Document:

CLEANTECH
INNOVATIONS, INC.

    

    REGISTRATION
RIGHTS AGREEMENT

     

    This
REGISTRATION RIGHTS AGREEMENT (the “Agreement”), dated as of _______________,
2010, is made by and between CleanTech Innovations, Inc., a Nevada corporation
(the “Company”), and the undersigned investor (the “Investor”).

     

    WHEREAS,
in connection with that certain Subscription Agreement by and among the Company
and the Investor (the “Subscription Agreement”), the Company desires to sell to
the Investor, and the Investor desires to purchase from the Company units (the
“Units”) consisting of (a) shares of the Company’s common stock, $.00001 par
value per share (the “Common Stock”); and (b) Warrants to purchase additional
shares of Common Stock (the “Warrants”) equal to 67.5% of the Common Stock
initially purchased; and

     

    WHEREAS,
to induce the Investor to purchase the Common Stock and Warrants, the Company
has agreed to register the shares of Common Stock purchased and the Common Stock
underlying the Warrants pursuant to the terms of this Agreement.

     

    NOW,
THEREFORE, the Company and the Investor hereby covenant and agree as
follows:

     

    1.           Certain
Definitions.  As used in this Agreement, the following terms
shall have the following respective meanings:

     

    “Closing”
shall mean the closing of the sale of the Units.

     

    “Commission”
shall mean the Securities and Exchange Commission or any other federal agency at
the time administering the Securities Act.

     

    “Effectiveness
Date” shall mean that date which is one hundred eighty (180) days following the
Final Closing Date.

     

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

     

    “Filing
Date” shall mean that date which is fourteen (14) days following the Final
Closing Date.

     

    “Final
Closing Date” shall mean the date hereof.

     

    “Offering”
shall refer to the Company’s proposal to sell Units for $4.00 per Unit, with
each Unit consisting of (i) one share of Common Stock of the Company and (ii) a
five (5) year Warrant to purchase 67.5% of one share of Common Stock of the
Company with an exercise price of $4.00 per share.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Register,”
“registered” and “registration” each shall refer to a registration effected by
preparing and filing a Registration Statement or statements or similar documents
in compliance with the Securities Act and the declaration or ordering of
effectiveness of such Registration Statement or document by the
Commission.

     

    “Registrable
Securities” shall mean the shares of Common Stock issued pursuant to the
Subscription Agreement or upon the exercise of the Warrants delivered as part of
the Offering; provided, however, that shares
of Common Stock which are Registrable Securities shall cease to be Registrable
Securities (i) upon any sale pursuant to a Registration Statement or Regulation
S under the Securities Act or (ii) at such time as they become eligible for sale
pursuant to Regulation S under the Securities Act or another similar exemption
under the Securities Act; provided, further, that the maximum amount of
Registrable Securities at any one time shall be limited by Rule
415.

     

    “Regulation
S” shall mean Regulation S, as amended, as promulgated by the Securities and
Exchange Commission under the Securities Act.

     

    “Securities
Act” shall mean the Securities Act of 1933, as amended.

     

    Capitalized
terms used but not defined herein shall have the meanings set forth in the
Subscription Agreement or the Warrants.

     

    2.           Automatic
Registration.

     

    (a)           On
or prior to the Filing Date, the Company shall prepare and file with the
Commission the Registration Statement covering the resale of all of the
Registrable Securities for an offering to be made on a continuous basis pursuant
to Rule 415.  The Registration Statement required hereunder shall be
on Form S-1 or Form S-3, as applicable.  Subject to the terms of this
Agreement, the Company shall use its commercially reasonable efforts to cause
the Registration Statement to be declared effective under the Securities Act as
promptly as possible after the filing thereof, but in any event not later than
the Effectiveness Date, and shall use its commercially reasonable efforts to
keep the Registration Statement continuously effective under the Securities Act
until the date when all Registrable Securities covered by the Registration
Statement have been sold or may be sold pursuant to Regulation S as determined
by counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company’s transfer agent and the Investor (the
“Effectiveness Period”). The maximum amount of Registrable Securities at any one
time shall be limited by Rule 415 as required by the Commission. In the event
that there is a limitation by the Commission on the number of Registrable
Securities that may be registered at one time, the Company shall use its
reasonable best efforts to file an additional Registration Statement covering
such ineligible securities within 30 days of the date such securities become
eligible and to make such Registration Statement be declared effective by the
Commission as soon as practicably possible.

    
      
         

      

      
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    (b)           If:  (i)
a Registration Statement is not filed on or prior to the Filing Date, or (ii)
the Company fails to file with the Commission a request for acceleration in
accordance with Rule 461 promulgated under the Securities Act, within 5 trading
days of the date that the Company is notified (orally or in writing, whichever
is earlier) by the Commission that a Registration Statement will not be
“reviewed,” or is not subject to further review, or (iii) a Registration
Statement filed or required to be filed hereunder is not declared effective by
the Commission on or before the Effectiveness Date as a result of the failure of
the Company to meet its obligations with respect to such filing as provided for
herein, or (iv) after a Registration Statement is first declared effective by
the Commission, it ceases for any reason to remain continuously effective as to
the Registrable Securities held by the Investor, or the Investor is not
permitted to utilize the Prospectus therein to resell such Registrable
Securities, for in any such case 20 consecutive trading days but no more than an
aggregate of 30 trading days during any 12-month period (which need not be
consecutive trading days) during which the Investor is not permitted to sell
such Registrable Securities under Regulation S (any such failure or breach being
referred to as an “Event,” and for purposes of clause (i) or (iii) the date on
which such Event occurs, or for purposes of clause (ii) the date on which such 5
trading day period is exceeded, or for purposes of clause (iv) the date on which
such 20- or 30-day period, as applicable, is exceeded being referred to as
“Event Date”), then: (A) on the first Event Date to occur the Company shall pay
to such Investor an amount, at the election of the Company, in cash or in Common
Stock, as liquidated damages and not as a penalty, equal to 1.0% of the
aggregate purchase price paid by such Investor pursuant to the Subscription
Agreement for any Registrable Securities then held by such Investor for which such
Investor has not received liquidated damages pursuant to Section 2(c) below; and (B) on each
anniversary of such Event Date (if the applicable Event, or any subsequent
Event, shall not have been cured by such date) until all Event(s) are cured, the
Company shall pay to such Investor an amount, as determined by the Company, in
cash or in Common Stock, as liquidated damages and not as a penalty, equal to
1.0% of the aggregate purchase price paid by such Investor pursuant to the
Subscription Agreement for any Registrable Securities then held by such Investor
for which such Investor has
not received liquidated damages pursuant to Section 2(c) below. In determining
the number of shares of Common Stock payable to the Investor, the 20-day average
closing price of the Common Stock ending on the Event Date shall be
used.  If the Company fails to pay any liquidated damages pursuant to
this Section 2(b) in full within seven days after the date payable, the Company
will pay interest thereon at a rate of 10% per annum (or such lesser maximum
amount that is permitted to be (in cash or Common Stock, at the option of the
Investor) paid by applicable law) to the Investor, accruing daily from the date
such liquidated damages are due until such amounts, plus all such interest
thereon, are paid in full.  The liquidated damages pursuant to the
terms hereof shall apply on a daily pro-rata basis for any portion of a year
prior to the cure of an Event.

     

    (c)           Notwithstanding
any other provision of this Section 2, if the Commission determines that
the number of securities that the Company may register on the Registration
Statement pursuant to Rule 415 is limited such that the shares so registered
thereunder shall exclude any Registrable Securities held by the Investor, then
the Company shall promptly so advise the Investor and the Company shall use
commercially reasonable efforts to effect the registration of any Registrable
Securities not so included on the Registration Statement as a result thereof as
soon as is legally possible to do so.  In such event, the Company
shall pay to such Investor liquidated damages as set forth in Section 2(b)
hereof with respect to any Registrable Securities then held by the Investor that
were not registered by the Effectiveness Date.

    
      
         

      

      
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    (d)           The
parties acknowledge and agree that (i) the maximum amount of damages that the
Company shall be obligated to pay the Investor for any and all breaches of this
Section 2 is the amount of liquidated damages set forth in Section 2(b) or 2(c),
and (ii) such liquidated damages shall be the sole remedy available to Investor
for any breach of this Agreement, provided that nothing in this Section 2(d)
shall preclude Investor from seeking injunctive relief, including specific
performance of its rights under this Section 2.

     

    3.           Registration
Procedures.  If and whenever the Company is required by the
provisions of Section 2 hereof to use its commercially reasonable efforts to
affect the registration of any Registrable Securities under the Securities Act,
the Company will, as expeditiously as possible:

     

    (a)           prepare
and file with the Commission the Registration Statement with respect to such
securities and use its reasonable best efforts to cause such Registration
Statement to become effective in an expeditious manner;

     

    (b)           prepare
and file with the Commission such amendments and supplements to such
Registration Statement and the prospectus used in connection therewith as may be
necessary to keep such Registration Statement continuously effective during the
Effectiveness Period and comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities covered by such
Registration Statement in accordance with the intended method of disposition set
forth in such Registration Statement for such period;

     

    (c)           furnish
to each seller of Registrable Securities and to each underwriter such number of
copies of the Registration Statement and the prospectus included therein
(including each preliminary prospectus) as such persons reasonably may request
in order to facilitate the intended disposition of the Registrable Securities
covered by such Registration Statement;

     

    (d)           use
its commercially reasonable efforts (i) to register or qualify the Registrable
Securities covered by such Registration Statement under the securities or “Blue
Sky” laws of such jurisdictions as the sellers of Registrable Securities or, in
the case of an underwritten public offering, the managing underwriter,
reasonably shall request, (ii) to prepare and file in those jurisdictions such
amendments (including post-effective amendments) and supplements, and take such
other actions, as may be necessary to maintain such registration and
qualification in effect at all times for the period of distribution contemplated
thereby and (iii) to take such further action as may be necessary or advisable
to enable the disposition of the Registrable Securities in such jurisdictions,
provided, that the Company shall not for any such purpose be required to qualify
generally to transact business as a foreign corporation in any jurisdiction
where it is not so qualified or to consent to general service of process in any
such jurisdiction;

     

    (e)           use
its commercially reasonable efforts to list the Registrable Securities covered
by such Registration Statement with any securities exchange on which the Common
Stock of the Company is then listed;

    
      
         

      

      
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    (f)           immediately
notify each seller of Registrable Securities and each underwriter under such
Registration Statement, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of the happening of any event
of which the Company has knowledge as a result of which the prospectus contained
in such Registration Statement, as then in effect, includes any untrue statement
of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in light of
the circumstances then existing and promptly amend or supplement such
Registration Statement to correct any such untrue statement or
omission;

     

    (g)           promptly
notify each seller of Registrable Securities of the issuance by the Commission
of any stop order suspending the effectiveness of the Registration Statement or
the initiation of any proceedings for that purpose and make every reasonable
effort to prevent the issuance of any stop order and, if any stop order is
issued, to obtain the lifting thereof at the earliest possible
time;

     

    (h)           if
the offering is an underwritten offering, enter into a written agreement with
the managing underwriter selected in the manner herein provided in such form and
containing such provisions as are usual and customary in the securities business
for such an arrangement between such underwriter and companies of the Company’s
size and investment stature, including, without limitation, customary
indemnification and contribution provisions;

     

    (i)           if
the offering is an underwritten offering, at the request of any seller of
Registrable Securities, use its commercially reasonable efforts to furnish to
such seller on the date that Registrable Securities are delivered to the
underwriters for sale pursuant to such registration: (1) a copy of an opinion,
dated such date, of counsel representing the Company for the purposes of such
registration, addressed to the Investors (or a reliance letter addressed to the
Investors), stating that such Registration Statement has become effective under
the Securities Act and that (A) to the knowledge of such counsel, no stop order
suspending the effectiveness thereof has been issued and no proceedings for that
purpose have been instituted or are pending or contemplated under the Securities
Act, (B) the Registration Statement, the related prospectus and each amendment
or supplement thereof comply as to form in all material respects with the
requirements of the Securities Act (except that such counsel need not express
any opinion as to financial statements or other financial or statistical
information contained therein) and (C) to such other effects as reasonably may
be requested by counsel for the Investors and customarily given in an
underwritten public offering; and (2) a copy of a letter dated such date from
the independent public accountants retained by the Company, addressed to the
Investors (or a reliance letter addressed to the Investors), stating that they
are independent registered public accountants within the meaning of the
Securities Act and that, in the opinion of such accountants, the financial
statements of the Company included in the Registration Statement or the
prospectus, or any amendment or supplement thereof, comply as to form in all
material respects with the applicable accounting requirements of the Securities
Act, and such letter shall additionally cover such other financial matters
(including information as to the period ending no more than five business days
prior to the date of such letter) with respect to such registration as such
underwriters reasonably may request;

    
      
         

      

      
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    (j)           take
all actions reasonably necessary to facilitate the timely preparation and
delivery of certificates (not bearing any legend restricting the sale or
transfer of such securities) representing the Registrable Securities to be sold
pursuant to the Registration Statement and to enable such certificates to be in
such denominations and registered in such names as the Investor or any
underwriters may reasonably request; and

     

    (k)           take
all other reasonable actions necessary to expedite and facilitate the
registration of the Registrable Securities pursuant to the Registration
Statement.

     

    4.           Obligations of
Investor.

     

    (a)           The
Investor shall furnish to the Company such information regarding such Investor,
the number of Registrable Securities owned and proposed to be sold by it, the
intended method of disposition of such securities and any other information as
shall be required to effect the registration of the Registrable Securities, and
cooperate with the Company in preparing the Registration Statement and in
complying with the requirements of the Securities Act; and

     

    (b)           Concurrently
with the execution of the Subscription Agreement, the Company and the Investor
have entered into a lock-up letter agreement (the “Lock-Up Letter Agreement”)
regarding the Registrable Securities.  Pursuant to the Lock-Up Letter
Agreement, and notwithstanding the effectiveness of any Registration Statement
registering the Registrable Securities, the Investor has agreed that it shall
not offer for sale, sell, pledge or otherwise dispose of any shares of Common
Stock or securities convertible into or exercisable or exchangeable for Common
Stock in any manner contrary to the Lock-Up Letter Agreement for a period of 90
days commencing on the date the Company files the Registration Statement
registering the Registrable Securities. The undersigned understands that the
Company is relying upon such Lock-Up Letter Agreement in connection with the
purchase of the Units by the Investor in the Offering.

     

    5.           Expenses.

     

    (a)           All
expenses incurred by the Company in complying with Sections 2 and 3 including,
without limitation, all registration and filing fees (including the fees of the
Securities and Exchange Commission and any other regulatory body with which the
Company is required to file), printing expenses, fees and disbursements of
counsel and independent public accountants for the Company, fees and expenses
(including counsel fees) incurred in connection with complying with state
securities or “Blue Sky” laws, and fees of transfer agents and registrars are
called “Registration Expenses.” All underwriting discounts and selling
commissions applicable to the sale of Registrable Securities are called “Selling
Expenses.”

     

    (b)           The
Company will pay all Registration Expenses in connection with any Registration
Statement filed hereunder, and the Selling Expenses in connection with each such
Registration Statement shall be borne by the participating sellers in proportion
to the number of Registrable Securities sold by each or as they may otherwise
agree.

    
      
         

      

      
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    6.           Indemnification and
Contribution.

     

    (a)           In
the event of a registration of any of the Registrable Securities under the
Securities Act pursuant to the terms of this Agreement, the Company will
indemnify and hold harmless and pay and reimburse, each seller of such
Registrable Securities thereunder, each underwriter of such Registrable
Securities thereunder and each other person, if any, who controls such seller or
underwriter within the meaning of the Securities Act, against any losses,
claims, damages or liabilities, joint or several, to which such seller,
underwriter or controlling person may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Registration Statement
under which such Registrable Securities were registered under the Securities Act
pursuant hereto or any preliminary prospectus or final prospectus contained
therein, or any amendment or supplement thereof, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
or any violation or alleged violation of the Securities Act or any state
securities or “Blue Sky” laws and will reimburse each such seller, each such
underwriter and each such controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, that the Company will
not be liable in any such case if and to the extent that any such loss, claim,
damage or liability arises out of or is based upon the Company’s reliance on an
untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by any such seller, any such
underwriter or any such controlling person in writing specifically for use in
such Registration Statement or prospectus.

     

    (b)           In
the event of a registration of any of the Registrable Securities under the
Securities Act pursuant hereto, each seller of such Registrable Securities
thereunder, severally and not jointly, will indemnify and hold harmless the
Company, each person, if any, who controls the Company within the meaning of the
Securities Act, each officer of the Company who signs the Registration
Statement, each director of the Company, each underwriter and each person who
controls any underwriter within the meaning of the Securities Act, against all
losses, claims, damages or liabilities, joint or several, to which the Company
or such officer, director, underwriter or controlling person may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
reliance on any untrue statement or alleged untrue statement of any material
fact contained in the Registration Statement under which such Registrable
Securities were registered under the Securities Act pursuant hereto or, any
preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereof, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the
Company and each such officer, director, underwriter, and controlling person for
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided that such seller will be liable hereunder in any such case if and only
to the extent that any such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in reliance upon and in conformity with information
pertaining to such seller, as such, furnished in writing to the Company by such
seller specifically for use in such Registration Statement or prospectus; and
provided, further, that the liability of each seller hereunder shall be limited
to the proceeds received by such seller from the sale of Registrable Securities
covered by such Registration Statement.  Notwithstanding the
foregoing, the indemnity provided in this Section 6(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or expense
if such settlement is effected without the consent of such indemnified party and
provided further, that the Company shall not be liable in any such case to the
extent that any such loss, claim, damage or liability (or action in respect
thereof) arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission in such Registration Statement, which
untrue statement or alleged untrue statement or omission or alleged omission is
completely corrected in an amendment or supplement to the Registration Statement
and the undersigned indemnitees thereafter fail to deliver or cause to be
delivered such Registration Statement as so amended or supplemented prior to or
concurrently with the sale of the Registrable Securities to the person asserting
such loss, claim, damage or liability (or actions in respect thereof) or expense
after the Company has furnished the undersigned with the same.

    
      
         

      

      
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    (c)           Promptly
after receipt by an indemnified party hereunder of notice of the commencement of
any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in
writing thereof, but the omission so to notify the indemnifying party shall not
relieve it from any liability which it may have to such indemnified party other
than under this Section 6 and shall only relieve it from any liability which it
may have to such indemnified party under this Section 6 if and to the extent the
indemnifying party is materially prejudiced by such omission.  In case
any such action shall be brought against any indemnified party and it shall
notify the indemnifying party of the commencement thereof, the indemnifying
party shall be entitled to participate in and, to the extent it shall wish, to
assume and undertake the defense thereof with counsel reasonably satisfactory to
such indemnified party, and, after notice from the indemnifying party to such
indemnified party of its election so to assume and undertake the defense
thereof, the indemnifying party shall not be liable to such indemnified party
under this Section 6 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation and of liaison with counsel so selected; provided that if
the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
based upon written advice of its counsel that there may be reasonable defenses
available to it that are different from or additional to those available to the
indemnifying party or if the interests of the indemnified party reasonably may
be deemed to conflict with the interests of the indemnifying party, the
indemnified party shall have the right to select a separate counsel and to
assume such legal defenses and otherwise to participate in the defense of such
action, with the expenses and fees of such separate counsel and other expenses
related to such participation to be reimbursed by the indemnifying party as
incurred.

    
      
         

      

      
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    (d)           In
order to provide for just and equitable contribution to joint liability under
the Securities Act in any case in which either (1) any holder of Registrable
Securities exercising rights under this Agreement, or any controlling person of
any such holder, makes a claim for indemnification pursuant to this Section 6
but it is judicially determined (by the entry of a final judgment or decree by a
court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that this Section 6 provides for
indemnification in such case, or (2) contribution under the Securities Act may
be required on the part of any such selling holder or any such controlling
person in circumstances for which indemnification is provided under this Section
6; then, and in each such case, the Company and such holder will contribute to
the aggregate losses, claims, damages or liabilities to which they may be
subject (after contribution from others) in such proportion so that such holder
is responsible for the portion represented by the percentage that the public
offering price of its Registrable Securities offered by the Registration
Statement bears to the public offering price of all securities offered by such
Registration Statement, and the Company is responsible for the remaining
portion; provided, that, in any such case, (A) no such holder will be required
to contribute any amount in excess of the public offering price of all such
Registrable Securities offered by it pursuant to such Registration Statement and
(B) no person or entity guilty of fraudulent misrepresentation (within the
meaning of Section 12 (f) of the Securities Act) will be entitled to
contribution from any person or entity who was not guilty of such fraudulent
misrepresentation.

     

    7.           Changes in Capital
Stock.  If, and as often as, there is any change in the capital
stock of the Company by way of a stock split, stock dividend, combination or
reclassification, or through a merger, consolidation, reorganization or
recapitalization, or by any other means, appropriate adjustment shall be made in
the provisions hereof so that the rights and privileges granted hereby shall
continue as so changed.

     

    8.           Representations and
Warranties of the Company.  The Company represents and warrants
to the Investor as follows:

     

    (a)           The
execution, delivery and performance of this Agreement by the Company have been
duly authorized by all requisite corporate action and will not violate any
provision of law, any order of any court or other agency of government, the
Articles of Incorporation or Bylaws of the Company or any provision of any
indenture, agreement or other instrument to which it or any or its properties or
assets is bound, conflict with, result in a breach of or constitute (with due
notice or lapse of time or both) a default under any such indenture, agreement
or other instrument or result in the creation or imposition of any lien, charge
or encumbrance of any nature whatsoever upon any of the properties or assets of
the Company or its subsidiaries.

     

    (b)           This
Agreement has been duly executed and delivered by the Company and constitutes
the legal, valid and binding obligation of the Company, enforceable in
accordance with its terms, subject to any applicable bankruptcy, insolvency or
other laws affecting the rights of creditors generally and to general equitable
principles and the availability of specific performance.

     

    9.           Rule 144
Requirements.  The Company agrees to:

     

    (a)           make
and keep current public information about the Company available, as those terms
are understood and defined in Rule 144;

     

    (b)           use
its commercially reasonable efforts to file with the Commission in a timely
manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act (at any time after it has become subject to
such reporting requirements); and

    
      
         

      

      
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    (c)           furnish
to any holder of Registrable Securities upon request (i) a written statement by
the Company as to its compliance with the reporting requirements of Rule 144 and
of the Securities Act and the Exchange Act (at any time after it has become
subject to such reporting requirements), (ii) a copy of the most recent annual
or quarterly report of the Company, and (iii) such other reports and documents
of the Company as such holder may reasonably request to avail itself of any
similar rule or regulation of the Commission allowing it to sell any such
securities without registration.

     

    10.         Termination.  All
of the Company’s obligations to register Registrable Shares under Sections 2 and
3 hereto shall terminate upon the date on which the Investor holds no
Registrable Securities or all of the Registrable Securities are eligible for
resale under Regulation S.

     

    11.         Miscellaneous.

     

    (a)           All
covenants and agreements contained in this Agreement by or on behalf of any of
the parties hereto shall bind and inure to the benefit of the respective
successors and assigns of the parties hereto (including without limitation
transferees of any Registrable Securities), whether so expressed or
not.

     

    (b)           All
notices, requests, consents and other communications hereunder shall be in
writing and shall be delivered in person, mailed by certified or registered
mail, return receipt requested postage prepaid, or sent by telecopier, addressed
(i) if to the Company, at CleanTech Innovations, Inc., c/o The Newman Law Firm,
PLLC, 44 Wall Street, 20th Floor,
New York, New York 10005 USA, Attn: Robert Newman, Esquire; phone (212)
248-1001; facsimile (212) 202-6055; and (ii) if to any holder of Registrable
Securities, to it at such address as may have been furnished to the Company or
its counsel in writing by such holder; or, in any case, at such other address or
addresses as shall have been furnished, in writing to the Company or its counsel
(in the case of a holder of Registrable Securities) or to the holders of
Registrable Securities (in the case of the Company) in accordance with the
provisions of this paragraph.

     

    (c)           This
Agreement shall be governed by and construed under the laws of the State of New
York, without giving effect to principles of conflicts of laws.  The
Company and Investor (i) agree that any legal suit, action or proceeding arising
out of or relating to this Agreement shall be instituted exclusively in any
state court located in New York, New York or in the United States District Court
for the Southern District of New York, (ii) waive any objection which the
Company or Investor may have now or hereafter to the venue of any such suit,
action or proceeding, and (iii) irrevocably consent to the jurisdiction of any
state court located in New York, New York, and the United States District Court
for the Southern District of New York in any such suit, action or
proceeding.  The Company and Investor further agree to accept and
acknowledge service of any and all process which may be served in any such suit,
action or proceeding in any state court located in New York, New York, or in the
United States District Court for the Southern District of New York and agree
that service of process upon the Company or Investor mailed by certified mail,
return receipt requested, postage prepaid, to, in the case of the Company, the
Company’s address, and in the case of the Investor, to the Investor’s address as
set forth on the Company’s books and record, shall be deemed in every respect
effective service of process upon the Company, in any such suit, action or
proceeding.  THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED
HEREBY.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (d)           In
the event of a breach by the Company or by the Investor of any of their
obligations under this Agreement, the Investor or the Company, as the case may
be, in addition to being entitled to exercise all rights granted by law and
under this Agreement, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement.  The Company
and the Investor agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific performance in respect of such breach, it shall waive the
defense that a remedy at law would be adequate.

     

    (e)           This
Agreement may not be amended or modified without the written consent of the
Company and the Investor.

     

    (f)           Failure
of any party to exercise any right or remedy under this Agreement or otherwise,
or delay by a party in exercising such right or remedy, shall not operate as a
waiver thereof.  No waiver shall be effective unless and until it is
in writing and signed by the party granting the waiver.

     

    (g)           This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.  This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission of a copy of this
Agreement bearing the signature of the party so delivering this
Agreement.

     

    (h)           If
any provision of this Agreement shall be held to be illegal, invalid or
unenforceable, such illegality, invalidity or unenforceability shall attach only
to such provision and shall not in any manner affect or render illegal, invalid
or unenforceable any other provision of this Agreement, and this Agreement shall
be carried out as if any such illegal, invalid or unenforceable provision were
not contained herein.

     

    (i)           This
Agreement constitutes the entire contract among the Company and the Investor
relative to the subject matter hereof and supersedes in its entirety any and all
prior agreements, understandings and discussions with respect
thereto.

     

    (j)           The
headings of the sections of this Agreement are for convenience and shall not by
themselves determine the interpretation of this Agreement.

     

    [Signature
Page Follows]

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    [Signature
Page to the Registration Rights Agreement]

     

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

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      	 
      	 	
                                                              COMPANY

                                                            
	 
      	 	 
      	 
      	 
      
	 
      	 	
                                                              CLEANTECH
      INNOVATIONS, INC.

                                                            
	 
      	 	 
      	 
      	 
      
	 
      	 	
                                                              By:

                                                            	
                                                               
        

                                                            
	 
      	 	Name:
      Bei
      Lu	 
      
	 
      	 	Title: 
       Chief
      Executive Officer	 
      
	 
      	 	 
      	 
      	 
      
	 
      	 	
                                                              INVESTOR

                                                            	 
      
	 	 	 	 
	 
      	 	
                                                              [Company,
      Partnership or Trust]

                                                            	 
      
	 
      	 	 
      	 
      	 
      
	
                                                              COMPANY
      NAME:

                                                            	 	 
        	 
      
	 
      	 	 
      	 
      	 
      
	 
      	 	
                                                              By:

                                                            	
                                                               
        

                                                            	 
      
	 
      	 	
                                                              Name:

                                                            	 
      
	 
      	 	
                                                              Title:

                                                            	 
      
	 
      	 	 
      	 
      	 
      
	 
      	 	
                                                              [Individual(s)]

                                                            	 
      
	 
      	 	 
      	 
      	 
      
	 
      	 	
                                                                 
      

                                                            	 
      
	 
      	 	
                                                              Name:

                                                            	 
      
	 
      	 	 
      	 
      	 
      
	 
      	 	
                                                               
        

                                                            	 
      
	 
      	 	
                                                              Name:

                                                            	 
      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        12LOAN
AGREEMENT

    

    LOAN AGREEMENT (this
“Agreement”) dated as of December 13, 2010 by and among CleanTech Innovations,
Inc., a Nevada corporation with its principal executive offices located at C
District, Maoshan Industry Park, Tieling Economic Development Zone, Tieling,
Liaoning Province, China 112616 (“CleanTech”), and its wholly owned
subsidiaries, Liaoning Creative Bellows Co., Ltd. (“Creative Bellows”) and
Liaoning Creative Wind Power Equipment Co., Ltd. (“Wind Power,” together with
Creative Bellows, the “Subsidiaries”), each such subsidiary organized under the
laws of the People’s Republic of China (CleanTech, Creative Bellows and Wind
Power are collectively referred to herein as the “Company”), and NYGG (Asia),
Ltd., a company organized under the laws of the British Virgin Islands with its
principal executive offices located at 12th Floor
Ruttonjee House, 11 Duddell Street, Central, Hong Kong ("Lender").

    

    WITNESSETH

    

    WHEREAS, Lender has agreed,
subject to the terms and conditions hereof, to loan to the Company the sum of
U.S. $10,000,000 (Ten Million Dollars) (the "Loan").

    

    NOW, THEREFORE, in
consideration of the foregoing premises and other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
hereby agree as follows:

    

    1. The Loan.
Simultaneously with the execution of this Agreement by the parties hereto, the
Lender will loan to the Company the sum of U.S. Dollars (“USD”) 10,000,000. The
Loan will be evidenced by a note (the "Note"), dated the date hereof, in the
principal amount of the Loan, and will bear simple interest at the rate of 10%
per annum, payable quarterly in advance commencing on the date hereof and
thereafter every three (3) months from the date hereof on the following dates:
March 13, 2011, June 13, 2011, September 13, 2011, and December 13, 2011, unless
such date is a banking holiday recognized by JPMorgan Chase & Co. in New
York City or a Saturday or Sunday (a “Business Day”), in which case such payment
will be due on the next succeeding Business Day. The principal, together with
any accrued and unpaid interest thereon, shall be due on the earlier of (i)
March 1, 2012, (ii) on demand of the Lender of a full or partial payment at any
time after the closing of any financing of USD 10,000,000 or more, or the
equivalent in another currency, in one or a series of transactions or (iii) upon
acceleration due to a Change of Control or Event of Default (as defined in the
Note). The Note will be in the form attached hereto as Exhibit A. At the
Lender’s option, the principal amount of the note and all interest thereon shall
be paid in either USD or Renminbi (“RMB”) at an exchange rate of RMB 6.90 to USD
1.00 to the Lender or any designee of Lender as provided to the Company in
writing by Lender.

    

    2. Representations and
Warranties of the Company. The Company represents and warrants
that:

    

    (A) The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada, and the Company and its Subsidiaries are
duly qualified to do business and in good standing in such jurisdictions where
the conduct of their business makes such qualification necessary. The Company
has full power and authority, corporate and otherwise, to enter into and perform
this Agreement and the Note.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    (B) The execution, delivery and
performance by the Company of this Agreement, and the making, execution and
delivery by the Company of the Note (collectively with the Agreement referred to
herein as the "Transaction Documents") have been duly authorized by all
necessary corporate action and will not violate any provision of law, court
order or decree to which the Company or its Subsidiaries are subject to, or the
Company's Articles of Incorporation or Bylaws, as amended, or result in the
breach of, or constitute a default under, or result in the creation of any lien,
charge or encumbrance upon any property or assets of the Company or its
Subsidiaries pursuant to any agreement or instrument to which they are a party.
The Transaction Documents are a valid and binding obligation of the Company,
enforceable in accordance with its terms subject to general principles of equity
and bankruptcy and other laws affecting creditors' rights
generally.

    

    (C) No
governmental permit, consent, approval or authorization is required in
connection with (i) the execution, delivery and performance of the Transaction
Documents, or (ii) the offer, sale, issuance and delivery of the Note
contemplated hereby by the Company; provided, that, all
representations made to the Company by the Lender in this Agreement and in any
other document or instrument delivered in connection herewith are assumed for
purposes of this representation and warranty to be accurate and
complete.

    

    (D) The
Company has made available to the Lender through the EDGAR system, true and
complete copies of the Company’s current report on Form 8-K filed July 2, 2010
(the “8-K”), and all other reports filed by the Company pursuant to the 1934 Act
since the filing of the 8-K and prior to the date hereof (collectively, the “SEC
Filings”). The SEC Filings are the only filings required of the Company pursuant
to the 1934 Act for such period. The Company and its Subsidiaries are engaged in
all material respects only in the business described in the SEC Filings and the
SEC Filings contain a complete and accurate description in all material respects
of the business of the Company and its Subsidiaries, taken as a
whole.

    

    (E) The
SEC Filings complied as to form and content in all material respects with the
requirements of the 1934 Act and did 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 the light of the circumstances under which they were
made, not misleading.

    

    (F) The
net proceeds of the Note hereunder shall be used by the Company for working
capital.

    

    (G) Since
December 31, 2009, except as identified and described in the SEC Filings, there
has not been:

    

    (i) any
change in the financial condition of the Company that could reasonably be
expected to have a material adverse effect (“Material Adverse Effect”) on (x)
the assets, liabilities, results of operations, condition (financial or
otherwise), business, or prospects of the Company and its Subsidiaries taken as
a whole, or (y) the ability of the Company to perform its obligations under the
Transaction Documents, individually or in the aggregate; or

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (ii) any
other event or condition of any character that has had or could reasonably be
expected to have a Material Adverse Effect.

    

    3. Representations and
Warranties by the Lender. As an inducement to the Company to enter into
this Agreement and issue the Note, Lender represents and warrants, as
follows:

    

    (A)
Lender is a validly existing company, limited partnership or limited liability
company and has all requisite corporate, partnership or limited liability
company power and authority to enter into the Transaction
Documents.

    

    (B) The
execution, delivery and performance by Lender of the Transaction Documents to
which Lender is a party have been duly authorized and will each constitute the
valid and legally binding obligation of Lender, enforceable against Lender in
accordance with their respective terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability, relating to or affecting creditors’ rights
generally.

    

    (C)
Lender acknowledges that it has been advised that the Note has not been
registered under the provisions of the Act.

    

    (D)
Lender acknowledges it has reviewed and received copies of all SEC Filings.
Lender specifically disclaims receipt of any other information and material,
whether oral or in writing, from the Company or anyone acting for or on behalf
of the Company, and reliance upon any such unauthorized oral or written
information and material is specifically disclaimed.

    

    4. Covenants. Upon an
Event of Default or a Change of Control of the Company (as defined in the Note),
the entire outstanding principal amount of the Note, and interest due thereon,
shall become immediately due and payable in accordance with the terms of the
Note.

    

    5. Negative Covenants.
Without the prior written consent of the Lender, from the date hereof until the
date the Note is repaid in full, the Company and its Subsidiaries shall be
prohibited from:

    

    (A)
Selling, leasing, encumbering, pledging or otherwise disposing of their
respective assets, except in the ordinary course of business;

    

    (B)
Dissolving, liquidating, or winding up their respective businesses;

    

    (C)
Conducting their respective businesses other than in their ordinary and usual
course;

    

    (D)
Paying any dividend or make any other distributions of cash or
property;

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (E)
Merging or consolidating with another entity;

    

    (F)
Issuing any new stock or redeeming any existing stock;

    

    (G)
Incurring indebtedness for borrowed money, including capitalized loan
obligations; or

    

    (H)
Effecting any fundamental change to the Company's lines of
business.

     

    6. Loan
Delivery. Lender shall deposit a total of USD 10,000,000, less any applicable
wire or transfer fees as follows:

    

    Beneficiary:
The Newman Law Firm PLLC IOLA Trust Account

    Bank
Name: TD Bank, NA

    Bank
Address: 2 Wall Street, New York, NY 10005

    ABA:
026013673

    Account
Address: 44 Wall Street, New York, NY 10005

    Account
Number:

    

    Upon the
receipt by Lender and Company of the executed Loan Agreement and Note, The
Newman Law Firm is hereby authorized by the Lender and the Company to promptly
release all funds to the Company as directed by the Company in
writing.

    

    7. Miscellaneous.

    

    (A) (i)
The Company agrees to indemnify and hold harmless the Lender and its affiliates
and their respective directors, officers, employees and agents (each a “Lender
Indemnitee”) from and against any and all losses, claims, damages, liabilities
and expenses (including without limitation reasonable attorney fees and
disbursements and other expenses incurred in connection with investigating,
preparing or defending any action, claim or proceeding, pending or threatened
and the costs of enforcement thereof) (collectively, “Losses”) to which any such
Lender Indemnitee may become subject as a result of any breach of
representation, warranty, covenant or agreement made by or to be performed on
the part of the Company under the Transaction Documents, and will reimburse any
such Lender Indemnitee for all such amounts as they are incurred by such Lender
Indemnitee.

    

    (ii) The
Lender agrees to indemnify and hold harmless the Company and its affiliates and
their respective directors, officers, employees and agents (each a “Company
Indemnitee”) from and against any and all Losses to which any such Company
Indemnitee may become subject as a result of any breach of representation,
warranty, covenant or agreement made by or to be performed on the part of the
Lender under the Transaction Documents, and will reimburse any such Company
Indemnitee for all such amounts as they are incurred by such Company
Indemnitee.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (B) This
Agreement may not be assigned by a party hereto without the prior written
consent of the Company or the Lender, as applicable, provided, however, that Lender
may assign its rights and delegate its duties hereunder in whole or in part to
an affiliate and may assign in writing any right to the payment of interest and
principal to any designee. The provisions of this Agreement shall inure to the
benefit of and be binding upon the respective permitted successors and assigns
of the parties. Nothing in this Agreement, express or implied, is intended to
confer upon any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations, or liabilities under
or by reason of this Agreement, except as expressly provided in this
Agreement.

    

    (C) This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument. This Agreement may also be executed via facsimile, which shall be
deemed an original.

    

    (D) The
titles and subtitles used in this Agreement are used for convenience only and
are not to be considered in construing or interpreting this
Agreement.

    

    (E)
Unless otherwise provided, any notice required or permitted under this Agreement
shall be given in writing and shall be deemed effectively given as hereinafter
described (i) if given by personal delivery, then such notice shall be deemed
given upon such delivery, (ii) if given by mail, then such notice shall be
deemed given upon the receipt of such notice by the recipient and (iii) if given
by an internationally recognized overnight air courier, then such notice shall
be deemed given two Business Days after delivery to such carrier. All notices
shall be addressed to the party to be notified at the address as follows, or at
such other address as such party may designate by ten days advance written
notice to the other party:

    

    If to the
Company:

    C
District, Maoshan Industry Park,

    Tieling
Economic Development Zone,

    Tieling,
Liaoning Province, China 112616

    Att: Bei
Lu

    

    With a
copy to (which copy shall constitute notice):

    The
Newman Law Firm, PLLC

    14 Wall
Street, 20th
Floor

    New York,
NY 10005

    Attention:
Robert Newman

    

    If to the
Lender:

    NYGG
(Asia), Ltd.

    12th Floor
Ruttonjee House,

    11
Duddell Street

    Central,
Hong Kong

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    With a
copy to (which copy shall constitute notice):

    Orrick,
Herrington & Sutcliffe, LLP

    51 West
52nd
Street

    New York,
NY 10019

    Attn:
George H. Wang Esq.

    

    (F) Amendments and
Waivers. Any term of this Agreement may be amended and the observance of
any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written
consent of the Company and the Lender, and the Company will pay the reasonable
fees and expenses of the Lender incurred in connection with any such
amendment.

    

    (G) Severability. Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof but shall be interpreted as if it were written so as to be
enforceable to the maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, the parties hereby waive any provision of law which
renders any provision hereof prohibited or unenforceable in any
respect.

    

    (H) Entire Agreement.
This Agreement, including the Exhibits and the Disclosure Schedules, and the
other Transaction Documents constitute the entire agreement among the parties
hereof with respect to the subject matter hereof and thereof and supersede all
prior agreements and understandings, both oral and written, between the parties
with respect to the subject matter hereof and thereof.

    

    (I) Further Assurances.
The parties shall execute and deliver all such further instruments and documents
and take all such other actions as may reasonably be required to carry out the
transactions contemplated hereby and to evidence the fulfillment of the
agreements herein contained.

    

    (J) Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by,
and construed in accordance with, the internal laws of the State of New York
without regard to the choice of law principles thereof. Each of the parties
hereto irrevocably submits to the exclusive jurisdiction of the courts of the
State of New York located in New York County and the United States District
Court for the Southern District of New York for the purpose of any suit, action,
proceeding or judgment relating to or arising out of this Agreement and the
transactions contemplated hereby. Service of process in connection with any such
suit, action or proceeding may be served on each party hereto anywhere in the
world by the same methods as are specified for the giving of notices under this
Agreement. Each of the parties hereto irrevocably consents to the jurisdiction
of any such court in any such suit, action or proceeding and to the laying of
venue in such court. Each party hereto irrevocably waives any objection to the
laying of venue of any such suit, action or proceeding brought in such courts
and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES
ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS
AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (K) The Company shall pay the
reasonable fees and expenses of counsel incurred in connection with the
negotiation and consummation of the transactions contemplated
hereby.

    

    IN WITNESS WHEREOF, the
parties hereto have executed this agreement as of the date first above
written

    

    
      
        	
                CLEANTECH
      INNOVATIONS, INC.

              
	 
      
	
                By:

              	
                /s/ Bei Lu

              
	 
      	
                 Name:
      Bei Lu

              
	 
      	
                 Title:
      President and Chief Executive Officer

              
	 
      	 
      
	
                LIAONING
      CREATIVE BELLOWS CO., LTD.

              
	 
      
	
                By:

              	
                /s/ Bei Lu

              
	 
      	
                 Name:
      Bei Lu

              
	 
      	
                 Title:
      President and Chief Executive Officer

              
	 
      	 
      
	
                LIAONING
      CREATIVE WIND POWER

                EQUIPMENT
      CO., LTD.

              
	 
      	 
      
	
                By: 

              	
                /s/ Bei Lu

              
	 
      	
                 Name:
      Bei Lu

              
	 
      	
                 Title:
      President and Chief Executive
Officer

              

      

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      
        	
                LENDER:

              
	 
      
	
                NYGG
      (Asia), Ltd.

              
	 
      
	
                By: 

              	
                /s/ Ming Li

              
	 
      	
                 Name:

              
	 
      	
                 Title:

              

      

    

     

    
      
         

      

      
        8

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