Document:

SECURITIES
PURCHASE AGREEMENT

     

    This
Securities Purchase Agreement (this “Agreement”) is dated as of
December 21, 2010, by and among CFO Consultants, Inc., a Nevada corporation (the
“Company”) and the
investors identified on the signature pages hereto (each, an “Investor” and collectively,
the “Investors”).

     

    WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to
exemptions from registration under the Securities Act (as defined below), the
Company desires to issue and sell to each Investor and each Investor, severally
and not jointly, desires to purchase from the Company, certain securities of the
Company, as more fully described in this Agreement.

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and the Investors agree as
follows:

     

    ARTICLE
1.

    DEFINITIONS

     

    1.1.          Definitions.  In
addition to the terms defined elsewhere in this Agreement, for all purposes of
this Agreement, the following terms shall have the meanings indicated in this
Section 1.1:

     

    “Action” means any 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.

     

    “Affiliate” means any Person
that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a Person, as such terms are used
in and construed under Rule 144.

     

    “Business Day” means any day
except Saturday, Sunday and any day which is a federal legal holiday or a day on
which banking institutions in the State of New York are authorized or required
by law or other governmental action to close.

     

    “Buy-In” has the meaning set
forth in Section 4.1(c).

     

    “Closing” means the closing of
the purchase and sale of the Securities pursuant to Article II.

     

    “Closing Date” means the
Business Day on which all of the conditions set forth in Sections 5.1 and 5.2
hereof are satisfied, or such other date as the parties may
agree.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Closing Escrow Agreement"
means the Closing Escrow Agreement, dated as of the date hereof, between the
Company and the escrow agent (the “Escrow Agent”) identified
therein, in the form of Exhibit C
hereto.

     

    “Commission” means the
Securities and Exchange Commission.

     

    “Common Stock” means the
common stock of the Company, par value $0.001 per share, and any securities into
which such common stock may hereafter be reclassified or for which it may be
exchanged as a class.

     

    “Common Stock Equivalents”
means any securities of the Company or any Subsidiary which entitle the holder
thereof to acquire Common Stock at any time, including without limitation, any
debt, preferred stock, rights, options, warrants or other instrument that is at
any time convertible into or exchangeable for, or otherwise entitles the holder
thereof to receive, Common Stock or other securities that entitle the holder to
receive, directly or indirectly, Common Stock.

     

    “Company Counsel” means Loeb
& Loeb LLP.

     

    “Company Deliverables” has the
meaning set forth in Section 2.2(a).

     

    “Disclosure Materials” has the
meaning set forth in Section 3.1(h).

     

    “Effective Date” means the
date that the Registration Statement required by Section 2(a) of the
Registration Rights Agreement is first declared effective by the
Commission.

     

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

     

    “GAAP” means U.S. generally
accepted accounting principles.

     

    “Intellectual Property Rights”
has the meaning set forth in Section 3.1(p).

     

    “Investment Amount” means,
with respect to each Investor, the Investment Amount indicated on such
Investor’s signature page to this Agreement.

     

    “Investor Deliverables” has
the meaning set forth in Section 2.2(b).

     

    “Investor Party” has the
meaning set forth in Section 4.7.

     

    “Lien” means any lien, charge,
encumbrance, security interest, right of first refusal, right of participation
or other restrictions of any kind.

     

    “Lockup Agreement” means
collectively, the Lockup Agreements, each dated as of the Closing Date, by and
between the Company and each person listed as a signatory thereto, in the form
attached as Exhibit
E hereto.

     

    “Losses” means any loss,
liability, obligation, claim, contingency, damage, cost or expense, including
all judgments, amounts paid in settlements, court costs and reasonable
attorneys’ fees and costs of investigation related thereto.

    
      
         

      

      
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    “Make Good Escrow Agreement”
means the Make Good Escrow Agreement, dated as of the date hereof, among
the Company, Kai Bo Holdings Ltd., as make good pledgor, and Collateral Agents, LLC, as
escrow agent (the “Make Good
Escrow Agent”), in the form of Exhibit D
hereto.

     

    “Material Adverse Effect”
means any of (i) a material and adverse effect on the legality, validity or
enforceability of any Transaction Document, (ii) a material and adverse effect
on the results of operations, assets, prospects, business or condition
(financial or otherwise) of the Company and the Subsidiaries, taken as a whole,
except for results or consequences attributable to the effects of, or changes
in, general economic or capital markets conditions or effects and changes that
generally affect the industries in which the Company operates, such as
regulatory action by the PRC or municipal governments or (iii) a material and
adverse impairment to the Company’s ability to perform on a timely basis its
obligations under any Transaction Document.

     

    “New York Courts” means the
state and federal courts sitting in the City of New York, Borough of
Manhattan.

     

    “Outside Date” means the
sixtieth day following the date of this Agreement.

     

    “PRC” means, for the purpose of
this Agreement, the People’s Republic of China, not including Taiwan, Hong Kong
and Macau.

     

    “Per Share Purchase Price”
equals $0.25.

     

    “Person” means an individual
or corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an
agency or subdivision thereof) or other entity of any kind.

     

    “Proceeding” means an action,
claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

     

    “Registration Rights
Agreement” means the Registration Rights Agreement, dated as of the date
of this Agreement, among the Company and the Investors, in the form of Exhibit A
hereto.

     

    “Registration Statement” means
a registration statement meeting the requirements set forth in the Registration
Rights Agreement and covering the resale by the Investors of the Securities and
the Escrow Shares (as defined in the Make Good Escrow Agreement).

     

    “Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

     

    “SEC Reports” has the meaning
set forth in Section 3.1(h).

    
      
         

      

      
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    “Securities” means the Shares,
the Warrants and the Warrant Shares.

     

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

     

    “Share Delivery Date” has the
meaning set forth in Section 4.1(c).

     

    “Shares” means the shares of
Common Stock being offered and sold to the Investors by the Company
hereunder.

     

    “Short Sales” include, without
limitation, all “short sales” as defined in Rule 200 promulgated under
Regulation SHO under the Exchange Act and all types of direct and indirect stock
pledges, forward sale contracts, options, puts, calls, swaps and similar
arrangements (including on a total return basis), and sales and other
transactions through non-US broker dealers or foreign regulated
brokers.

     

    “Subsidiary” means any
“significant subsidiary” as defined in Rule 1-02(w) of the Regulation S-X
promulgated by the Commission under the Exchange Act.  For purposes of
this Agreement, the term Subsidiaries shall be deemed to include Hong Kong Wai
Bo International Limited, Yunnan Zhaoyang Weili Starch Co, Ltd., Guizhou
Province Weining Weili Starch Co., Ltd. and Gansu Weibao Starch Co.,
Ltd.

     

    “Trading Day” means (i) a day
on which the Common Stock is traded on a Trading Market (other than the OTC
Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market
(other than the OTC Bulletin Board), a day on which the Common Stock is traded
in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii)
if the Common Stock is not quoted on any Trading Market, a day on which the
Common Stock is quoted in the over-the-counter market as reported by the Pink
Sheets LLC (or any similar organization or agency succeeding to its functions of
reporting prices); provided, that in the event that the Common Stock is not
listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day
shall mean a Business Day.

     

    “Trading Market” means
whichever of the New York Stock Exchange, the American Stock Exchange, the
NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market
or OTC Bulletin Board on which the Common Stock is listed or quoted for trading
on the date in question.

     

    “Transaction Documents” means
this Agreement, the Registration Rights Agreement, the Warrants, the Lockup
Agreement, the Closing Escrow Agreement, the Make Good Escrow Agreement and any
other documents or agreements executed in connection with the transactions
contemplated hereunder.

     

    “Warrants” means the Common
Stock purchase warrants in the form of Exhibit B, which are
issuable  to the Investors at the Closing.

     

    “Warrant Shares” means the
shares of Common Stock issuable upon exercise of the Warrants.

    
      
         

      

      
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    ARTICLE
2.

    PURCHASE
AND SALE

     

    2.1.          Closing.  Subject
to the terms and conditions set forth in this Agreement, at the Closing the
Company shall issue and sell to each Investor, and each Investor shall,
severally and not jointly, purchase from the Company, a) the Shares representing
such Investor’s Investment Amount, calculated as the quotient of such Investor’s
Investment Amount divided by the Per Share Purchase Price; as set forth opposite
such Investor's name on the Schedule of Investors, and (b) the Warrants to
acquire that number of Warrant Shares set forth opposite such Investor's name on
the Schedule of Investors..  The Closing shall take place at the
offices of Pillsbury Winthrop Shaw Pittman LLP, counsel for Roth Capital
Partners, LLC, at 1540 Broadway, New York, NY 10036 on the Closing Date or at
such other location or time as the parties may agree.

     

    2.2.          Closing
Deliveries.  (a)  At
the Closing, the Company shall deliver or cause to be delivered to each Investor
the following (the “Company
Deliverables”):

     

    (i)           a
single certificate representing that number of aggregate Shares to be issued and
sold at Closing to such Investor, registered in the name of such
Investor;

     

    (ii)          a
Warrant, registered in the name of such Investor, pursuant to which such
Investor shall have the right to acquire the number of shares of Common Stock
equal to 20% of the number of Shares issuable to such Investor pursuant to
Section 2.2(a)(i), at an exercise price per share that is equal to 130% of the
Per Share Purchase Price;

     

    (iii)         the
Closing Escrow Agreement, duly executed by all parties thereto;

     

    (iv)         the
Make Good Escrow Agreement, duly executed by all parties thereto;

     

    (v)          the
legal opinion of Company Counsel, in agreed form, addressed to the
Investors;

     

    (vi)         the
Registration Rights Agreement, duly executed by the Company; and

     

    (vii)        the
Lockup Agreements, duly executed by each party thereto.

     

    (b)           At
the Closing, each Investor shall deliver or cause to be delivered the following
(collectively, the “Investors
Deliverables”):

     

    (i)           to
the Escrow Agent, for deposit and disbursement in accordance with the Closing
Escrow Agreement, its Investment Amount, in immediately available funds, by wire
transfer to an account designated in writing by the Company for such purpose;
and

     

    (ii)          to
the Company, the Registration Rights Agreement, the Closing Escrow Agreement and
the Investor Questionnaires, duly executed by such Investor.

    
      
         

      

      
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    ARTICLE
3.

    REPRESENTATIONS
AND WARRANTIES

     

    3.1.         Representations and
Warranties of the Company.  The
Company hereby makes the following representations and warranties to each
Investor:

     

    (a)           Subsidiaries.  The
Company has no direct or indirect Subsidiaries other than as specified in the
Schedule
3.1(a).  Except as disclosed in Schedule 3.1(a), the
Company owns, directly or indirectly, all of the capital stock of each
Subsidiary free and clear of any and all Liens, and all the issued and
outstanding shares of capital stock of each Subsidiary are validly issued and
are fully paid, non-assessable and free of preemptive and similar
rights.

     

    (b)           Organization and
Qualification.  The Company and each Subsidiary are duly
incorporated or otherwise organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or organization (as
applicable), with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently
conducted.  Neither the Company nor any Subsidiary is in violation of
any of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter
documents.  The Company and each Subsidiary are duly qualified to
conduct its respective businesses and are in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may
be, could not, individually or in the aggregate, have or reasonably be expected
to result in a Material Adverse Effect.

     

    (c)           Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents and otherwise to carry out its obligations
thereunder.  The execution and delivery of each of the Transaction
Documents by the Company and the consummation by it of the transactions
contemplated thereby have been duly authorized by all necessary action on the
part of the Company and no further action is required by the Company in
connection therewith.  Each Transaction Document has been (or upon
delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to,
or affecting generally the enforcement of, creditors’ rights and remedies or by
other equitable principles of general application.

    
      
         

      

      
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    (d)           No
Conflicts.  The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated thereby do not and will not (i) conflict with or
violate any provision of the Company’s or any Subsidiary’s certificate or
articles of incorporation, bylaws or other organizational or charter documents,
or (ii) conflict with, or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company or Subsidiary debt or otherwise) or other
understanding to which the Company or any Subsidiary is a party or by which any
property or asset of the Company or any Subsidiary is bound or affected, or
(iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority
to which the Company or a Subsidiary is subject (including federal and state
securities laws and regulations), or by which any property or asset of the
Company or a Subsidiary is bound or affected; except in the case of each of
clauses (ii) and (iii), such as could not, individually or in the aggregate,
have or reasonably be expected to result in a Material Adverse
Effect.

     

    (e)           Filings, Consents and
Approvals.  The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or
registration with, any United States or People’s Republic of China court or
other federal, state, local or other governmental authority or other Person in
connection with the execution, delivery and performance by the Company of the
Transaction Documents, other than (i) the filing with the Commission of one or
more Registration Statements in accordance with the requirements of the
Registration Rights Agreement, (ii) filings required by state securities laws,
(iii) the filing of a Notice of Sale of Securities on Form D with the Commission
under Regulation D of the Securities Act, (iv) the filings required in
accordance with Section 4.5 and (v) those that have been made or obtained prior
to the date of this Agreement.

     

    (f)           Issuance of the
Shares.  The Securities have been duly authorized and, when
issued and paid for in accordance with the Transaction Documents, will be duly
and validly issued, fully paid and nonassessable, free and clear of all
Liens.  The Company has reserved from its duly authorized capital
stock the shares of Common Stock issuable pursuant to this Agreement and the
Warrants in order to issue the Shares and the Warrant Shares.

     

    (g)           Capitalization.  The
number of shares and type of all authorized, issued and outstanding capital
stock of the Company, and all shares of Common Stock reserved for issuance under
the Company’s various option and incentive plans, is specified in the SEC
Reports.  Except as specified in the SEC Reports, no securities of the
Company are entitled to preemptive or similar rights, and no Person has any
right of first refusal, preemptive right, right of participation, or any similar
right to participate in the transactions contemplated by the Transaction
Documents.  Except as specified in the SEC Reports, there are no
outstanding options, warrants, scrip rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exchangeable for, or giving any Person any right
to subscribe for or acquire, any shares of Common Stock, or contracts,
commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to issue additional shares of Common Stock, or
securities or rights convertible or exchangeable into shares of Common
Stock.  The issue and sale of the Securities hereunder will not,
immediately or with the passage of time, obligate the Company to issue shares of
Common Stock or other securities to any Person (other than the Investors) and
will not result in a right of any holder of Company securities to adjust the
exercise, conversion, exchange or reset price under such
securities.

    
      
         

      

      
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    (h)           SEC Reports; Financial
Statements.  To the knowledge of the Company, the Company has
filed all reports required to be filed by it under the Securities Act and the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the
twelve months preceding the date hereof (or such shorter period as the Company
was required by law to file such reports) (the foregoing materials being
collectively referred to herein as the “SEC Reports” and, together
with the Schedules to this Agreement (if any), the “Disclosure Materials”) on a
timely basis or has timely filed a valid extension of such time of filing and
has filed any such SEC Reports prior to the expiration of any such
extension.  As of their respective dates, the SEC Reports complied in
all material respects with the requirements of the Securities Act and the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder, and none of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading.  The
financial statements of the Company included in the SEC Reports comply in all
material respects with applicable accounting requirements and the rules and
regulations of the Commission with respect thereto as in effect at the time of
filing.  Such financial statements have been prepared in accordance
with GAAP applied on a consistent basis during the periods involved, except as
may be otherwise specified in such financial statements or the notes thereto,
and fairly present in all material respects the financial position of the
Company and its consolidated Subsidiaries as of and for the dates thereof and
the results of operations and cash flows for the periods then ended, subject, in
the case of unaudited statements, to normal, immaterial, year-end audit
adjustments.

     

    (i)           Press
Releases.  The press releases disseminated by the Company prior
to the date of this Agreement taken as a whole do 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 and when made, not
misleading.

     

    (j)           Material
Changes.  Since the date of the latest audited financial
statements included within the SEC Reports, except as specifically disclosed in
the SEC Reports and except as arising as a result of the transactions
contemplated by the Transaction Documents, (i) there has been no event,
occurrence or development that has had or that could reasonably be expected to
result in a Material Adverse Effect, (ii) the Company has not incurred any
liabilities (contingent or otherwise) other than (A) trade payables, accrued
expenses and other liabilities incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or required to be
disclosed in filings made with the Commission, (iii) the Company has not altered
its method of accounting or the identity of its auditors, (iv) the Company has
not declared or made any dividend or distribution of cash or other property to
its stockholders or purchased, redeemed or made any agreements to purchase or
redeem any shares of its capital stock, and (v) the Company has not issued any
equity securities to any officer, director or Affiliate, except pursuant to
existing Company stock option plans. The Company does not have pending before
the Commission any request for confidential treatment of
information.

    
      
         

      

      
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    (k)           Litigation.  There
is no Action which (i) adversely affects or challenges the legality, validity or
enforceability of any of the Transaction Documents or the Shares or (ii) except
as specifically disclosed in the SEC Reports, could, if there were an
unfavorable decision, individually or in the aggregate, have or reasonably be
expected to result in a 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 of
violation of or liability under federal or state securities laws or a claim of
breach of fiduciary duty, except as specifically disclosed in the SEC
Reports.  There has not been, and to the knowledge of the Company,
there is not pending any investigation by the Commission involving the Company
or any current or former director or officer of the Company (in his or her
capacity as such).  The Commission has not issued any stop order or
other order suspending the effectiveness of any registration statement filed by
the Company or any Subsidiary under the Exchange Act or the Securities
Act.

     

    (l)            
Labor
Relations.  No material labor dispute exists or, to the
knowledge of the Company, is imminent with respect to any of the employees of
the Company.

     

    (m)           Compliance.  Neither
the Company nor any Subsidiary (i) is in default under or in violation of (and
no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by the Company or any Subsidiary under),
nor has the Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is in violation of any order of any court,
arbitrator or governmental body, or (iii) is or has been in violation of any
statute, rule or regulation of any governmental authority, including, without
limitation, all foreign, federal, state and local laws relating to taxes,
environmental protection, occupational health and safety, product quality and
safety and employment and labor matters, except in each case as could not,
individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect.  The Company 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 Material
Adverse Effect.

     

    (n)           Regulatory
Permits.  The Company and the Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their
respective businesses as described in the SEC Reports, except where the failure
to possess such permits could not, individually or in the aggregate, have or
reasonably be expected to result in a Material Adverse Effect, and neither the
Company nor any Subsidiary has received any notice of proceedings relating to
the revocation or modification of any such permits.

     

    (o)           Title to
Assets.  The Company and the Subsidiaries have valid land use
rights for all real property owned by them that is material to their respective
businesses and good and marketable title in all personal property owned by them
that is material to their respective businesses, in each case free and clear of
all Liens, except for Liens as do not materially affect the value of such
property and do not materially interfere with the use made and proposed to be
made of such property by the Company and the Subsidiaries. Any real property and
facilities held under lease by the Company and the Subsidiaries are held by them
under valid, subsisting and enforceable leases of which the Company and the
Subsidiaries are in compliance, except as could not, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse
Effect.

    
      
         

      

      
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    (p)           Patents and
Trademarks.  The Company and the Subsidiaries have, or have
rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, licenses and other similar
rights that are necessary or material for use in connection with their
respective businesses as described in the SEC Reports and which the failure to
so have could, individually or in the aggregate, have or reasonably be expected
to result in a Material Adverse Effect (collectively, the “Intellectual Property
Rights”).  Neither the Company nor any Subsidiary has received
a written notice that the Intellectual Property Rights used by the Company or
any Subsidiary violates or infringes upon the rights of any
Person.  Except as set forth in the SEC Reports, to the knowledge of
the Company, all such Intellectual Property Rights are enforceable and there is
no existing infringement by another Person of any of the Intellectual Property
Rights.

     

    (q)           Insurance.  The
Company and the 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 the Subsidiaries are
engaged.  The Company has no reason to believe that it will not be
able to renew its and the 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.

     

    (r)           Transactions With Affiliates
and Employees.  Except as set forth in the SEC Reports, 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.

     

    (s)           Internal Accounting
Controls.  Except as set forth in the SEC Reports, the Company
maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (a) transactions are executed in accordance with
management’s general or specific authorization, (b) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset accountability, (c) access to
assets is permitted only in accordance with management’s general or specific
authorization and (d) the recorded accountability for assets is compared
with the existing assets at quarterly intervals and appropriate action is taken
with respect to any material differences.  The Company maintains
disclosure controls and procedures (as such term is defined in Rule 13a-15
under the Exchange Act) that are effective in ensuring that information required
to be disclosed by the Company in the reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported, within the time
periods specified in the rules and forms of the Commission, including, without
limitation, controls and procedures designed to ensure that information required
to be disclosed by the Company in the reports that it files or submits under the
Exchange Act is accumulated and communicated to the Company’s management,
including its principal executive officer or officers and its principal
financial officer or officers, as appropriate, to allow timely decisions
regarding required disclosure.

    
      
         

      

      
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    (t)           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).

     

    (u)           Certain
Fees.  Except as payable to Roth Capital Partners, LLC, no
brokerage or finder’s fees or commissions are or will be payable by the Company
to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions
contemplated by this Agreement.  The Investors shall have no
obligation with respect to any fees or with respect to any claims (other than
such fees or commissions owed by an Investor pursuant to written agreements
executed by such Investor which fees or commissions shall be the sole
responsibility of such Investor) made by or on behalf of other Persons for fees
of a type contemplated in this Section that may be due in connection with the
transactions contemplated by this Agreement.

     

    (v)           Certain Registration
Matters. Assuming the accuracy of the Investors’ representations and
warranties set forth in Section 3.2(b)-(e), no registration under the Securities
Act is required for the offer and sale of the Shares and Warrants and the offer
of the Warrant Shares by the Company to the Investors under the Transaction
Documents.  The Company is eligible to register its Common Stock for
resale by the Investors under Form S-1 promulgated under the Securities
Act.  Except as specified in Schedule 3.1(v), the
Company has not granted or agreed to grant to any Person any rights (including
“piggy-back” registration rights) to have any securities of the Company
registered with the Commission or any other governmental authority that have not
been satisfied.

     

    (w)           Listing and Maintenance
Requirements.  Except as specified in the SEC Reports, the
Company has not, in the two years preceding the date hereof, received notice
from any Trading Market to the effect that the Company is not in compliance with
the listing or maintenance requirements thereof.  The Company 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 Common Stock on the Trading Market on which the Common Stock is
currently listed or quoted.  The issuance and sale of the Shares under
the Transaction Documents does not contravene the rules and regulations of the
Trading Market on which the Common Stock is currently listed or quoted, and no
approval of the stockholders of the Company thereunder is required for the
Company to issue and deliver to the Investors the Shares contemplated by the
Transaction Documents.

    
      
         

      

      
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    (x)           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.

     

    (y)           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 Articles of
Incorporation (or similar charter documents) or the laws of its state of
incorporation that is or could become applicable to the Investors as a result of
the Investors and the Company fulfilling their obligations or exercising their
rights under the Transaction Documents, including without limitation the
Company’s issuance of the Shares and the Investors’ ownership of the
Securities.

     

    (z)           No Additional
Agreements.  The Company does not have any agreement or
understanding with any Investor with respect to the transactions contemplated by
the Transaction Documents other than as specified in the Transaction
Documents.

     

    (aa)           Consultation with
Auditors.  The Company has consulted its independent auditors
concerning the accounting treatment of the transactions contemplated by the
Transaction Documents, and in connection therewith has furnished such auditors
complete copies of the Transaction Documents.

     

    (bb)           Foreign Corrupt Practices
Act.  Neither the Company or any Subsidiary, nor to the
knowledge of the Company, any agent or other person acting on behalf of the
Company or any Subsidiary, has, directly or indirectly, (i) used any funds, or
will use any proceeds from the sale of the Securities, for unlawful
contributions, gifts, entertainment or other unlawful expenses related to
foreign or domestic political activity, (ii) made any unlawful payment to
foreign or domestic government officials or employees or to any foreign or
domestic political parties or campaigns from corporate funds, (iii) failed to
disclose fully any contribution made by the Company or any Subsidiary (or made
by any Person acting on their behalf of which the Company is aware) which is in
violation of law, or (iv) has violated in any material respect any provision of
the Foreign Corrupt Practices Act of 1977, as amended, and the rules and
regulations thereunder.

     

    (cc)           PFIC.  Neither
the Company nor any Subsidiary is or intends to become a “passive foreign
investment company” within the meaning of Section 1297 of the U.S. Internal
Revenue Code of 1986, as amended.

     

    (dd)           OFAC. Neither the
Company nor any Subsidiary nor, to the knowledge of the Company, any director,
officer, agent, employee, Affiliate or Person acting on behalf of the Company or
any Subsidiary, is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will
not directly or indirectly use the proceeds of the sale of the Securities, or
lend, contribute or otherwise make available such proceeds to any Subsidiary,
joint venture partner or other Person or entity, towards any sales or operations
in Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned by OFAC or
for the purpose of financing the activities of any Person currently subject to
any U.S. sanctions administered by OFAC.

    
      
         

      

      
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    (ee)           Money Laundering
Laws. The operations of each of the Company and any Subsidiary are and
have been conducted at all times in compliance with the money laundering
statutes of applicable jurisdictions, the rules and regulations thereunder and
any related or similar rules, regulations or guidelines, issued, administered or
enforced by any applicable governmental agency (collectively, the “Money Laundering Laws”) and no
action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any Subsidiary with
respect to the Money Laundering Laws is pending or, to the best knowledge of the
Company, threatened.

     

    (ff)          Other Representations and
Warranties Relating to the Company and Subsidiaries.

     

    (i)           All
material consents, approvals, authorizations or licenses requisite under PRC law
for the due and proper establishment and operation of the Company and its
Subsidiaries have been duly obtained from the relevant PRC governmental
authorities and are in full force and effect.

     

    (ii)           All
filings and registrations with the PRC governmental authorities required in
respect of the Company and its Subsidiaries and its capital structure and
operations including, without limitation, the registration with the Ministry of
Commerce, the China Securities Regulatory Commission, the State Administration
of Industry and or their respective local divisions of Commerce, the State
Administration of Foreign Exchange, tax bureau and customs authorities have been
duly completed in accordance with the relevant PRC rules and regulations, except
where, the failure to complete such filings and registrations does not, and
would not, individually or in the aggregate, have a Material Adverse
Effect.

     

    (iii)           The
Company and its Subsidiaries have complied with all relevant PRC laws and
regulations regarding the contribution and payment of their registered share
capital, the payment schedule of which has been approved by the relevant PRC
governmental authorities.  There are no outstanding commitments made
by the Company or any Subsidiary to sell any equity interest in any
Subsidiary.

     

    (iv)           No
Subsidiary has received any letter or notice from any relevant PRC governmental
authority notifying it of revocation of any licenses or qualifications issued to
it or any subsidy granted to it by any PRC governmental authority for
non-compliance with the terms thereof or with applicable PRC laws, or the lack
of compliance or remedial actions in respect of the activities carried out by
such Subsidiary, except such revocation as does not, and would not, individually
or in the aggregate, have a Material Adverse Effect.

     

    (v)           All
Subsidiaries have conducted their business activities within the permitted scope
of business or has otherwise operated its business in compliance with all
relevant legal requirements and with all requisite licenses and approvals
granted by competent PRC governmental authorities other than such non-compliance
that do not, and would not, individually or in the aggregate, have a Material
Adverse Effect.  As to licenses, approvals and government grants and
concessions requisite or material for the conduct of any material part of any
Subsidiary’s business which is subject to periodic renewal, the Company has no
knowledge of any reasons related to such Subsidiary for which such requisite
renewals will not be granted by the relevant PRC governmental
authorities.

    
      
         

      

      
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    (gg)           With
regard to employment and staff or labor, the Subsidiaries have complied with all
applicable PRC laws and regulations in all material respects, including, without
limitation, laws and regulations pertaining to welfare funds, social benefits,
medical benefits, insurance, retirement benefits, pensions or the like, other
than such non-compliance that do not, and would not, individually or in the
aggregate, have a Material Adverse Effect.

     

    (hh)           Disclosure.  The
Company confirms that neither it nor any Person acting on its behalf has
provided any Investor or its respective agents or counsel with any information
that the Company believes constitutes material, non-public information
concerning the Company, the Subsidiaries or their respective businesses, except
insofar as the existence and terms of the proposed transactions contemplated
hereunder may constitute such information. The Company understands and confirms
that the Investors will rely on the foregoing representations and covenants in
effecting transactions in securities of the Company.  Except as
specified below, all disclosure provided to the Investors regarding the Company,
the Subsidiaries or their respective businesses 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.

     

    Each
Investor acknowledges and agrees that the Company has not made nor makes any
representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in this Section 3.1.

     

    3.2.         Representations and
Warranties of the Investors.  Each
Investor hereby, for itself and for no other Investor, represents and warrants
to the Company as follows:

     

    (a)           Organization;
Authority.  Such Investor is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization with the requisite corporate or partnership power and authority to
enter into and to consummate the transactions contemplated by the applicable
Transaction Documents and otherwise to carry out its obligations thereunder. The
execution, delivery and performance by such Investor of the transactions
contemplated by this Agreement has been duly authorized by all necessary
corporate or, if such Investor is not a corporation, such partnership, limited
liability company or other applicable like action, on the part of such
Investor.  Each of this Agreement and the Registration Rights
Agreement has been duly executed by such Investor, and when delivered by such
Investor in accordance with the terms hereof, will constitute the valid and
legally binding obligation of such Investor, enforceable against it in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally the enforcement of, creditors’
rights and remedies or by other equitable principles of general
application.

    
      
         

      

      
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    (b)           Investment
Intent.  Such Investor is acquiring the Securities as principal
for its own account for investment purposes only and not with a view to or for
distributing or reselling such Securities or any part thereof, without
prejudice, however, to such Investor’s right at all times to sell or otherwise
dispose of all or any part of such Securities in compliance with applicable
federal and state securities laws.  Subject to the immediately
preceding sentence, nothing contained herein shall be deemed a representation or
warranty by such Investor to hold the Securities for any period of
time.  Such Investor is acquiring the Securities hereunder in the
ordinary course of its business. Such Investor does not have any agreement or
understanding, directly or indirectly, with any Person to distribute any of the
Securities.

     

    (c)           Investor
Status.  At the time such Investor was offered the Securities,
it was, and at the date hereof it is, an “accredited investor” as defined in
Rule 501(a) under the Securities Act.  Such Investor is not a
registered broker-dealer under Section 15 of the Exchange Act.

     

    (d)           General
Solicitation.  Such Investor is not purchasing the Securities
as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media
or broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.

     

    (e)           Access to
Information.  Such Investor acknowledges that it has reviewed
the Disclosure Materials and has been afforded (i) the opportunity to ask such
questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the
offering of the Securities and the merits and risks of investing in the
Securities; (ii) access to information about the Company and the Subsidiaries
and their respective financial condition, results of operations, business,
properties, management and prospects sufficient to enable it to evaluate its
investment; and (iii) the opportunity to obtain such additional information that
the Company possesses or can acquire without unreasonable effort or expense that
is necessary to make an informed investment decision with respect to the
investment.  Neither such inquiries nor any other investigation
conducted by or on behalf of such Investor or its representatives or counsel
shall modify, amend or affect such Investor’s right to rely on the truth,
accuracy and completeness of the Disclosure Materials and the Company’s
representations and warranties contained in the Transaction
Documents.  Such Investor acknowledges that notwithstanding the
foregoing, any draft of the Registration Statement to be filed on Form S-1 in
connection with the transactions contemplated hereby that was provided to such
Investor prior to the date hereof was incomplete in the form distributed, and
such Investor is not relying on such draft on Form S-1 in making its decision to
enter into the transactions contemplated hereby.

     

    (f)           Certain Trading
Activities.  Such Investor has not directly or indirectly, nor
has any Person acting on behalf of or pursuant to any understanding with such
Investor, engaged in any transactions in the securities of the Company
(including, without limitations, any Short Sales involving the Company’s
securities) since the earlier to occur of (1) the time that such Investor was
first contacted by the Company or Roth Capital Partners, LLC regarding an
investment in the Company and (2) the 30th day
prior to the date of this Agreement.  Such Investor covenants that
neither it nor any Person acting on its behalf or pursuant to any understanding
with it will engage in any transactions in the securities of the Company
(including Short Sales) prior to the time that the transactions contemplated by
this Agreement are publicly disclosed.

    
      
         

      

      
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    (g)           Independent Investment
Decision.  Such Investor has independently evaluated the merits
of its decision to purchase the Securities pursuant to the Transaction
Documents, and such Investor confirms that it has not relied on the advice of
any other Investor’s business and/or legal counsel in making such
decision.  Such Investor has not relied on the business or legal
advice of Roth Capital Partners, LLC or any of its agents, counsel or Affiliates
in making its investment decision hereunder, and confirms that none of such
Persons has made any representations or warranties to such Investor in
connection with the transactions contemplated by the Transaction
Documents.

     

    (h)           Rule
144.  Such Investor understands that the Securities must be
held indefinitely unless such Securities are registered under the Securities Act
or an exemption from registration is available.  Such Investor
acknowledges that it is familiar with Rule 144 and that such Investor has been
advised that Rule 144 permits resales only under certain
circumstances.  Such Investor understands that to the extent that Rule
144 is not available, such Investor will be unable to sell any Securities
without either registration under the Securities Act or the extistence of
another exemption from such registration statement.

     

    The
Company acknowledges and agrees that no Investor has made or makes any
representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in this Section 3.2.

     

    ARTICLE
4.

    OTHER
AGREEMENTS OF THE PARTIES

     

    4.1.          (a)          
Securities
may only be disposed of in compliance with state and federal securities
laws.  In connection with any transfer of the Securities other than
pursuant to an effective registration statement, to the Company, to an Affiliate
of an Investor or in connection with a pledge as contemplated in Section 4.1(b),
the Company may require the transferor thereof to provide to the Company an
opinion of counsel selected by the transferor, the form and substance of which
opinion shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Securities under the
Securities Act.

     

    (b)           Certificates
evidencing the Securities will contain the following legend, until such time as
they are not required under Section 4.1(c):

     

    [NEITHER
THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
HAVE BEEN REGISTERED] [THESE SECURITIES HAVE NOT BEEN REGISTERED] WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY.  [THESE SECURITIES AND THE SECURITIES
ISSUABLE UPON EXERCISE OF THESE SECURITIES] [THESE SECURITIES] MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH
SECURITIES.

    
      
         

      

      
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    The
Company acknowledges and agrees that an Investor may from time to time pledge,
and/or grant a security interest in some or all of the Securities pursuant to a
bona fide margin agreement in connection with a bona fide margin account and, if
required under the terms of such agreement or account, such Investor may
transfer pledged or secured Securities to the pledgees or secured
parties.  Such a pledge or transfer would not be subject to approval
or consent of the Company and no legal opinion of legal counsel to the pledgee,
secured party or pledgor shall be required in connection with the pledge, but
such legal opinion may be required in connection with a subsequent transfer
following default by the Investor transferee of the pledge.  No notice
shall be required of such pledge.  At the appropriate Investor’s
expense, the Company will execute and deliver such reasonable documentation as a
pledgee or secured party of Securities may reasonably request in connection with
a pledge or transfer of the Securities including the preparation and filing of
any required prospectus supplement under Rule 424(b)(3) of the Securities Act or
other applicable provision of the Securities Act to appropriately amend the list
of selling stockholders thereunder.  Except as otherwise provided in
Section 4.1(c), any Securities subject to a pledge or security interest as
contemplated by this Section 4.1(b) shall continue to bear the legend set forth
in this Section 4.1(b) and be subject to the restrictions on transfer set forth
in Section 4.1(a).

    
      
         

      

      
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    (c)           Certificates
evidencing Securities shall not contain any legend (including the legend set
forth in Section 4.1(b)):  (i) while a registration
statement (including the Registration Statement) covering such Securities is
then effective, or (ii) following a sale or transfer of such Securities
pursuant to Rule 144 (assuming the transferee is not an Affiliate of the
Company), or (iii) while such Securities are eligible for sale by the
selling Investor without volume restrictions under Rule 144.  The
Company agrees that following the Effective Date or such other time as legends
are no longer required to be set forth on certificates representing Securities
under this Section 4.1(c), it will, no longer than three Trading Days
following the delivery by an Investor to the Company or the Transfer Agent of a
certificate representing such Securities containing a restrictive legend,
deliver or instruct the Transfer Agent to deliver to such Investor, Securities
which are free of all restrictive and other legends.  If the Company
is then eligible, certificates for Securities subject to legend removal
hereunder shall be transmitted by the Transfer Agent to an Investor by crediting
the prime brokerage account of such Investor with the Depository Trust Company
System as directed by such Investor.  If an Investor shall make a sale
or transfer of Securities either (x) pursuant to Rule 144 or
(y) pursuant to a registration statement and in each case shall have
delivered to the Company or the Company’s transfer agent the certificate
representing the applicable Securities containing a restrictive legend which are
the subject of such sale or transfer and a representation letter in customary
form (the date of such sale or transfer and Securities delivery being the “Securities Delivery Date”) and
(1) the Company shall fail to deliver or cause to be delivered to such
Investor a certificate representing such Securities that is free from all
restrictive or other legends by the third Trading Day following the Securities
Delivery Date and (2) following such third Trading Day after the Securities
Delivery Date and prior to the time such Securities are received free from
restrictive legends, the Investor, or any third party on behalf of such
Investor, purchases (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Investor of such
Securities (a “Buy-In”),
then, in addition to any other rights available to the Investor under the
Transaction Documents and applicable law, the Company shall pay in cash to the
Investor (for costs incurred either directly by such Investor or on behalf of a
third party) the amount by which the total purchase price paid for Common Stock
as a result of the Buy-In (including brokerage commissions, if any) exceed the
proceeds received by such Investor as a result of the sale to which such Buy-In
relates.  The Investor shall provide the Company written notice
indicating the amounts payable to the Investor in respect of the
Buy-In.  The Company may not make any notation on its records or give
instructions to any transfer agent of the Company that enlarge the restrictions
on transfer set forth in this Section.

     

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

     

    4.3.          Integration.  The
Company shall not, and shall use its best efforts to ensure that no Affiliate of
the Company shall, sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the Securities in a
manner that would require the registration under the Securities Act of the sale
of the Securities to the Investors, or that would be integrated with the offer
or sale of the Securities for purposes of the rules and regulations of any
Trading Market in a manner that would require stockholder approval of the sale
of the Securities to the Investors.

     

    4.4.          Subsequent
Registrations.  Other
than pursuant to the Registration Statement, prior to the Effective Date, the
Company may not file any registration statement (other than on Form
S-8)  with the Commission with respect to any securities of the
Company.

    
      
         

      

      
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    4.5.          Securities Laws Disclosure;
Publicity.  By
9:30 a.m. (New York time) on the Trading Day following the execution of this
Agreement the Company shall issue a press release disclosing the transactions
contemplated hereby.  On the Trading Day following the execution of
this Agreement the Company will file a Current Report on Form 8-K disclosing the
material terms of the Transaction Documents (and attach as exhibits thereto the
Transaction Documents).  In addition, the Company will make such other
filings and notices in the manner and time required by the Commission and the
Trading Market on which the Common Stock may be
listed.  Notwithstanding the foregoing, the Company shall not publicly
disclose the name of any Investor, or include the name of any Investor in any
filing with the Commission (other than the Registration Statement and any
exhibits to filings made in respect of this transaction in accordance with
periodic filing requirements under the Exchange Act) or any regulatory agency or
Trading Market upon which the Common Stock may be listed, without the prior
written consent of such Investor, except to the extent such disclosure is
required by law or applicable Trading Market regulations.

     

    4.6.          Limitation on Issuance of
Future Priced Securities.  During
the six months following the Closing Date, the Company shall not issue any
“Future Priced Securities” as such term is described by NASD
IM-4350-1.

     

    4.7.          Indemnification of
Investors.  In addition to the indemnity provided in the
Registration Rights Agreement, the Company will indemnify and hold the Investors
and their directors, officers, shareholders, partners, employees and agents
(each, an "Investor
Party") harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys' fees and
costs of investigation (collectively, "Losses") that any such
Investor Party may suffer or incur as a result of or relating to any
misrepresentation, breach or inaccuracy of any representation, warranty,
covenant or agreement made by the Company in any Transaction
Document.  In addition to the indemnity contained herein, the Company
will reimburse each Investor Party for its reasonable legal and other expenses
(including the cost of any investigation, preparation and travel in connection
therewith) incurred in connection therewith, as such expenses are
incurred.  Except as otherwise set forth herein, the mechanics and
procedures with respect to the rights and obligations under this Section 4.7
shall be the same as those set forth in Section 5 of the Registration Rights
Agreement.

     

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

     

    4.9.          Listing of
Securities.  The
Company agrees, (i) if the Company applies to have the Common Stock traded on
any other Trading Market, it will include in such application the Securities,
and will take such other action as is necessary or desirable to cause the
Securities to be listed on such other Trading Market as promptly as possible,
and (ii) it will take all action reasonably necessary to continue the listing
and trading of its Common Stock on a Trading Market and will comply in all
material respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Trading Market.

     

    4.10.        Use of
Proceeds.  The
Company will use the net proceeds from the sale of the Shares and Warrants
hereunder for capacity expansion and for working capital purposes and not for
the satisfaction of any portion of the Company’s debt (other than payment of
trade payables and accrued expenses in the ordinary course of the Company’s
business and consistent with prior practices), or to redeem any Common Stock or
Common Stock Equivalents.

    
      
         

      

      
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    4.11.        Reverse Stock
Split.  The Company covenants and agrees that within 60 days
following the Closing Date, it will take the actions necessary to effectuate a 1
for 16.09 reverse stock split of its Common Stock such that its pre-offering
number of shares outstanding (calculated as though such reverse split has
happened and after giving effect to the issuance of 323,920,000 shares to the
former Waibo Shareholders and 9,441,667 to the holder of the Convertible Note,
each as defined in the Company's Current Report on Form 8-K dated October 21,
2010, which issuance will take place immediately prior to or concurrently with
such reverse stock split) would be 23,428,300 and its post-offering number of
shares outstanding (calculated on the same basis) would be 24,000,000,
including, without limitation, obtaining the required consent of its
shareholders, amending its charter documents (if required) and filing an
information statement with the Commission.

     

    4.12.        Increase in Authorized
Stock.  The Company covenants and agrees that within 60 days
following the Closing Date it will take the actions necessary to increase the
number of authorized shares of Common Stock to 600,000,000 shares, including,
without limitation, obtaining the required consent of its shareholders, amending
its charter documents (if required) and filing an information statement with the
Commission.

     

    4.13.        Change of
Auditor.  The Company covenants and agrees that within 270 days
following the Closing Date, it will change its independent public accounting
firm to one of the top ten public accounting firms.

     

    4.14         Voting of
Shares.  Each Investor covenants and agrees that it shall vote
its shares of Common Stock in favor of the Company’s proposals to effectuate a
reverse stock split and increase its authorized shares of Common Stock as
described in Section 4.11 and 4.12 herein at any meeting of shareholders held to
vote on such matters.

     

    ARTICLE
5.

    CONDITIONS
PRECEDENT TO CLOSING

     

    5.1.          Conditions Precedent to the
Obligations of the Investors to Purchase Securities.  The
obligation of each Investor to acquire Securities at the Closing is subject to
the satisfaction or waiver by such Investor, at or before the Closing, of each
of the following conditions:

     

    (a)           Representations and
Warranties.  The representations and warranties of the Company
contained herein shall be true and correct in all material respects as of the
date when made and as of the Closing as though made on and as of such
date;

     

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

     

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

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    (d)           Adverse
Changes.  Since the date of execution of this Agreement, no
event or series of events shall have occurred that reasonably could have or
result in a Material Adverse Effect or a material adverse change with respect to
the Subsidiaries;

     

    (e)           Company
Deliverables.  The Company shall have delivered the Company
Deliverables in accordance with Section 2.2(a); and

     

    (f)           Termination.  This
Agreement shall not have been terminated as to such Investor in accordance with
Section 6.5.

     

    5.2.         Conditions Precedent to the
Obligations of the Company to Sell Securities.  The
obligation of the Company to sell Securities at the Closing is subject to the
satisfaction or waiver by the Company, at or before the Closing, of each of the
following conditions:

     

    (a)           Representations and
Warranties.  The representations and warranties of each
Investor contained herein shall be true and correct in all material respects as
of the date when made and as of the Closing Date as though made on and as of
such date;

     

    (b)           Performance.  Each
Investor shall have performed, satisfied and complied in all material respects
with all covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by such Investor at or
prior to the Closing;

     

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

     

    (d)           Investors
Deliverables.  Each Investor shall have delivered its Investors
Deliverables in accordance with Section 2.2(b); and

     

    (e)           Termination.  This
Agreement shall not have been terminated as to such Investor in accordance with
Section 6.5.

     

    ARTICLE
6.

    MISCELLANEOUS

     

    6.1.         Fees and
Expenses.  Each
party shall pay the fees and expenses of its advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident to
the negotiation, preparation, execution, delivery and performance of the
Transaction Documents.  The Company shall pay all stamp and other
taxes and duties levied in connection with the sale of the
Securities.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    6.2.          Entire
Agreement.  The
Transaction Documents, together with the Exhibits and Schedules thereto, contain
the entire understanding of the parties with respect to the subject matter
hereof and supersede all prior agreements, understandings, discussions and
representations, oral or written, with respect to such matters, which the
parties acknowledge have been merged into such documents, exhibits and
schedules.

     

    6.3.          Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile (provided the sender receives a
machine-generated confirmation of successful transmission) at the facsimile
number specified in this Section prior to 6:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number
specified in this Section on a day that is not a Trading Day or later than 6:30
p.m. (New York City time) on any Trading Day, (c) upon actual receipt by the
party to whom such notice is required to be given, if sent by any means other
than facsimile transmission.  The address for such notices and
communications shall be as follows:

     

    
      	
              If
      to the Company:

            	
              CFO
      Consultants, Inc.

            
	 
      	
              Rm.
      2102 F & G, Nan Fung Centre

            
	 
      	
              264-298
      Castle Peak Rd.

            
	 
      	
              Tsuen
      Wan, N.T., Hong Kong

            
	 
      	
              Facsimile:  852-2412-0239

            
	 
      	
              Attn.:  Chief
      Executive Officer

            
	 
      	 
      
	
              With
      a copy to:

            	
              Loeb
      & Loeb LLP

            
	 
      	
              345
      Park Avenue

            
	 
      	
              New
      York, NY 10154

            
	 
      	
              Facsimile:  (212)
      504-3013

            
	 
      	
              Attn.:  Mitchell
      S. Nussbaum, Esq.

            
	 
      	 
      
	
              If
      to an Investor:

            	
              To
      the address set forth under such Investor’s name on the signature pages
      hereof;

            

    

     

    or such
other address as may be designated in writing hereafter, in the same manner, by
such Person.

     

    6.4.          Amendments; Waivers; No
Additional Consideration.  No
provision of this Agreement may be waived or amended except in a written
instrument signed by the Company and the Investors holding a majority of the
Securities.  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 Investor 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 Investors who then hold Securities.

     

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

     

    6.5.          Termination.  This
Agreement may be terminated prior to Closing:

    (a)           by
written agreement of the Investors and the Company;

     

    (b)           by
the Company or an Investor (as to itself but no other Investor) upon written
notice to the other, if the Closing shall not have taken place by 6:30 p.m.
Eastern time on the Outside Date; provided, that the
right to terminate this Agreement under this Section 6.5(b) shall not be
available to any Person whose failure to comply with its obligations under this
Agreement has been the cause of or resulted in the failure of the Closing to
occur on or before such time;

     

    (c)           by
an Investor (as to itself but no other Investor) if it concludes in good faith
that any of the conditions precedent contained in Section 5.1 shall have been
breached or shall not be capable of being satisfied by the Outside Date despite
the assumed best efforts of the Company.

     

    In the
event of a termination pursuant to this Section, the Company shall promptly
notify all non-terminating Investors and shall pay to the terminating
Investor(s) all of the fees and expenses incurred by such Investors (including
reasonable legal fees and expenses) in connection with this Agreement and the
transactions contemplated by this Agreement through the termination
date.  Other than as to the foregoing fees and expenses, upon a
termination in accordance with this Section 6.5, the Company and the terminating
Investor(s) shall not have any further obligation or liability (including as
arising from such termination) to the other and no Investor will have any
liability to any other Investor under the Transaction Documents as a result
therefrom.

     

    6.6.          Construction.  The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof.  The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.  This Agreement
shall be construed as if drafted jointly by the parties, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement or any of the Transaction
Documents.

     

    6.7.          Successors and
Assigns.  This
Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns.  The Company may not assign
this Agreement or any rights or obligations hereunder without the prior written
consent of the Investors.  Any Investor may assign any or all of its
rights under this Agreement to any Person to whom such Investor assigns or
transfers any Securities, provided such transferee agrees in writing to be
bound, with respect to the transferred Securities, by the provisions hereof that
apply to the “Investors.”

     

    6.8.          No Third-Party
Beneficiaries.  This
Agreement is intended for the benefit of the parties hereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any
provision hereof be enforced by, any other Person, except as otherwise set forth
in Section 4.7 (as to each Investor Party).

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    6.9.          Governing
Law.  All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof.  Each party agrees that all
Proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement and any other Transaction Documents
(whether brought against a party hereto or its respective Affiliates, employees
or agents) shall be commenced exclusively in the New York
Courts.  Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of the any of the
Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any Proceeding, any claim that it is not personally subject to the
jurisdiction of any such New York Court, or that such Proceeding has been
commenced in an improper or inconvenient forum.  Each party hereto
hereby irrevocably waives personal service of process and consents to process
being served in any such Proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law.  Each party
hereto hereby irrevocably waives, to the fullest extent permitted by applicable
law, any and all right to trial by jury in any legal proceeding arising out of
or relating to this Agreement or the transactions contemplated
hereby.  If either party shall commence a Proceeding to enforce any
provisions of a Transaction Document, then the prevailing party in such
Proceeding shall be reimbursed by the other party for its reasonable attorneys’
fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such Proceeding.

     

    6.10.        Survival.  The
representations, warranties, agreements and covenants contained herein shall
survive the Closing and the delivery of the Securities.

     

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

     

    6.12.        Severability.  If
any provision of this Agreement is held to be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the
parties will attempt to agree upon a valid and enforceable provision that is a
reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement.

     

    6.13.        Rescission and Withdrawal
Right.  Notwithstanding
anything to the contrary contained in (and without limiting any similar
provisions of) the Transaction Documents, whenever any Investor exercises a
right, election, demand or option under a Transaction Document and the Company
does not timely perform its related obligations within the periods therein
provided, then such Investor may rescind or withdraw, in its sole discretion
from time to time upon written notice to the Company, any relevant notice,
demand or election in whole or in part without prejudice to its future actions
and rights.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    6.14.        Replacement of
Securities.  If
any certificate or instrument evidencing any Securities is mutilated, lost,
stolen or destroyed, the Company 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 Company 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 Securities.  If a replacement certificate or instrument
evidencing any Securities is requested due to a mutilation thereof, the Company
may require delivery of such mutilated certificate or instrument as a condition
precedent to any issuance of a replacement.

     

    6.15.        Remedies.  In
addition to being entitled to exercise all rights provided herein or granted by
law, including recovery of damages, each of the Investors and the Company will
be entitled to specific performance under the Transaction
Documents.  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.

     

    6.16.        Payment Set
Aside.  To
the extent that the Company makes a payment or payments to any Investor pursuant
to any Transaction Document or an Investor enforces or exercises its rights
thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside, recovered from, disgorged by or are
required to be refunded, repaid or otherwise restored to the Company, a trustee,
receiver or any other person under any law (including, without limitation, any
bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof
originally intended to be satisfied shall be revived and continued in full force
and effect as if such payment had not been made or such enforcement or setoff
had not occurred.

     

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

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    6.18.        Limitation of
Liability.  Notwithstanding
anything herein to the contrary, the Company acknowledges and agrees that the
liability of an Investor arising directly or indirectly, under any Transaction
Document of any and every nature whatsoever shall be satisfied solely out of the
assets of such Investor, and that no trustee, officer, other investment vehicle
or any other Affiliate of such Investor or any investor, shareholder or holder
of shares of beneficial interest of such a Investor shall be personally liable
for any liabilities of such Investor.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
PAGES FOLLOW]

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

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

     

    
      
        
          	
                  CFO
      CONSULTANTS, INC.

                
	 
      
	
                  By:

                	 
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
PAGE FOR INVESTORS FOLLOW]

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

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

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    NAME
      OF INVESTOR

                                                  
	
                                                    _________________________________________

                                                  
	 
	
                                                    By:______________________________________

                                                  
	
                                                    Name:

                                                  
	
                                                    Title:

                                                  
	 
	
                                                    Investment
      Amount:  $_______________________

                                                  
	 
	
                                                    Tax
      ID No.:________________________________

                                                  
	 
	
                                                    ADDRESS
      FOR NOTICE

                                                  
	 
	
                                                    c/o:______________________________________

                                                  
	 
	
                                                    Street:____________________________________

                                                  
	 
	
                                                    City/State/Zip:______________________________

                                                  
	 
	
                                                    Attention:_________________________________

                                                  
	 
	
                                                    Tel:______________________________________

                                                  
	 
	
                                                    Fax:______________________________________

                                                  
	 
	
                                                    DELIVERY
      INSTRUCTIONS

                                                  
	
                                                    (if
      different from above)

                                                  
	 
	
                                                    c/o:______________________________________

                                                  
	 
	
                                                    Street:____________________________________

                                                  
	 
	
                                                    City/State/Zip:_____________________________

                                                  
	 
	
                                                    Attention:_________________________________

                                                  
	 
	
                                                    Tel:______________________________________

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        28Unassociated Document

    
      MAKE
GOOD ESCROW AGREEMENT

       

      This Make Good Escrow Agreement (the
"Make Good Agreement"), dated effective as of December 21, 2010, is entered into
by and among CFO Consultants, Inc., a Nevada corporation (the "Company"), Kai Bo
Holdings Ltd., (the “Make Good Pledgor”), and Collateral Agents, LLC, as escrow
agent ("Escrow Agent").

       

      WHEREAS, each of the investors in the
private offering of securities of the Company (the "Investors") has entered into
a Securities Purchase Agreement, dated December 21, 2010 (the "SPA"), evidencing
their participation in the Company's private offering (the "Offering") of
securities.  As an inducement to the Investors to participate in the
Offering and as set forth in the SPA, the Make Good Pledgor has agreed to place
certain shares of the Company’s common stock, par value $0.001 per share (the
“Common Stock”) into escrow for the benefit of the Investors in the event the
Company fails to satisfy certain After-Tax Net Income (as defined below)
thresholds. 

       

      WHEREAS, pursuant to the requirements
of the SPA, the Company and the Make Good Pledgor have agreed to establish an
escrow on the terms and conditions set forth in this Make Good
Agreement;

       

      WHEREAS, the Escrow Agent has agreed to
act as escrow agent pursuant to the terms and conditions of this Make Good
Agreement; and

       

      WHEREAS, all capitalized terms used but
not defined herein shall have the meanings assigned them in the
SPA;

       

      NOW, THEREFORE, in consideration of the
mutual promises of the parties and the terms and conditions hereof, the parties
hereby agree as follows:

       

      1. Appointment of Escrow
Agent.  The Company and the Make Good Pledgor hereby appoint
Escrow Agent to act in accordance with the terms and conditions set forth in
this Make Good Agreement, and Escrow Agent hereby accepts such appointment and
agrees to act in accordance with such terms and conditions.

       

      2. Establishment of
Escrow.  Within eight (8) Business Days following the closing
of the Offering, the Make Good Pledgor shall deliver, to the Escrow Agent
original certificates evidencing an aggregate of 4,600,000 shares of the Company’s
Common Stock (the “Escrow Shares”), along with original bank signature stamped
stock powers executed in blank (or such other signed instrument of transfer
acceptable to the Company’s Transfer Agent).  As used in this Make
Good Agreement, “Transfer Agent” means Action Stock Transfer Corporation, or
such other entity hereafter retained by the Company as its stock transfer agent
as specified in a writing from the Company to the Escrow Agent and
Agent.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
      

      3. Representations of the Make Good
Pledgor and the Company.  The Make Good Pledgor and the Company
hereby represent and warrant, severally and not jointly, as to itself only, to
Escrow Agent as follows:

       

      (i) All
of the Escrow Shares are validly issued, fully paid and nonassessable shares of
the Company, and free and clear of all pledges, liens and
encumbrances.  Upon any transfer of Escrow Shares to Investors
hereunder, Investors will receive full right, title and authority to such shares
as holders of Common Stock of the Company.

       

      (ii) Performance of this Make
Good Agreement and compliance with the provisions hereof will not violate any
provision of any applicable law and will not conflict with or result in any
breach of any of the terms, conditions or provisions of, or constitute a default
under, or result in the creation or imposition of any lien, charge or
encumbrance upon, any of the properties or assets of the Make Good Pledgor
pursuant to the terms of any indenture, mortgage, deed of trust or other
agreement or instrument binding upon the Make Good Pledgor, other than such
breaches, defaults or liens which would not have a material adverse effect taken
as a whole.

       

      4.
Disbursement of Escrow Shares.

       

      a.           Fiscal
Year Ended December 31, 2010.  The Make Good
Pledgor agrees that if the after-tax net income (excluding any expense item
(other than tax expense and interest expense) deducted in determining net income
not appearing under the heading “Operating expenses” on the Company’s
Consolidated Statement of Operations, including but not limited to fair value
change on derivatives, warrants and make good shares (“Non-Operating Expenses”))
(“After-Tax Net Income” ) (calculated in accordance with Exhibit A attached
hereto) for the fiscal year ended December 31, 2010, based on the Company’s
results reported in the Company’s Annual Report on Form 10-K for the fiscal year
ending December 31, 2010, as filed with the Commission (the “2010 Annual
Report”), is less than 95% of $25,882,536 (95% of such amount being the “2010
Guaranteed ATNI”), Escrow Agent shall, within seven (7) business days after the
date which the 2010 Annual Report is filed with the Commission, provide written
instruction (with a copy to the Company) and direct  the Transfer
Agent to transfer to each Investor (in such Investor’s name) on a pro rata basis
(based upon such Investor’s Investment Amount specified on Exhibit B attached
hereto relative to the aggregate Investment Amounts of all Investors specified
on Exhibit B attached hereto) for no additional consideration a number of Escrow
Shares that is equal to 115,000 Escrow Shares for each full percentage point by
which the 2010 Guaranteed ATNI was not achieved up to a maximum of 2,300,000
Escrow Shares.  In the event the Escrow Agent shall determine that the
2010 Guaranteed ATNI was not achieved, it shall provide notice to the Company
and Make Good Pledgor of such determination within three (3) business days prior
to providing instructions to the Transfer Agent regarding the transfers of
Escrow Shares to the Investors.  If the Company’s audited consolidated
financial statements for the fiscal year ended December 31, 2010 reflect that
the 2010 Guaranteed ATNI shall have been achieved, no transfer of the 2010
Investor Shares to the Investors shall be required by this Section, Escrow Agent
shall, within five (5) business days after the date which the 2010 Annual Report
is filed with the Commission, return 2,300,000 Escrow Shares that have been
deposited with the Escrow Agent to the Make Good Pledgor Notwithstanding
anything to the contrary contained herein, if the 2010 Annual Report is not
filed within sixty (60) days of its original due date in accordance with the
applicable rules and regulations of the Commission, the 2010 Guaranteed ATNI
shall be deemed not to have been achieved and the maximum of 2,300,000 Escrow
Shares shall be transferred to the Investors in accordance with this
section.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      b.           Fiscal
Year Ended December 31, 2011.  The Company
agrees that if the After-Tax Net Income (excluding Non-Operating Expenses),
based on the Company’s results for the fiscal year ended December 31, 2011
reported in the Company’s Annual Report on Form 10-K for the fiscal year ending
December 31, 2011, as filed with the Commission (the “2011 Annual Report”), is
less than 95% of $33,382,670 (95% of such amount being the “2011 Guaranteed
ATNI”), Escrow Agent shall, within seven (7) business days after the date which
the 2011 Annual Report is filed with the Commission, provide written instruction
(with a copy to the Company) and direct the Transfer Agent to transfer to each
Investor (in such Investor’s name) on a pro rata basis (based upon such
Investor’s Investment Amount specified on Exhibit B attached
hereto relative to the aggregate Investment Amounts of all Investors specified
on Exhibit B attached hereto) for no additional consideration a number of Escrow
Shares that is equal to 115,000 Escrow Shares for each full percentage point by
which the 2011 Guaranteed ATNI was not achieved up to a maximum of 2,300,000
Escrow Shares.  In the event the Escrow Agent shall determine that the
2011 Guaranteed ATNI was not achieved, it shall provide notice to the Company
and Make Good Pledgor of such determination within three (3) business days prior
to providing instructions to the Transfer Agent regarding the transfers of
Escrow Shares to the Investors.  If the Company’s audited consolidated
financial statements for the fiscal year ended December 31, 2011 reflect that
the 2010 Guaranteed ATNI shall have been achieved, no transfer of the 2011
Investor Shares to the Investors shall be required by this Section and Agent
shall, within five (5) business days after the date which the 2011 Annual Report
is filed with the Commission, provide written instruction (with a copy to the
Company) to the Escrow Agent to return all remaining Escrow Shares that have
been deposited with the Escrow Agent to the Make Good Pledgor. Notwithstanding
anything to the contrary contained herein, if the 2011 Annual Report is not
filed within sixty (60) days of its original due date in accordance with the
applicable rules and regulations of the Commission, the 2011 Guaranteed ATNI
shall be deemed not to have been achieved and the maximum of 2,300,000 Escrow
Shares shall be transferred to the Investors in accordance with this
section.

       

      c.           Notwithstanding anything
to the contrary contained herein, in the event that the release of any
of the Escrow Shares to the Investors or any other party is deemed to be an
expense or deduction from revenues/income of the Company for the applicable
year, as required under GAAP, then such expense or deduction shall be
excluded for purposes of determining whether or not the 2010 Guaranteed
ATNI or the 2011 Guaranteed ATNI has been achieved by the Company to the
extent not already excluded pursuant to the definition of “Non-Operating
Expenses.”

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      d.           The
Make Good Pledgor’s obligation to transfer shares of Common Stock to Investors
pursuant to Section 4.11 of the SPA shall continue to run to the benefit of an
Investor who shall have transferred or sold all or any portion of its
Securities, and Investors shall have the right to assign its rights to receive
all or any such shares of Common Stock to other persons in conjunction with
negotiated sales or transfers of any of its Securities.

       

      e.           If
prior to the second anniversary of the filing of either of the 2010 Annual
Report or the 2011 Annual Report (as applicable), the Company or their auditors
report or recognize that the financial statements contained in such report are
subject to amendment or restatement such that the Company would recognize or
report adjusted After-Tax Net Income of less than either of the 2010 Guaranteed
ATNI or the 2011 Guaranteed ATNI (as applicable), then notwithstanding any prior
return of Escrow Shares to the Make Good Pledgor, the Make Good Pledgor will,
within ten (10) business days following the earlier of the filing of such
amendment or restatement or recognition, deliver the relevant Escrow Shares to
the Investors.

       

      f.           The
Company and the Make Good Pledgor covenant and agree to provide the Escrow Agent
with certified tax identification numbers by furnishing appropriate forms W-9 or
W-8 and such other forms and documents that the Escrow Agent may request,
including appropriate W-9 or W-8 forms for each Investor.  The Company
and the Make Good Pledgor understand that if such tax reporting documentation
are not provided and certified to the Escrow Agent, the Escrow Agent may be
required by the Internal Revenue Code of 1986, as amended, and the Regulations
promulgated thereunder, to withhold a portion of any interest or other income
earned on the investment of the Escrow Property.

       

      5. Duration. This Make Good
Agreement shall terminate upon the distribution of all the Escrow Shares in
accordance with the terms of this Make Good Agreement.  The Company
agrees to promptly provide the Escrow Agent written notice of the filing with
the Commission of any financial statements or reports referenced
herein.

       

      6. Escrow
Shares.  If any Escrow Shares are deliverable to the Investors
pursuant to the SPA and in accordance with this Make Good Agreement, (i) the
Make Good Pledgor covenants and agrees to execute all such instruments of
transfer (including stock powers and assignment documents) as are customarily
executed to evidence and consummate the transfer of the Escrow Shares from the
Make Good Pledgor to the Investors, to the extent not done so in accordance with
Section 2, and (ii) following its receipt of the documents referenced in Section
6(i), the Company and Escrow Agent covenant and agree to cooperate with the
Transfer Agent so that the Transfer Agent promptly reissues such Escrow Shares
in the applicable Investor’s name and delivers the same as directed by such
Investor.  Until such time as (if at all) the Escrow Shares are
required to be delivered pursuant to the SPA and in accordance with this Make
Good Agreement (i) any dividends payable in respect of the Escrow Shares and all
voting rights applicable to the Escrow Shares shall be retained by the Make Good
Pledgor and (ii) should the Escrow Agent receive dividends or voting materials,
such items shall not be held by the Escrow Agent, but shall be passed
immediately on to Make Good Pledgor and shall not be invested or held for any
time longer than is needed to effectively re-route such items to the Make Good
Pledgor.  In the event that the Escrow Agent receives a
communication requiring the conversion of the Escrow Shares to cash or
the exchange of the Escrow Shares for that of an acquiring company, the Escrow
Agent shall solicit and follow the written instructions of the Make Good
Pledgor; provided that (i) the exchanged shares are instructed to be redeposited
into an escrow account controlled by the Escrow Agent, and (ii) the cash is
instructed to be deposited into a newly established, non-interest-bearing bank
account at the branch of the bank selected by the Escrow Agent.  The
Make Good Pledgor shall be responsible for all taxes resulting from any such
conversion or exchange.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      7.
Interpleader.  Should any controversy arise among the parties
hereto with respect to this Make Good Agreement or with respect to the right to
receive the Escrow Shares, Escrow Agent shall have the right to consult and hire
counsel and/or to institute an appropriate interpleader action to determine the
rights of the parties. Escrow Agent are also each hereby authorized to institute
an appropriate interpleader action upon receipt of a written letter of direction
executed by the parties so directing Escrow Agent. If Escrow Agent is directed
to institute an appropriate interpleader action, it shall institute such action
not prior to thirty (30) days after receipt of such letter of direction and not
later than sixty (60) days after such date. Any interpleader action instituted
in accordance with this Section 7 shall be filed in any court of competent
jurisdiction in the State of New York, and the Escrow Shares in dispute shall be
deposited with the court and in such event Escrow Agent shall be relieved of and
discharged from any and all obligations and liabilities under and pursuant to
this Make Good Agreement with respect to the Escrow Shares and any other
obligations hereunder. 

       

      8. Exculpation and Indemnification of
Escrow Agent.

       

      a.           Escrow
Agent is not a party to, and is not bound by or charged with notice of any
agreement out of which this escrow may arise.  Escrow Agent acts under
this Make Good Agreement as a depositary only and is not responsible or liable
in any manner whatsoever for the sufficiency, correctness, genuineness or
validity of the subject matter of the escrow, or any part thereof, or for the
form or execution of any notice given by any other party hereunder, or for the
identity or authority of any person executing any such notice. Escrow Agent will
have no duties or responsibilities other than those expressly set forth
herein.  Escrow Agent will be under no liability to anyone by reason
of any failure on the part of any party hereto (other than Escrow Agent) or any
maker, endorser or other signatory of any document to perform such person's or
entity's obligations hereunder or under any such document.  Except for
this Make Good Agreement and instructions to Escrow Agent pursuant to the terms
of this Make Good Agreement, Escrow Agent will not be obligated to recognize any
agreement between or among any or all of the persons or entities referred to
herein, notwithstanding its knowledge thereof.  Escrow Agent is not
charged with any obligation to conduct any investigation into the financial
reports or make any other investigation related thereto.  In the event
of any actual or alleged mistake or fraud of the Company, its auditors or any
other person (other than Escrow Agent) in connection with such financial reports
of the Company, Escrow Agent shall have no obligation or liability to any party
hereunder.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      b.           Escrow
Agent will not be liable for any action taken or omitted by it, or any action
suffered by it to be taken or omitted, absent gross negligence or willful
misconduct.  Escrow Agent may rely conclusively on, and will be
protected in acting upon, any order, notice, demand, certificate, or opinion or
advice of counsel (including counsel chosen by Escrow Agent), statement,
instrument, report or other paper or document (not only as to its due execution
and the validity and effectiveness of its provisions, but also as to the truth
and acceptability of any information therein contained) which is reasonably
believed by Escrow Agent to be genuine and to be signed or presented by the
proper person or persons.  The duties and responsibilities of the
Escrow Agent hereunder shall be determined solely by the express provisions of
this Make Good Agreement and no other or further duties or responsibilities
shall be implied, including, but not limited to, any obligation under or imposed
by any laws of the State of New York upon fiduciaries.  THE ESCROW
AGENT SHALL NOT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (I) DAMAGES, LOSSES
OR EXPENSES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER THAN DAMAGES,
LOSSES OR EXPENSES WHICH HAVE BEEN FINALLY ADJUDICATED TO HAVE DIRECTLY RESULTED
FROM THE ESCROW AGENT’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II) SPECIAL,
INDIRECT OR CONSEQUENTIAL DAMAGES OR LOSSES OF ANY KIND WHATSOEVER (INCLUDING,
WITHOUT LIMITATION, LOST PROFITS), EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE FORM OF
ACTION.

       

      c.           The
Company and the Make Good Pledgor hereby, jointly and severally, indemnify and
hold harmless each of Escrow Agent and any of its principals, partners, agents,
employees and affiliates from and against any
expenses, including reasonable attorneys' fees and disbursements, damages or
losses suffered by Escrow Agent or Agent in connection with any claim or demand,
which, in any way, directly or indirectly, arises out of or relates to this Make
Good Agreement or the services of Escrow Agent hereunder; except, that if Escrow
Agent is guilty of willful misconduct or gross negligence under this Make Good
Agreement, then Escrow Agent will bear all losses, damages and expenses arising
as a result of its own willful misconduct or gross
negligence.  Promptly after the receipt by Escrow Agent of notice of
any such demand or claim or the commencement of any action, suit or proceeding
relating to such demand or claim, Escrow Agent as the case may be, will notify
the other parties hereto in writing.  For the purposes hereof, the
terms "expense" and "loss" will include all amounts paid or payable to satisfy
any such claim or demand, or in settlement of any such claim, demand, action,
suit or proceeding settled with the express written consent of the parties
hereto, and all costs and expenses, including, but not limited to, reasonable
attorneys' fees and disbursements, paid or incurred in investigating or
defending against any such claim, demand, action, suit or
proceeding.  The provisions of this Section 8 shall survive the
termination of this Make Good Agreement, and the resignation or removal of the
Escrow Agent.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      d.           If
at any time the Escrow Agent is served with any judicial or administrative
order, judgment, decree, writ or other form of judicial or administrative
process which in any way affects the Escrow Shares (including but not limited to
orders of attachment or garnishment or other forms of levies or injunctions or
stays relating to the transfer of the Escrow Shares), the Escrow Agent is
authorized to comply therewith in any manner it or legal counsel of its own
choosing deems appropriate; and if the Escrow Agent complies with any such
judicial or administrative order, judgment, decree, writ or other form of
judicial or administrative process, Escrow Agent shall not be liable to any of
the parties hereto or to any other person or entity even though such order,
judgment, decree, writ or process may be subsequently modified or vacated or
otherwise determined to have been without legal force or effect.

      

      e.           The
Escrow Agent may consult with legal counsel of its own choosing as to any matter
relating to this Agreement, and the Escrow Agent shall not incur any liability
in acting in good faith in accordance with any advice from such
counsel.

      

      f.           The
Escrow Agent shall not incur any liability for not performing any act or
fulfilling any duty, obligation or responsibility hereunder by reason of any
occurrence beyond the control of the Escrow Agent (including but not limited to
any act or provision of any present or future law or regulation or governmental
authority, any act of God or war, civil unrest, local or national disturbance or
disaster, any act of terrorism, or the unavailability of the Federal Reserve
Bank wire or facsimile or other wire or communication facility).

      

      g.           The
Escrow Agent shall not be called upon to advise any party as to the wisdom in
retaining or taking or refraining from any action with respect to the Escrow
Shares deposited hereunder.

       

      h.           Escrow
Agent may generally engage in any kind of business with the Company, the Agent,
Investor or Make Good Pledgor or any subsidiary or affiliate thereof as if it
had not entered into this Agreement or any other agreement with them. Escrow
Agent and its affiliates and their officers, directors, employees, and agents
(including legal counsel) may now or hereafter be engaged in one or more
transactions with the Company, the Agent, the Investor, or Make Good Pledgor or
any subsidiary or affiliate thereof or may act as trustee, agent or
representative of either the foregoing parties or otherwise be engaged in other
transactions with such parties (collectively, the “Other
Activities”).  Without limiting the forgoing, Escrow Agent and its
affiliates and their officers, directors, employees, and agents (including legal
counsel) shall not be responsible to account to the Company, the Agent, the
Investor or the Make Good Pledgor or any subsidiary or affiliate thereof for
such Other Activities.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      9. Compensation of Escrow
Agent.  Escrow Agent shall be entitled to compensation for its
services as stated in the fee schedule attached hereto as Exhibit C, which
compensation shall be paid by the Company. The fee agreed upon for the services
rendered hereunder is intended as full compensation for Escrow Agent's services
as contemplated by this Make Good Agreement; provided, however, that in the
event that Escrow Agent renders any material service not contemplated in this
Make Good Agreement, or there is any assignment of interest in the subject
matter of this Make Good Agreement, or any material modification hereof, or if
any material controversy arises hereunder, or Escrow Agent is made a party to
any litigation pertaining to this Make Good Agreement, or the subject matter
hereof, then Escrow Agent shall be reasonably compensated by the Company for
such extraordinary services and reimbursed for all costs and expenses, including
reasonable attorney's fees, occasioned by any delay, controversy, litigation or
event, and the same shall be recoverable from the Company.  Prior to
incurring any costs and/or expenses in connection with the foregoing sentence,
Escrow Agent shall be required to provide written notice to the Company of such
costs and/or expenses and the relevancy thereof and Escrow Agent shall not be
permitted to incur any such costs and/or expenses which are not related to
litigation prior to receiving written approval from the Company, which approval
shall not be unreasonably withheld.  In addition, the Company agrees
to pay the Escrow Agent’s reasonable and documented costs and expenses,
including all wire fees (both international and domestic), packaging and postal
fees and expenses (including FedEx).

       

      10. Resignation of Escrow
Agent.  At any time, upon ten (10) days' written notice to the
Company and return of a proportional amount of the fees paid upon entering into
this Agreement representing the remaining term hereof, Escrow Agent may resign
and be discharged from its duties as Escrow Agent hereunder. As soon as
practicable after its resignation, Escrow Agent will promptly turn over to a
successor escrow agent appointed by the Company the Escrow Shares held hereunder
upon presentation of a document appointing the new escrow agent and evidencing
its acceptance thereof.  If, by the end of the 10-day period following
the giving of notice of resignation by Escrow Agent, the Company shall have
failed to appoint a successor escrow agent, Escrow Agent may interplead the
Escrow Shares into the registry of any court having jurisdiction.

       

      11. Records.  Escrow
Agent shall maintain accurate records of all transactions
hereunder.  Promptly after the termination of this Make Good Agreement
or as may reasonably be requested by the parties hereto from time to time before
such termination, Escrow Agent shall provide the parties hereto, as the case may
be, with a complete copy of such records, certified by Escrow Agent to be a
complete and accurate account of all such transactions.  The
authorized representatives of each of the parties hereto shall have access to
such books and records at all reasonable times during normal business hours upon
reasonable notice to Escrow Agent and at the requesting party’s
expense.

       

      12. Notice.  All
notices, communications and instructions required or desired to be given under
this Make Good Agreement must be in writing and shall be deemed to be duly given
if sent by registered or certified mail, return receipt requested, or overnight
courier, to the addresses listed on the signature pages hereto.

       

      13. Execution in
Counterparts.  This Make Good Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      14. Assignment and
Modification.  This Make Good Agreement and the rights and
obligations hereunder of any of the parties hereto may not be assigned without
the prior written consent of the other parties hereto.  Subject to the
foregoing, this Make Good Agreement will be binding upon and inure to the
benefit of each of the parties hereto and their respective successors and
permitted assigns.  No other person will acquire or have any rights
under, or by virtue of, this Make Good Agreement.  No portion of the
Escrow Shares shall be subject to interference or control by any creditor of any
party hereto, or be subject to being taken or reached by any legal or equitable
process in satisfaction of any debt or other liability of any such party hereto
prior to the disbursement thereof to such party hereto in accordance with the
provisions of this Make Good Agreement.  This Make Good Agreement may
be amended or modified only in writing signed by all of the parties
hereto.

       

      15. Applicable
Law.  This Make Good Agreement shall be governed by and
construed in accordance with the laws of the State of New York without giving
effect to the principles of conflicts of laws thereof. Any action brought by
either party against the other concerning the transactions contemplated by this
Agreement shall be brought only in the state courts of New York or in the
federal courts located in the state of New York.  Each of Parties
agree to submit to the jurisdiction of such courts and waive trial by
jury.

       

      16. Headings.  The
headings contained in this Make Good Agreement are for convenience of reference
only and shall not affect the construction of this Make Good
Agreement.

       

      17. Attorneys'
Fees.  If any action at law or in equity, including an action
for declaratory relief, is brought to enforce or interpret the provisions of
this Make Good Agreement, the prevailing party shall be entitled to recover
reasonable attorneys' fees from the other party (unless such other party is the
Escrow Agent), which fees may be set by the court in the trial of such action or
may be enforced in a separate action brought for that purpose, and which fees
shall be in addition to any other relief that may be awarded.

       

      18. Merger or
Consolidation.  Any corporation or association into which the
Escrow Agent may be converted or merged, or with which it may be consolidated,
or to which it may sell or transfer all or substantially all of its corporate
trust business and assets as a whole or substantially as a whole, or any
corporation or association resulting from any such conversion, sale, merger,
consolidation or transfer to which the Escrow Agent is a party, shall be and
become the successor escrow agent under this Make Good Agreement and shall have
and succeed to the rights, powers, duties, immunities and privileges as its
predecessor, without the execution or filing of any instrument or paper or the
performance of any further act.

       

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          9

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the parties have
duly executed this Make Good Agreement as of the date set forth opposite their
respective names.

      
      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	 
      	
                                                COMPANY:

                                              
	 	 
	 
      	
                                                CFO
      CONSULTANTS, INC.

                                              
	 
      	 
      
	 
      	
                                                By:

                                              	    
	 	 	
                                                Name:

                                              
	 	 	
                                                Title:

                                              
	 
      	 
      
	 
      	
                                                Address:

                                              
	 
      	 
      
	 
      	
                                                Rm.
      2102 F & G, Nan Fung Centre

                                              
	 
      	
                                                264-298
      Castle Peak Rd.

                                              
	 
      	
                                                Tsuen
      Wan, N.T., Hong Kong

                                              
	 
      	
                                                Attn:  Chairman

                                              
	 
      	
                                                Facsimile:  852-2412-0239

                                              
	 
      	 
      
	 
      	
                                                MAKE
      GOOD PLEDGOR:

                                              
	 
      	 
      
	 
      	
                                                KAI
      BO HOLDINGS LIMITED

                                              
	 
      	 
      
	 
      	
                                                By:

                                              	 
      
	 	 	
                                                Name:

                                              
	 	 	
                                                Title:

                                              
	 
      	 
      
	 
      	
                                                Address:

                                              
	 
      	
                                                Rm.
      2102 F & G, Nan Fung Centre

                                              
	 
      	
                                                264-298
      Castle Peak Rd.

                                              
	 
      	
                                                Tsuen
      Wan, N.T., Hong Kong

                                              
	 
      	
                                                Attn:  Chairman

                                              
	 
      	
                                                Facsimile:  852-2412-0239

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

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          10

          
            

          

        

        
           

        

      

      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  ESCROW
      AGENT:

                                
	 	 
	 
      	
                                  COLLATERAL
      AGENTS, LLC, as Escrow Agent

                                
	 
      	 
      
	 
      	
                                  By:

                                	 
      
	 	 	
                                  Name:

                                
	 	 	
                                  Title:

                                
	 
      	 
      
	 
      	
                                  Address:

                                
	 
      	 
      
	 
      	
                                  Collateral
      Agents, LLC

                                
	 
      	
                                  122
      East 57th
      Street, 3rd
      Floor

                                
	 
      	
                                  New
      York, New York  10022

                                
	 
      	
                                  Attn.:  General
      Counsel

                                
	 
      	
                                  Facsimile:  212-245-9101

                                

                        

                      

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      Exhibit
A

      

      The
determination of “After-Tax Net Income” shall be made consistent with the
following examples:

      

      Example
1:  No Expenses excluded as part of “Non-Operating
Expenses”

      

      
        
          
            
              	 
      	 	
                      Year  Ended

                      December 31,

                    	 
	 
      	 	
                      2009

                    	 
	 
      	 	 	 
	
                      Sales

                    	 	$	64,463	 
	
                      Cost
      of sales

                    	 	 	(36,452	)
	 
      	 	 	 	 
	
                      Gross
      margin

                    	 	 	28,011	 
	
                      Operating
      expenses

                    	 	 	(3,487	)
	
                      Income
      from operations

                    	 	 	24,524	 
	 
      	 	 	 	 
	
                      Interest
      expense

                    	 	 	(187	)
	
                      Interest
      income and other

                    	 	 	133	 
	 
      	 	 	(54	)
	 
      	 	 	 	 
	
                      Income
      before income taxes

                    	 	 	24,470	 
	
                      Income
      tax expense

                    	 	 	(2,625	)
	 
      	 	 	 	 
	
                      Net
      income

                    	 	$	21,845	 

            

          

        

      

      

      “After-Tax
Net Income” shall equal $21,845,000

      

      Example
2:  Exclude Change in Fair Value of Derivative Liabilities as
“Non-Operating Expenses”

      

      
        
          
            
              	 
      	 	
                      Year  Ended

                      December 31,

                    	 
	 
      	 	
                      2009

                    	 
	 
      	 	 	 
	
                      Sales

                    	 	$	64,463	 
	
                      Cost
      of sales

                    	 	 	(36,452	)
	 
      	 	 	 	 
	
                      Gross
      margin

                    	 	 	28,011	 
	
                      Operating
      expenses

                    	 	 	(3,487	)
	
                      Income
      from operations

                    	 	 	24,524	 
	 
      	 	 	 	 
	
                      Other
      income/(expense)

                    	 	 	 	 
	
                      Interest
      expense

                    	 	 	(187	)
	
                      Change
      in fair value of derivative liabilities

                    	 	 	(5,100	)
	
                      Interest
      income and other

                    	 	 	133	 
	 
      	 	 	(5,154	)
	 
      	 	 	 	 
	
                      Income
      before income taxes

                    	 	 	19,370	 
	
                      Income
      tax expense

                    	 	 	(2,625	)
	 
      	 	 	 	 
	
                      Net
      income

                    	 	$	16,745	 

            

          

        

      

      

      “After-Tax
Net Income” shall equal $16,745,000 + $5,100,000 = $21,845,000

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      Exhibit
B

      

      INVESTMENT
AMOUNTS

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      Exhibit
C

      

      ESCROW
AGENT FEES

      

      $20,000
payable upon entering into this Agreement

      
        
           

        

        
          14

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