwise  indicated.  Whenever  the  words  "include",   "includes"  or
"including" are used in this  Agreement,  they shall be deemed to be followed by
the words "without limitation".

         SECTION  8.09.  Severability.  If any term or other  provision  of this
Agreement is invalid, illegal or incapable of being enforced by any rule or Law,
or public policy,  all other  conditions and provisions of this Agreement  shall
nevertheless  remain in full force and effect so long as the  economic  or legal
substance of the Transactions  contemplated hereby is not affected in any manner
materially  adverse to any Party. Upon such determination that any term or other
provision is invalid,  illegal or incapable of being enforced, the Parties shall
negotiate  in good faith to modify this  Agreement  so as to effect the original
intent of the Parties as closely as possible in an acceptable  manner to the end
that Transactions contemplated hereby are fulfilled to the extent possible.

         SECTION 8.10. Counterparts;  Facsimile Execution. This Agreement may be
executed in one or more  counterparts,  all of which shall be considered one and

                                       29
<PAGE>

the same agreement and shall become effective when one or more counterparts have
been signed by each of the Parties and delivered to the other Parties. Facsimile
execution  and delivery of this  Agreement  is legal,  valid and binding for all
purposes.

         SECTION  8.11.  Entire  Agreement;  Third  Party  Beneficiaries.   This
Agreement,  taken  together  with the Company  Disclosure  Letter and the Parent
Disclosure Letter, (a) constitute the entire agreement,  and supersede all prior
agreements  and  understandings,  both written and oral,  among the Parties with
respect to the  Transactions  and (b) are not intended to confer upon any person
other than the Parties any rights or remedies.

         SECTION 8.12.  Governing Law. This Agreement  shall be governed by, and
construed in accordance  with, the laws of the State of Delaware,  regardless of
the laws that might otherwise govern under applicable principles of conflicts of
laws thereof.

         SECTION 8.13. Assignment. Neither this Agreement nor any of the rights,
interests or obligations under this Agreement shall be assigned,  in whole or in
part,  by operation of law or otherwise by any of the Parties  without the prior
written  consent of the other  Parties.  Any purported  assignment  without such
consent shall be void. Subject to the preceding  sentences,  this Agreement will
be binding upon, inure to the benefit of, and be enforceable by, the Parties and
their respective successors and assigns.

                            [Signature Page Follows]

                                       30
<PAGE>

         The Parties  hereto have  executed and  delivered  this Share  Exchange
Agreement as of the date first above written.

The Parent:
                                             BTHC III, INC.

                                             By: /s/ Timothy Halter
                                                --------------------------------
                                                Name: Timothy Halter
                                                Title: CEO and President

The Company:
                                             SUTOR STEEL TECHNOLOGY CO., LTD

                                             By: /s/ Ni Guoxiang
                                                --------------------------------
                                                Name: Ni Guoxiang
                                                Title: CEO

          [Stockholder Share Exchange Agreement Signature Pages Follow]

<PAGE>

         The  undersigned   Stockholder  hereby  executes  this  Share  Exchange
Agreement as of the date first above written.

                                                For Individuals:

                                                 /s/ Gao Feng
                                                --------------------------------
                                                Gao Feng

                                                 /s/ Chen Lifang
                                                --------------------------------
                                                Chen Lifang

                                                --------------------------------
                                                For Entities:

                                                --------------------------------
                                                Print Name Above

                                                By:
                                                --------------------------------
                                                Name:
                                                Title:

<PAGE>
<TABLE>
<CAPTION>

                                    EXHIBIT A

                 Shareholders of SUTOR STEEL TECHNOLOGY CO. LTD
                 ----------------------------------------------

         As of the date of this Agreement, this Exhibit A shall only contain the
name and address of each  Stockholder  and the number of shares of Company Stock
held by each stockholder.  Prior to the Closing, this Exhibit A shall be amended
in a manner  that is  satisfactory  to all of the  Parties  so that the  missing
information is provided.

----------------------------------------------- ----------------- ------------- ----------------- ----------------
                                                                                  Percentage of
                                                                    Number of     Total Company       Number of
                                                     Tax ID         Shares of        Shares           Shares of
                                                    Number of        Company     Represented By     Parent Stock
                                                 Stockholder (if   Stock Being    Shares Being     to be Received
Name and Address of Stockholder                    Applicable)      Exchanged      Exchanged       by Stockholder
----------------------------------------------- ----------------- ------------- ----------------- ----------------
<S>                                             <C>               <C>           <C>               <C>
Gao Feng     Door 51,Group 4, WuLi                                     29500           59%
Village,Nan Yang
Town,Xiao Shan District,Hangzhou City,China
----------------------------------------------- ----------------- ------------- ----------------- ----------------

Chen Lifang    Rm.101, Middle                                          20500           41%
Unit,Block 1,FuLi
Garden,Xiao Shan District,Hangzhou City,China
----------------------------------------------- ----------------- ------------- ----------------- ----------------

                                         TOTAL:                                       100%
----------------------------------------------- ----------------- ------------- ----------------- ----------------
</TABLE>Exhbiit 10.1

                            SHARE EXCHANGE AGREEMENT
                            ------------------------

         This SHARE EXCHANGE AGREEMENT (this "Agreement"), dated as of September
6, 2006, is by and among Concept Ventures Corporation, a Nevada corporation (the
"Parent"),  Ritar  International Group Limited, a British Virgin Islands company
(the  "Company"),  and the  Stockholders  of the Company  signatory  hereto (the
"Stockholders").  Each of the parties to this Agreement is individually referred
to herein as a "Party" and collectively, as the "Parties."

                                   BACKGROUND
                                   ----------

         The Company has 1,000  shares of capital  stock (the  "Company  Stock")
outstanding, all of which are held by the Stockholders. Each of the Stockholders
is the record and beneficial  owner of the number of shares of Company Stock set
forth opposite such  Stockholder's  name on Exhibit A. Each of the  Stockholders
has agreed to transfer  all of his,  her or its  (hereinafter  "its")  shares of
Company  Stock in exchange for a number of newly issued  shares of Common Stock,
par value $0.001 per share, of the Parent (the "Parent Stock") that will, in the
aggregate, constitute at least 50.1% of the issued and outstanding capital stock
of the Parent on a fully-diluted  basis as of and immediately after the Closing,
and after giving  effect to the  Financing  (as defined in Section 7.12 hereof).
The number of shares of Parent Stock to be received by each Stockholder shall be
listed opposite such Stockholder's name on Exhibit A, which Exhibit A will be in
the form attached to this  Agreement and mutually  agreed upon by the parties at
or prior to the  Closing.  The  aggregate  number of shares of Parent Stock that
will be reflected on Exhibit A is referred to herein as the "Shares".

         The  exchange  of  Company  Stock  for  Parent  Stock  is  intended  to
constitute a  reorganization  within the meaning of Section  368(a)(1)(B) of the
Internal  Revenue Code of 1986 (the  "Code"),  as amended or such other tax free
reorganization exemptions that may be available under the Code.

         The Board of Directors  of the Parent and the Company  have  determined
that it is desirable to effect this plan of reorganization and share exchange.

                                    AGREEMENT
                                    ---------

                  NOW THEREFORE, the parties agree as follows:

                                    ARTICLE I

                               Exchange of Shares
                               ------------------

         SECTION 1.01.  Exchange by Stockholders.  At the Closing (as defined in
Section 1.02), each of the Stockholders shall sell, transfer, convey, assign and
deliver to the Parent its Company  Stock free and clear of all Liens (as defined
below) in exchange for the Parent Stock to be listed on Exhibit A opposite  such
Stockholder's name.

         SECTION 1.02. Closing.  The closing (the "Closing") of the transactions
contemplated  hereby  (the  "Transactions")  shall take place at the  offices of
Thelen Reid & Priest LLP in Washington, DC commencing at 9:00 a.m. local time on

                                       1
<PAGE>

the second  business day following the  satisfaction or waiver of all conditions
to the  obligations of the parties to consummate the  Transactions  contemplated
hereby (other than  conditions  with respect to actions the  respective  parties
will take at the Closing itself), or such other date and time as the parties may
mutually determine (the "Closing Date").

                                   ARTICLE II

                 Representations and Warranties of Stockholders
                 ----------------------------------------------

         Each of the Stockholders  hereby severally (and not jointly) represents
and warrants to the Parent with respect to itself, as follows:

         SECTION 2.01. Good Title.  The Stockholder is the record and beneficial
owner, and has good title to its Company Stock,  with the right and authority to
sell and  deliver  such  Company  Stock.  Upon  delivery of any  certificate  or
certificates duly assigned,  representing the same as herein contemplated and/or
upon  registering  of the Parent as the new owner of such  Company  Stock in the
share  register  of the  Company,  the Parent  will  receive  good title to such
Company  Stock,  free  and  clear of all  liens,  security  interests,  pledges,
equities and claims of any kind, voting trusts, stockholder agreements and other
encumbrances (collectively, "Liens").

         SECTION 2.02. Organization.  Each Stockholder that is an entity is duly
organized and validly existing in its jurisdiction of organization.

         SECTION 2.03.  Power and Authority.  Each Stockholder that is an entity
has the legal power and  authority to execute and deliver this  Agreement and to
perform  its  obligations  hereunder.  All  acts  required  to be  taken  by the
Stockholder to enter into this Agreement and to carry out the Transactions  have
been properly  taken.  This  Agreement  constitutes  a legal,  valid and binding
obligation  of  the  Stockholder,   enforceable   against  such  Stockholder  in
accordance with the terms hereof.

         SECTION  2.04.  No  Conflicts.  The  execution  and  delivery  of  this
Agreement by the  Stockholder  and the  performance  by the  Stockholder  of its
obligations  hereunder in accordance with the terms hereof: (i) will not require
the  consent  of any  third  party  or any  federal,  state,  local  or  foreign
government  or any court of  competent  jurisdiction,  administrative  agency or
commission  or other  governmental  authority  or  instrumentality,  domestic or
foreign ("Governmental  Entity") under any statutes,  laws,  ordinances,  rules,
regulations,  orders, writs,  injunctions,  judgments, or decrees (collectively,
"Laws"); (ii) will not violate any Laws applicable to such Stockholder and (iii)
will not violate or breach any contractual  obligation to which such Stockholder
is a party.

         SECTION  2.05.  No Finder's  Fee. The  Stockholder  has not created any
obligation for any finder's,  investment  banker's or broker's fee in connection
with the Transactions.

         SECTION  2.06.  Purchase  Entirely  for Own  Account.  The Parent Stock
proposed to be  acquired  by the  Stockholder  hereunder  will be  acquired  for
investment  for  its  own  account,  and  not  with a  view  to  the  resale  or

                                       2
<PAGE>

distribution of any part thereof,  and the Stockholder has no present  intention
of selling or otherwise distributing the Parent Stock, except in compliance with
applicable securities laws.

         SECTION 2.07. Available Information. The Stockholder has such knowledge
and  experience  in  financial  and  business  matters  that  it is  capable  of
evaluating the merits and risks of investment in the Parent.

         SECTION 2.08.  Non-Registration.  The Stockholder  understands that the
Parent  Stock has not been  registered  under  the  Securities  Act of 1933,  as
amended (the "Securities  Act") and, if issued in accordance with the provisions
of this  Agreement,  will be issued by reason of a specific  exemption  from the
registration  provisions of the Securities  Act which depends upon,  among other
things,  the bona fide nature of the  investment  intent and the accuracy of the
Stockholder's representations as expressed herein.

         SECTION 2.09. Restricted Securities.  The Stockholder  understands that
the  Parent  Stock  is  characterized  as  "restricted   securities"  under  the
Securities Act inasmuch as this Agreement  contemplates that, if acquired by the
Stockholder pursuant hereto, the Parent Stock would be acquired in a transaction
not involving a public offering.  The Stockholder  further  acknowledges that if
the Parent Stock is issued to the  Stockholder in accordance with the provisions
of this  Agreement,  such Parent  Stock may not be resold  without  registration
under  the  Securities  Act or the  existence  of an  exemption  therefrom.  The
Stockholder  represents that it is familiar with Rule 144 promulgated  under the
Securities Act, as presently in effect,  and understands the resale  limitations
imposed thereby and by the Securities Act.

         SECTION 2.10. Legends. It is understood that the Parent Stock will bear
the  following  legend or one that is  substantially  similar  to the  following
legend:

                  THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE
                  SECURITIES  ACT OF 1933  (THE  "SECURITIES  ACT")  OR
                  UNDER APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
                  SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED OF UNLESS
                  REGISTERED   UNDER   THE   SECURITIES   ACT  AND  ANY
                  APPLICABLE  STATE  SECURITIES  LAWS  OR  PURSUANT  TO
                  AVAILABLE EXEMPTIONS FROM SUCH REGISTRATION, PROVIDED
                  THAT THE SELLER DELIVERS TO THE COMPANY AN OPINION OF
                  COUNSEL (WHICH OPINION IS REASONABLY  SATISFACTORY TO
                  THE  COMPANY)  CONFIRMING  THE  AVAILABILITY  OF SUCH
                  EXEMPTION.   THESE   SECURITIES  MAY  BE  PLEDGED  IN
                  CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY
                  SUCH SECURITIES TO THE EXTENT PERMITTED BY APPLICABLE
                  FEDERAL AND STATE SECURITIES LAWS.

                  (a) Any legend required by the "blue sky" laws of any state to
         the extent such laws are  applicable to the  securities  represented by
         the certificate so legended.

         SECTION 2.11.  Accredited  Investor.  The Stockholder is an "accredited
investor"  within the meaning of Rule 501 under the  Securities  Act and was not
organized for the specific purpose of acquiring the Parent Stock.

                                       3
<PAGE>

                                   ARTICLE III

                  Representations and Warranties of the Company
                  ---------------------------------------------

         The Company  represents and warrants to the Parent that,  except as set
forth in the Company  Disclosure  Letter (as defined  below,  and  regardless of
whether or not the Company Disclosure Letter is referenced below with respect to
any  particular  representation  or  warranty),  which will be  delivered by the
Company to the Parent in  accordance  with  Section  7.09 hereof  (the  "Company
Disclosure Letter"):

         SECTION 3.01. Organization, Standing and Power. Each of the Company and
its  subsidiaries  (the  "Company  Subsidiaries")  is  duly  organized,  validly
existing and in good standing under the laws of the  jurisdiction in which it is
organized  and  has  the  corporate   power  and  authority  and  possesses  all
governmental  franchises,   licenses,  permits,   authorizations  and  approvals
necessary to enable it to own, lease or otherwise hold its properties and assets
and  to  conduct  its  businesses  as  presently  conducted,   other  than  such
franchises,  licenses, permits,  authorizations and approvals the lack of which,
individually  or in the  aggregate,  has not had and  would  not  reasonably  be
expected to have a material  adverse effect on the Company,  a material  adverse
effect on the  ability  of the  Company to perform  its  obligations  under this
Agreement or on the ability of the Company to  consummate  the  Transactions  (a
"Company Material Adverse Effect").  The Company and each Company  Subsidiary is
duly  qualified  to do  business  in each  jurisdiction  where the nature of its
business or its ownership or leasing of its properties  make such  qualification
necessary  except  where the  failure  to so  qualify  would not  reasonably  be
expected to have a Company Material Adverse Effect. The Company has delivered to
the  Parent  true  and  complete  copies  of  the  memorandum  and  articles  of
association of the Company and such other constituent instruments of the Company
as may exist, each as amended to the date of this Agreement (as so amended,  the
"Company Constituent Instruments"),  and the comparable charter,  organizational
documents and other constituent instruments of each Company Subsidiary,  in each
case as amended through the date of this Agreement.

         SECTION 3.02. Company Subsidiaries; Equity Interests.

                  (a)  The  Company   Disclosure   Letter   lists  each  Company
         Subsidiary and its jurisdiction of organization. Except as specified in
         the Company  Disclosure  Letter,  all the outstanding shares of capital
         stock or  equity  investments  of each  Company  Subsidiary  have  been
         validly issued and are fully paid and  nonassessable  and are as of the
         date of  this  Agreement  owned  by the  Company,  by  another  Company
         Subsidiary or by the Company and another Company  Subsidiary,  free and
         clear of all Liens.

                  (b) Except for its interests in the Company Subsidiaries,  the
         Company  does not as of the date of this  Agreement  own,  directly  or
         indirectly,   any  capital  stock,  membership  interest,   partnership
         interest,  joint  venture  interest  or other  equity  interest  in any
         person.

         SECTION 3.03.  Capital  Structure.  The authorized capital stock of the
Company  consists of 50,000 ordinary shares of which 1,000 shares are issued and
outstanding.  Except as set forth  above,  no shares of  capital  stock or other
voting  securities  of  the  Company  are  issued,   reserved  for  issuance  or
outstanding.  Except as specified in the Company  Disclosure Letter, the Company

                                       4
<PAGE>

is the sole  record and  beneficial  owner of all of the issued and  outstanding
capital stock of each Company Subsidiary.  All outstanding shares of the capital
stock of the Company and each Company  Subsidiary are duly  authorized,  validly
issued,  fully paid and  nonassessable and not subject to or issued in violation
of any purchase option, call option,  right of first refusal,  preemptive right,
subscription  right or any similar right under any  provision of the  applicable
corporate  laws  of  the  British  Virgin  Islands,   the  Company   Constituent
Instruments or any Contract (as defined in Section 3.05) to which the Company is
a party or otherwise bound.  Except as set forth in this section 3.03 and in the
Company Disclosure Letter, there are not any bonds,  debentures,  notes or other
indebtedness of Company or any Company  Subsidiary  having the right to vote (or
convertible into, or exchangeable  for,  securities having the right to vote) on
any matters on which holders of Company Stock or the common stock of any Company
Subsidiary may vote ("Voting  Company  Debt").  Except as set forth above, as of
the  date of this  Agreement,  there  are not  any  options,  warrants,  rights,
convertible  or  exchangeable   securities,   "phantom"   stock  rights,   stock
appreciation  rights,  stock-based  performance units,  commitments,  Contracts,
arrangements  or  undertakings  of any kind to which the  Company or any Company
Subsidiary  is a party  or by  which  any of them is bound  (i)  obligating  the
Company or any  Company  Subsidiary  to issue,  deliver or sell,  or cause to be
issued,  delivered or sold,  additional  shares of capital stock or other equity
interests in, or any security  convertible  or exercisable  for or  exchangeable
into any  capital  stock of or other  equity  interest  in,  the  Company or any
Company  Subsidiary or any Voting Company Debt,  (ii)  obligating the Company or
any Company  Subsidiary to issue,  grant,  extend or enter into any such option,
warrant, call, right, security, commitment, Contract, arrangement or undertaking
or (iii) that give any person the right to receive any economic benefit or right
similar to or derived from the economic benefits and rights occurring to holders
of the capital stock of the Company or of any Company Subsidiary.  Except as set
forth in the Company Disclosure Letter, as of the date of this Agreement,  there
are not any  outstanding  contractual  obligations of the Company to repurchase,
redeem or otherwise acquire any shares of capital stock of Parent.

         SECTION 3.04. Authority;  Execution and Delivery;  Enforceability.  The
Company has all requisite  corporate  power and authority to execute and deliver
this Agreement and to consummate the Transactions. The execution and delivery by
the  Company  of this  Agreement  and the  consummation  by the  Company  of the
Transactions have been duly authorized and approved by the Board of Directors of
the Company and no other  corporate  proceedings  on the part of the Company are
necessary to authorize  this Agreement and the  Transactions.  When executed and
delivered,  this Agreement will be enforceable against the Company in accordance
with its terms.

         SECTION 3.05. No Conflicts; Consents.

                  (a) Except as set forth in the Company  Disclosure Letter, the
         execution and delivery by the Company of this  Agreement  does not, and
         the  consummation  of the  Transactions  and compliance  with the terms
         hereof and thereof will not,  conflict with, or result in any violation
         of or default (with or without notice or lapse of time, or both) under,
         or give rise to a right of termination, cancellation or acceleration of
         any obligation or to loss of a material benefit under, or result in the
         creation  of any  Lien  upon any of the  properties  or  assets  of the
         Company or any  Company  Subsidiary  under,  any  provision  of (i) the
         Company   Constituent   Instruments  or  the   comparable   charter  or

                                       5
<PAGE>

         organizational  documents of any Company Subsidiary,  (ii) any material
         contract,  lease, license,  indenture,  note, bond, agreement,  permit,
         concession,  franchise or other  instrument (a "Contract") to which the
         Company or any Company  Subsidiary  is a party or by which any of their
         respective  properties  or  assets  is bound or  (iii)  subject  to the
         filings and other matters referred to in Section 3.05(b),  any material
         judgment,  order or decree  ("Judgment")  or material Law applicable to
         the Company or any Company Subsidiary or their respective properties or
         assets,  other than,  in the case of clauses (ii) and (iii) above,  any
         such items that,  individually  or in the  aggregate,  have not had and
         would not  reasonably  be expected to have a Company  Material  Adverse
         Effect.

                  (b) Except as set forth in the Company  Disclosure  Letter and
         except for required filings with the Securities and Exchange Commission
         (the "SEC") and applicable "Blue Sky" or state securities  commissions,
         no material consent, approval,  license, permit, order or authorization
         ("Consent") of, or registration,  declaration or filing with, or permit
         from, any Governmental  Entity is required to be obtained or made by or
         with  respect to the Company or any Company  Subsidiary  in  connection
         with the execution,  delivery and  performance of this Agreement or the
         consummation of the Transactions.

         SECTION 3.06. Taxes.

                  (a) Each of the Company and each Company Subsidiary has timely
         filed, or has caused to be timely filed on its behalf,  all Tax Returns
         required to be filed by it, and all such Tax Returns are true, complete
         and  accurate,  except  to  the  extent  any  failure  to  file  or any
         inaccuracies  in  any  filed  Tax  Returns,   individually  or  in  the
         aggregate,  have not had and would not reasonably be expected to have a
         Company Material Adverse Effect.  All Taxes shown to be due on such Tax
         Returns, or otherwise owed, have been timely paid, except to the extent
         that any failure to pay, individually or in the aggregate,  has not had
         and would not reasonably be expected to have a Company Material Adverse
         Effect.  There are no unpaid taxes in any material amount claimed to be
         due by the taxing  authority of any  jurisdiction,  and the officers of
         the Company know of no basis for any such claim.

                  (b) The Company  Financial  Statements  (as defined in Section
         3.15) reflect an adequate  reserve for all Taxes payable by the Company
         and the Company  Subsidiaries  (in addition to any reserve for deferred
         Taxes to reflect timing differences between book and Tax items) for all
         Taxable periods and portions thereof through the date of such financial
         statements.  No deficiency with respect to any Taxes has been proposed,
         asserted or assessed against the Company or any Company Subsidiary, and
         no  requests  for  waivers  of the time to  assess  any such  Taxes are
         pending,  except to the  extent  any such  deficiency  or  request  for
         waiver,  individually  or in the  aggregate,  has not had and would not
         reasonably be expected to have a Company Material Adverse Effect.

                  (c) For purposes of this Agreement:

         "Taxes"  includes all forms of taxation,  whenever  created or imposed,
and whether of the United States or elsewhere,  and whether  imposed by a local,
municipal,  governmental,  state, foreign, federal or other Governmental Entity,

                                       6
<PAGE>

or in  connection  with any  agreement  with  respect  to Taxes,  including  all
interest, penalties and additions imposed with respect to such amounts.

         "Tax Return" means all federal,  state,  local,  provincial and foreign
Tax returns, declarations, statements, reports, schedules, forms and information
returns and any amended Tax return relating to Taxes.

         SECTION 3.07. Benefit Plans.

                  (a) Except as set forth in the Company  Disclosure Letter, the
         Company does not have or maintain any collective  bargaining  agreement
         or any bonus, pension, profit sharing, deferred compensation, incentive
         compensation,  stock ownership,  stock purchase,  stock option, phantom
         stock,  retirement,  vacation,  severance,  disability,  death benefit,
         hospitalization,  medical or other plan,  arrangement or  understanding
         (whether or not legally binding)  providing  benefits to any current or
         former  employee,  officer or  director  of the  Company or any Company
         Subsidiary (collectively, "Company Benefit Plans"). Except as set forth
         in the  Company  Disclosure  Letter,  as of the date of this  Agreement
         there are not any severance or termination  agreements or  arrangements
         between the Company or any Company Subsidiary and any current or former
         employee, officer or director of the Company or any Company Subsidiary,
         nor  does the  Company  or any  Company  Subsidiary  have  any  general
         severance plan or policy.

                  (b) Since June 30,  2006,  there has not been any  adoption or
         amendment  in any  material  respect  by  the  Company  or any  Company
         Subsidiary of any Company Benefit Plan.

         SECTION 3.08. Litigation.  There is no action, suit, inquiry, notice of
violation, proceeding (including any partial proceeding such as a deposition) or
investigation pending or threatened in writing against or affecting the Company,
any  subsidiary or any of their  respective  properties  before or by any court,
arbitrator,   governmental  or  administrative   agency,   regulatory  authority
(federal,  state,  county,  local or foreign),  stock market,  stock exchange or
trading  facility  ("Action")  which (i)  adversely  affects or  challenges  the
legality,  validity or  enforceability of any of this Agreement or the Shares or
(ii)  could,  if there  were an  unfavorable  decision,  individually  or in the
aggregate,  have or  reasonably  be  expected  to result  in a Company  Material
Adverse  Effect.  Neither the Company nor any  subsidiary,  nor any  director or
officer  thereof (in his or her capacity as such), is or has been the subject of
any Action involving a claim or violation of or liability under federal or state
securities laws or a claim of breach of fiduciary duty.

         SECTION 3.09.  Compliance  with  Applicable  Laws.  The Company and the
Company Subsidiaries are in compliance with all applicable Laws, including those
relating  to  occupational  health and safety  and the  environment,  except for
instances of noncompliance that, individually and in the aggregate, have not had
and would not reasonably be expected to have a Company  Material Adverse Effect.
Except  as set forth in the  Company  Disclosure  Letter,  the  Company  has not
received any written communication during the past two years from a Governmental
Entity  that  alleges  that the  Company is not in  compliance  in any  material
respect with any  applicable  Law.  This Section 3.09 does not relate to matters
with respect to Taxes, which are the subject of Section 3.06.

                                       7
<PAGE>

         SECTION  3.10.  Brokers;  Schedule  of Fees and  Expenses.  No  broker,
investment  banker,  financial  advisor  or  other  person  is  entitled  to any
broker's,  finder's,  financial  advisor's or other similar fee or commission in
connection with the Transactions based upon arrangements made by or on behalf of
the Company.

         SECTION 3.11. Contracts.  Except as disclosed in the Company Disclosure
Letter,  there are no Contracts  that are material to the business,  properties,
assets,  condition (financial or otherwise),  results of operations or prospects
of the Company and its  subsidiaries  taken as a whole.  Neither the Company nor
any Company  Subsidiary  is in violation of or in default  under (nor does there
exist any condition which upon the passage of time or the giving of notice would
cause such a violation of or default  under) any Contract to which it is a party
or by  which  it or any  of its  properties  or  assets  is  bound,  except  for
violations  or  defaults  that  would  not,  individually  or in the  aggregate,
reasonably be expected to result in a Company Material Adverse Effect.

         SECTION  3.12.  Title  to  Properties.  Except  as  set  forth  in  the
Disclosure Letter, the Company and the Company  Subsidiaries do not own any real
property.  Each of the Company and the Company Subsidiaries has sufficient title
to, or valid  leasehold  interests in, all of its  properties and assets used in
the conduct of its businesses. All such assets and properties, other than assets
and  properties  in which the  Company or any of the  Company  Subsidiaries  has
leasehold interests,  are free and clear of all Liens other than those set forth
in the Company Disclosure Letter and except for Liens that, in the aggregate, do
not and will not  materially  interfere  with the ability of the Company and the
Company Subsidiaries to conduct business as currently conducted.

         SECTION  3.13.  Intellectual  Property.  The  Company  and the  Company
Subsidiaries  own, or are validly  licensed or otherwise  have the right to use,
all patents,  patent rights,  trademarks,  trademark rights,  trade names, trade
name  rights,   service  marks,  service  mark  rights,   copyrights  and  other
proprietary  intellectual  property rights and computer programs  (collectively,
"Intellectual  Property  Rights")  which  are  material  to the  conduct  of the
business  of the  Company and the  Company  Subsidiaries  taken as a whole.  The
Company Disclosure Letter sets forth a description of all Intellectual  Property
Rights  which are material to the conduct of the business of the Company and the
Company  Subsidiaries  taken as a whole.  There are no claims pending or, to the
knowledge  of the  Company,  threatened  that the  Company or any of the Company
Subsidiaries  is infringing or otherwise  adversely  affecting the rights of any
person with regard to any  Intellectual  Property Right. To the knowledge of the
Company, no person is infringing the rights of the Company or any of the Company
Subsidiaries with respect to any Intellectual Property Right.

         SECTION 3.14.  Labor  Matters.  There are no  collective  bargaining or
other  labor  union  agreements  to  which  the  Company  or any of the  Company
Subsidiaries  is a party or by which any of them is  bound.  No  material  labor
dispute exists or, to the knowledge of the Company,  is imminent with respect to
any of the employees of the Company.

         SECTION 3.15.  Financial  Statements.  Prior to the Closing the Company
will deliver to the Parent its audited consolidated financial statements for the
fiscal  years ended  December 31, 2005 and  December  31,  2004,  and  unaudited
financial   statements  for  the  fiscal   quarter  ended   September  30,  2006
(collectively,  the "Company Financial Statements").  Upon delivery, the Company

                                       8
<PAGE>

Financial  Statements  will have been  prepared  in  accordance  with  generally
accepted  accounting  principles  applied on a consistent  basis  throughout the
periods indicated.  The Company Financial  Statements will fairly present in all
material respects the financial  condition and operating results of the Company,
as of the dates, and for the periods,  indicated  therein.  The Company will not
have any material  liabilities or  obligations,  contingent or otherwise,  other
than (i) liabilities  incurred in the ordinary course of business  subsequent to
September  30,  2006,  and (ii)  obligations  under  contracts  and  commitments
incurred in the ordinary  course of business and not  required  under  generally
accepted  accounting  principles  to  be  reflected  in  the  Company  Financial
Statements, which, in both cases, individually and in the aggregate would not be
reasonably expected to result in a Company Material Adverse Effect.

         SECTION 3.16.  Insurance.  The Company and its subsidiaries are insured
by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the  businesses in which the
Company and its  subsidiaries are engaged and in the geographic areas where they
engage in such businesses. The Company has no reason to believe that it will not
be able to renew its and its subsidiaries'  existing  insurance  coverage as and
when such coverage  expires or to obtain similar  coverage from similar insurers
as may be necessary to continue its business on terms consistent with market for
the Company's and such subsidiaries' respective lines of business.

         SECTION 3.17. Transactions With Affiliates and Employees. Except as set
forth in the Company Disclosure Letter and Company Financial Statements, none of
the officers or  directors of the Company and, to the  knowledge of the Company,
none of the  employees  of the Company is  presently a party to any  transaction
with the  Company or any  subsidiary  (other  than for  services  as  employees,
officers and directors),  including any contract, agreement or other arrangement
providing for the furnishing of services to or by,  providing for rental of real
or personal property to or from, or otherwise  requiring payments to or from any
officer,  director or such  employee or, to the  knowledge  of the Company,  any
entity in which any officer,  director,  or any such  employee has a substantial
interest or is an officer, director, trustee or partner.

         SECTION  3.18.  Internal  Accounting  Controls.  The  Company  and  its
subsidiaries  maintain a system of internal  accounting  controls  sufficient 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 generally accepted  accounting  principles 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  action is taken with respect to any differences.  The
Company has established  disclosure  controls and procedures for the Company and
designed  such  disclosure  controls  and  procedures  to ensure  that  material
information relating to the Company,  including its subsidiaries,  is made known
to the officers by others within those  entities.  The  Company's  officers have
evaluated the  effectiveness  of the Company's  controls and  procedures.  Since
December  31,  2005,  there have been no  significant  changes in the  Company's
internal  controls or, to the Company's  knowledge,  in other factors that could
significantly affect the Company's internal controls.

                                       9
<PAGE>

         SECTION 3.19. Solvency. Based on the financial condition of the Company
as of the closing date (and assuming that the closing shall have occurred),  (i)
the Company's  fair saleable value of its assets exceeds the amount that will be
required to be paid on or in respect of the Company's  existing  debts and other
liabilities  (including known contingent  liabilities) as they mature,  (ii) the
Company's  assets do not constitute  unreasonably  small capital to carry on its
business  for the  current  fiscal year as now  conducted  and as proposed to be
conducted including its capital needs taking into account the particular capital
requirements  of the business  conducted by the Company,  and projected  capital
requirements and capital  availability  thereof, and (iii) the current cash flow
of the Company, together with the proceeds the Company would receive, were it to
liquidate all of its assets,  after taking into account all anticipated  uses of
the cash,  would be  sufficient  to pay all amounts on or in respect of its debt
when such amounts are required to be paid.  The Company does not intend to incur
debts  beyond its ability to pay such debts as they mature  (taking into account
the timing and amounts of cash to be payable on or in respect of its debt).

         SECTION  3.20.  Application  of Takeover  Protections.  The Company has
taken all necessary action, if any, in order to render  inapplicable any control
share acquisition, business combination, poison pill (including any distribution
under a rights  agreement) or other similar  anti-takeover  provision  under the
Company's charter documents or the laws of its state of incorporation that is or
could become  applicable to the Stockholders as a result of the Stockholders and
the Company  fulfilling their  obligations or exercising their rights under this
Agreement,  including,  without  limitation,  the issuance of the Shares and the
Stockholders' ownership of the Shares.

         SECTION 3.21. No Additional  Agreements.  The Company does not have any
agreement  or  understanding   with  any   Stockholders   with  respect  to  the
transactions  contemplated  by this  Agreement  other than as  specified in this
Agreement.

         SECTION  3.22.  Investment  Company.  The Company is not, and is not an
affiliate of, and  immediately  following  the Closing will not have become,  an
"investment  company" within the meaning of the Investment  Company Act of 1940,
as amended.

         SECTION 3.23. Disclosure.  The Company confirms that neither it nor any
person  acting on its behalf has  provided  any  Stockholder  or its  respective
agents or counsel with any  information  that the Company  believes  constitutes
material,  non-public  information  except insofar as the existence and terms of
the proposed  transactions  hereunder may constitute such information and except
for  information  that will be disclosed by the Parent under a current report on
Form 8-K  filed  within  one  business  days  after  the  Closing.  The  Company
understands  and  confirms  that the  Stockholders  will  rely on the  foregoing
representations  and  covenants in effecting  transactions  in securities of the
Company. All disclosure provided to the Stockholders  regarding the Company, its
business and the transactions  contemplated hereby, furnished by or on behalf of
the Company (including the Company's representations and warranties set forth in
this Agreement) are true and correct and do not contain any untrue  statement of
a material  fact or omit to state any material  fact  necessary in order to make
the statements made therein, in light of the circumstances under which they were
made, not misleading.

                                       10
<PAGE>

         SECTION 3.24. Information Supplied. None of the information supplied or
to be supplied by the Company for inclusion or incorporation by reference in the
notice that is required to be sent to the stockholders of the Parent pursuant to
Rule 14f-1 (the "14f-1 Notice") promulgated under the Securities Exchange Act of
1934 (the  "Exchange  Act") will, at the date it is first mailed to the Parent's
stockholders,  contain any untrue  statement of a material fact or omit to state
any material  fact  required to be stated  therein or necessary in order to make
the statements therein, in light of the circumstances under which they are made,
not misleading.

         SECTION 3.25. Absence of Certain Changes or Events. Except as disclosed
in the Company Financial  Statements or in the Company Disclosure  Letter,  from
September 30, 2006 to the date of this Agreement,  the Company has conducted its
business only in the ordinary course, and during such period there has not been:

                  (a) any change in the assets, liabilities, financial condition
         or operating results of the Company or any Company  Subsidiary,  except
         changes in the ordinary course of business that have not caused, in the
         aggregate, a Company Material Adverse Effect;

                  (b) any damage, destruction or loss, whether or not covered by
         insurance, that would have a Company Material Adverse Effect;

                  (c) any waiver or  compromise  by the  Company or any  Company
         Subsidiary of a valuable right or of a material debt owed to it;

                  (d) any  satisfaction  or  discharge  of any lien,  claim,  or
         encumbrance  or payment of any obligation by the Company or any Company
         Subsidiary,   except  in  the  ordinary  course  of  business  and  the
         satisfaction  or discharge  of which would not have a Company  Material
         Adverse Effect;

                  (e) any  material  change to a material  Contract by which the
         Company or any Company  Subsidiary or any of its  respective  assets is
         bound or subject;

                  (f) any mortgage,  pledge, transfer of a security interest in,
         or lien, created by the Company or any Company Subsidiary, with respect
         to any of its material properties or assets, except liens for taxes not
         yet due or  payable  and liens  that  arise in the  ordinary  course of
         business  and do not  materially  impair the  Company's or such Company
         Subsidiary's ownership or use of such property or assets;

                  (g) any loans or guarantees made by the Company or any Company
         Subsidiary  to or  for  the  benefit  of  its  employees,  officers  or
         directors,  or any  members  of their  immediate  families,  other than
         travel  advances and other advances made in the ordinary  course of its
         business;

                  (h) any  alteration of the  Company's  method of accounting or
         the identity of its auditors;

                  (i) any  declaration or payment of dividend or distribution of
         cash or other property to Stockholders  or any purchase,  redemption or
         agreements to purchase or redeem any shares of Company Stock;

                                       11
<PAGE>

                  (j) any issuance of equity securities to any officer, director
         or affiliate,  except pursuant to existing  Company stock option plans;
         or

                  (k)  any  arrangement  or  commitment  by the  Company  or any
         Company  Subsidiary  to do any of the things  described in this Section
         3.25.

         SECTION 3.26.  No  Undisclosed  Events,  Liabilities,  Developments  or
Circumstances. No event, liability,  development or circumstance has occurred or
exists,  or  is  contemplated  to  occur  with  respect  to  the  Company,   its
subsidiaries or their respective business, properties,  prospects, operations or
financial condition, that would be required to be disclosed by the Company under
applicable  securities  laws on a registration  statement on Form S-1 filed with
the SEC  relating to an issuance and sale by the Company of its Common Stock and
which has not been publicly announced.

         SECTION 3.27. Foreign Corrupt Practices.  Neither the Company,  nor any
of its subsidiaries,  nor, to the Company's  knowledge,  any director,  officer,
agent,  employee or other  person  acting on behalf of the Company or any of its
subsidiaries has, in the course of its actions for, or on behalf of, the Company
(i) used any corporate funds for any unlawful contribution,  gift, entertainment
or other unlawful expenses relating to political activity;  (ii) made any direct
or indirect unlawful payment to any foreign or domestic  government  official or
employee  from  corporate  funds;  (iii)  violated  or is in  violation  of  any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv)
made any unlawful bribe, rebate,  payoff,  influence payment,  kickback or other
unlawful payment to any foreign or domestic government official or employee.

                                   ARTICLE IV

                  Representations and Warranties of the Parent
                  --------------------------------------------

         The Parent  represents and warrants to each of the Stockholders and the
Company that, except as set forth in the reports,  schedules,  forms, statements
and other documents filed by Parent with the SEC and publicly available prior to
the date of the Agreement  (the "Filed Parent SEC  Documents") or in the letter,
which will be  delivered  by the Parent to the Company and the  Stockholders  in
accordance with Section 7.09 hereof (the "Parent Disclosure Letter"):

         SECTION  4.01.  Organization,   Standing  and  Power.  Parent  is  duly
organized,  validly existing and in good standing under the laws of the State of
Delaware  and  has  full  corporate   power  and  authority  and  possesses  all
governmental  franchises,   licenses,  permits,   authorizations  and  approvals
necessary to enable it to own, lease or otherwise hold its properties and assets
and  to  conduct  its  businesses  as  presently  conducted,   other  than  such
franchises,  licenses, permits,  authorizations and approvals the lack of which,
individually  or in the  aggregate,  has not had and  would  not  reasonably  be
expected to have a material  adverse effect on Parent, a material adverse effect
on the ability of Parent to perform its  obligations  under this Agreement or on
the ability of Parent to consummate the Transactions (a "Parent Material Adverse
Effect"). Parent is duly qualified to do business in each jurisdiction where the
nature of its business or their ownership or leasing of its properties make such
qualification  necessary and where the failure to so qualify would reasonably be
expected to have a Parent Material  Adverse Effect.  Parent has delivered to the

                                       12
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Company true and complete copies of the certificate or articles of incorporation
of Parent, as amended to the date of this Agreement (as so amended,  the "Parent
Charter"),  and the Bylaws of Parent,  as amended to the date of this  Agreement
(as so amended, the "Parent Bylaws").

         SECTION  4.02.  Subsidiaries;  Equity  Interests.  Parent does not own,
directly or indirectly,  any capital  stock,  membership  interest,  partnership
interest, joint venture interest or other equity interest in any person.

         SECTION 4.03. Capital Structure. The authorized capital stock of Parent
consists of  100,000,000  shares of Parent  Common  Stock,  par value $0.001 per
share, and 10,000,000  shares of preferred stock, par value $0.001 per share. As
of the date hereof (i)  1,400,000  shares of Parent  Common Stock are issued and
outstanding,  (ii) no shares of  preferred  stock are  outstanding  and (iii) no
shares  of  Parent  Common  Stock or  preferred  stock are held by Parent in its
treasury.  Except as set forth above, no shares of capital stock or other voting
securities  of Parent were issued,  reserved for  issuance or  outstanding.  All
outstanding  shares of the capital stock of Parent are, and all such shares that
may be issued  prior to the date hereof will be when  issued,  duly  authorized,
validly  issued,  fully paid and  nonassessable  and not subject to or issued in
violation  of  any  purchase  option,  call  option,  right  of  first  refusal,
preemptive right, subscription right or any similar right under any provision of
the General  Corporation  Law of the State of Nevada,  the Parent  Charter,  the
Parent  Bylaws or any Contract to which  Parent is a party or  otherwise  bound.
There  are not any  bonds,  debentures,  notes or other  indebtedness  of Parent
having the right to vote (or convertible into, or exchangeable  for,  securities
having the right to vote) on any matters on which holders of Parent Common Stock
may vote ("Voting  Parent Debt").  Except as set forth above,  as of the date of
this  Agreement,  there are not any options,  warrants,  rights,  convertible or
exchangeable  securities,  "phantom" stock rights,  stock  appreciation  rights,
stock-based   performance  units,   commitments,   Contracts,   arrangements  or
undertakings  of any kind to which Parent is a party or by which it is bound (i)
obligating Parent to issue, deliver or sell, or cause to be issued, delivered or
sold,  additional  shares of capital stock or other equity  interests in, or any
security  convertible or exercisable for or exchangeable  into any capital stock
of or  other  equity  interest  in,  Parent  or any  Voting  Parent  Debt,  (ii)
obligating  Parent  to  issue,  grant,  extend  or enter  into any such  option,
warrant, call, right, security, commitment, Contract, arrangement or undertaking
or (iii) that give any person the right to receive any economic benefit or right
similar to or derived from the economic benefits and rights occurring to holders
of the capital stock of the Parent. As of the date of this Agreement,  there are
not any outstanding contractual  obligations of Parent to repurchase,  redeem or
otherwise acquire any shares of capital stock of Parent.  Except as set forth in
Schedule  4.03,  the  Parent  is not a  party  to  any  agreement  granting  any
securityholder of the Parent the right to cause the Parent to register shares of
the capital stock or other securities of the Parent held by such  securityholder
under the Securities Act. The stockholder  list to be provided at closing to the
Company  shall be a current  shareholder  list  generated by its stock  transfer
agent, and such list shall accurately  reflect all of the issued and outstanding
shares of the Parent's Common Stock.

         SECTION 4.04. Authority;  Execution and Delivery;  Enforceability.  The
execution and delivery by the Parent of this Agreement and the  consummation  by
the Parent of the  Transactions  have been duly  authorized  and approved by the
Board of Directors of the Parent and no other corporate  proceedings on the part

                                       13
<PAGE>

of the Parent are necessary to authorize  this  Agreement and the  Transactions.
This Agreement  constitutes a legal, valid and binding obligation of the Parent,
enforceable against the Parent in accordance with the terms hereof.

         SECTION 4.05. No Conflicts; Consents.

                  (a) Except as set forth in the Parent Disclosure  Letter,  the
         execution and delivery by Parent of this  Agreement,  does not, and the
         consummation of  Transactions  and compliance with the terms hereof and
         thereof  will not,  conflict  with,  or result in any  violation  of or
         default (with or without  notice or lapse of time,  or both) under,  or
         give rise to a right of  termination,  cancellation  or acceleration of
         any obligation or to loss of a material benefit under, or to increased,
         additional,  accelerated or guaranteed  rights or  entitlements  of any
         person  under,  or result in the  creation  of any Lien upon any of the
         properties  or assets of Parent  under,  any  provision  of (i)  Parent
         Charter or Parent Bylaws, (ii) any material Contract to which Parent is
         a party or by which any of its  properties  or assets is bound or (iii)
         subject  to the  filings  and  other  matters  referred  to in  Section
         4.05(b),  any material Judgment or material Law applicable to Parent or
         its  properties or assets,  other than, in the case of clauses (ii) and
         (iii) above,  any such items that,  individually  or in the  aggregate,
         have not had and  would not  reasonably  be  expected  to have a Parent
         Material Adverse Effect.

                  (b) No  Consent  of, or  registration,  declaration  or filing
         with,  or  permit  from,  any  Governmental  Entity is  required  to be
         obtained or made by or with  respect to Parent in  connection  with the
         execution,   delivery  and   performance   of  this  Agreement  or  the
         consummation  of the  Transactions,  other than the (A) filing with the
         SEC of a 14f-1  Notice  and (B) filing  with the SEC of  reports  under
         Sections 13 and 16 of the  Exchange  Act,  and (C) filings  under state
         "blue sky" laws, as may be required in connection  with this  Agreement
         and the Transactions.

         SECTION 4.06. SEC Documents; Undisclosed Liabilities.

                  (a) Parent has filed all reports, schedules, forms, statements
         and other  documents  required to be filed by Parent with the SEC since
         April 4, 2006,  pursuant  to  Sections  13(a),  14 (a) and 15(d) of the
         Exchange Act (the "Parent SEC Documents").

                  (b) As of its respective filing date, each Parent SEC Document
         complied in all material respects with the requirements of the Exchange
         Act and the rules and  regulations  of the SEC  promulgated  thereunder
         applicable to such Parent SEC Document,  and did not contain any untrue
         statement of a material  fact or omit 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.  Except to the extent  that  information  contained  in any
         Parent SEC  Document has been  revised or  superseded  by a later filed
         Parent SEC  Document,  none of the Parent SEC  Documents  contains  any
         untrue statement of a material fact or omits to state any 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 consolidated  financial statements of Parent
         included in the Parent SEC Documents  comply as to form in all material

                                       14
<PAGE>

         respects  with  applicable  accounting  requirements  and the published
         rules  and  regulations  of the SEC with  respect  thereto,  have  been
         prepared in  accordance  with the U.S.  generally  accepted  accounting
         principals  ("GAAP") (except, in the case of unaudited  statements,  as
         permitted  by the  rules  and  regulations  of the  SEC)  applied  on a
         consistent  basis  during  the  periods  involved  (except  as  may  be
         indicated  in the notes  thereto) and fairly  present the  consolidated
         financial  position of Parent and its  consolidated  subsidiaries as of
         the dates thereof and the consolidated  results of their operations and
         cash flows for the periods  shown  (subject,  in the case of  unaudited
         statements, to normal year-end audit adjustments).

                  (c)  Except as set forth in the Filed  Parent  SEC  Documents,
         Parent  has  no  liabilities  or  obligations  of any  nature  (whether
         accrued, absolute,  contingent or otherwise) required by GAAP to be set
         forth on a balance sheet of Parent or in the notes thereto.  The Parent
         Disclosure Letter sets forth all financial and contractual  obligations
         and  liabilities  (including any  obligations to issue capital stock or
         other  securities  of the parent) due after the date hereof.  As of the
         date hereof the Parent has total liabilities of less than $10,000,  all
         of which  liabilities  shall be paid off at or prior to the Closing and
         shall in no event remain  liabilities of the Parent, the Company or the
         Stockholders following the Closing.

         SECTION 4.07. Information Supplied. None of the information supplied or
to be supplied by Parent for  inclusion  or  incorporation  by  reference in the
14f-1 Notice will, at the date it is first mailed to the Parent's  stockholders,
contain any untrue  statement  of a material  fact or omit to state any material
fact required to be stated  therein or necessary in order to make the statements
therein,  in  light  of  the  circumstances  under  which  they  are  made,  not
misleading.

         SECTION 4.08. Absence of Certain Changes or Events. Except as disclosed
in the Filed Parent SEC Documents or in the Parent Disclosure  Letter,  from the
date of the most  recent  audited  financial  statements  included  in the Filed
Parent SEC  Documents to the date of this  Agreement,  Parent has  conducted its
business only in the ordinary course, and during such period there has not been:

                  (a) any change in the assets, liabilities, financial condition
         or  operating  results of the Parent from that  reflected in the Parent
         SEC Documents,  except changes in the ordinary  course of business that
         have not caused, in the aggregate, a Parent Material Adverse Effect;

                  (b) any damage, destruction or loss, whether or not covered by
         insurance, that would have a Parent Material Adverse Effect;

                  (c) any waiver or compromise by the Parent of a valuable right
         or of a material debt owed to it;

                  (d) any  satisfaction  or  discharge  of any lien,  claim,  or
         encumbrance or payment of any  obligation by the Parent,  except in the
         ordinary course of business and the  satisfaction or discharge of which
         would not have a Parent Material Adverse Effect;

                  (e) any  material  change to a material  Contract by which the
         Parent or any of its assets is bound or subject;

                                       15
<PAGE>

                  (f) any material  change in any  compensation  arrangement  or
         agreement with any employee, officer, director or stockholder;

                  (g)  any  resignation  or  termination  of  employment  of any
         officer of the Parent;

                  (h) any mortgage,  pledge, transfer of a security interest in,
         or lien,  created by the Parent,  with  respect to any of its  material
         properties or assets, except liens for taxes not yet due or payable and
         liens  that  arise  in  the  ordinary  course  of  business  and do not
         materially  impair the Parent's  ownership  or use of such  property or
         assets;

                  (i) any loans or  guarantees  made by the Parent to or for the
         benefit of its  employees,  officers  or  directors,  or any members of
         their immediate families, other than travel advances and other advances
         made in the ordinary course of its business;

                  (j)  any  declaration,  setting  aside  or  payment  or  other
         distribution  in respect of any of the Parent's  capital stock,  or any
         direct or indirect redemption, purchase, or other acquisition of any of
         such stock by the Parent;

                  (k) any alteration of the Parent's method of accounting or the
         identity of its auditors;

                  (l) any issuance of equity securities to any officer, director
         or affiliate, except pursuant to existing Parent stock option plans; or

                  (m) any  arrangement  or commitment by the Parent to do any of
         the things described in this Section 4.08.

         SECTION 4.09. Taxes.

                  (a) Parent has timely filed,  or has caused to be timely filed
         on its behalf, all Tax Returns required to be filed by it, and all such
         Tax Returns are true,  complete and accurate,  except to the extent any
         failure  to  file  or  any  inaccuracies  in  any  filed  Tax  Returns,
         individually or in the aggregate, have not had and would not reasonably
         be expected to have a Parent Material  Adverse Effect.  All Taxes shown
         to be due on such Tax Returns, or otherwise owed, has been timely paid,
         except to the extent  that any failure to pay,  individually  or in the
         aggregate,  has not had and would not  reasonably be expected to have a
         Parent Material Adverse Effect.

                  (b) The most  recent  financial  statements  contained  in the
         Filed Parent SEC  Documents  reflect an adequate  reserve for all Taxes
         payable by Parent (in  addition to any reserve  for  deferred  Taxes to
         reflect timing differences  between book and Tax items) for all Taxable
         periods  and  portions  thereof  through  the  date of  such  financial
         statements.  No deficiency with respect to any Taxes has been proposed,
         asserted or assessed against Parent, and no requests for waivers of the
         time to assess  any such  Taxes are  pending,  except to the extent any
         such  deficiency  or  request  for  waiver,   individually  or  in  the
         aggregate,  has not had and would not  reasonably be expected to have a
         Parent Material Adverse Effect.

                                       16
<PAGE>

                  (c) There are no Liens for Taxes (other than for current Taxes
         not yet due and  payable) on the assets of Parent.  Parent is not bound
         by any agreement with respect to Taxes.

         SECTION 4.10. Absence of Changes in Benefit Plans. From the date of the
most  recent  audited  financial  statements  included  in the Filed  Parent SEC
Documents  to the date of this  Agreement,  there has not been any  adoption  or
amendment  in any  material  respect  by  Parent  of any  collective  bargaining
agreement  or  any  bonus,  pension,  profit  sharing,   deferred  compensation,
incentive compensation,  stock ownership,  stock purchase, stock option, phantom
stock,   retirement,    vacation,   severance,    disability,   death   benefit,
hospitalization, medical or other plan, arrangement or understanding (whether or
not legally  binding)  providing  benefits  to any  current or former  employee,
officer or director of Parent (collectively,  "Parent Benefit Plans"). As of the
date  of  this   Agreement   there   are   not   any   employment,   consulting,
indemnification, severance or termination agreements or arrangements between the
Parent and any  current or former  employee,  officer or director of the Parent,
nor does the Parent have any general severance plan or policy.

         SECTION 4.11. ERISA Compliance;  Excess Parachute Payments.  The Parent
does not, and since its inception never has,  maintained,  or contributed to any
"employee  pension  benefit  plans"  (as  defined  in  Section  3(2) of  ERISA),
"employee  welfare  benefit  plans" (as defined in Section 3(1) of ERISA) or any
other Parent  Benefit  Plan for the benefit of any current or former  employees,
consultants, officers or directors of Parent.

         SECTION 4.12.  Litigation.  Except as disclosed in the Filed Parent SEC
Documents  or in the  Parent  Disclosure  Letter,  there is no Action  which (i)
adversely affects or challenges the legality,  validity or enforceability of any
of this  Agreement  or the Shares or (ii)  could,  if there were an  unfavorable
decision,  individually  or in the aggregate,  have or reasonably be expected to
result  in a  Parent  Material  Adverse  Effect.  Neither  the  Parent  nor  any
subsidiary,  nor any  director  or officer  thereof  (in his or her  capacity as
such),  is or has been the subject of any Action  involving a claim or violation
of or liability  under federal or state  securities laws or a claim of breach of
fiduciary duty.

         SECTION 4.13.  Compliance with Applicable Laws.  Except as disclosed in
the Filed Parent SEC Documents or in the Parent Disclosure Letter,  Parent is in
compliance  with all applicable  Laws,  including those relating to occupational
health and safety and the  environment,  except for  instances of  noncompliance
that,  individually and in the aggregate,  have not had and would not reasonably
be expected to have a Parent Material Adverse Effect. Except as set forth in the
Filed Parent SEC Documents or in the Parent  Disclosure  Letter,  Parent has not
received any written communication during the past two years from a Governmental
Entity that alleges  that Parent is not in  compliance  in any material  respect
with any  applicable  Law.  The  Parent  is in  compliance  with  all  effective
requirements of the  Sarbanes-Oxley  Act of 2002, as amended,  and the rules and
regulations   thereunder,   that  are   applicable  to  it,  except  where  such
noncompliance  could not have or  reasonably  be  expected to result in a Parent
Material  Adverse  Effect.  This  Section  4.13 does not relate to matters  with
respect to Taxes, which are the subject of Section 4.09.

         SECTION  4.14.  Contracts.  Except as disclosed in the Parent Filed SEC
Documents, there are no Contracts that are material to the business, properties,
assets,  condition (financial or otherwise),  results of operations or prospects

                                       17
<PAGE>

of the  Parent  taken as a whole.  Parent is not in  violation  of or in default
under (nor does there exist any condition  which upon the passage of time or the
giving of notice would cause such a violation of or default  under) any Contract
to which it is a party or by which  it or any of its  properties  or  assets  is
bound, except for violations or defaults that would not,  individually or in the
aggregate, reasonably be expected to result in a Parent Material Adverse Effect.

         SECTION 4.15.  Title to Properties.  Parent has good title to, or valid
leasehold  interests in, all of its properties and assets used in the conduct of
its businesses. All such assets and properties, other than assets and properties
in which the Parent  has  leasehold  interests,  are free and clear of all Liens
other than those set forth in the Parent  Disclosure Letter and except for Liens
that,  in the  aggregate,  do not and will  not  materially  interfere  with the
ability of the Parent to conduct  business as  currently  conducted.  Parent has
complied in all material respects with the terms of all material leases to which
it is a party and under  which it is in  occupancy,  and all such  leases are in
full force and effect.  Parent enjoys peaceful and undisturbed  possession under
all such material leases.

         SECTION  4.16.  Intellectual  Property.  Parent  owns,  or  is  validly
licensed or otherwise  has the right to use, all  Intellectual  Property  Rights
which are  material  to the  conduct of the  business  of the Parent  taken as a
whole. The Parent Disclosure Letter sets forth a description of all Intellectual
Property  Rights which are material to the conduct of the business of the Parent
taken as a whole.  Except as set forth in the Parent Disclosure Letter no claims
are pending or, to the  knowledge of the Parent,  threatened  that the Parent is
infringing or otherwise adversely affecting the rights of any person with regard
to any Intellectual Property Right. To the knowledge of the Parent, no person is
infringing  the rights of the Parent with respect to any  Intellectual  Property
Right.

         SECTION 4.17.  Labor  Matters.  There are no  collective  bargaining or
other  labor union  agreements  to which the Parent is a party or by which it is
bound.  No material labor dispute exists or, to the knowledge of the Parent,  is
imminent with respect to any of the employees of the Parent.

         SECTION 4.18. Market Makers.  The Parent has at least two market makers
for its common  shares and such market makers have obtained all permits and made
all  filings  necessary  in order for such  market  makers to continue as market
makers of the Parent.

         SECTION 4.19. Transactions With Affiliates and Employees. Except as set
forth in the Filed Parent SEC Documents and Parent  Disclosure  Letter,  none of
the  officers or  directors  of the Parent and, to the  knowledge of the Parent,
none of the employees of the Parent is presently a party to any transaction with
the Parent or any subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for
the  furnishing  of services to or by,  providing for rental of real or personal
property to or from,  or  otherwise  requiring  payments to or from any officer,
director or such  employee  or, to the  knowledge  of the Parent,  any entity in
which any officer,  director, or any such employee has a substantial interest or
is an officer, director, trustee or partner.

                                       18
<PAGE>

         SECTION 4.20.  Internal  Accounting  Controls.  The Parent  maintains a
system  of  internal   accounting  controls  sufficient  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  generally
accepted  accounting  principles  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 action
is taken with respect to any differences.  The Parent has established disclosure
controls and procedures for the Parent and designed such disclosure controls and
procedures  to ensure that material  information  relating to the Parent is made
known to the officers by others  within those  entities.  The Parent's  officers
have evaluated the effectiveness of the Parent's controls and procedures.  Since
December  31,  2005,  there have been no  significant  changes  in the  Parent's
internal  controls or, to the Parent's  knowledge,  in other  factors that could
significantly affect the Parent's internal controls.

         SECTION 4.21. Solvency.  Based on the financial condition of the Parent
as of the closing date (and assuming that the closing shall have occurred),  (i)
the Parent's fair saleable  value of its assets  exceeds the amount that will be
required to be paid on or in respect of the  Parent's  existing  debts and other
liabilities  (including known contingent  liabilities) as they mature,  (ii) the
Parent's  assets do not  constitute  unreasonably  small capital to carry on its
business  for the  current  fiscal year as now  conducted  and as proposed to be
conducted including its capital needs taking into account the particular capital
requirements  of the business  conducted by the Parent,  and  projected  capital
requirements and capital  availability  thereof, and (iii) the current cash flow
of the Parent,  together with the proceeds the Parent would receive,  were it to
liquidate all of its assets,  after taking into account all anticipated  uses of
the cash,  would be  sufficient  to pay all amounts on or in respect of its debt
when such amounts are  required to be paid.  The Parent does not intend to incur
debts  beyond its ability to pay such debts as they mature  (taking into account
the timing and amounts of cash to be payable on or in respect of its debt).

         SECTION 4.22. Application of Takeover Protections. The Parent has taken
all necessary action, if any, in order to render  inapplicable any control share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover  provision under the Parent's
charter  documents  or the laws of its state of  incorporation  that is or could
become  applicable to the  Stockholders as a result of the  Stockholders and the
Parent  fulfilling  their  obligations  or  exercising  their  rights under this
Agreement,  including,  without  limitation,  the issuance of the Shares and the
Stockholders' ownership of the Shares.

         SECTION 4.23. No  Additional  Agreements.  The Parent does not have any
agreement  or  understanding   with  the   Stockholders   with  respect  to  the
transactions  contemplated  by this  Agreement  other than as  specified in this
Agreement.

         SECTION  4.24.  Investment  Company.  The Parent is not,  and is not an
affiliate of, and  immediately  following  the Closing will not have become,  an
"investment  company" within the meaning of the Investment  Company Act of 1940,
as amended.

         SECTION 4.25.  Disclosure.  The Parent confirms that neither it nor any
person  acting on its behalf has  provided  any  Stockholder  or its  respective
agents or counsel  with any  information  that the Parent  believes  constitutes

                                       19
<PAGE>

material,  non-public  information  except insofar as the existence and terms of
the proposed  transactions  hereunder may constitute such information and except
for  information  that will be disclosed by the Parent under a current report on
Form  8-K  filed  within  one  business  days  after  the  Closing.  The  Parent
understands  and  confirms  that the  Stockholders  will  rely on the  foregoing
representations  and  covenants in effecting  transactions  in securities of the
Parent.  All disclosure  provided to the Stockholders  regarding the Parent, its
business and the transactions  contemplated hereby, furnished by or on behalf of
the Parent (including the Parent's  representations  and warranties set forth in
this Agreement) are true and correct and do not contain any untrue  statement of
a material  fact or omit to state any material  fact  necessary in order to make
the statements made therein, in light of the circumstances under which they were
made, not misleading.

         SECTION 4.26. Certain Registration Matters.  Except as specified in the
Parent  Disclosure  Letter  and  Filed  Parent  SEC  Documents  and  except  for
registration  rights granted to affiliates of Timothy Halter, the Parent has not
granted  or agreed to grant to any person  any  rights  (including  "piggy-back"
registration  rights) to have any securities of the Parent  registered  with the
SEC or any other governmental authority that have not been satisfied.

         SECTION 4.27. Listing and Maintenance Requirements.  The Parent is, and
has no reason to believe that it will not in the foreseeable  future continue to
be, in compliance  with the listing and maintenance  requirements  for continued
listing of the Parent Stock on the trading  market on which the Parent Stock are
currently  listed or quoted.  The  issuance  and sale of the  Shares  under this
Agreement does not contravene the rules and regulations of the trading market on
which the Parent Stock are  currently  listed or quoted,  and no approval of the
stockholders  of the Parent is  required  for the Parent to issue and deliver to
the Stockholders the Shares contemplated by this Agreement.

         SECTION 4.28.  No  Undisclosed  Events,  Liabilities,  Developments  or
Circumstances. No event, liability,  development or circumstance has occurred or
exists, or is contemplated to occur with respect to the Parent, its subsidiaries
or their respective  business,  properties,  prospects,  operations or financial
condition, that would be required to be disclosed by the Parent under applicable
securities  laws on a  registration  statement  on Form S-1  filed  with the SEC
relating to an issuance and sale by the Parent of its Common Stock and which has
not been publicly announced.

         SECTION 4.29. Foreign Corrupt Practices. Neither the Parent, nor any of
its subsidiaries,  nor, to the Parent's knowledge, any director, officer, agent,
employee  or  other  person  acting  on  behalf  of  the  Parent  or  any of its
subsidiaries  has, in the course of its actions for, or on behalf of, the Parent
(i) used any corporate funds for any unlawful contribution,  gift, entertainment
or other unlawful expenses relating to political activity;  (ii) made any direct
or indirect unlawful payment to any foreign or domestic  government  official or
employee  from  corporate  funds;  (iii)  violated  or is in  violation  of  any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv)
made any unlawful bribe, rebate,  payoff,  influence payment,  kickback or other
unlawful payment to any foreign or domestic government official or employee.

                                       20
<PAGE>

                                    ARTICLE V

                                   Deliveries
                                   ----------

         SECTION 5.01. Deliveries of the Stockholders.

                  (a)  Concurrently  herewith each  Stockholder is delivering to
         the Parent this Agreement executed by the Stockholder.

                  (b) At or prior to the Closing, each Stockholder shall deliver
         to the Parent:

                           (i) certificates representing its Company Stock; and

                           (ii) duly  executed  stock powers for transfer by the
                  Stockholder of its Company Stock to the Parent.

         SECTION 5.02. Deliveries of the Parent.

                  (a) Concurrently herewith, the Parent is delivering:

                           (i) to each Stockholder and to the Company, a copy of
                  this Agreement executed by Parent;

                           (ii) to the Company,  a certificate  from the Parent,
                  signed by its Secretary or Assistant Secretary certifying that
                  the attached copies of the Parent  Charter,  Parent Bylaws and
                  resolutions of the Board of Directors of the Parent  approving
                  the Agreement and the Transactions, are all true, complete and
                  correct and remain in full force and effect;

                  (b) At or prior to the Closing, the Parent shall deliver:

                           (i)  to the  Company,  a  letter  of  resignation  of
                  Timothy  Halter  from all  offices  he holds  with the  Parent
                  effective upon the Closing and from his position as a director
                  of the Parent  that will  become  effective  upon the 10th day
                  following  the mailing by the Parent to its  stockholders  the
                  14f-1 Notice;

                           (ii) to the Company,  evidence of the election of Mr.
                  Hu Jia Da, as a director  and as the Chief  Executive  Officer
                  and President of the Parent effective upon the Closing;

                           (iii)  to  the  Company,  such  pay-off  letters  and
                  releases  relating to liabilities as the Company shall request
                  and such  pay-off  letters and  releases  shall be in form and
                  substance satisfactory to the Company; and

                           (iv) to the Company the results of UCC, judgment lien
                  and tax lien searches with respect to the Parent,  the results
                  of which indicate no liens on the assets of the Parent.

                                       21
<PAGE>

                  (c) At or within 5 business days  following  the Closing,  the
         Parent shall deliver:

                           (i) to each  Stockholder,  certificates  representing
                  the  new  shares  of  Parent   Common  Stock  issued  to  such
                  Stockholder as set forth on Exhibit A; and

                           (ii)  to  the   Company,   consent   letters  of  the
                  accounting  firms  of  Parent   confirming  each  such  firm's
                  respective  consent  to  the  use  by the  Parent  of  reports
                  prepared by such firm  regarding the  financial  statements of
                  the Parent in all future  registration  statements  filed with
                  the SEC.

         SECTION 5.03. Deliveries of the Company.

                  (a)  Concurrently  herewith,  the Company is delivering to the
         Parent:

                           (i) this Agreement executed by Company; and

                           (ii) a  certificate  from the Company,  signed by its
                  authorized  officer certifying that the attached copies of the
                  Company  Constituent  Instruments and resolutions of the Board
                  of Directors of the Company  approving  the  Agreement and the
                  Transactions are all true,  complete and correct and remain in
                  full force and effect.

                                   ARTICLE VI

                              Conditions to Closing
                              ---------------------

         SECTION  6.01.  Stockholder  and  Company  Conditions  Precedent.   The
obligations of the  Stockholders  and the Company to enter into and complete the
Closing is subject,  at the option of the Stockholders  and the Company,  to the
fulfillment on or prior to the Closing Date of the following conditions.

                  (a)  Representations  and Covenants.  The  representations and
         warranties of the Parent  contained in this Agreement  shall be true in
         all material respects on and as of the Closing Date with the same force
         and effect as though  made on and as of the  Closing  Date.  The Parent
         shall have  performed  and complied in all material  respects  with all
         covenants and agreements  required by this Agreement to be performed or
         complied with by the Parent on or prior to the Closing Date. The Parent
         shall  have  delivered  to  the   Stockholders   and  the  Company,   a
         certificate, dated the Closing Date, to the foregoing effect.

                  (b) Litigation.  No action, suit or proceeding shall have been
         instituted  before  any court or  governmental  or  regulatory  body or
         instituted  or  threatened by any  governmental  or regulatory  body to
         restrain,  modify or prevent the carrying out of the Transactions or to
         seek damages or a discovery order in connection with such Transactions,
         or which has or may have, in the  reasonable  opinion of the Company or
         any   Stockholders,   a  materially   adverse  effect  on  the  assets,
         properties,  business, operations or condition (financial or otherwise)
         of the Parent or the Company.

                                       22
<PAGE>

                  (c) No Material Adverse Change.  There shall not have been any
         occurrence,  event,  incident,  action,  failure to act, or transaction
         since December 31, 2005 which has had or is reasonably  likely to cause
         a Parent Material Adverse Effect.

                  (d) Post-Closing  Capitalization.  At, and immediately  after,
         the Closing,  the authorized  capitalization,  and the number of issued
         and  outstanding  shares of the  capital  stock of the  Company and the
         Parent,  on a  fully-diluted  basis,  as  indicated on a schedule to be
         delivered  by  the  Parties  at or  prior  to  the  Closing,  shall  be
         acceptable to the Stockholders in their sole and absolute discretion.

                  (e) SEC  Reports.  The Parent shall have filed all reports and
         other documents  required to be filed by Parent under the U.S.  federal
         securities laws through the Closing Date.

                  (f) OTCBB  Quotation.  The Parent  shall have  maintained  its
         status   as  a   Company   whose   common   stock  is   quoted  on  the
         Over-the-Counter  Bulletin  Board and no reason  shall  exist as to why
         such status shall not continue immediately following the Closing.

                  (g) Deliveries. The deliveries specified in Section 5.02 shall
         have been made by the Parent.

                  (h) No  Suspensions  of  Trading  in  Parent  Stock;  Listing.
         Trading in the Parent Stock shall not have been suspended by the SEC or
         any trading market  (except for any  suspensions of trading of not more
         than one  trading  day  solely  to  permit  dissemination  of  material
         information  regarding  the  Parent)  at any  time  since  the  date of
         execution  of this  Agreement,  and the Parent Stock shall have been at
         all times since such date listed for trading on a trading market.

                  (i) Satisfactory Completion of Due Diligence.  The Company and
         the  Stockholders  shall have  completed  their legal,  accounting  and
         business due  diligence of the Parent and the results  thereof shall be
         satisfactory  to the  Company  and the  Stockholders  in their sole and
         absolute discretion.

                  (j) Delivery of Audit  Report and  Financial  Statements.  The
         Company shall have completed the Company Financial Statements and shall
         have  received an audit report from an  independent  audit firm that is
         registered with the Public Company Accounting  Oversight Board relating
         to the fiscal years ended  December 31, 2005 and December 31, 2004, and
         a review report from such firm for the unaudited  financial  statements
         of the Company for the fiscal quarter ended September 30, 2006.

                  (k)  Completion  of  Financing.  The  Financing (as defined in
         Section  7.12 below)  shall have been  completed  or shall be completed
         simultaneously with the Closing.

                  (l)  Delivery of PRC Legal  Opinion.  The  Company  shall have
         received an opinion from its legal counsel in the People's  Republic of
         China that confirms the legality under Chinese law of the restructuring

                                       23
<PAGE>

         being effected by the Company in connection with the  Transactions  and
         that is otherwise  satisfactory to the Company,  the Stockholders,  the
         Parent and the investors investing in the Financing.

                  (m)  Agreement  as to  Exchange  Ratio.  The  Company  and the
         Stockholders  shall have agreed with the Parent  regarding the exchange
         ratio of shares of Parent Stock for Shares of Company Stock and each of
         the Parties shall have mutually  agreed on the  completion of Exhibit A
         hereto.

         SECTION 6.02.  Parent  Conditions  Precedent.  The  obligations  of the
Parent to enter into and complete  the Closing is subject,  at the option of the
Parent,  to the  fulfillment  on or prior to the Closing  Date of the  following
conditions, any one or more of which may be waived by the Parent in writing.

                  (a)  Representations  and Covenants.  The  representations and
         warranties  of the  Stockholders  and  the  Company  contained  in this
         Agreement  shall  be true  in all  material  respects  on and as of the
         Closing Date with the same force and effect as though made on and as of
         the Closing Date. The Stockholders and the Company shall have performed
         and complied in all material respects with all covenants and agreements
         required by this  Agreement  to be  performed  or complied  with by the
         Stockholders  and the  Company  on or prior to the  Closing  Date.  The
         Company  shall  have   delivered  to  the  Parent,   if  requested,   a
         certificate, dated the Closing Date, to the foregoing effect.

                  (b) Litigation.  No action, suit or proceeding shall have been
         instituted  before  any court or  governmental  or  regulatory  body or
         instituted  or  threatened by any  governmental  or regulatory  body to
         restrain,  modify or prevent the carrying out of the Transactions or to
         seek damages or a discovery order in connection with such Transactions,
         or which has or may have, in the  reasonable  opinion of the Parent,  a
         materially  adverse  effect  on  the  assets,   properties,   business,
         operations or condition (financial or otherwise) of the Parent.

                  (c) No Material Adverse Change.  There shall not have been any
         occurrence,  event,  incident,  action,  failure to act, or transaction
         since December 31, 2005 which has had or is reasonably  likely to cause
         a Company Material Adverse Effect.

                  (d) Deliveries.  The deliveries  specified in Section 5.01 and
         Section 5.03 shall have been made by the  Stockholders and the Company,
         respectively.

                  (e) Audited Financial  Statements and Form 10 Disclosure.  The
         Company  shall  have  provided  the Parent  and the  Stockholders  with
         reasonable  assurances  that the Parent will be able to comply with its
         obligation to file a current report on Form 8-K within one (1) business
         days   following  the  Closing   containing   the   requisite   audited
         consolidated financial statements of the Company and the requisite Form
         10-type disclosure regarding the Company.

                  (f) Post-Closing  Capitalization.  At, and immediately  after,
         the Closing,  the authorized  capitalization,  and the number of issued
         and  outstanding  shares of the  capital  stock of the  Company and the

                                       24
<PAGE>

         Parent,  on a  fully-diluted  basis,  as  indicated on a schedule to be
         delivered  by  the  Parties  at or  prior  to  the  Closing,  shall  be
         acceptable to the Parent in its sole and absolute discretion.

                  (g) Satisfactory Completion of Due Diligence. The Parent shall
         have completed its legal,  accounting and business due diligence of the
         Company  and  the   Stockholders  and  the  results  thereof  shall  be
         satisfactory to the Parent in its sole and absolute discretion.

                  (h) Delivery of Audit  Report and  Financial  Statements.  The
         Company shall have completed the Company Financial Statements and shall
         have  received an audit report from an  independent  audit firm that is
         registered with the Public Company Accounting  Oversight Board relating
         to the fiscal years ended  December 31, 2005 and December 31, 2004, and
         a review report from such firm for the unaudited  financial  statements
         of the Company for the fiscal  quarter ended  September  30, 2006.  The
         form and substance of the Financial Statements shall be satisfactory to
         the Parent in its sole and absolute discretion.

                  (i)  Completion  of  Financing.  The  Financing (as defined in
         Section  7.12 below)  shall have been  completed  or shall be completed
         simultaneously with the Closing.

                  (j)  Delivery  of PRC Legal  Opinion.  The  Parent  shall have
         received an opinion from the  Company's  legal  counsel in the People's
         Republic of China that  confirms the legality  under Chinese law of the
         restructuring  being  effected  by the Company in  connection  with the
         Transactions  and that is otherwise  satisfactory  to the Company,  the
         Stockholders, the Parent and the investors investing in the Financing.

                  (k)  Agreement  as to  Exchange  Ratio.  The  Company  and the
         Stockholders  shall have agreed with the Parent  regarding the exchange
         ratio of shares of Parent Stock for Shares of Company Stock and each of
         the Parties shall have mutually  agreed on the  completion of Exhibit A
         hereto.

                  (l)  Registration  Rights  Agreement.  The Company  shall have
         entered  into a  registration  rights  agreement  with such  parties as
         indicated by the Parent and the form and substance of such registration
         rights agreement shall be reasonably satisfactory to the Parent.

                                   ARTICLE VII

                                    Covenants
                                    ---------

         SECTION 7.01. Preparation of the 14f-1 Notice; Blue Sky Laws

                  (a) As soon  as  possible  following  the  Closing  and in any
         event,  within two  business  days  thereafter,  the Company and Parent
         shall prepare and file with the SEC the 14f-1 Notice in connection with
         the  consummation of this  Agreement.  The Parent shall cause the 14f-1
         Notice  to be  mailed  to the  Parent's  stockholders  as  promptly  as
         practicable thereafter.

                                       25
<PAGE>

                  (b) Parent shall take any action (other than  qualifying to do
         business  in any  jurisdiction  in  which  it is not now so  qualified)
         required  to be taken under any  applicable  state  securities  laws in
         connection  with the issuance of Parent Stock in  connection  with this
         Agreement.

         SECTION 7.02. Public Announcements. Parent and the Company will consult
with each other before issuing, and provide each other the opportunity to review
and comment upon, any press release or other public  statements  with respect to
the Agreement and the Transactions and shall not issue any such press release or
make any such  public  statement  prior to such  consultation,  except as may be
required by  applicable  Law,  court process or by  obligations  pursuant to any
listing agreement with any national securities exchange.

         SECTION  7.03.  Fees and  Expenses.  All fees and expenses  incurred in
connection with this Agreement shall be paid by the Party incurring such fees or
expenses, whether or not this Agreement is consummated.

         SECTION  7.04.  Continued  Efforts.  Each Party shall use  commercially
reasonable efforts to (a) take all action reasonably necessary to consummate the
Transactions,  and (b) take such steps and do such acts as may be  necessary  to
keep  all of its  representations  and  warranties  true and  correct  as of the
Closing  Date  with the same  effect  as if the  same  had been  made,  and this
Agreement had been dated, as of the Closing Date.

         SECTION  7.05.  Conduct of  Business.  During the period  from the date
hereof  through the Closing  Date,  Parent and the Company  shall carry on their
respective  businesses  in the ordinary and usual  course  consistent  with past
practice.

         SECTION 7.06. Exclusivity.  The Parent shall not (i) solicit, initiate,
or encourage the submission of any proposal or offer from any person relating to
the  acquisition of any capital stock or other voting  securities of the Parent,
or any assets of the Parent  (including any acquisition  structured as a merger,
consolidation,  share exchange or other business combination),  (ii) participate
in any  discussions or  negotiations  regarding,  furnish any  information  with
respect to,  assist or  participate  in, or  facilitate  in any other manner any
effort or  attempt by any  person to do or seek any of the  foregoing,  or (iii)
take any other action that is inconsistent  with the  Transactions  and that has
the effect of avoiding the Closing  contemplated hereby. The Parent shall notify
the Company  immediately if any person makes any proposal,  offer,  inquiry,  or
contact with respect to any of the foregoing.

         SECTION  7.07.  Filing of 8-K and Press  Release.  Parent  shall  file,
within one  business day of the Closing  Date, a current  report on Form 8-K and
attach as exhibits all relevant  agreements with the SEC disclosing the terms of
this Agreement and other requisite  disclosure  regarding the  Transactions  and
including the requisite audited consolidated financial statements of the Company
and the requisite  Form 10 disclosure  regarding the Company.  In addition,  the
Parent  shall issue a press  release  prior to 9:30 a.m.  (New York Time) on the
business  day  following  the  Closing  Date,  announcing  the  closing  of  the
transaction.

         SECTION 7.08.  Furnishing of  Information.  As long as any  Stockholder
owns the Shares,  the Parent  covenants to timely file (or obtain  extensions in
respect  thereof  and file  within the  applicable  grace  period)  all  reports

                                       26
<PAGE>

required  to be filed  by the  Parent  after  the date  hereof  pursuant  to the
Exchange  Act.  As long as any  Stockholder  owns  Shares,  if the Parent is not
required to file reports  pursuant to such laws,  it will prepare and furnish to
the  Stockholders  and make publicly  available in  accordance  with Rule 144(c)
promulgated  by the SEC pursuant to the Securities  Act, such  information as is
required  for the  Stockholder  to sell the Shares  under  Rule 144.  The Parent
further  covenants that it will take such further action as any holder of Shares
may reasonably  request,  all to the extent required from time to time to enable
such person to sell the Shares  without  registration  under the  Securities Act
within the limitation of the exemptions provided by Rule 144.

         SECTION  7.09.   Preparation   of  Disclosure   Letters.   The  Parties
acknowledge  and agree  that (i)  neither  the  Company  nor the  Parent has yet
delivered  the  Company  Disclosure  Letter  or the  Parent  Disclosure  Letter,
respectively,  and (ii) none of the Company, the Stockholders nor the Parent has
completed  its  respective  due  diligence  investigation  of the  Parent or the
Company and the  Stockholders,  respectively,  nor has any of them been provided
with copies of, nor had an opportunity to review, the items to be referred to on
the Company  Disclosure Letter or the Parent Disclosure  Letter. The Company and
the Stockholders  shall deliver to the Parent the Company  Disclosure Letter and
the  Parent  shall  deliver  to the  Company  and the  Stockholders  the  Parent
Disclosure  Letter,  including  copies of all  agreements,  and other  documents
referred to thereon, in final form within at least 10 business days prior to the
Closing.  The Parent, on the one hand, and the Company and the Stockholders,  on
the other hand,  shall have 10 business days  following  delivery of the Company
Disclosure  Letter  and the Parent  Disclosure  Letter,  along with all  related
agreements and other documents  referred to thereon,  respectively,  in which to
terminate this Agreement if the Parent or the Company and the  Stockholders,  as
the case may be, object to any information  contained in such disclosure letters
or the contents of any such  agreement or other  document and the Parties cannot
agree on mutually satisfactory modifications thereto.

         SECTION 7.10. Access.  Each Party shall permit  representatives of each
other Party to have full access to all premises,  properties,  personnel, books,
records  (including Tax records),  contracts,  and documents of or pertaining to
such Party.

         SECTION 7.11. Preservation of Business. From the date of this Agreement
until the Closing Date, each of the Company and the Parent shall operate only in
the  ordinary  and  usual  course of  business  consistent  with  past  practice
(provided, however, that Parent shall not issue any securities without the prior
written consent of the Company),  and shall use reasonable commercial efforts to
(a) preserve intact its respective business organization,  (b) preserve the good
will and  advantageous  relationships  with  customers,  suppliers,  independent
contractors,  employees  and other  Persons  material  to the  operation  of its
respective business, and (c) not permit any action or omission which would cause
any of its respective  representations or warranties  contained herein to become
inaccurate  or any of its  respective  covenants  to be breached in any material
respect.

         SECTION  7.12.  Financing.  Parent  shall use  commercially  reasonable
efforts to raise at least $8 million in an equity financing transaction on terms
that are  satisfactory to the Company and the  Stockholders  (the  "Financing"),
which Financing shall be consummated simultaneously with the Closing.

                                       27
<PAGE>

                                  ARTICLE VIII

                                  Miscellaneous
                                  -------------

         SECTION 8.01. Notices. All notices, requests, claims, demands and other
communications  under this  Agreement  shall be in  writing  and shall be deemed
given upon receipt by the Parties at the  following  addresses (or at such other
address for a Party as shall be specified by like notice):

         If to the Parent, to:

         Concept Ventures Corporation
         12890 Hilltop Road
         Argyle, Texas 76226
         Attention:  Timothy Halter
         Facsimile: +1 (972) 233 - 0300

         If to the Company, to:

         Ritar International Group Limited
         P.O. Box 957
         Offshore Incorporations Centre
         Road Town
         Tortola, British Virgin Islands
         Attention: Executive Director
         Facsimile: +852 2851 6878

         If to Stockholders at the addresses set forth in Exhibit A hereto.

         with a copy to:

         Thelen, Reid & Priest, LLP
         701 Eighth Street, N.W.
         Washington, D.C.  20001
         Attention:  Louis A. Bevilacqua, Esq.
         Facsimile: (202) 654-1804

         SECTION 8.02.  Amendments;  Waivers;  No Additional  Consideration.  No
provision  of this  Agreement  may be  waived  or  amended  except  in a written
instrument signed by the Company, Parent and the Stockholders holding a majority
of the Shares. No waiver 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  subsequent  default  or a waiver  of any other
provision,  condition or requirement  hereof, nor shall any delay or omission of
either Party to exercise any right  hereunder in any manner  impair the exercise
of any such right. No consideration  shall be offered or paid to any Stockholder
to  amend or  consent  to a  waiver  or  modification  of any  provision  of any
transaction  document  unless  the same  consideration  is also  offered  to all
Stockholders who then hold Shares.

                                       28
<PAGE>

         SECTION 8.03. Termination.

                  (a)  Termination of Agreement.  The Parties may terminate this
         Agreement as provided below:

                           (i) The Company,  the Stockholders and the Parent may
                  terminate this Agreement by mutual written consent at any time
                  prior to the Closing;

                           (ii) The  Parent  may  terminate  this  Agreement  by
                  giving written notice to the Company and the  Stockholders  at
                  any time prior to the  Closing (A) in the event the Company or
                  any  of  the   Stockholders   have   breached   any   material
                  representation,   warranty,  or  covenant  contained  in  this
                  Agreement in any material respect, the Parent has notified the
                  Company and/or the Stockholders of the breach,  and the breach
                  has  continued  without cure for a period of twenty days after
                  the notice of  breach,  or (B) if the  Closing  shall not have
                  occurred on or before May 31, 2007 by reason of the failure of
                  any condition  precedent under Section 6.02 hereof (unless the
                  failure results primarily from the Parent itself breaching any
                  representation,   warranty,  or  covenant  contained  in  this
                  Agreement); and

                           (iii) The Company may  terminate  this  Agreement  by
                  giving  written  notice to the Parent at any time prior to the
                  Closing (A) in the event the Parent has  breached any material
                  representation,   warranty,  or  covenant  contained  in  this
                  Agreement  in any material  respect,  the Company has notified
                  the Parent of the breach, and the breach has continued without
                  cure for a period of twenty days after the notice of breach or
                  (B) if the  Closing  shall not have  occurred on or before May
                  31, 2007, by reason of the failure of any condition  precedent
                  under  Section  6.01  hereof   (unless  the  failure   results
                  primarily  from the  Company  or the  Stockholders  themselves
                  breaching any representation,  warranty, or covenant contained
                  in this Agreement).

                  (b)  Effect  of  Termination.  If any  Party  terminates  this
         Agreement pursuant to Section 8.03(a) above, all rights and obligations
         of the Parties  hereunder shall terminate  without any Liability of any
         Party to any other Party (except for any Liability of any Party then in
         breach).

         SECTION  8.04.  Replacement  of  Securities.   If  any  certificate  or
instrument  evidencing any Shares is mutilated,  lost, stolen or destroyed,  the
Parent  shall issue or cause to be issued in exchange and  substitution  for and
upon  cancellation  thereof,  or in lieu  of and  substitution  therefor,  a new
certificate  or  instrument,  but  only  upon  receipt  of  evidence  reasonably
satisfactory to the Parent of such loss,  theft or destruction and customary and
reasonable  indemnity,  if requested.  The applicants  for a new  certificate or
instrument under such  circumstances  shall also pay any reasonable  third-party
costs associated with the issuance of such replacement  Shares. If a replacement
certificate or instrument evidencing any Shares is requested due to a mutilation
thereof,  the Parent may  require  delivery  of such  mutilated  certificate  or
instrument as a condition precedent to any issuance of a replacement.

                                       29
<PAGE>

         SECTION 8.05.  Remedies.  In addition to being entitled to exercise all
rights provided herein or granted by law, including recovery of damages, each of
the  Stockholders,   Parent  and  the  Company  will  be  entitled  to  specific
performance  under this Agreement.  The Parties agree that monetary  damages may
not be adequate  compensation  for any loss  incurred by reason of any breach of
obligations  described in the  foregoing  sentence and hereby agrees to waive in
any action for specific  performance  of any such  obligation the defense that a
remedy at law would be adequate.

         SECTION  8.06.  Independent  Nature of  Stockholders'  Obligations  and
Rights. The obligations of each Stockholder under this Agreement are several and
not joint with the  obligations  of any other  Stockholder,  and no  Stockholder
shall be  responsible in any way for the  performance of the  obligations of any
other  Stockholder  under this  Agreement.  The decision of each  Stockholder to
acquire  Shares  pursuant to this  Agreement  has been made by such  Stockholder
independently of any other Stockholder.  Nothing contained herein, and no action
taken by any  Stockholder  pursuant  hereto,  shall be deemed to constitute  the
Stockholders as a partnership, an association, a joint venture or any other kind
of entity,  or create a presumption  that the Stockholders are in any way acting
in concert or as a group with respect to such  obligations  or the  transactions
contemplated herein. Each Stockholder acknowledges that no other Stockholder has
acted as agent for such  Stockholder  in connection  with making its  investment
hereunder and that no Stockholder will be acting as agent of such Stockholder in
connection  with monitoring its investment in the Shares or enforcing its rights
under this  Agreement.  Each  Stockholder  shall be  entitled  to  independently
protect and enforce its rights,  including without limitation the rights arising
out of this Agreement,  and it shall not be necessary for any other  Stockholder
to be joined as an additional party in any proceeding for such purpose.  Each of
the  Company  and  Parent  acknowledge  that each of the  Stockholders  has been
provided with this same Agreement for the purpose of closing a transaction  with
multiple  Stockholders  and not because it was required or requested to do so by
any Stockholder.

         SECTION 8.07. Limitation of Liability.  Notwithstanding anything herein
to the contrary,  each of the Parent and the Company  acknowledge and agree that
the  liability  of a  Stockholder  arising  directly  or  indirectly,  under any
transaction  document  of any and every  nature  whatsoever  shall be  satisfied
solely  out of the assets of such  Stockholder,  and that no  trustee,  officer,
other  investment  vehicle or any other  affiliate  of such  Stockholder  or any
investor,  shareholder  or  holder  of shares  of  beneficial  interest  of such
Stockholder shall be personally liable for any liabilities of such Stockholder.

         SECTION  8.08.  Interpretation.  When  a  reference  is  made  in  this
Agreement to a Section,  such reference  shall be to a Section of this Agreement
unless  otherwise  indicated.  Whenever  the  words  "include",   "includes"  or
"including" are used in this  Agreement,  they shall be deemed to be followed by
the words "without limitation".

         SECTION  8.09.  Severability.  If any term or other  provision  of this
Agreement is invalid, illegal or incapable of being enforced by any rule or Law,
or public policy,  all other  conditions and provisions of this Agreement  shall
nevertheless  remain in full force and effect so long as the  economic  or legal
substance of the Transactions  contemplated hereby is not affected in any manner
materially  adverse to any Party. Upon such determination that any term or other
provision is invalid,  illegal or incapable of being enforced, the Parties shall

                                       30
<PAGE>

negotiate  in good faith to modify this  Agreement  so as to effect the original
intent of the Parties as closely as possible in an acceptable  manner to the end
that Transactions contemplated hereby are fulfilled to the extent possible.

         SECTION 8.10. Counterparts;  Facsimile Execution. This Agreement may be
executed in one or more  counterparts,  all of which shall be considered one and
the same agreement and shall become effective when one or more counterparts have
been signed by each of the Parties and delivered to the other Parties. Facsimile
execution  and delivery of this  Agreement  is legal,  valid and binding for all
purposes.

         SECTION  8.11.  Entire  Agreement;  Third  Party  Beneficiaries.   This
Agreement,  taken  together  with the Company  Disclosure  Letter and the Parent
Disclosure Letter, (a) constitute the entire agreement,  and supersede all prior
agreements  and  understandings,  both written and oral,  among the Parties with
respect to the  Transactions  and (b) are not intended to confer upon any person
other than the Parties any rights or remedies.

         SECTION 8.12.  Governing Law. This Agreement  shall be governed by, and
construed in accordance  with,  the laws of the State ofNew York,  regardless of
the laws that might otherwise govern under applicable principles of conflicts of
laws thereof, except to the extent the laws of Nevada are mandatorily applicable
to the Transactions.

         SECTION 8.13. Assignment. Neither this Agreement nor any of the rights,
interests or obligations under this Agreement shall be assigned,  in whole or in
part,  by operation of law or otherwise by any of the Parties  without the prior
written  consent of the other  Parties.  Any purported  assignment  without such
consent shall be void. Subject to the preceding  sentences,  this Agreement will
be binding upon, inure to the benefit of, and be enforceable by, the Parties and
their respective successors and assigns.

                            [Signature Page Follows]

                                       31
<PAGE>

         The Parties  hereto have  executed and  delivered  this Share  Exchange
Agreement as of the date first above written.

The Parent:
                                             CONCEPT VENTURES CORPORATION

                                             By: /s/ Timothy Halter
                                                --------------------------------
                                                Name: Timothy Halter
                                                Title: CEO and President

The Company:
                                             RITAR INTERNATIONAL GROUP LIMITED

                                             By: /s/ Li Yu
                                                --------------------------------
                                                Name: Li Yu
                                                Title: Executive Director

          [Stockholder Share Exchange Agreement Signature Pages Follow]

<PAGE>

         The  undersigned   Stockholder  hereby  executes  this  Share  Exchange
Agreement as of the date first above written.

                                                For Individuals:

                                                --------------------------------
                                                Print Name Above

                                                --------------------------------
                                                Sign Name Above

                                                For Entities:

                                                --------------------------------
                                                Print Name Above

                                                By:
                                                --------------------------------
                                                Name:
                                                Title:

<PAGE>
<TABLE>
<CAPTION>

                                    EXHIBIT A

              Shareholders of Ritar International Corporation, Ltd.
              -----------------------------------------------------

         As of the date of this Agreement, this Exhibit A shall only contain the
name and address of each  Stockholder  and the number of shares of Company Stock
held by each stockholder.  Prior to the Closing, this Exhibit A shall be amended
in a manner  that is  satisfactory  to all of the  Parties  so that the  missing
information is provided.

------------------------------------- ----------------- ------------- ----------------- ----------------
                                                                        Percentage of
                                                          Number of     Total Company       Number of
                                           Tax ID         Shares of        Shares           Shares of
                                          Number of        Company     Represented By     Parent Stock
                                       Stockholder (if   Stock Being    Shares Being     to be Received
Name and Address of Stockholder          Applicable)      Exchanged      Exchanged       by Stockholder
------------------------------------- ----------------- ------------- ----------------- ----------------
<S>                                   <C>               <C>           <C>               <C>

Hu Jia Da                                                    770             77.0%
Room D3-706, Fu Yuan Garden
Fu Tian District
Shenzhen City, Guandong Province
China
------------------------------------- ----------------- ------------- ----------------- ----------------

Zeng Jian Jun                                                 60              6.0%
Room 503, Block 14
Jian She Xin Cun
Cheng Bei District
Heng Yang City, Hu Nan Province
China
------------------------------------- ----------------- ------------- ----------------- ----------------

Peng Hen Ying                                                 60              6.0%
Room D3-706, Fu Yuan Garden
Fu Tian District
Shenzhen City, Guandong Province
China
------------------------------------- ----------------- ------------- ----------------- ----------------

Liu Bin                                                       40              4.0%
No. 2 Kun Ming Road,
Wu Lu Mu Qi City
China
------------------------------------- ----------------- ------------- ----------------- ----------------

<PAGE>

------------------------------------- ----------------- ------------- ----------------- ----------------
                                                                        Percentage of
                                                          Number of     Total Company       Number of
                                           Tax ID         Shares of        Shares           Shares of
                                          Number of        Company     Represented By     Parent Stock
                                       Stockholder (if   Stock Being    Shares Being     to be Received
Name and Address of Stockholder          Applicable)      Exchanged      Exchanged       by Stockholder
------------------------------------- ----------------- ------------- ----------------- ----------------

Zhu Hong Wei                                                  30              3.0%
Flat 7H, West Block
No. 2 Building, Tai Ran Bi Hai
Hong Shu Yuan
Fu Tian District
Shenzhen City
China
------------------------------------- ----------------- ------------- ----------------- ----------------

Xu Jian Han                                                   40              4.0%
No. 6 Group,
Mao Shan Village
Shan Feng Si Town
Hua Rong
Hu Nan Province
China
------------------------------------- ----------------- ------------- ----------------- ----------------

                               TOTAL:                                        100%
------------------------------------- ----------------- ------------- ----------------- ----------------
</TABLE>

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