Document:

Unassociated Document

    Exhibit 4.3

    
 

    NEITHER
THIS WARRANT NOR THE SECURITIES INTO WHICH THIS WARRANT IS EXERCISABLE HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A
FORM ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
SAID ACT.

    

    IN
ADDITION, THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY NOT
BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR BE THE SUBJECT OF
ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT
IN THE EFFECTIVE ECONOMIC DISPOSITION OF SUCH SECURITIES BY ANY PERSON,
UNTIL JULY 5TH,
2010, EXCEPT IN ACCORDANCE WITH FINRA RULE 5110(G)(2).

     

    LINK
RESOURCES, INC.

    

    PLACEMENT
AGENT WARRANT

    

    
      	
              Initial
      Holder:

            	
              Original Issue
      Date: January 5, 2009

            
	 
      	
              No. of Shares Subject to
      Warrant:

            
	 
      	
              Exercise Price Per
      Share: $2.40

            
	 
      	
              Expiration
      Time: 5:00 p.m., New York time,

              on
      January 5, 2013

            

    

    

    Link Resources, Inc., a Nevada
corporation (the “Company”), hereby certifies
that, for value received, the Initial Holder shown above, or its permitted
registered assigns (the “Holder”), is entitled to
purchase from the Company up to the number of shares of its common stock, par
value $0.001 per share (the “Common Stock”),  shown
above (each such share, a “Warrant Share” and all such
shares, the “Warrant
Shares”) at the exercise price shown above (as may be adjusted from time
to time as provided herein, the “Exercise Price”), at any time
and from time to time on or original issue date indicated above (the “Original Issue Date”) and
through and including the expiration time shown above (the “Expiration Time”), and subject
to the following terms and conditions:

    

    1.
            Definitions.  In
addition to the terms defined elsewhere in this Warrant, capitalized terms that
are not otherwise defined herein have the meanings given to such terms in the
SPA.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    2.            
List of Warrant
Holders.  The Company shall register this Warrant, upon records to
be maintained by the Company for that purpose (the “Warrant Register”), in the
name of the record Holder (which shall include the Initial Holder or, as the
case may be, any registered assignee to which this Warrant is permissibly
assigned hereunder from time to time).  The Company may deem and treat the
registered Holder of this Warrant as the absolute owner hereof for the purpose
of any exercise hereof or any distribution to the Holder, and for all other
purposes, absent actual notice to the contrary.

    

    3.
            List of Transfers;
Restrictions on Transfer. The Company shall register any transfer of all
or any portion of this Warrant in the Warrant Register, upon surrender of this
Warrant, with the Form of Assignment attached hereto duly completed and signed,
to the Company at its address specified herein. Upon any such registration or
transfer, a new Warrant to purchase Common Stock, in substantially the form of
this Warrant (any such new Warrant, a “New Warrant”), evidencing the
portion of this Warrant so transferred shall be issued to the transferee and a
New Warrant evidencing the remaining portion of this Warrant not so transferred,
if any, shall be issued to the transferring Holder.  The acceptance of the
New Warrant by the transferee thereof shall be deemed the acceptance by such
transferee of all of the rights and obligations in respect of the New Warrant
that the Holder has in respect of this Warrant.

    

    4.
            Exercise and Duration of
Warrant.

    

    (a)
         All or any part of this Warrant
shall be exercisable by the registered Holder in any manner permitted by
Section 10 of this Warrant at any time and from time to time on or after
the Original Issue Date and through and including the Expiration Time. Subject
to Section 11 hereof, at the Expiration Time, the portion of this Warrant not
exercised prior thereto shall be and become void and of no value and this
Warrant shall be terminated and shall no longer be outstanding.

    

    (b)          
The Holder may exercise this Warrant by delivering to the Company: (i) an
exercise notice, in the form attached hereto (the “Exercise Notice”), completed
and duly signed, and (ii) payment by wire transfer of immediately available
funds to an account designated by the Company of the Exercise Price for the
number of Warrant Shares as to which this Warrant is being exercised.  The
date such items are delivered to the Company (as determined in accordance with
the notice provisions hereof) is an “Exercise Date.”  The
Holder shall be required to deliver the original Warrant in order to effect an
exercise hereunder.  Execution and delivery of the Exercise Notice
shall have the same effect as cancellation of the original Warrant and issuance
of a New Warrant evidencing the right to purchase the remaining number of
Warrant Shares.

    

    (c)          
The Company will not close its stockholder books or records in any manner which
prevents the timely exercise of this Warrant pursuant to the terms
hereof.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    5.
           Delivery of Warrant
Shares.

    

    (a)
          Upon exercise of this
Warrant, the Company shall promptly (but in no event later than three (3)
Trading Days after the Exercise Date) issue or cause to be issued and cause to
be delivered to or upon the written order of the Holder and in such name or
names as the Holder may designate, a certificate for the Warrant Shares issuable
upon such exercise, free of restrictive legends.  “Trading Day” shall mean a date
on which the Company’s Common Stock trades on its principal trading market.
 The Holder, or any Person permissibly so designated by the Holder to
receive Warrant Shares, shall be deemed to have become the holder of record of
such Warrant Shares as of the Exercise Date.  The Company shall, upon the
written request of the Holder, use its best efforts to deliver, or cause to be
delivered, Warrant Shares hereunder electronically through the Depository Trust
and Clearing Corporation or another established clearing corporation performing
similar functions, if available; provided, that, the Company
may, but will not be required to, change its transfer agent if its current
transfer agent cannot deliver Warrant Shares electronically through the
Depository Trust and Clearing Corporation.  If as of the time of exercise
the Warrant Shares constitute restricted or control securities, the Holder, by
exercising, agrees not to resell them except in compliance with all applicable
securities laws.

    

    (b)
          To the extent permitted
by law, the Company’s obligations to issue and deliver Warrant Shares in
accordance with the terms hereof are absolute and unconditional, irrespective of
any action or inaction by the Holder to enforce the same, any waiver or consent
with respect to any provision hereof, the recovery of any judgment against any
Person or any action to enforce the same, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the
Holder or any other Person of any obligation to the Company or any violation or
alleged violation of law by the Holder or any other Person, and
irrespective of any other circumstance that might otherwise limit such
obligation of the Company to the Holder in connection with the issuance of
Warrant Shares.  Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief
with respect to the Company’s failure to timely deliver certificates
representing shares of Common Stock upon exercise of the Warrant as required
pursuant to the terms hereof.

    

    (c)
          If the Company fails to
cause its transfer agent to transmit to the Holder a certificate or the
certificates (either physical or electronic) representing the Warrant Shares
pursuant to the terms hereof by applicable delivery date, then, the Holder will
have the right to rescind such exercise.

    

    6.
            Charges, Taxes and
Expenses. Issuance and delivery of certificates for shares of Common
Stock upon exercise of this Warrant shall be made without charge to the Holder
for any issue or transfer tax, withholding tax, transfer agent fee or other
incidental tax or expense in respect of the issuance of such certificates, all
of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not
be required to pay any tax that may be payable in respect of any transfer
involved in the registration of any certificates for Warrant Shares or the
Warrants in a name other than that of the Holder. The Holder shall be
responsible for all other tax liability that may arise as a result of holding or
transferring this Warrant or receiving Warrant Shares upon exercise
hereof.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    7.
            Replacement of
Warrant.  If this Warrant is mutilated, lost, stolen or destroyed,
the Company shall issue or cause to be issued in exchange and substitution for
and upon cancellation hereof, or in lieu of and substitution for this Warrant, a
New Warrant, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested. Applicants for a New Warrant under such circumstances
shall also comply with such other reasonable regulations and procedures and pay
such other reasonable third-party costs as the Company may prescribe. If a New
Warrant is requested as a result of a mutilation of this Warrant, then the
Holder shall deliver such mutilated Warrant to the Company as a condition
precedent to the Company’s obligation to issue the New Warrant.

    

    8.
            Reservation of Warrant
Shares.  The Company covenants that it will at all times reserve and
keep available out of the aggregate of its authorized but unissued and otherwise
unreserved Common Stock, solely for the purpose of enabling it to issue Warrant
Shares upon exercise of this Warrant as herein provided, the number of Warrant
Shares that are then issuable and deliverable upon the exercise of this entire
Warrant, free from preemptive rights or any other contingent purchase rights of
persons other than the Holder (taking into account the adjustments and
restrictions of Section 9). The Company covenants that all Warrant Shares so
issuable and deliverable shall, upon issuance and the payment of the applicable
Exercise Price in accordance with the terms hereof, be duly and validly
authorized, issued and fully paid and nonassessable.

    

    9.
            Certain Adjustments to
Exercise Price.  The Exercise Price and number of Warrant
Shares issuable upon exercise of this Warrant are subject to adjustment from
time to time as set forth in this Section 9.

    

    (a)         Adjustments for Stock Splits
and Combinations and Stock Dividends.  If the Company
shall at any time or from time to time after the date hereof, effect a stock
split or combination of the outstanding Common Stock or pay a stock dividend in
shares of Common Stock, then the Exercise Price shall be proportionately
adjusted.  Any adjustments under this Section 9(a) shall be effective
at the close of business on the date the stock split or combination becomes
effective or the date of payment of the stock dividend, as
applicable.

    

    (b)         Merger Sale,
Reclassification, etc. In case of any: (i)
consolidation or merger (including a merger in which the Company is the
surviving entity), (ii) sale or other disposition of all or substantially all of
the Company’s assets or distribution of property to shareholders (other than
distributions payable out of earnings or retained earnings), or
reclassification, change or conversion of the outstanding securities of the
Company or of any reorganization of the Company (or any other corporation the
stock or securities of which are at the time receivable upon the exercise of
this Warrant) or any similar corporate reorganization on or after the date
hereof, then and in each such case the Holder of this Warrant, upon the exercise
hereof at any time thereafter shall be entitled to receive, in lieu of the stock
or other securities and property receivable upon the exercise hereof prior to
such consolidation, merger, sale or other disposition, reclassification, change,
conversion or reorganization, the stock or other securities or property to which
such Holder would have been entitled upon such consummation if such Holder had
exercised this Warrant immediately prior thereto.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (c)         Adjustments for Issuance of
Additional Shares of Common Stock.

    

     
(i)           In the
event the Company, shall, at any time, from time to time, issue or sell any
additional shares of Common Stock (other than pursuant to Common Stock
Equivalents (hereafter defined) granted or issued prior to the issuance date of
this Warrant) (“Additional
Shares of Common Stock”), at a price per share less than the Exercise
Price then in effect or without consideration, then the Exercise Price upon each
such issuance shall be adjusted to that price (rounded to the nearest cent)
determined by multiplying the Exercise Price then in effect by a
fraction:

    

     
(A)           the
numerator of which shall be equal to the sum of (1) the number of shares of
Common Stock outstanding immediately prior to the issuance of such Additional
Shares of Common Stock plus (2) the number
of shares of Common Stock (rounded to the nearest whole share) which the
aggregate consideration for the total number of such Additional Shares of Common
Stock so issued would purchase at a price per share equal to the Exercise Price
then in effect, and

    

     
(B)           the
denominator of which shall be equal to the number of shares of Common Stock
outstanding immediately after the issuance of such Additional Shares of Common
Stock.

    

     
(ii)           The
provisions of paragraph (i) of Section 9(c) shall not apply to any issuance of
Additional Shares of Common Stock for which an adjustment is provided elsewhere
in this Section 9).  No adjustment of the number of Shares for which
this Warrant shall be convertible shall be made under this clause (ii) upon the
issuance of any Additional Shares of Common Stock which are issued pursuant to
the exercise of any Common Stock Equivalents, if any such adjustment shall
previously have been made upon the issuance of such Common Stock Equivalents
pursuant to the other provisions of this Section 9.

    

     
(iii)           Issuance of Common Stock
Equivalents.  The provisions of this Section 9(c) shall apply
if (A) the Company, at any time after the issuance date of this Warrant, shall
issue any securities convertible into or exchangeable for, directly or
indirectly, Common Stock (“Convertible Securities”),
other than the Convertible Notes, or (B) any rights or warrants or options to
purchase any such Common Stock or Convertible Securities (collectively, the
“Common Stock
Equivalents”) shall be issued or sold.  If the price per share
for which Additional Shares of Common Stock may be issuable pursuant to any such
Common Stock Equivalent shall be less than the applicable Exercise Price then in
effect, or if, after any such issuance of Common Stock Equivalents, the price
per share for which Additional Shares of Common Stock may be issuable thereafter
is amended or adjusted, and such price as so amended shall be less than the
applicable Exercise Price in effect at the time of such amendment or adjustment,
then the applicable Exercise Price upon each such issuance or amendment shall be
adjusted as provided in the first sentence of subsection (c)(i) of this Section
9.  No adjustment shall be made to the Exercise Price upon the
issuance of Common Stock pursuant to the exercise, conversion or exchange of any
Convertible Security or Common Stock Equivalent where an adjustment to the
Exercise Price was made as a result of the issuance or purchase of any
Convertible Security or Common Stock Equivalent.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     
(iv)           Certain Issues
Excepted.  Anything herein to the contrary notwithstanding, the
Company shall not be required to make any adjustment to the Exercise Price under
this Section 9 in connection with securities of the Company issued: (i) in
connection with a merger, acquisition or consolidation, (ii) in connection with
bona fide joint venture, strategic license or similar business partnering
arrangements (provided that the transaction or arrangement is not primarily for
the purpose of raising capital from Person whose primary business is investing
in securities), (iii) upon exercise of this Warrant or the other Warrants issued
together with the Notes; (iv) upon exercise any warrants issued to the placement
agents and its designees for the transactions contemplated hereby; and (v) in
connection with any share split, share dividend, recapitalization or similar
transaction by the Company for which adjustment is made pursuant to this Section
9.

    

     
(v)           Floor
Price.  Notwithstanding any provision of this Warrant to the
contrary, no adjustment pursuant to Section 9(c) shall cause the Exercise Price
to be less than $1.20, as adjusted for any stock dividend, stock split, stock
combination, reclassification or similar transaction.

    

    10.
          No Fractional Shares.
 No fractional Warrant Shares will be issued in connection with any
exercise of this Warrant. In lieu of any fractional shares that would otherwise
be issuable, the Company shall pay cash equal to the product of such fraction
multiplied by the closing price of one Warrant Share as reported by the
applicable Trading Market on the Exercise Date.

    

    11.         
Notices.
 Any and all notices or other communications or deliveries hereunder
(including, without limitation, any Exercise Notice) shall be delivered in
accordance with the procedures set forth in Section 9.2 of the SPA.

    

    12.         
Warrant Agent.
The Company shall serve as warrant agent under this Warrant. Upon thirty (30)
days’ notice to the Holder, the Company may appoint a new warrant agent.
 Any corporation into which the Company or any new warrant agent may be
merged or any corporation resulting from any consolidation to which the Company
or any new warrant agent shall be a party or any corporation to which the
Company or any new warrant agent transfers substantially all of its corporate
trust or shareholders services business shall be a successor warrant agent under
this Warrant without any further act. Any such successor warrant agent shall
promptly cause notice of its succession as warrant agent to be mailed (by first
class mail, postage prepaid) to the Holder at the Holder’s last address as shown
on the Warrant Register.

    

    13.
          Miscellaneous.

    

    (a)
          This Warrant shall be
binding on and inure to the benefit of the parties hereto and their respective
successors and assigns. Subject to the preceding sentence, nothing in this
Warrant shall be construed to give to any Person other than the Company and the
Holder any legal or equitable right, remedy or cause of action under this
Warrant.  This Warrant may be amended only in writing signed by the Company
and the Holder, or their successors and assigns.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (b)
          Each party agrees that
all legal proceedings concerning the interpretations, enforcement and defense of
the transactions contemplated by this Warrant (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of New York.  Each party hereto hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, New York 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 this
Warrant, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is
improper.  Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action
or 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 Note 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 (INCLUDING ITS AFFILIATES, AGENTS, OFFICERS, DIRECTORS AND EMPLOYEES)
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 WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

    

    (c)
          The headings herein are
for convenience only, do not constitute a part of this Warrant and shall not be
deemed to limit or affect any of the provisions hereof.

    

    (d)
          In case any one or more
of the provisions of this Warrant shall be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Warrant shall not in any way be affected or impaired thereby and the
parties will attempt in good faith to agree upon a valid and enforceable
provision which shall be a commercially reasonable substitute therefore, and
upon so agreeing, shall incorporate such substitute provision in this
Warrant.

    

    (e)
          Prior to exercise of this
Warrant, the Holder hereof shall not, by reason of by being a Holder, be
entitled to any rights of a stockholder with respect to the Warrant
Shares.

    

    (f)
          No provision hereof, in
the absence of any affirmative action by Holder to exercise this Warrant to
purchase Warrant Shares, and no enumeration herein of the rights or privileges
of Holder, shall give rise to any liability of Holder for the purchase price of
any Common Stock or as a stockholder of the Company, whether such liability is
asserted by the Company or by creditors of the Company.

    

    [Signature
Page Follows]

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Company has caused this Placement Agent Warrant to be duly executed by its
authorized officer as of the date first indicated above.

    

    
      
        	
                LINK
      RESOURCES, INC.

              
	 
      	 
      
	
                By:

              	
                  

              
	 
      	
                Name:
      Hongwei Qu

              
	 
      	
                Title:   President,
      CEO and Chairman

              

      

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    LINK
RESOURCES, INC.

    

    EXERCISE
NOTICE

    

    Ladies
and Gentlemen:

    

    (1)          
The undersigned hereby elects to exercise the above-referenced Warrant with
respect to
[                          ]
shares of Common Stock.  Capitalized terms used herein and not otherwise
defined herein have the respective meanings set forth in the
Warrant.

    

    (2)          
The holder hereby tenders the sum of
$ ______________      to the Company in accordance
with the terms of the Warrant.

    

    (3)          
Pursuant to this Exercise Notice, the Company shall deliver to the Holder the
number of Warrant Shares determined in accordance with the terms of the
Warrant.

     

    
      	
              Dated:

            	 
      	 
      	
              HOLDER:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              Print
      name

            
	 
      	 
      	 
      
	 
      	 
      	
              By:

            	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              Title:

            	 
      

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    LINK
RESOURCES, INC.

    

    FORM
OF ASSIGNMENT

    To be
completed and signed only upon transfer of Warrant

    

    FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto _________________ the right
represented by the within Warrant to purchase _________________ shares of Common
Stock to which the within Warrant relates and appoints __________________
attorney to transfer said right on the books of the Company with full power of
substitution in the premises.

    

    
      	
              Dated:

            	 
      	 
      	
              TRANSFEROR:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              Print
      name

            
	 
      	 
      	 
      
	 
      	 
      	
              By:

            	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              Title:

            	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              TRANSFEREE:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              Print
      name

            
	 
      	 
      	
               
      

            
	 
      	 
      	
              By:

            	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              Title:

            	 
      
	
              WITNESS:

            	 
      	 
      	 
      
	 
      	 
      	
              Address
      of Transferee:

            
	 
      	 
      	 
      	 
      
	
              Print
      name

            	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      

    

    
      
         

      

      
        10Unassociated Document

    Exhibit
10.1

     

     

    SECURITIES
PURCHASE AGREEMENT

    

    This
SECURITIES PURCHASE
AGREEMENT (this “Agreement”), dated January 5,
2010, is between Link Resources Inc., a Nevada corporation (the “Company”), and each purchaser
identified on Schedule
A hereto (each, including their respective successors and assigns, an
“Investor” and
collectively, the “Investors”) and, with respect
to certain sections hereof, Euro Pacific Capital, Inc. (the “Lead Placement
Agent”).

     

    WHEREAS, this Agreement has
been entered into pursuant to the terms of the Company’s Confidential Private
Placement Memorandum, dated December 10, 2009 (together with any and all
amendments and/or supplements thereto, the “Memorandum”);

    

    WHEREAS, the Lead Placement
Agent is acting in such capacity in connection with the Company’s offering of
Units as described in the Memorandum;

    

    WHEREAS, as described in the
Memorandum, immediately prior to the Closing (as defined herein), the
shareholders of Chance High International Limited, a British Virgin Islands
company (“Chance High”)
and an Affiliate of Yantai Bohai Pharmaceuticals Group Co., Ltd., a company
organized under the laws of the PRC (“Bohai”), shall have
consummated a share exchange transaction with the Company pursuant to a Share
Exchange Agreement, in the form attached to the Memorandum (the “Share Exchange Agreement”),
with the result being that Chance High will become a wholly-owned subsidiary of
the Company;

    

    WHEREAS, upon the consummation
of the transactions contemplated by the Share Exchange Agreement, Bohai shall
become a controlled variable interest entity of the Company’s subsidiary, Yantai
Shencaojishi Pharmaceuticals Co., Ltd., a company organized under the laws of
the PRC (“WFOE”), which,
in turn, will be a wholly-owned subsidiary of Chance High;

    

    WHEREAS, in light of the
Company’s transaction with Bohai, the Investors wish to purchase from the
Company, and the Company wishes to sell and issue to the Investors, upon the
terms and conditions stated in this Agreement, a minimum of 4,650,000 units (the
“Minimum Amount”) and a maximum of
6,000,000 units (the “Maximum
Amount”) at a purchase price of $2.00 per unit (each, a “Unit”);

     

    WHEREAS, each Unit shall
consist consisting of: (i) an eight (8%) percent convertible promissory note
(each a “Note,” and,
collectively, the “Notes”) of the Company in the
aggregate principal amount of $2.00, which Note shall be convertible into
shares (the “Conversion
Shares”) of the Company’s common stock, par value $0.001 per share
(together with any securities into which such shares may be reclassified, the
“Common Stock”) at $2.00
per Conversion Share (subject to adjustment as set forth in the Note), which
Notes shall be in the form annexed hereto as Exhibit A hereto and
(ii) a common stock purchase warrant (each a “Warrant,” and, collectively,
the “Warrants”) to
purchase one (1) share (collectively, the “Warrant Shares”) of Common
Stock at an exercise price of $2.40 per share (subject to adjustment as set
forth in the Warrants), which Warrants shall be in the form attached hereto as
Exhibit B , upon the terms
and conditions set forth in this Agreement;

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    WHEREAS, at the Closing,
the parties hereto will execute and deliver a Registration Rights Agreement,
substantially in the form attached hereto as Exhibit C (the “Registration Rights
Agreement”),
pursuant to which the Company will agree to provide certain registration rights
with respect to the Warrant Shares under the Securities Act and the rules and
regulations promulgated thereunder, and applicable state securities
laws;

     

    WHEREAS, in order to
provide security upon an event of default under the Notes, Glory Period Limited,
a British Virgin Islands company and an Affiliate of Bohai (the “Principal Stockholder”), shall
deposit one million (1,000,000) shares of Common Stock received by it in
connection with the Share Exchange Agreement with Escrow, LLC, as securities
escrow agent (the “Securities
Escrow Agent”), pursuant to that certain Securities Escrow Agreement by
and among the Company, the Lead Placement Agent, the Principal Stockholder and
the Securities Escrow Agent, dated as of the date hereof and substantially in
the form of Exhibit
D hereto (the “Securities Escrow Agreement”);
and

     

    WHEREAS, the Company and the
Investors are executing and delivering this Agreement in reliance upon the
exemption from securities registration afforded by the rules and regulations as
promulgated by the Commission under the Securities Act.

    

    NOW, THEREFORE, in
consideration of the mutual terms, conditions and other agreements set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound
hereby, the parties hereto hereby agree to the sale and purchase of the Units as
set forth herein.

    

    1.           DEFINITIONS.  In
addition to the terms defined elsewhere in this Agreement, for all purposes of
this Agreement, the following terms have the meanings indicated in this Section
1.

    

    “Affiliate” means, with respect
to any specified Person: (i) if such Person is an individual, the spouse of that
Person and, if deceased or disabled, his heirs, executors, or legal
representatives, if applicable, or any trusts for the benefit of such individual
or such individual’s spouse and/or lineal descendants, or (ii) otherwise,
another Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, the Person
specified. As used in this definition, “control” shall mean the possession,
directly or indirectly, of the power to cause the direction of the management
and policies of a Person, whether through the ownership of voting securities or
by contract or other written instrument.

    

    “Business Day” means any day on
which banks located in New York City are not required or authorized by law to
remain closed.

    

    “Closing Escrow Agreement” means the Closing
Escrow Agreement, dated December 10, 2009, by and among the Company, the Lead
Placement Agent and the Escrow Agent.

    

    “Company’s knowledge” means the
information and/or other items that the executives of the Company have actual
knowledge of after due inquiry.

    

    “Escrow Account” means the
escrow account established by the Escrow Agent pursuant to the Closing Escrow
Agreement where funds representing the Investors’ aggregate Purchase Price shall
be held pending the First Closing.

     

    
      
         

      

      
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    “Escrow Agent” means Escrow,
LLC.

    

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

    

    “Governmental Body” shall mean
any: (a) nation, state, commonwealth, province, territory, county, municipality,
district or other jurisdiction of any nature; (b) federal, state, local,
municipal, foreign or other government; or (c) governmental or
quasi-governmental authority of any nature (including any governmental or
administrative division, department, agency, commission, instrumentality,
official, organization, unit, body or entity) and any court or other
tribunal.

    

    “Intellectual Property” means
the Company’s patents, patent applications, provisional patents, trademarks,
service marks, trade names, trademark registrations, service mark registrations,
copyrights, licenses, formulae, mask works, customer lists, internet domain
names, know-how and other intellectual property, including trade secrets and
other unpatented and/or unpatentable proprietary or confidential information,
systems, procedures or registrations or applications relating to the
same.

    

    “Indebtedness” of any Person
means all obligations of such Person: (i) for borrowed money, (ii) evidenced by
notes, bonds, debentures or similar instruments, (iii) for the deferred purchase
price of goods or services (other than trade payables or accruals incurred in
the ordinary course of business), (iv) under capital leases, and (v) in the
nature of guarantees of the obligations described in clauses (i) through (iv)
above of any other Person.

    

    “Investor” means any person who
purchases Units in the Offering pursuant to this Agreement.

    

    “Legal Requirement” shall mean any federal
state, local, municipal, foreign or other law, statute, constitution, principle
of common law, resolution, ordinance, code, edict, decree, rule, regulation,
ruling or requirement issued, enacted, adopted, promulgated, implemented or
otherwise put into effect by or under the authority of any Governmental Body (or
under the authority of any national securities exchange upon which the Common
Stock is then listed or traded).  Reference to any Legal Requirement
means such Legal Requirement as amended, modified, codified, replaced or
reenacted, in whole or in part, and in effect from time to time, and reference
to any section or other provision of any Legal Requirement means that provision
of such Legal Requirement from time to time in effect and constituting the
substantive amendment, modification, codification, replacement or reenactment of
such section or other provision.

     

    “Lien(s)” means any interest in
Property securing an obligation owed to a Person whether such interest is based
on the common law, statute or contract, and including but not limited to a
security interest arising from a mortgage, lien, title claim, assignment,
encumbrance, adverse claim, contract of sale, pledge, conditional sale or trust
receipt or a lease, consignment or bailment for security purposes.  The
term “Lien” includes but is not limited to mechanics’, materialmens’,
warehousemens’ and carriers’ liens and other similar encumbrances. For the
purposes hereof, a Person shall be deemed to be the owner of Property which it
has acquired or holds subject to a conditional sale agreement or other
arrangement pursuant to which title to the Property has been retained by or
vested in some other Person for security purposes.

     

    
      
         

      

      
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    “Material Adverse Effect” means
a material adverse effect on, and a “Material Adverse Change ”
means a material adverse change in: (i) the assets, liabilities, results of
operations, condition (financial or otherwise) or business of the Company taken
as a whole; or (ii) the ability of the Company to perform its obligations under
the Transaction Documents, but, to the extent applicable, shall exclude any
circumstance, change or effect to the extent resulting or arising from: (w) any
change in general economic conditions in the industries or markets in which the
Company and its Subsidiaries operates so long as the Company and its
Subsidiaries are not disproportionately (in a material manner) affected by such
changes; (x) national or international political conditions, including any
engagement in hostilities, whether or not pursuant to the declaration of a
national emergency or war, or the occurrence of any military or terrorist attack
so long as the Company and its Subsidiaries are not disproportionately (in a
material manner) affected by such changes; (y) changes in United States
generally accepted accounting principles, or the interpretation thereof; or (z)
the entry into or announcement of this Agreement, actions contemplated by this
Agreement, or the consummation of the transactions contemplated
hereby.

    

    “OTCBB” shall mean the
Over-the-Counter Bulletin Board system.

    

    “Offering” shall mean the
offering and sale of the Units pursuant to this Agreement and the
Memorandum.

    

    “Person” shall mean an
individual, entity, corporation, partnership, association, limited liability
company, limited liability partnership, joint-stock company, trust or
unincorporated organization.

    

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

    

    “Property” means any interest
in any kind of property or asset, whether real, personal or mixed, or tangible
or intangible.

    

    “Purchase Price” shall mean an
amount equal to $2.00 per Unit multiplied by the number of Units being
purchased.

    

    “SEC” means the United States
Securities and Exchange Commission.

    

    “Securities” means the Units,
the Notes, the Conversion Shares, the Warrants and the Warrant
Shares.

    

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

    

    “Subsidiaries” shall mean any
corporation or other entity or organization, whether incorporated or
unincorporated, in which the Company owns, directly or indirectly, any
controlling equity or other controlling ownership interest or otherwise controls
through contract or otherwise, including, without limitation, any variable
interest entity of the Company.

     

    
      
         

      

      
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    “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 NYSE AMEX, 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” shall
mean this Agreement, the Memorandum, the Notes, the Warrants, the Registration
Rights Agreement, the Share Exchange Agreement, the Closing Escrow Agreement and
the Securities Escrow Agreement.

    

    “Transfer” shall mean any sale,
transfer, assignment, conveyance, charge, pledge, mortgage, encumbrance,
hypothecation, security interest or other disposition, or to make or effect any
of the above.

    

    2.           SALE
AND PURCHASE OF UNITS.

    

    2.1.         Subscription for Units by
Investors.  Subject to the terms and conditions of this Agreement,
on the Closing Date, each of the Investors shall severally, and not jointly,
purchase, and the Company shall sell and issue to each Investor, the number of
Units specified by it on its respective signature page attached hereto in
exchange for the Purchase Price.

    

    2.2.         Closings.

    

    (a)           First Closing.
 Subject to the terms and conditions set forth in this Agreement, the
Company shall issue and sell to each Investor listed on Schedule A-1, and each such
Investor shall, severally and not jointly, purchase from the Company on the
First Closing Date, such number of Units set forth on the respective signature
pages attached hereto, which will be reflected opposite such Investor’s name on
Schedule A-1 (the “First Closing”).  The
date of the First Closing is hereinafter referred to as the “First Closing Date”.
 Units equal to at least the Minimum Amount are required to be sold at the
First Closing within the time period set forth in the Memorandum.

     

    
      
         

      

      
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    (b)           Subsequent
Closing(s).  In the event that the Maximum Amount is not raised
at the First Closing, the Company and the Lead Placement Agent may mutually
agree to have one or more subsequent closings of the Offering (each, a “Subsequent Closing”) until the
Maximum Amount is raised.  At each Subsequent Closing, the Company
agrees to issue and sell to each Investor who executes a signature page hereto,
and each such Investor agrees, severally and not jointly, to purchase from the
Company such number of Units set forth on such Investor’s signature pages
attached hereto.  There may be more than one Subsequent Closing; provided, however, that the final
Subsequent Closing shall take place within the time periods set forth in the
Memorandum.  The date of any Subsequent Closing is hereinafter referred to
as a “Subsequent Closing
Date”).

    

    (c)           Closing.  The
First Closing and any applicable Subsequent Closings are each referred to in
this Agreement as a “Closing”.  The First
Closing Date and any Subsequent Closing Dates are sometimes referred to herein
as a “Closing Date”.
 All Closings shall occur within the time periods set forth in the
Memorandum at the offices of Ellenoff Grossman & Schole LLP at 150 East
42nd
Street, 11th Floor,
New York, NY 10017 or remotely via the exchange of documents and
signatures. 

    

    2.3.         Closing Deliveries. At each
Closing, the Company shall deliver to the Investors purchasing Units at such
Closing, against delivery by the Investor of the Purchase Price (as provided
below), the Notes and the Warrants.  At each Closing, each Investor
purchasing Units at such Closing shall deliver or cause to be delivered to the
Company the Purchase Price set forth in its counterpart signature page annexed
hereto by paying United States dollars via bank, certified or personal check
which has cleared prior to the applicable Closing or in immediately available
funds, by wire transfer to the Escrow Account pursuant to the Closing Escrow
Agreement.

    

    2.4.         The Notes.  The Notes
shall have the terms and conditions and be in the form attached hereto
as Exhibit
A. 
Upon an Event of Default (as defined in the Note), the Investors shall have, in
addition to any rights provided hereunder, the rights provided them under the
Transaction Documents.

    

    2.5.         The Warrants.  The
Warrants shall have
the terms and conditions and be in the form attached hereto as Exhibit B. 

    

    2.6.         The Registration Rights
Agreement. 
The Registration Rights Agreement shall contain the terms and conditions and be
in the form attached hereto as Exhibit C.

    

    2.7.         Use of
Proceeds.  The Company hereby covenants and agrees that the
proceeds from the sale of Units shall be used as provided for in the
Memorandum.

     

    
      
         

      

      
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    2.8.         Investor
Representative.  Each Investor, severally and not jointly,
hereby appoints the Lead Placement Agent (together with its permitted
successors, and in this context, the “Investor Representative”), as
its true and lawful agent and attorney-in-fact to: (a) enter into any agreement
in connection with the transactions contemplated by this Agreement and any
transactions contemplated by the Transaction Documents, (b) exercise all or any
of the powers, authority and discretion conferred on such Investor under this
Agreement or any of the Transaction Documents, (c) waive any terms and
conditions of this Agreement or any of the Transaction Documents, (d) give and
receive notices on such Investor’s behalf and to be such Investor’s exclusive
representative with respect to any matter, suit, claim, action or proceeding
arising with respect to any transaction contemplated by this Agreement or any
Transaction Document, and the Investor Representative agrees to act as, and to
undertake the duties and responsibilities of, such agent and
attorney-in-fact.  This power of attorney is coupled with an interest
and irrevocable.  The Investor Representative shall not be liable for
any action taken or not taken by it in connection with its obligations under
this Agreement: (i) with the consent of Investors who, as of the date of this
Agreement have subscribed for (or, if a Closing has occurred, as of the date of
the latest Closing own) more than fifty percent (50%) in principal amount of the
outstanding Notes or (ii) in the absence of its own gross negligence or willful
misconduct.  If the Investor Representative shall be unable or
unwilling to serve in such capacity, its successor shall be named by those
persons holding more than fifty percent (50%) in principal amount of the Notes
who shall serve and exercise the powers of Investor Representative
hereunder.

    

    3.           ACKNOWLEDGEMENTS
OF THE INVESTORS.

    

    Each
Investor, severally and not jointly, acknowledges that:

    

    3.1.         Resale
Restrictions.  None of the Securities have been registered
under the Securities Act, or under any state securities or “blue sky” laws of
any state of the United States, and, unless so registered, none of the
Securities may be offered or sold by the Investor except pursuant to an
effective registration statement under the Securities Act, or pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act and in each case only in accordance with
applicable state securities laws.

    

    3.2.         Agreements.  Such
Investor has received, carefully read and acknowledges the terms of the
Transaction Documents and Memorandum, including the Risk Factors set forth in
the Memorandum.

    

    3.3.         Books and Records. The books
and records of the Company and Bohai were available upon reasonable notice for
inspection, subject to certain confidentiality restrictions, by the Investor
during reasonable business hours at its principal place of business, that all
documents, records and books in connection with the sale of the Securities
hereunder have been made available for inspection by it and its attorney and/or
advisor(s) and that the Investor and/or its advisor has reviewed all such
documents, records and books to its full satisfaction and all questions it
and/or its advisor may have had been answered to their respective full
satisfaction.

    

    3.4.         Independent Advice.  The Investor has been
advised to consult the Investor’s own legal, tax and other advisors with respect
to the merits and risks of an investment in the Securities and with respect to
applicable resale restrictions, and it is solely responsible (and neither the
Company nor the Lead Placement Agent is in any way, directly and/or indirectly,
responsible) for compliance with:

    

    (a)           any
applicable laws of the jurisdiction in which the Investor is resident in
connection with the distribution of the Securities hereunder, and

    

    (b)           applicable
resale restrictions.

     

    
      
         

      

      
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    3.5.         No Governmental Review or Insurance.  Neither
the SEC nor any other securities commission, securities regulator or similar
regulatory authority has reviewed or passed on the merits of the Securities or
on any of the documents reviewed or executed by the Investor in connection with
the sale of the Securities, and there is no government or other insurance
covering any of the Securities.

    

    4.           REPRESENTATIONS,
WARRANTIES AND ACKNOWLEDGMENTS OF THE INVESTORS.

    

    Each
Investor, severally and not jointly, represents and warrants to the Company
solely as to such Investor that:

    

    4.1.         Capacity.  The
Investor: (i) if a natural person, represents that the Investor has reached the
age of 21 and has full authority, legal capacity and competence to enter into,
execute and deliver this Agreement and the Transaction Documents to which the
Investor is a party and all other related agreements or certificates and to take
all actions required pursuant hereto and thereto and to carry out the provisions
hereof and thereof and, (ii) if a corporation, partnership, or limited liability
company or partnership, or association, joint stock company, trust,
unincorporated organization or other entity, represents that such entity was not
formed for the specific purpose of acquiring the Units, such entity is duly
organized, validly existing and in good standing under the laws of the state of
its organization, such entity has full power and authority to execute and
deliver this Agreement, the Transaction Documents to which it is a party and all
other related agreements or certificates and to take all actions required
pursuant hereto and thereto and to carry out the provisions hereof and thereof
and to purchase and hold the Units, the execution and delivery of this Agreement
and the Transaction Documents to which it is a Party have been duly authorized
by all necessary action; or (iii) if executing this Agreement in a
representative or fiduciary capacity, represents that it has full power and
authority to execute and deliver this Agreement and the Transaction Documents to
which it is a Party in such capacity and on behalf of the subscribing
individual, ward, partnership, trust, estate, corporation, or limited liability
company or partnership, or other entity for whom the Investor is executing this
Agreement and the Transaction Documents, and such individual, partnership, ward,
trust, estate, corporation, or limited liability company or partnership, or
other entity has full right and power to perform pursuant to this Agreement and
the Transaction Documents to which it is a Party and make an investment in the
Company.

    

    4.2.         No Violation of Corporate Governance
Documents. If the Investor is a corporation or other entity, the entering
into of this Agreement and the other Transaction Documents to which it is a
party and the transactions contemplated hereby and thereby do not and will not
result in the violation of any of the terms and provisions of any law applicable
to, or the charter or other organizational documents, bylaws or other governing
documents of, the Investor or of any agreement, written or oral, to which the
Investor may be a party or by which the Investor is or may be
bound.

    

    4.3.         Binding Agreement. The
Investor has duly executed and delivered this Agreement and the other
Transaction Documents to which it is a party, and this Agreement and the other
Transaction Documents to which it is a party constitute a valid and binding
agreement of the Investor enforceable against the Investor in accordance
with their respective terms, except as such enforceability may be limited by
general principals of equity, or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or
affecting generally, the enforcement of applicable creditors’ rights and
remedies.

     

    
      
         

      

      
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    4.4.         Purchase Entirely for Own
Account.  The Securities are being acquired for such Investor’s own
account, not as nominee or agent, for investment purposes only and not with a
view to the resale or distribution of any part thereof in violation of the
Securities Act, and such Investor has no present intention of selling, granting
any participation in, or otherwise distributing the same in violation of the
Securities Act, 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.

    

    4.5.         Not a Broker-Dealer. Such
Investor is neither a registered representative under the Financial Industry
Regulatory Authority (“FINRA”), a member of FINRA or
associated or Affiliated with any member of FINRA, nor a broker-dealer
registered with the SEC under the Exchange Act or engaged in a business that
would require it to be so registered, nor is it an Affiliate of a such a
broker-dealer or any Person engaged in a business that would require it to be
registered as a broker-dealer.  In the event such Investor is a member of
FINRA, or associated or Affiliated with a member of FINRA, such Investor agrees,
if requested by FINRA, to sign a lock-up, the form of which shall be
satisfactory to FINRA with respect to the Securities.

    

    4.6.         Not an
Underwriter.  Such Investor is not an underwriter of the Common
Stock, nor is it an Affiliate of an underwriter of the Common
Stock.

    

    4.7.         Investment Experience. Such
Investor acknowledges that the purchase of the Securities is a highly
speculative investment and that it can bear the economic risk and complete loss
of its investment in the Securities and has such knowledge and experience in
financial and/or business matters that it is capable of evaluating the merits
and risks of the investment contemplated hereby.

    

    4.8.         Disclosure of Information.
 Such Investor has had an opportunity to receive, and fully and carefully
review, all information related to the Company, Bohai and the Securities
requested by it and to ask questions of and receive answers from the Company
regarding the Company, Bohai and their respective businesses and the terms and
conditions of the offering of the Securities.  Neither such inquiries nor
any other due diligence investigation conducted by such Investor shall modify,
amend or affect such Investor’s right to rely on the Company’s representations
and warranties contained in this Agreement.  Such Investor acknowledges
that it has received, and fully and carefully reviewed and understands all of
the Transaction Documents, including, but not limited to, the Memorandum
describing, among other items, the Company, Bohai, their respective businesses
and risks, the Securities and the offering of the Securities.  Investor
acknowledges that it has received, and fully and carefully reviewed and
understands, copies of the SEC Documents, either in hard copy or electronically
through the SEC’s EDGAR system.  Such Investor understands that its
investment in the Securities involves a high degree of risk.  Such
Investor’s decision to enter into this Agreement and the Registration Rights
Agreement has been made based solely on the independent evaluation of the
Investor and its representatives.  Such Investor has received such
accounting, tax and legal advice from Persons (other than the Company) as it has
considered necessary to make an informed investment decision with respect to the
acquisition of the Securities.

     

    
      
         

      

      
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    4.9.         Restricted Securities.
 Such Investor understands that, except as provided in the Registration
Rights Agreement, the sale or re-sale of the Securities has not been and is not
being registered under the Securities Act or any applicable state securities
laws, and the Securities, as applicable, may not be transferred
unless:

    

    (a)           they
are sold pursuant to an effective registration statement under the Securities
Act; or

    

    (b)           they
are being sold pursuant to a valid exemption from the registration requirements
of the Securities Act; or

    

    (c)           they
are sold or transferred to an “affiliate” (as defined in Rule 144, promulgated
under the Securities Act (or a successor rule (“Rule 144”)) of such Investor
who agrees to sell or otherwise transfer the Securities only in accordance with
this Section 4.9 and who is an accredited investor, or

    

    (d)           they
are validly sold pursuant to Rule 144.

    

    Such
Investor shall provide the Company with no less than three (3) Trading Days
notice of its intention to dispose of any Securities and agrees that such
Investor shall only dispose of any Securities in accordance with all applicable
Legal Requirements.  Such Investors further understands that any sale
of the Securities made in reliance on Rule 144 may be made only in accordance
with the terms of Rule 144 and other than as provided in the Transaction
Documents, neither the Company nor any other Person is under any obligation to
register the Securities under the Securities Act or any state securities laws.
 Notwithstanding the foregoing or anything else contained herein to the
contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or
other lending arrangement.

    

    4.10.      Accredited Investor. Such
Investor is an “accredited investor” as defined in Rule 501(a) of Regulation D,
as amended, under the Securities Act (“Regulation D”).

    

    4.11.      No General Solicitation.
 Such Investor did not learn of the investment in the Securities as a
result of any public advertising or general solicitation, and is not aware of
any public advertisement or general solicitation in respect of the Company or
its securities.

    

    4.12.      Brokers and Finders.  No
Investor will have, as a result of the transactions contemplated by the
Transaction Documents, any valid right, interest or claim against or upon the
Company, any Subsidiary or any other Investor for any commission, fee or other
compensation pursuant to any agreement, arrangement or understanding entered
into by or on behalf of such Investor.

     

    
      
         

      

      
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    4.13.      Prohibited Transactions.
 Other than with respect to the transactions contemplated herein, since the
earlier to occur of: (i) the time that such Investor was first contacted by the
Company, or any other Person regarding an investment in the Company and (ii) the
thirtieth (30th) day
prior to the date hereof, neither the Investor nor any Affiliate of the Investor
which (x) had knowledge of the transactions contemplated hereby, (y) has or
shares discretion relating to the Investor’s investments or trading or
information concerning such Investor’s investments, including in respect of the
Securities, or (z) is subject to the Investor’s review or input concerning such
Affiliate’s investments or trading decisions (collectively, “Trading Affiliates”) has,
directly or indirectly, nor has any Person acting on behalf of, or pursuant to,
any understanding with such Investor or Trading Affiliate effected or agreed to
effect any transactions in the securities of the Company or involving the
Company’s securities (a “Prohibited
Transaction”).

    

    4.14.      Residency.  Such Investor
is a resident of the jurisdiction set forth in on such Investors signature page
hereto.

    

    4.15.      Reliance on Exemptions.
 The Investor understands that the Securities are being offered and sold to
it in reliance upon specific exemptions from the registration requirements of
United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Investor’s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of
the Investor set forth herein in order to determine the availability of such
exemptions and the eligibility of the Investor to acquire the Securities. All of
the information which the Investor has provided to the Company is true, correct
and complete as of the date this Agreement is signed, and if there should be any
change in such information prior to the Closing, the Investor will immediately
provide the Company with such information.

    

    5.           REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

    

    Except as
set forth in: (i) the SEC Reports, (ii) the Memorandum or (ii) the corresponding
section of the Disclosure Schedules delivered to the Investor Representative
concurrently herewith, the Company (which, for the avoidance of doubt, means the
Company after giving effect to the transactions contemplated by the Share
Exchange Agreement) hereby makes the following representations and warranties as
of the date hereof and as of the Closing Date to each Investor:

    

    5.1.        Subsidiaries.  A
true and correct structure chart of the Company and its wholly-owned and
consolidated Subsidiaries after giving effect to the transactions contemplated
by the Share Exchange Agreement is included as Schedule 5.1 to the
Disclosure Schedules.  Except as disclosed on Schedule 5.1 to the
Disclosure Schedules or in the Memorandum, the Company owns, directly or
indirectly, all of the capital stock of each Subsidiary free and clear of any
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.

    

    5.2.        Organization and
Qualification.  Each of the Company and the Subsidiaries is an
entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization, 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.  Each of the Company and the Subsidiaries is duly qualified
to conduct business and is 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, would not
have or reasonably be expected to result in (i) a material adverse effect on the
legality, validity or enforceability of any Transaction Document, (ii) a
material adverse effect on the results of operations, assets, business or
financial condition of the Company and the Subsidiaries, taken as a whole, or
(iii) adversely impair the Company’s ability to perform in any material respect
on a timely basis its obligations under any Transaction Document (any of (i),
(ii) or (iii), a “Material
Adverse Effect”).

    

    
      
         

      

      
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    5.3.        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: (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally and (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other
equitable remedies.

    

    5.4.        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 would not have or
reasonably be expected to result in a Material Adverse Effect.

     

    
      
         

      

      
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    5.5.        Filings, Consents and
Approvals.  Neither Company nor any Subsidiary is required to
obtain any consent, waiver, authorization or order of, give any notice to, or
make any filing or registration with, any court or other foreign, 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 (a) the filing with the Commission of the Registration
Statement, the application(s) to each Trading Market for the listing of the
Shares and Warrant Shares for trading thereon in the time and manner required
thereby, and applicable Blue Sky filings, (b) such as have already been obtained
or such exemptive filings as are required to be made under applicable securities
laws, (c) such other filings that have been made pursuant to applicable state
securities laws and post-sale filings pursuant to applicable state and federal
securities laws which the Company undertakes to file within the applicable time
periods.  Subject to the accuracy of the representations and
warranties of each Investor set forth in Section 4 hereof, the Company has taken
all action necessary to exempt: (i) the issuance and sale of the Securities,
(ii) the issuance of the Warrant Shares upon due exercise of the Warrants, and
(iii) the other transactions contemplated by the Transaction Documents from the
provisions of any stockholder rights plan or other “poison pill” arrangement,
any anti-takeover, business combination or control share law or statute binding
on the Company or to which the Company or any of its assets and properties may
be subject and any provision of the Company’s Articles of Incorporation or
Bylaws that is or could reasonably be expected to become applicable to the
Investors as a result of the transactions contemplated hereby, including without
limitation, the issuance of the Securities and the ownership, disposition or
voting of the Securities by the Investors or the exercise of any right granted
to the Investors pursuant to this Agreement or the other Transaction
Documents.

    

    5.6.        Issuance of the
Securities.  The Notes are 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 Warrants have been duly and validly
authorized.  Upon the due conversion of the Notes, the Conversion
Shares will be validly issued, fully paid and non-assessable free and clear of
all Liens.   Upon the due exercise of the Warrants, the Warrant
Shares will be validly issued, fully paid and non-assessable free and clear of
all Liens.  The Company has reserved from its duly authorized capital
stock the maximum number of shares of Common Stock issuable pursuant to this
Agreement, the Notes and the Warrants.

    

    5.7.        Capitalization.  Schedule 5.7 to the
Disclosure Schedules sets forth as of the date hereof (a) the authorized capital
stock of the Company; (b) the number of shares of capital stock issued and
outstanding; (c) the number of shares of capital stock issuable pursuant to the
Company’s stock plans; and (d) the number of shares of capital stock issuable
and reserved for issuance pursuant to securities (other than the Notes and the
Warrants) exercisable for, or convertible into or exchangeable for any shares of
capital stock of the Company.  All of the issued and outstanding
shares of the Company’s capital stock have been duly authorized and validly
issued and are fully paid, nonassessable and free of pre-emptive rights and were
issued in full compliance with applicable state and federal securities law and
any rights of third parties.  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 described on Schedule 5.7 to the
Disclosure Schedules, there are no outstanding options, warrants, script 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, other than in connection with the Share Exchange Agreement and the
Company’s stock option plans.  The issue and sale of the Securities
will not 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.  Except as described on
Schedule 5.7 to
the Disclosure Schedules and except for the Registration Rights Agreement, there
are no voting agreements, buy-sell agreements, option or right of first purchase
agreements or other agreements of any kind among the Company and any of the
securityholders of the Company relating to the securities of the Company held by
them.  Except as described on Schedule 5.7 to the
Disclosure Schedules, and except as provided in the Registration Rights
Agreement, no Person has the right to require the Company to register any
securities of the Company under the Securities Act, whether on a demand basis or
in connection with the registration of securities of the Company for its own
account or for the account of any other Person.

     

    
      
         

      

      
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    5.8.        SEC Reports; Financial
Statements.  The Company has filed all reports and registration
statements 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 two years
preceding the date hereof (or such shorter period as the Company was required by
law to file such material) (the foregoing materials, including the exhibits
thereto, being collectively referred to herein as the “SEC Reports” and, together
with the Disclosure Schedules to this Agreement and the Memorandum, the “Disclosure Materials”) on a
timely basis or has received 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 generally accepted accounting principles applied on a consistent basis
during the periods involved (“GAAP”), except as may be
otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by
GAAP, 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.  The financial statements of Chance High included in the
Memorandum have been prepared in accordance with GAAP, except as may be
otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by
GAAP, and fairly present in all material respects the financial position of
Chance High 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.

    

    5.9.        Material
Changes.  Except with respect to the transactions contemplated
by the Share Exchange Agreement or as otherwise disclosed in the Memorandum
(including the , since the date of the latest audited financial statements
included within the SEC Reports, except as disclosed in the SEC Reports, the
Company and its Subsidiaries have not:

    

    (a)           suffered
any Material Adverse Change;

     

    
      
         

      

      
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    (b)           suffered
any damage, destruction or loss, whether or not covered by insurance, in an
amount in excess of $100,000;

     

    (c)           granted
or agreed to make any increase in the compensation payable or to become payable
by the Company or any of its Subsidiaries to any officer or employee, except for
normal raises for nonexecutive personnel made in the ordinary course of business
that are usual and normal in amount;

     

    (d)           declared,
set aside or paid any dividend or made any other distribution on or in respect
of the shares of capital stock of the Company or any of its Subsidiaries, or
declared or agreed to any direct or indirect redemption, retirement, purchase or
other acquisition by the Company or any of its Subsidiaries of such
shares;

     

    (e)       
    issued any shares of capital stock of the Company or any
of its Subsidiaries, or any warrants, rights or options thereof, or entered into
any commitment relating to the shares of capital stock of the Company or any of
its Subsidiaries;

     

    (f)        
   adopted or proposed the adoption of any change in the
Company’s Certificate of Incorporation or Bylaws;

     

    (g)           made
any change in the accounting methods or practices they follow, whether for
general financial or tax purposes, or any change in depreciation or amortization
policies or rates adopted therein, or any tax election;

     

    (h)           sold,
leased, abandoned or otherwise disposed of any real property or any machinery,
equipment or other operating property other than in the ordinary course of their
business;

     

    (i)         
  sold, assigned, transferred, licensed or otherwise disposed of any
of the Company’s Intellectual Property or interest thereunder or other
intangible asset except in the ordinary course of their business;

     

    (j)       
    been involved in any dispute involving any employee
which would reasonably be expected to result in a Material Adverse
Change;

     

    (k)           entered
into, terminated or modified any employment, severance, termination or similar
agreement or arrangement with, or granted any bonuses (or bonus opportunity) to,
or otherwise increased the compensation of any executive officer;

     

    (l)        
   entered into any material commitment or transaction (including
without limitation any borrowing or capital expenditure);

     

    (m)           amended
or modified, or waived any default under, any Material Contract;

     

    (n)           to
the Knowledge of the Company, incurred any material liabilities, contingent or
otherwise, either matured or unmatured (whether or not required to be reflected
in financial statements in accordance with GAAP, and whether due or to become
due), except for accounts payable or accrued salaries that have been incurred by
the Company since the date of the latest audited financial statements included
within the SEC Reports, in the ordinary course of its business and consistent
with the Company’s past practices;

     

    
      
         

      

      
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    (o)           permitted
or allowed any of their material property or assets to be subjected to any
Lien;

     

    (p)           settled
any claim, litigation or action, whether now pending or hereafter made or
brought;

     

    (q)           made
any capital expenditure or commitment for additions to property, plant or
equipment individually in excess of $100,000, or in the aggregate, in excess of
$250,000;

     

    (r)       
    paid, loaned or advanced any amount to, or sold,
transferred or leased any properties or assets to, or entered into any agreement
or arrangement with any of their Affiliates, officers, directors or stockholders
or, to the Company's knowledge, any Affiliate or associate of any of the
foregoing;

     

    (s)           made
any amendment to, or terminated any agreement that, if not so amended or
terminated, would be material to the business, assets, liabilities, operations
or financial performance of the Company or any of its Subsidiaries;

     

    (t)           
compromised or settled any claims relating to taxes, any tax audit or other tax
proceeding, or filed any amended tax returns;

     

    (u)           merged
or consolidated with any other Person, or acquired a material amount of assets
of any other Person;

     

    (v)           entered
into any agreement in contemplation of the transactions specified herein other
than this Agreement and the other Transaction Documents; or

     

    (w)           agreed
to take any action described in this Section 5.9 or which would reasonably be
expected to otherwise constitute a breach of any of the representations or
warranties contained in this Agreement or any other Transaction
Documents.

     

    5.10.      Litigation.  Except
as described on Schedule 5.10 to the
Disclosure Schedules, there is no action, suit, inquiry, notice of violation,
proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their
respective properties before or by any court, arbitrator, governmental or
administrative agency or regulatory authority (federal, state, county, local or
foreign) (collectively, an “Action”) which: (i) adversely
affects or challenges the legality, validity or enforceability of any of the
Transaction Documents or the Securities or (ii) could, if there were an
unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect.  Neither the Company nor any Subsidiary, nor any
director or officer thereof, 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.  There has not been, and to the
knowledge of the Company, there is not pending or contemplated, any
investigation by the Commission involving the Company or any current or former
director or officer of the Company.  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.

     

    
      
         

      

      
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    5.11.      Labor
Relations.  Except as set forth on Schedule 5.11 to the
Disclosure Schedules, neither the Company nor any Subsidiary is a party to or
bound by any collective bargaining agreements or other agreements with labor
organizations.  Neither the Company nor any Subsidiary has violated in
any material respect any laws, regulations, orders or contract terms, affecting
the collective bargaining rights of employees, labor organizations or any laws,
regulations or orders affecting employment discrimination, equal opportunity
employment, or employees’ health, safety, welfare, wages and
hours.  No material labor dispute exists or, to the knowledge of the
Company, is imminent with respect to any of the employees of the Company which
could reasonably be expected to result in a Material Adverse
Effect.

    

    5.12.      Compliance.  Except
as set forth on Schedule 5.12 to the
Disclosure Schedules, 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
applicable to its business, except in the case of clauses (i), (ii) and (iii) as
would not have or reasonably be expected to result in a Material Adverse
Effect.

    

    5.13.      Regulatory
Permits.  Except as disclosed in the SEC Reports, the
Memorandum or Schedule
5.13 to the Disclosure Schedules, 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 and the Memorandum,
except where the failure to possess such permits would not have or reasonably be
expected to result in a Material Adverse Effect (“Material Permits”), and
neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Material Permit.

    

    5.14.      Title to
Assets.  Except as set forth on Schedule 5.14 to the
Disclosure Schedules, the Company and the Subsidiaries have good and marketable
title in fee simple or the right under PRC law, as the case may be, to all real
property owned by them that is material to the business of the Company and the
Subsidiaries and good and marketable title in all personal property owned by
them that is material to the business of the Company and the Subsidiaries, 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 and Liens for the payment of federal, state or other taxes, the
payment of which is neither delinquent nor subject to penalties.  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.

     

    
      
         

      

      
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    5.15.      Contracts.

    

    (a)           Except
as set forth in the SEC Reports or the Memorandum, neither the Company nor any
of its Subsidiaries is party or subject to, or bound by:

     

    (i)           any
agreements, contracts or commitments that call for prospective fixed and/or
contingent payments or expenditures by or to the Company or any of its
Subsidiaries of more than $100,000, or which is otherwise material and not
entered into in the ordinary course of business;

     

    (ii)           any
contract, lease or agreement involving payments in excess of $100,000, which is
not cancelable by the Company or any of its Subsidiaries, as applicable, without
penalty on not less than 60 days notice;

     

    (iii)           any
contract, including any distribution agreements, containing covenants directly
or explicitly limiting the freedom of the Company or any of its Subsidiaries to
compete in any line of business or with any Person or to offer any of its
products or services;

     

    (iv)           any
indenture, mortgage, promissory note, loan agreement, guaranty or other
agreement or commitment for the borrowing of money or pledging or granting a
security interest in any assets;

     

    (v)           any
employment contracts, non-competition agreements, invention assignments,
severance or other agreements with officers, directors, employees, stockholders
or consultants of the Company or any of its Subsidiaries or Persons related to
or affiliated with such Persons;

     

    (vi)           any
stock redemption or purchase agreements or other agreements affecting or
relating to the capital stock of the Company or any of its Subsidiaries,
including, without limitation, any agreement with any stockholder of the Company
or any of its Subsidiaries which includes, without limitation, antidilution
rights, voting arrangements or operating covenants;

     

    (vii)           any
pension, profit sharing, retirement, stock option or stock ownership
plans;

     

    (viii)         any
royalty, dividend or similar arrangement based on the revenues or profits of the
Company or any of its Subsidiaries or based on the revenues or profits derived
from any material contract;

     

    (ix)           any
acquisition, merger, asset purchase or other similar agreement;

     

    (x)           any
sales agreement which entitles any customer to a right of set-off, or right to a
refund after acceptance thereof;

     

    (xi)           any
agreement with any supplier or licensor containing any provision permitting such
supplier or licensor to change the price or other terms upon a breach or failure
by the Company or any of its Subsidiaries, as applicable, to meet its
obligations under such agreement; or

     

    (xii)           any
agreement under which the Company or any of its Subsidiaries has granted any
Person registration rights for securities.

     

    
      
         

      

      
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    (b)           Schedule 5.15(b) to
the Disclosure Schedules contains a listing or description of all agreements,
contracts or instruments, including all amendments thereto, to which the Company
or its Subsidiaries are bound which meet the criteria set forth in Section
5.15(a) (such agreements, contracts or instruments, collectively, the “Material
Contracts”).  The Company has made available to the Investor
Representative copies of the Material Contracts.  Neither the Company
nor any of its Subsidiaries has entered into any oral contracts which, if
written, would qualify as a Material Contract.  Each of the Material
Contracts is valid and in full force and effect, is enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization,
fraudulent transfer, moratorium or similar laws affecting creditors’ rights
generally and general principles of equity, and will continue to be so
immediately following the Closing Date.  

    

    (c)           Actions
with Respect to Material Contracts.

     

    (i)           Neither
the Company nor any of its Subsidiaries has violated or breached, or committed
any default under, any Material Contract in any material respect, and, to the
Company’s knowledge, no other Person has violated or breached, or committed any
default under any Material Contract, except for violations, breaches of defaults
which would not have a Material Adverse Effect; and

     

    (ii)           To
the Company's knowledge, no event has occurred, and no circumstance or condition
exists, that (with or without notice or lapse of time) will, or would reasonably
be expected to: (A) result in a material violation or breach of any of the
provisions of any Material Contract, (B) give any Person the right to declare a
default or exercise any remedy under any Material Contract, (C) give any Person
the right to accelerate the maturity or performance of any Material Contract or
(D) give any Person the right to cancel, terminate or modify any Material
Contract, except, in each case, as would not have a Material Adverse
Effect.

    

    5.16.      Taxes.

    

    (a)           The
Company and its Subsidiaries have timely and properly filed all tax returns
required to be filed by them for all years and periods (and portions thereof)
for which any such tax returns were due, except where the failure
to so file would not have a Material Adverse
Effect.  All such filed tax returns are accurate in all
material respects.  The Company has timely paid all taxes due and
payable (whether or not shown on filed tax returns), except where the failure
to so pay would not have a Material Adverse
Effect.  There are no pending assessments, asserted
deficiencies or claims for additional taxes that have not been
paid.  The reserves for taxes, if any, reflected in the SEC Reports or
the in the
Memorandum are adequate, and there are no Liens for taxes on any property
or assets of the Company and any of its Subsidiaries (other than Liens for taxes
not yet due and payable).  There have been no audits or examinations
of any tax returns by any Governmental Body, and the Company or its Subsidiaries
have not received any notice that such audit or examination is pending or
contemplated.  No claim has been made by any Governmental Body in a
jurisdiction where the Company or any of its Subsidiaries does not file tax
returns that it is or may be subject to taxation by that
jurisdiction.  To the knowledge of the Company, no state of facts
exists or has existed which would constitute grounds for the assessment of any
penalty or any further tax liability beyond that shown on the respective tax
returns.  There are no outstanding agreements or waivers extending the
statutory period of limitation for the assessment or collection of any
tax.

     

    
      
         

      

      
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    (b)           Neither
the Company nor any of its Subsidiaries is a party to any tax-sharing agreement
or similar arrangement with any other Person.

    

    (c)           The
Company has made all necessary disclosures required by Treasury Regulation
Section 1.6011-4.  The Company has not been a participant in a
“reportable transaction” within the meaning of Treasury Regulation Section
1.6011-4(b).

    

    (d)           No
payment or benefit paid or provided, or to be paid or provided, to current or
former employees, directors or other service providers of the Company will fail
to be deductible for federal income tax purposes under Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”).

    

    5.17.      Employees.

    

    (a)           The
Company and its Subsidiaries are not party to any collective bargaining
agreements and, to the Company’s knowledge, there are no attempts to organize
the employees of the Company or any of its Subsidiaries.

     

    (b)           Except
as set forth on Schedule 5.17 to the
Disclosure Schedules, the Company and its Subsidiaries have no policy, practice,
plan or program of paying severance pay or any form of severance compensation in
connection with the termination of employment services.

     

    (c)           Each
Person who performs services for the Company or any of its Subsidiaries has
been, and is, properly classified by the Company or its Subsidiaries as an
employee or an independent contractor (or its PRC equivalent).

     

    (d)           To
the Company's knowledge, no employee or advisor of the Company or any of its
Subsidiaries is or is alleged to be in violation of any term of any employment
contract, disclosure agreement, proprietary information and inventions agreement
or any other contract or agreement or any restrictive covenant or any other
common law obligation to a former employer relating to the right of any such
employee to be employed by the Company or any of its Subsidiaries because of the
nature of the business conducted or to be conducted by the Company or any of its
Subsidiaries or to the use of trade secrets or proprietary information of
others, and the employment of the employees of the Company and its Subsidiaries
does not subject the Company or the Company's stockholders to any
liability.  There is neither pending nor, to the Company's knowledge,
threatened any actions, suits, proceedings or claims, or, to the Company’s
knowledge, any basis therefor or threat thereof with respect to any contract,
agreement, covenant or obligation referred to in the preceding
sentence.

     

    
      
         

      

      
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    5.18.      Employee Benefit
Plans.  No liability to the Pension Benefit Guaranty
Corporation has been incurred with respect to any Plan (as defined below) by the
Company or any of its Subsidiaries which is or would be materially adverse to
the Company and its Subsidiaries.  The execution and delivery of this
Agreement and the issuance and sale of the Securities will not involve any
transaction which is subject to the prohibitions of Section 406 of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), or in connection with
which a tax could be imposed pursuant to Section 4975 of the Code, provided
that, if any of the Investors, or any person or entity that owns a beneficial
interest in any of the Investors, is an “employee pension benefit plan” (within
the meaning of Section 3(2) of ERISA) with respect to which the Company is a
“party in interest” (within the meaning of Section 3(14) of ERISA), the
requirements of Sections 407(d)(5) and 408(e) of ERISA, if applicable, are
met.  As used in this Section 2.1(ac), the term “Plan” shall mean an “employee
pension benefit plan” (as defined in Section 3 of ERISA) which is or has been
established or maintained, or to which contributions are or have been made, by
the Company or any subsidiary or by any trade or business, whether or not
incorporated, which, together with the Company or any subsidiary, is under
common control, as described in Section 414(b) or (c) of the Code.

    

    5.19.      Patents and
Trademarks.  Except as set forth on Schedule 5.19 to the
Disclosure Schedules, to the knowledge of the Company and each Subsidiary, 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 the Memorandum and which the failure to so have could 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.  To the knowledge of the Company, all such Intellectual
Property Rights are enforceable.  The Company and its Subsidiaries
have taken reasonable steps to protect the Company’s and its Subsidiaries’
rights in their Intellectual Property Rights and confidential information (the
“Confidential
Information”).  Each employee, consultant and contractor who
has had access to Confidential Information which is necessary for the conduct of
Company’s and each of its Subsidiaries’ respective businesses as currently
conducted or as currently proposed to be conducted has executed an agreement to
maintain the confidentiality of such Confidential Information and has executed
appropriate agreements that are substantially consistent with the Company’s
standard forms thereof.  Except under confidentiality obligations,
there has been no material disclosure of any of the Company’s or its
Subsidiaries’ Confidential Information to any third party.

    

    5.20.      Environmental
Matters.  Neither the Company nor any Subsidiary is in
violation of any statute, rule, regulation, decision or order of any
Governmental Body relating to the use, disposal or release of hazardous or toxic
substances or relating to the protection or restoration of the environment or
human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), owns or
operates any real property contaminated with any substance that is subject to
any Environmental Laws, is liable for any off-site disposal or contamination
pursuant to any Environmental Laws, or is subject to any claim relating to any
Environmental Laws, which violation, contamination, liability or claim has had
or could reasonably be expected to have a Material Adverse Effect, individually
or in the aggregate; and there is no pending or, to the Company’s knowledge,
threatened investigation that might lead to such a claim.

     

    
      
         

      

      
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    5.21.      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 as described in the Memorandum.  Neither the Company nor any
Subsidiary has any reason to believe that it will not be able to renew its
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 without a significant increase in cost.

    

    5.22.      Transactions With Affiliates and
Employees.  Except as set forth on Schedule 5.22 to the
Disclosure Schedules, except as disclosed in the Memorandum or as contemplated
by the Share Exchange Agreement, 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, in each case in excess of $120,000
other than (a) for payment of salary or consulting fees for services rendered,
(b) reimbursement for expenses incurred on behalf of the Company and (c) for
other employee benefits, including stock option agreements under any stock
option plan of the Company.

    

    5.23.      Private Placement. Assuming
the accuracy of the Investors representations and warranties set forth in
Section 4, no registration under the Securities Act is required for the offer
and sale of the Securities by the Company to the Investors as contemplated
hereby.

    

    5.24.      No Integrated
Offering.  Other than in connection with the Share Exchange
Agreement, neither the Company, nor any of its affiliates, nor any Person acting
on its or their behalf has, directly or indirectly, made any offers or sales of
any security or solicited any offers to buy any security, under circumstances
that would cause this offering of the Securities to be integrated with prior
offerings by the Company for purposes of the Securities Act or any applicable
shareholder approval provisions, including, without limitation, under the rules
and regulations of any exchange or automated quotation system on which any of
the securities of the Company are listed or designated.

    

    5.25.      Brokers and
Finders.  Other than as described in the Memorandum, no Person
will have, as a result of the transactions contemplated by the Transaction
Documents, any valid right, interest or claim against or upon the Company, any
Subsidiary or an Investor for any commission, fee or other compensation pursuant
to any agreement, arrangement or understanding entered into by or on behalf of
the Company.

    

    5.26.      No Directed Selling Efforts or
General Solicitation.  Neither the Company nor any Person
acting on its behalf has conducted any general solicitation or general
advertising (as those terms are used in Regulation D) in connection with the
offer or sale of any of the Securities.

     

    
      
         

      

      
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    5.27.      Questionable Payments. Neither
the Company nor any of its Subsidiaries nor, to the Company’s knowledge, any of
their respective current or former stockholders, directors, officers, employees,
agents or other Persons acting on behalf of the Company or any Subsidiary, has
on behalf of the Company or any Subsidiary or in connection with their
respective businesses: (a) used any corporate funds for unlawful contributions,
gifts, entertainment or other unlawful expenses relating to political activity;
(b) made any direct or indirect unlawful payments to any governmental officials
or employees from corporate funds; (c) established or maintained any unlawful or
unrecorded fund of corporate monies or other assets; (d) made any false or
fictitious entries on the books and records of the Company or any Subsidiary; or
(e) made any unlawful bribe, rebate, payoff, influence payment, kickback or
other unlawful payment of any nature.

    

    5.28.      Disclosures.  Neither
the Company nor any Person acting on its behalf has provided the Investors or
their agents or counsel with any information that constitutes or might
constitute material, non-public information, other than the terms of the
transactions contemplated hereby.  The written materials delivered to
the Investors in connection with the transactions contemplated by the
Transaction Documents do not contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements
contained therein, in light of the circumstances under which they were made, not
misleading

    

    5.29.      Solvency.  The
Company has not (a) made a general assignment for the benefit of creditors; (b)
filed any voluntary petition in bankruptcy or suffered the filing of any
involuntary petition by its creditors; (c) suffered the appointment of a
receiver to take possession of all, or substantially all, of its assets; (d)
suffered the attachment or other judicial seizure of all, or substantially all,
of its assets; (e) admitted in writing its inability to pay its debts as they
come due; or (f) made an offer of settlement, extension or composition to its
creditors generally.

    

    5.30.      Related
Party Transactions.  Except as set
forth in the SEC Reports, the Memorandum or Schedule
5.30 to the
Disclosure Schedules: (a) none of the Company or any of its Affiliates,
officers, directors, stockholders or employees, or any Affiliate of any of such
Person, has any material interest in any property, real or personal, tangible or
intangible, including the Company’s Intellectual Property used in or pertaining
to the business of the Company, except for the normal rights of a stockholder,
or, to the knowledge of the Company, any supplier, distributor or customer of
the Company, (b) there are no agreements, understandings or proposed
transactions between the Company and any of its officers, directors, employees,
Affiliates, or, to the Company's knowledge, any Affiliate thereof, (c) to the Company’s
knowledge, no employee, officer or director of the Company or any of its
Subsidiaries has any direct or indirect ownership interest in any firm or
corporation with which the Company is affiliated or with which the Company has a
business relationship, or any firm or corporation that competes with the
Company; (d) to the Company’s
knowledge, no member of the immediate family of any officer or director of the
Company is directly or indirectly interested in any Material Contract or (e)
there are no amounts owed (cash and stock) to officers, directors and
consultants (salary, bonuses or other forms of compensation).

     

    
      
         

      

      
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    5.31.      Foreign Corrupt Practices
Act.  None of the Company or any of its Subsidiaries, nor to
the knowledge of the Company, any agent or other person acting on behalf of the
Company or any of its Subsidiaries, has, directly or indirectly: (a) used any
funds, or will use any proceeds from the sale of the Units, for unlawful
contributions, gifts, entertainment or other unlawful expenses related to
foreign or domestic political activity, (b) 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, (c) failed to disclose
fully any contribution made by the Company or any of its Subsidiaries (or made
by any Person acting on their behalf of which the Company is aware) or any
members of their respective management which is in violation of any Legal
Requirement, or (d) has violated in any material respect any provision of the
Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder which was applicable to the Company or any of its
Subsidiaries.

    

    5.32.      PFIC.  None of the
Company or any of its Subsidiaries is or intends to become a “passive foreign
investment company” within the meaning of Section 1297 of the Code of
1986.

    

    5.33.      OFAC. None of the Company or
any of its Subsidiaries nor, to the knowledge of the Company, any director,
officer, agent, employee, Affiliate or Person acting on behalf of the Company or
any of its Subsidiaries, 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 Units, or lend,
contribute or otherwise make available such proceeds to any of the Company’s
Subsidiaries, 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.

    

    5.34.      Money Laundering
Laws.  The operations of each of the Company or any of its
Subsidiaries are and have been conducted at all times in compliance with the
money laundering Legal Requirements of all applicable Governmental Bodies of the
PRC and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any PRC Governmental Body (collectively, the “Money Laundering Laws”) and no
action, suit or proceeding by or before any PRC court or PRC Governmental Body
or any arbitrator involving the Company or any of its Subsidiaries with respect
to the Money Laundering Laws is pending or, to the best knowledge of the
Company, threatened.

    

    5.35.      Other Representations and Warranties
Relating to WFOE.

    

    (a)           All
material consents, approvals, authorizations or licenses requisite under PRC
Legal Requirements for the due and proper establishment and operation of WFOE
have been duly obtained from the relevant PRC Governmental Bodies and are in
full force and effect.

    

    (b)           All
filings and registrations with the PRC Governmental Bodies required in respect
of WFOE and its capital structure and operations including, without limitation,
the registration with the PRC Ministry of Commerce or its local counterpart, the
PRC the State Administration of Industry and Commerce or its local counterpart,
the PRC State Administration of Foreign Exchange and applicable PRC tax bureau
and customs authorities have been duly completed in accordance with the relevant
PRC Legal Requirements, 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.

     

    
      
         

      

      
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    (c)           WFOE
has complied with all relevant PRC Legal Requirements regarding the contribution
and payment of its registered share capital, the payment schedule of which has
been approved by the relevant PRC Governmental Bodies.  There are no
outstanding commitments made by the Company or any Subsidiary (or any of their
shareholders) to sell any equity interest in WFOE.

    

    (d)           WFOE
has not received any letter or notice from any relevant PRC Governmental Body
notifying it of revocation of any licenses or qualifications issued to it or any
subsidy granted to it by any PRC Governmental Body for non-compliance with the
terms thereof or with applicable PRC Legal Requirements, or the lack of
compliance or remedial actions in respect of the activities carried out by WFOE,
except such revocation as does not, and would not, individually or in the
aggregate, have a Material Adverse Effect.

    

    (e)           WFOE
has conducted its 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 Bodies 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 WFOE’s
business which is subject to periodic renewal, the Company has no knowledge of
any reasons related to the WFOE for which such requisite renewals will not be
granted by the relevant PRC Governmental Bodies.

    

    (f)           With
regard to employment and staff or labor, WFOE has complied with all applicable
PRC Legal Requirements in all material respects, including without limitation,
those 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.

    

    6.           CONDITIONS
TO EACH CLOSING OF THE INVESTORS.

    

    The
obligation of the Investors to purchase the Units at any Closing is subject to
the fulfillment to, the satisfaction of the Lead Placement Agent, on or
prior to such applicable Closing Date, of the following conditions, any of which
may be waived by the Lead Placement Agent:

    

    6.1.        Representations and
Warranties. The representations and warranties made by the Company in
Section 5 hereof qualified as to materiality shall be true and correct at all
times prior to and on the applicable Closing Date, except to the extent any such
representation or warranty expressly speaks as of an earlier date, in which case
such representation or warranty shall be true and correct as of such earlier
date, and, the representations and warranties made by the Company in Section 5
hereof not qualified as to materiality shall be true and correct in all material
respects at all times prior to and on the applicable Closing Date, except to the
extent any such representation or warranty expressly speaks as of an earlier
date, in which case such representation or warranty shall be true and correct in
all material respects as of such earlier date.

     

    
      
         

      

      
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    6.2.        Performance of Agreements.  The
Company shall have performed in all material respects all obligations and
covenants herein required to be performed by it on or prior to the applicable
Closing Date.

    

    6.3.        Approvals. The Company shall
have obtained any and all consents, permits, approvals, registrations and
waivers necessary or appropriate for consummation of the purchase and sale of
the Securities and the consummation of the other transactions contemplated by
the Transaction Documents, all of which shall be in full force and
effect. 

    

    6.4.        Judgments, etc. No judgment, writ, order,
injunction, award or decree of or by any court, or judge, justice or magistrate,
including any bankruptcy court or judge, or any order of or by any governmental
authority, shall have been issued, and no action or proceeding shall have been
instituted by any governmental authority, enjoining or preventing the
consummation of the transactions contemplated hereby or in the other Transaction
Documents.

    

    6.5.        Stop Orders.  No stop
order or suspension of trading shall have been imposed by the SEC or any other
governmental or regulatory body having jurisdiction over the Company or the
market(s) where the Common Stock is listed or quoted, with respect to public
trading in the Common Stock.

    

    6.6.        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 Company or any of its Subsidiaries;

    

    6.7.        Company Officer Certificate. The Company
shall have delivered a Certificate, executed on behalf of the Company by its
Chief Executive Officer or its Chief Financial Officer, dated as of the
applicable Closing Date, certifying to the fulfillment of the conditions
specified in this Section 6.

    

    6.8.        Company Secretary Certificate.
The Company shall have delivered a Certificate, executed on behalf of the
Company by its Secretary, dated as of the First Closing Date, certifying the
resolutions adopted by the Board of Directors of the Company approving the
transactions contemplated by this Agreement and the other Transaction
Documents and the issuance of the Securities, certifying the current versions of
the Articles of Incorporation and Bylaws of the Company and certifying as to the
signatures and authority of persons signing the Transaction Documents and
related documents on behalf of the Company.  The foregoing certificate
shall only be required to be delivered on the First Closing Date, unless any
material information contained in the certificate has changed.

    

    6.9.        Financial
Statements.  The Company shall have delivered audited
consolidated financial statements of Chance High and the other consolidated
subsidiaries of the Company for the fiscal years ended December 31, 2008 and
2007 and unaudited financial statements for the interim period through September
30, 2009 that will be included in the current report on Form 8-K described in
Section 6.10 below

     

    
      
         

      

      
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    6.10.      Exchange Agreement Form
8-K.  Immediately prior to the Closing, the Company shall have
acquired all of the outstanding capital stock of Chance High pursuant to the
Share Exchange Agreement, and the Company shall provide the Investors with the
Current Report on Form 8-K to be filed no later than the fourth Trading Day
following the Closing Date under the Share Exchange Agreement, containing the
audited financial statements of Bohai described in Section 6.9 hereof and other
required disclosure with respect to Bohai and its Affiliates.

    

    6.11.      Opinions of Counsel. 

    

    (a)           The
Investors and the Lead Placement Agent shall have received an opinion from
Synergen Law Group, APC, dated as of each Closing Date, in such form and
substance as agreed to by the Company and the Lead Placement Agent (it being
agreed that such counsel shall not be required to deliver a “10b-5” or negative
assurances letter or opinion).

    

    (b)           The
Investors and the Lead Placement Agent shall have received an opinion from
AllBright Law Offices, the Company’s PRC legal counsel, dated as of each Closing
Date, in such form and substance as agreed to by the Company and the Lead
Placement Agent (it being agreed that such counsel shall not be required to
deliver a “10b-5” or negative assurances letter or opinion).

    

    6.12.      Note and Warrants.  The
Company shall have delivered the Notes and Warrants being sold at the applicable
Closing.

    

    6.13.      Registration Rights
Agreement.
 The Company shall have executed and delivered the Registration Rights
Agreement.

    

    6.14.      Securities Escrow
Agreement.  The Securities Escrow Agreement shall have been
executed by the parties thereto and the Escrow Shares (as defined in the Securities Escrow Agreement) shall
have been deposited into the escrow account pursuant to the terms of the
Securities Escrow Agreement.

    

    6.15.      Law and Accounting
Firms.  The Company shall have entered into retention
agreements with: (i) a U.S. securities law firm that is reasonably satisfactory
to the Lead Placement Agent (it being agreed that Ellenoff Grossman & Schole
LLP is satisfactory to the Lead Placement Agent); and (ii) a PCAOB auditing firm
that is reasonably satisfactory to the Lead Placement Agent (it being agreed
that Parker Randall CF H.K. CPA Ltd. is satisfactory to the Lead Placement
Agent).

    

    6.16.      Lock Up
Agreements.  The Company’s officers and directors (after giving
effect to the Share Exchange Agreement) shall have delivered to the Lead
Placement Agent a customary “lock-up” agreement in favor of the Lead Placement
Agent with respect to the securities of the Company owned by them, which
agreement shall have a term of 18 months from the Initial
Closing.

    
      
         

      

      
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    7.           CONDITIONS
TO EACH CLOSING OF THE COMPANY.

    

    The
obligations of the Company to effect the transactions contemplated by this
Agreement are subject to the fulfillment at or prior to the applicable Closing
Date of the conditions listed below.

    

    7.1.        Representations and
Warranties. The representations and warranties made by the Investors in
Section 4 shall be true and correct in all material respects at the time of
Closing as if made on and as of such date.

    

    7.2.        Corporate Proceedings. All
corporate and other proceedings required to be undertaken by the Investor in
connection with the transactions contemplated hereby shall have occurred and all
documents and instruments incident to such proceedings shall be reasonably
satisfactory in substance and form to the Company.

    

    7.3.        Agreements.  Such
Investor shall have completed and executed this Agreement, the Registration
Rights Agreement and the investor questionnaire, and delivered the same to the
Company.

    

    7.4.        Purchase Price.  The
Investors shall have delivered or caused to be delivered the Purchase Price to
the Escrow Account.

    

    7.5.        Minimum Amount.  The
Minimum Amount shall have been raised.

    

    8.           OTHER
AGREEMENTS

    

    8.1.        Board Designee.  For
so long as the Investors continue to hold at least a majority in principal
amount of the outstanding Notes, the Lead Placement Agent shall be entitled to
nominate one member of the Company’s Board of Directors (the “Designee”).  The
Designee shall: (i) have experience serving on the board of directors of a
public company or have comparable experience, (ii) be qualified to serve on the
audit committee of the Company’s Board of Directors, (iii) be able, consistent
with his or her other business activities, to dedicate reasonably sufficient
time to the fulfillment of his or her duties to the Company and (iv) shall be an
“independent” director as defined under Nasdaq Marketplace Rules.  The
Lead Placement Agent will have the right to remove the Designee and to fill any
vacancy resulting from a Designee ceasing to be a member of the Company’s Board
of Directors for any reason.

    

    8.2.        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.

     

    
      
         

      

      
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    8.3.        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.

    

    8.4.        Subsequent
Registrations.  Other than pursuant to the registration
statement being filed pursuant to the Registration Rights Agreement (the “Registration Statement”),
 prior to the effective date of the Registration Statement, 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.

    

    8.5.        Securities Laws Disclosure;
Publicity.  By 9:00 a.m. (New York time) on the Trading Day
following the Initial Closing Date and each Subsequent Closing Date, the Company
shall issue a press release disclosing the transactions contemplated hereby and
the Closing.  By no later than the fourth Trading Day following the
Closing Date (and on each Subsequent Closing Date if required by applicable law)
the Company will file a Current Report on Form 8-K disclosing the material terms
of this Agreement and the other Transaction Documents (and attach as exhibits
thereto the Transaction Documents) and the Closing.  In addition, the
Company will make such other filings and notices in the manner and time required
by the SEC and the Trading Market on which the Common Stock is
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 SEC (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,
without the prior written consent of the Investor Representative, except to the
extent such disclosure is required by law or Trading Market
regulations.

    

    8.6.        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 the rules and regulations of FINRA.

    

    8.7.        Listing of
Securities.  The Company agrees that: (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.

    

    8.8.        Listing.  The
Company covenants to use its commercially reasonable best efforts to have the
Common Stock listed or quoted for trading on any of the NYSE AMEX, the NASDAQ
Global Market or the NASDAQ Capital Market as soon as is reasonably practicable
following the date that the Company meets the requirements of any such Trading
Market.

     

    
      
         

      

      
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    8.9.        Controls and
Procedures.  Following the Closing, the Company agrees that it
will utilize
commercially reasonable efforts to establish and maintain, to the extent
required by law, rule or regulation, a system of internal accounting controls
sufficient to provide reasonable assurance that: (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management’s general or
specific authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

    

    8.10.      Board of
Directors.  Within six (6) months of the First Closing, Bohai
or its Affiliates shall cause to be appointed to the Board of Directors of the
Company individuals constituting a majority of “independent” directors (as
defined under the Nasdaq Marketplace rules) of such Board of Directors and one
director designated by the Lead Placement Agent (who may qualify as one such
independent director, with at least two of such directors being fluent in
English.

    

    8.11.      CFO.  Within six (6)
months of the First Closing, the Company shall enter into a 24 month agreement
with a new Chief Financial Officer of the Company who is reasonably satisfactory
to the Lead Placement Agent and who is proficient in: (i) GAAP accounting; (ii)
transactions similar to the ones contemplated by this Agreement; and (iii) U.S.
public company listings and the related filing and compliance
requirements.

    

    8.12.      IR Firm.  Within
three (3) months of the First Closing, the Company shall enter into a 12 month
agreement with an investor and public relations firm that is reasonably
satisfactory to the Lead Placement Agent.

    

    8.13.      Reservation of
Shares.  The Company shall maintain a reserve from its duly
authorized shares of Common Stock to comply with its obligations to issue the
Conversion Shares and the Warrant Shares upon conversion of the Note and
exercise of the Warrant, respectively.

    

    8.14.      Further
Assurances.  The Company will, and will cause all of its
Subsidiaries to, and their management to, use their best efforts to satisfy all
of the closing conditions under Section 7, and will not take any action which
could frustrate or delay the satisfaction of such conditions.  In
addition, either prior to or following the Closing, the Company will, and will
cause each of its Subsidiaries to, and its and their management to, perform, or
cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and
documents, as any other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    

    8.15.       Closing Escrow
Holdback.  The Company and Investors agree that, from the
aggregate gross proceeds that will be delivered to the Escrow Agent pursuant to
the Closing Escrow Agreement, at the Closing $186,000 (if the Minimum Amount is
raised) or up to $240,000 (if the Maximum Amount is raised) (the “Total Holdback Amount”),
constituting an amount sufficient to satisfy the payment to the Investors of one
quarterly interest payment due on the aggregate principal amount of all Notes
issued in the Offering, shall be retained by the Escrow Agent and paid to the
Investors and otherwise administered in accordance with the Closing Escrow
Agreement.  At such time as 75% of the Conversion Shares have been
issued upon conversion of the Notes, if the Company is not in breach of any of
the Transaction Documents, all remaining funds of the Total Holdback Amount, if
any, shall be released to the Company in accordance with the Closing Escrow
Agreement.

    

    9.           MISCELLANEOUS.

    

    9.1.         Compensation of Lead Placement Agent,
Brokers, etc.
Each Investor acknowledges that it is fully aware that the Lead Placement Agent
will receive from the Company, in consideration of its services as placement
agent in respect of the offer and sale of the Units contemplated
hereby:

    

    (a)           a
commission of ten (10%) percent of the aggregate Purchase Price of the
Units sold at each Closing, payable in cash; and

    

    (b)           a
warrant to purchase a number of shares of Common Stock derived by dividing an
amount equal to 10% of the gross proceeds of raised at each Closing by
$2.00.

    

    It is
acknowledged that the Lead Placement Agent may share such fees and compensation
with other placement agents or brokers participating in the transactions
contemplated hereby.  In addition, each Investor acknowledges that it
is aware that the Lead Placement Agent will receive from the Company payment of
all of its accountable fees and expenses including, but not limited to, all
legal fees and expenses incurred in connection with the Offering, up to $80,000
in the aggregate.

    

    9.2.         Notices. All notices, requests,
demands and other communications provided in connection with this Agreement
shall be in writing and shall be deemed to have been duly given at the time when
hand delivered, delivered by express courier, or sent by facsimile (with receipt
confirmed by the sender’s transmitting device) in accordance with the contact
information provided below or such other contact information as the parties may
have duly provided by notice.

    

    
      	
              (a)

            	
                The
      Company:

            

    

    

     
c/o Yantai Bohai Pharmaceuticals Group Co. Ltd.

     
No. 9 Daxin Road, Zhifu District

     
Yantai, Shandong Province, China

     
Attention: Hongwei Qu

     
Fax Number: +86-0535-6763559

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    

     
With a copy to:

    

     
Ellenoff Grossman & Schole LLP

      150
East 42nd Street,
11th
Floor

     
New York, NY 10017

     
Attention: Barry I. Grossman, Esq.

     
Fax Number: (212) 370-7889

     

    
      	
              (b)

            	
                The
      Investors:

            

    

     

      As
per the contact information provided on the signature page hereof.

     

    
      	
              (c)

            	
               
      The Lead Placement Agent/Investor
  Representative:

            

    

     

     
Euro Pacific Capital, Inc.

      88
Post Road West, 3rd Floor

     
Westport, CT 06880

     
Attention: Mr. Thomas Tan

     
Fax Number: (203) 662-9771

    

     
With a copy to:

    

     
Pillsbury Winthrop Shaw Pittman LLP

     
2300 N Street, N.W.

     
Washington, DC 20037-1122

     
Attention: Louis A. Bevilacqua, Esq.

     
Fax Number: (202) 663-8007

    

    9.3.         Amendments;
Waivers.  No provision of this Agreement may be waived or
amended except in a written instrument signed, in the case of an amendment, by
the Company and the Investor Representative or, in the case of a waiver, by the
party against whom enforcement of any such waiver is sought (and if such party
is the Investors, then by the Investor Representative).  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.

    

    9.4.         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.

    

    9.5.         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 Investor
Representative.  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”.

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    

    9.6.         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.

    

    9.7.         Governing Law, Consent to
Jurisdiction, etc.  All questions concerning the construction,
validity, enforcement and interpretation of the Transaction Documents 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 legal 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, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of New York.  Each party hereto hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, New York 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 suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or
proceeding is improper.  Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or 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 (INCLUDING ITS AFFILIATES, AGENTS, OFFICERS, DIRECTORS AND EMPLOYEES)
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.

    

    9.8.         Survival.  The
representations, warranties, agreements and covenants contained herein shall
survive for two (2) years after the Closing of the transactions contemplated by
this Agreement.

    

    9.9.         Indemnification.

    

    (a)           The
Company agrees to indemnify and hold harmless each Investor and its Affiliates
and their respective directors, officers, employees and agents 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 such Person 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 Person for all such amounts as they are incurred by such
Person.

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    

    (b)          Promptly
after receipt by any Person (the “Indemnified Person”) of
notice of any demand, claim or circumstances which would or might give rise to a
claim or the commencement of any action, proceeding or investigation in respect
of which indemnity may be sought pursuant to this Section 9.9, such Indemnified
Person shall promptly notify the Company in writing and the Company shall assume
the defense thereof, including the employment of counsel reasonably satisfactory
to such Indemnified Person, and shall assume the payment of all fees and
expenses; provided, however, that the failure of any
Indemnified Person so to notify the Company shall not relieve the Company of its
obligations hereunder except to the extent that the Company is materially
prejudiced by such failure to notify.  In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Person
unless: (i) the Company and the Indemnified Person shall have mutually agreed to
the retention of such counsel; or (ii) in the reasonable judgment of counsel to
such Indemnified Person representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between
them.  The Company shall not be liable for any settlement of any
proceeding effected without its written consent, which consent shall not be
unreasonably withheld, but if settled with such consent, or if there be a final
judgment for the plaintiff, the Company shall indemnify and hold harmless such
Indemnified Person from and against any loss or liability (to the extent stated
above) by reason of such settlement or judgment.  Without the prior
written consent of the Indemnified Person, which consent shall not be
unreasonably withheld, the Company shall not effect any settlement of any
pending or threatened proceeding in respect of which any Indemnified Person is
or could have been a party and indemnity could have been sought hereunder by
such Indemnified Party, unless such settlement includes an unconditional release
of such Indemnified Person from all liability arising out of such
proceeding.

    

    9.10.       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 or other electronic 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
or other electronic signature page were an original thereof.

    

    9.11.       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.

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    9.12.       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.

    

    9.13.       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.

    

    9.14.       Payment Set
Aside.  To the extent that the Company makes a payment or
payments to any Investor pursuant to any Transaction Document or a 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.

    

    9.15.       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.  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 Document.  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.  Each Investor has been represented by its own separate legal
counsel in their review and negotiation of the Transaction
Documents.  The Company has elected to provide all Investors with the
same terms and Transaction Documents for the convenience of the Company and not
because it was required or requested to do so by the Investors.

    

    9.16.       Irrevocable
Offer.  Each Investor agrees that this Agreement constitutes an
irrevocable offer to purchase the Securities of the Company and that Investor
cannot cancel, terminate or revoke this Agreement or any agreement of Investor
made hereunder.  This Agreement shall survive the death or legal
disability of Investor and shall be binding upon Investor’s heirs, executors,
administrators and successors.

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    

    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.

    

    
      
        
          
            
              	
                      COMPANY:

                    
	 
      
	
                      LINK
      RESOURCES INC.

                    
	 
      	 
      
	
                      By:

                    	
                          /s/ Hongwei
      Qu

                    
	 
      	
                      Name:
      Hongwei QU

                    
	 
      	
                      Title:   President,
      CEO and Chairman

                    
	 
      	 
      
	
                      INVESTORS:

                    
	 
      
	
                      The
      Investors executing the Signature Page in the form attached hereto as
      Annex A
      and delivering the same to the Company or its agents shall be deemed to
      have executed this Agreement and agreed to the terms
    hereof.

                    
	 
      
	
                      Solely
      with respect to Sections 2.2(b), 2.8 all of Section 6 and 8.1
      hereof:

                    
	 
      
	
                      EURO
      PACIFIC CAPITAL INC.

                    
	 
      	 
      
	
                      By:

                    	
                        /s/ Gordon McBean

                    
	 
      	
                      Name:
      Gordon McBean

                    
	 
      	
                      Title:   Head
      of Capital
Markets

                    

            

          

        

      

    

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    Annex
A

    

    Securities
Purchase Agreement

    Investor
Counterpart Signature Page

    

    The
undersigned, desiring to: (i) enter into this Securities Purchase Agreement,
dated as of _________________, 2010 (the “Agreement”), between the
undersigned, Link Resources Inc., a Nevada corporation (the “Company”), and the other
parties thereto, in or substantially in the form furnished to the undersigned
and (ii) purchase the securities of the Company appearing below, hereby agrees
to purchase such securities from the Company as of the Closing and further
agrees to join the Agreement as a party thereto, with all the rights and
privileges appertaining thereto, and to be bound in all respects by the terms
and conditions thereof.

    

    IN WITNESS WHEREOF, the
undersigned has executed the Agreement as of _____________________,
2010.

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Name
      and Address, Fax No. and Social Security No./EIN of
    Investor:

                              
	 
      
	
                                ________________________________________________

                              
	 
      
	
                                ________________________________________________

                              
	 
      
	
                                ________________________________________________

                              
	 
      
	
                                Fax
      No.: _________________________________________

                              
	 
      
	
                                Soc.
      Sec. No./EIN: _________________________________

                              
	 
      
	
                                If
      a partnership, corporation, trust or other business
  entity:

                              
	 
	
                                By:
      _________________________________

                              
	
                                       Name:

                              
	
                                       Title:

                              
	 
	
                                If
      an individual:

                              
	 
	____________________________________
	
                                Signature

                              
	 
	
                                Purchase Price:
      _________________________

                              
	 
	
                                Note Amount:
      ___________________________

                              
	 
	
                                Number of Warrants:
      ______________________

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
A

    

    SCHEDULE OF
INVESTORS

    

    
      
        
          
            
              
                	
                        No.

                      	 	
                        Investor Name

                      	 	
                        Amount of Notes

                      	 	 	
                        No. of Shares

                        Subject to

                        Warrant

                      	 
	
                        1.

                      	 	
                        IRA
      FBO ROBERT STEPHEN ADAMS PERSHING LLC AS CUSTODIAN

                      	 	 	100,000.00	 	 	 	50,000	 
	
                        2.

                      	 	
                        SELWYN
      ADELSON

                      	 	 	60,000.00	 	 	 	30,000	 
	
                        3.

                      	 	
                        SYED
      HASNAT AHMED & MIRIAN F AHMED JT TEN

                      	 	 	110,000.00	 	 	 	55,000	 
	
                        4.

                      	 	
                        AM-PER
      ENTERPRISES INC.

                      	 	 	100,000.00	 	 	 	50,000	 
	
                        5.

                      	 	
                        DAVID
      ARITA TOD DTD 05/10/2009

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        6.

                      	 	
                        WILLIAM
      C ARTHUR BY PASS TRUST DATED 10/18/1990 UAD 10/18/90

                      	 	 	43,200.00	 	 	 	21,600	 
	
                        7.

                      	 	
                        JAMES
      V. BACON TRUST DTD 09/14/1995 UAD 03/26/09

                      	 	 	250,000.00	 	 	 	125,000	 
	
                        8.

                      	 	
                        IRA
      FBO JEFFREY P BAKER PERSHING LLC AS CUSTODIAN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        9.

                      	 	
                        MICHAEL
      BALDWIN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        10.

                      	 	
                        BALFOUR
      HOLLOW LLC

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        11.

                      	 	
                        THE
      SARAH J. BASLER LIVING TRUST UAD 07/02/98

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        12.

                      	 	
                        RICHARD
      E BENAMY

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        13.

                      	 	
                        MIDDLESEX
      ORTHO SURGEONS 401K FBO LAWRENCE BERSON

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        14.

                      	 	
                        JEFF
      BLACKBURN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        15.

                      	 	
                        RONALD
      BOVASSO & LINDA BOVASSO JT TEN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        16.

                      	 	
                        BRADLEY
      ANESTHESIOLOGY PC PROFT SHARING PLAN & TST

                      	 	 	100,000.00	 	 	 	50,000	 
	
                        17.

                      	 	
                        TEN
      BRINK TRUST DATED 10/02/1986 UAD 10/02/86

                      	 	 	100,000.00	 	 	 	50,000	 
	
                        18.

                      	 	
                        WHITE
      PINE PRODUCTIONS DEFINED BENEFIT PENSION PLN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        19.

                      	 	
                        SEP
      FBO JAMES BROWN

                      	 	 	90,000.00	 	 	 	45,000	 
	
                        20.

                      	 	
                        IRA
      FBO PAT BROWNE PERSHING LLC AS CUSTODIAN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        21.

                      	 	
                        SCOTT
      BURNS

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        22.

                      	 	
                        ROBERT
      CARLSON & MICHELLE CARLSON JT TEN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        23.

                      	 	
                        BRAD
      K CARR & ROXANE CARR JT TEN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        24.

                      	 	
                        LOWELL
      CERISE

                      	 	 	75,000.00	 	 	 	37,500	 
	
                        25.

                      	 	
                        SRC
      CORPORATION DEFINED BENEFIT PENSION PLAN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        26.

                      	 	
                        DONALD
      T CLEMETSON

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        27.

                      	 	
                        ROLAND
      CRAM TOD DTD 06/03/2009

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        28.

                      	 	
                        INTEGRITY
      FUNDS LP

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        29.

                      	 	
                        THE
      2000 JORGE &ELENA ECHEVERRIA FAMILY TRUST UAD 11/09/00

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        30.

                      	 	
                        IRA
      FBO HY ECHT PERSHING LLC AS CUSTODIAN

                      	 	 	60,000.00	 	 	 	30,000	 
	
                        31.

                      	 	
                        IRA
      FBO RALPH DALE EDSON PERSHING LLC AS CUSTODIAN

                      	 	 	100,000.00	 	 	 	50,000	 
	
                        32.

                      	 	
                        JONATHAN
      EDWARDS & VIRGINIA C ADAMS JT TEN

                      	 	 	50,000.00	 	 	 	25,000	 
	
                        33.

                      	 	
                        THE
      ARTHUR EKLUND & JANET EKLUND 1998 INTER VIVOS TRUST

                      	 	 	50,000.00	 	 	 	25,000	 

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  	
                          34.

                        	 	
                          STEVEN
      JAY EPSTEIN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          35.

                        	 	
                          IRA
      FBO DONALD FAGEN PERSHING LLC AS CUSTODIAN

                        	 	 	250,000.00	 	 	 	125,000	 
	
                          36.

                        	 	
                          SEP
      FBO VIC FERRER PERSHING LLC AS CUSTODIAN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          37.

                        	 	
                          WALTER
      FRIESEN

                        	 	 	150,000.00	 	 	 	75,000	 
	
                          38.

                        	 	
                          THE
      ALEXANDER GALUZ AND YANA GALUZ JT LIVING TST UAD 08/24/05

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          39.

                        	 	
                          ANDREW
      GARNOCK

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          40.

                        	 	
                          RICHARD
      GLASER MDDBPP AND TRUST

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          41.

                        	 	
                          THE
      GOLDSCHLAGER FAMILY TRUST UAD 06/24/04

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          42.

                        	 	
                          RICHARD
      GRIFF & JACKIE GRIFF JT TEN

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          43.

                        	 	
                          RICHARD
      D HELPPIE JR TRUST UAD 04/02/92

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          44.

                        	 	
                          HOWARD
      J HICKINGBOTHAM JR & SANDRA B HICKINGBOTHAM JT TEN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          45.

                        	 	
                          THE
      ROBERT K HEIMANN LIVING TRUST UAD 07/24/01

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          46.

                        	 	
                          HOKE
      LIVING TRUST UAD 04/19/02

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          47.

                        	 	
                          ULRICH
      HONIGHAUSEN & AMANDA HONIGHAUSEN JT TEN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          48.

                        	 	
                          HERSCHEL
      HUNTER TRUST UAD 11/30/88

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          49.

                        	 	
                          BERT
      HUNTSINGER

                        	 	 	199,000.00	 	 	 	99,500	 
	
                          50.

                        	 	
                          INGRAM
      LIVING TRUST DATED 11/02/2005 UAD 11/02/05

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          51.

                        	 	
                          AJAY
      KALRA

                        	 	 	80,000.00	 	 	 	40,000	 
	
                          52.

                        	 	
                          KARGES
      REVOCABLE INTERVIVOS TRUST UAD 04/29/85

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          53.

                        	 	
                          IRA
      FBO JON MURRAY KARKOW PERSHING LLC AS CUSTODIAN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          54.

                        	 	
                          PATRICK
      KIRK & GLORIA KIRK JTWROS

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          55.

                        	 	
                          DARREL
      LEE KLOECKNER

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          56.

                        	 	
                          NORMAN
      S KRAMER & LINDA L KRAMER JT TEN

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          57.

                        	 	
                          IRA
      FBO THOMAS A LADNER PERSHING LLC AS CUSTODIAN

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          58.

                        	 	
                          SCOTT
      AND LORI LANGMACK FAMILY TRUST UAD 06/22/02

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          59.

                        	 	
                          SEP
      FBO CARTER LAREN PERSHING LLC AS CUSTODIAN

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          60.

                        	 	
                          DAVID
      W LARSON & JENNIFER L LARSON JT TEN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          61.

                        	 	
                          SCOTT
      R. LENNES IRA LLC

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          62.

                        	 	
                          IRA
      FBO GREGG LINHOFF PERSHING LLC AS CUSTODIAN

                        	 	 	110,000.00	 	 	 	55,000	 
	
                          63.

                        	 	
                          SEP
      FBO GEORGE MADARAZ PERSHING LLC AS CUSTODIAN

                        	 	 	70,000.00	 	 	 	35,000	 
	
                          64.

                        	 	
                          SEP
      FBO GERALD E MANWILL PERSHING LLC AS CUSTODIAN

                        	 	 	75,000.00	 	 	 	37,500	 
	
                          65.

                        	 	
                          DAVID
      MARBLE

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          66.

                        	 	
                          NORTHERN
      STAR GROWTH TRUST DTD 10/20/1998 UAD 10/20/98

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          67.

                        	 	
                          MITCHELL
      MARTIN & DEBORAH MARTIN JT TEN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          68.

                        	 	
                          F
      BRENT MAY PS PLAN FBO JONI MAY

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          69.

                        	 	
                          STEPHEN
      P MCCARRON PSP-PERSHING LLC AS CUSTODIAN

                        	 	 	100,000.00	 	 	 	50,000	 

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  	
                          70.

                        	 	
                          IRA
      FBO JOSEPH MCCARTHY PERSHING LLC AS CUSTODIAN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          71.

                        	 	
                          ROD
      MCINTYRE TRUST U A DATED 5/1/01

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          72.

                        	 	
                          IRA
      FBO JERRY MCWILLIAMS PERSHING LLC AS CUSTODIAN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          73.

                        	 	
                          THE
      MEISTER NON-EXEMPT MARITAL TRUST UAD 11/17/83

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          74.

                        	 	
                          CARLOS
      ALFONSO MERINO REV LIVING TRUST UAD 12/04/96

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          75.

                        	 	
                          IRA
      FBO MARK MITCHELL PERSHING LLC AS CUSTODIAN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          76.

                        	 	
                          MARK
      R MITCHELL M.D. A MEDICAL CORPORATION

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          77.

                        	 	
                          MMH
      GROUP, LLC

                        	 	 	95,800.00	 	 	 	47,900	 
	
                          78.

                        	 	
                          IRA
      FBO GERALD MONA PERSHING LLC AS CUSTODIAN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          79.

                        	 	
                          KEVIN
      MOORE

                        	 	 	75,000.00	 	 	 	37,500	 
	
                          80.

                        	 	
                          DEEPAK
      MUNJAL

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          81.

                        	 	
                          KENNETH
      H & MAUREEN K NASS CHARI REMAINDER UNITRUST UAD
    06/07/05

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          82.

                        	 	
                          IRA
      FBO TIM NASS PERSHING LLC AS CUSTODIAN

                        	 	 	62,000.00	 	 	 	31,000	 
	
                          83.

                        	 	
                          MARY
      NEIBERG

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          84.

                        	 	
                          KEVIN
      P O'NEILL & SUZANNE ODELL ONEILL JT TEN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          85.

                        	 	
                          JOSEPH
      A & PAMELA M PANELLA LIVING TRUST 1 UAD 05/11/04

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          86.

                        	 	
                          BRENT
      PAULGER & SHARISSA PAULGER JT TEN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          87.

                        	 	
                          TINA
      C PETERSON & HENDRIKUS M SCHRAVEN JT TEN

                        	 	 	200,000.00	 	 	 	100,000	 
	
                          88.

                        	 	
                          E.A.
      PICKERING PAINTING INC.

                        	 	 	60,000.00	 	 	 	30,000	 
	
                          89.

                        	 	
                          POM
      INVESTMENTS LLC

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          90.

                        	 	
                          BRUCE
      WALKER RAVENEL III

                        	 	 	250,000.00	 	 	 	125,000	 
	
                          91.

                        	 	
                          M.
      CARL RICE SELF EMPLOYED RETIREMENT PLAN #1

                        	 	 	250,000.00	 	 	 	125,000	 
	
                          92.

                        	 	
                          JOHN
      RUSSELL RIEDMUELLER & NICOLE CAMERON RIEDMUELLER TEN
    COM

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          93.

                        	 	
                          JOHN
      A RUPP TRUST UAD 03/25/94

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          94.

                        	 	
                          STEVEN
      V SANN TOD DTD 10/16/2009

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          95.

                        	 	
                          ROBERT
      C SAYSON & ALICE K SAYSON JT TEN

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          96.

                        	 	
                          PETER
      SCHORTMANN & SUSAN SCHORTMANN JT TEN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          97.

                        	 	
                          KIMBERLY
      S SCHWENKE

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          98.

                        	 	
                          CHRISTIANNA
      SEIDEL SEPARATE PROPERTY TRUST UAD 11/05/99

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          99.

                        	 	
                          JAMES
      A SHEAHAN & MELODY K SHEAHAN JT TEN

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          100.

                        	 	
                          IRA
      FBO   DONALD FRANCIS SHOFF PERSHING LLC AS
      CUSTODIAN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          101.

                        	 	
                          JOHN
      D SMEAD

                        	 	 	75,000.00	 	 	 	37,500	 
	
                          102.

                        	 	
                          MICHAEL
      J SPLITTGERBER & RENEE J SPLITTGERBER JT TEN

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          103.

                        	 	
                          IRA
      FBO DIANE SPOLUM PERSHING LLC AS CUSTODIAN

                        	 	 	250,000.00	 	 	 	125,000	 
	
                          104.

                        	 	
                          SPONGBOB
      VENTURES II LLC

                        	 	 	50,000.00	 	 	 	25,000	 
	
                          105.

                        	 	
                          AMY
      J STEFANIK REVOCABLE TRUST UAD 02/06/01

                        	 	 	100,000.00	 	 	 	50,000	 
	
                          106.

                        	 	
                          IRA
      FBO LYNN ROLLINS STULL PERSHING LLC AS CUSTODIAN

                        	 	 	50,000.00	 	 	 	25,000	 

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    	
                            107.

                          	 	
                            IRA
      FBO CHARLES SULLIVAN PERSHING LLC AS CUSTODIAN

                          	 	 	50,000.00	 	 	 	25,000	 
	
                            108.

                          	 	
                            IRA
      FBO GERARD SURERUS PERSHING LLC AS CUSTODIAN

                          	 	 	50,000.00	 	 	 	25,000	 
	
                            109.

                          	 	
                            IRA
      FBO JAMES A TAMBORELLO PERSHING LLC AS CUSTODIAN

                          	 	 	100,000.00	 	 	 	50,000	 
	
                            110.

                          	 	
                            ABDOLHOSAYN
      TASLIMI & SHIDAN TASLIMI JT TEN

                          	 	 	100,000.00	 	 	 	50,000	 
	
                            111.

                          	 	
                            MEHRAN
      M TASLIMI

                          	 	 	500,000.00	 	 	 	250,000	 
	
                            112.

                          	 	
                            RUHA
      TASLIMI & SHIDAN TASLIMI JT TEN

                          	 	 	100,000.00	 	 	 	50,000	 
	
                            113.

                          	 	
                            SHIDAN
      TASLIMI

                          	 	 	500,000.00	 	 	 	250,000	 
	
                            114.

                          	 	
                            SUSANNE
      A TASLIMI

                          	 	 	100,000.00	 	 	 	50,000	 
	
                            115.

                          	 	
                            TRILLION
      GROWTH CHINA LP

                          	 	 	250,000.00	 	 	 	125,000	 
	
                            116.

                          	 	
                            ROBERT
      VECCHIONE

                          	 	 	50,000.00	 	 	 	25,000	 
	
                            117.

                          	 	
                            IRA
      FBO MATTHEW A WALTON PERSHING LLC AS CUSTODIAN

                          	 	 	110,000.00	 	 	 	55,000	 
	
                            118.

                          	 	
                            TIMOTHY
      M WEAVER

                          	 	 	250,000.00	 	 	 	125,000	 
	
                            119.

                          	 	
                            GRAMERCY
      87 LLC

                          	 	 	50,000.00	 	 	 	25,000	 
	
                            120.

                          	 	
                            DIPAOLO
      WORTHINGTON FAMILY TRUST DTD 1/31/2008 UAD 01/31/08

                          	 	 	100,000.00	 	 	 	50,000	 
	
                            121.

                          	 	
                            LAMBERT
      WU & LIYING CHU JT TEN

                          	 	 	50,000.00	 	 	 	25,000	 
	
                            122.

                          	 	
                            WYMOND
      INVESTMENTS, LLC

                          	 	 	500,000.00	 	 	 	250,000	 
	
                            123.

                          	 	
                            LAYNE
      YOSHIDA

                          	 	 	50,000.00	 	 	 	25,000	 
	
                            124.

                          	 	
                            IRA
      FBO PAUL HARPER ZINK PERSHING LLC AS CUSTODIAN

                          	 	 	50,000.00	 	 	 	25,000	 
	
                            125.

                          	 	
                            JAYHAWK
      PRIVATE EQUITY II, L.P.

                          	 	 	500,000.00	 	 	 	250,000	 
	
                            126.

                          	 	
                            NORTH
      MILITARY LTD

                          	 	 	200,000.00	 	 	 	100,000	 
	
                            127.

                          	 	
                            CHADDS
      FORD LTD

                          	 	 	50,000.00	 	 	 	25,000	 
	
                            128.

                          	 	
                            CHARDAN
      SPAC ASSET MANAGEMENT

                          	 	 	150,000.00	 	 	 	75,000	 
	 
      	 	 
      	 	
                            TOTAL:

                          	 	 	 	 	 
	 
      	 	 
      	 	$	12,000,000	 	 	 	 	 

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    Form
of Note

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
B

    

    Form
of Warrant

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
C

    

    Form
Registration Rights Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
D

    

    Form
Securities Escrow Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]