Document:

roi_ex101-80327.htm

    Exhibit
10.1

     

    ASSET
REPURCHASE AGREEMENT

    

    This
Asset Repurchase Agreement is entered into this 27th  day
of March 2008 by and among Richard C. Klein, II (“Buyer”) and W.E. Rock
Event, Inc. , a Nevada corporation (“Seller”).

    

    RECITALS

    

    WHEREAS,
Buyer and Seller entered into an Asset Purchase Agreement dated September 28,
2007   (“Purchase Agreement”)
pursuant to which the Seller acquired certain assets and assumed certain
liabilities of the Buyer (
referred to as “ Acquired Assets” and “Assumed Liabilities” in the Purchase
Agreement).

    

    WHEREAS,
Seller desires to resell and reassign the Acquired Assets to Buyer and
Buyer wishes to
repurchase the Acquired Assets and reassume the Assumed
Liabilities.

    

    NOW.
THEREFORE, in consideration of the premises and the mutual promises herein made,
and in consideration of the representations, warranties covenants contained
herein, the parties agree as follows:

    

    1.     Definitions. When
used in this Agreement, the terms set forth below and those defined throughout
the Agreement when initially capitalized shall have the meanings ascribed to
them.

    

    "Adverse Consequences"
means all legal actions, suits, proceedings, hearings, governmental
investigations, complaints, claims, demands, injunctions, judgments, orders,
decrees, rulings, damages, penalties, fines, costs, liabilities, obligations,
taxes, liens, losses, expenses, and fees, including litigation costs and
reasonable attorneys' fees and expenses.

    

    "Acquired Assets"
means all of the right, title, and interest that Seller possesses and has the
right to transfer in and to the assets set forth in Schedule A attached hereto
and incorporated by this reference.

    

    "Assumed Liabilities"
means the liabilities and obligations of Seller set forth in Schedule
B  attached hereto and incorporated by this reference.

    

    "Closing" has the
meaning set forth in Section 2(d) below.

    

    "Closing Date" has the
meaning set forth in Section 2(d) below.

    

    "Code" means the
Internal Revenue Code of 1986, as amended.

    

    "Confidential
Information" means any confidential, trade secret or other proprietary
information (in whatever form or media, and whether or not marked as
confidential) pertaining to Seller including without limitation any and all
information, documents and other materials concerning the business and affairs
of Seller that is not already generally available to the public at the time of
disclosure to Buyer hereunder.

    

    "GAAP" means United
States generally accepted accounting principles as in effect from time to
time.

    

    
      
        
        

      

      
        
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    "Income Tax" means any
federal, state, local, or foreign income tax, including any interest, penalty,
or addition thereto, whether disputed or not.

    

    "Income Tax Return"
means any return, declaration, report, claim for refund, or information return
or statement relating to Income Taxes, including any schedule or attachment
thereto.

    

    "Knowledge" means
actual knowledge without independent investigation.

    

    "Ordinary Course of
Business" means the ordinary course of business consistent with past
custom and practice, including with respect to quantity and
frequency.

    

    "Party" has the
meaning set forth in the preface above.

    

    "Person" means an
individual, a partnership, a corporation, an association, a joint stock company,
a trust, a joint venture, an unincorporated organization, or a governmental
entity (or any department, agency, or political subdivision
thereof).

    

    "Purchase Price" has
the meaning set forth in Section 2(c) below.

    

    "Securities Act" means
the Securities Act of 1933, as amended.

    

    "Securities Exchange
Act" means the Securities Exchange Act of 1934, as amended.

    

    "Security Interest"
means any mortgage, pledge, lien, encumbrance, charge, or other security
interest, other
than (a) mechanic's, materialmen's, and similar liens, (b) liens for
taxes not yet due and payable or for taxes that the taxpayer is contesting in
good faith through appropriate proceedings, (c) purchase money liens and liens
securing rental payments under capital lease arrangements, and (d) other liens
arising in the Ordinary Course of Business and not incurred in connection with
the borrowing of money.

    

    "Subsidiary" means any
corporation with respect to which a specified Person (or a Subsidiary thereof)
owns a majority of the common stock or has the power to vote or direct the
voting of sufficient securities to elect a majority of the
directors.

    

    2.     Basic
Transaction.

    

    (a)    Purchase and Sale of
Assets.  On and subject to the terms and conditions of this
Agreement, Seller agrees to purchase from Buyer, and Buyer agrees to sell,
transfer, convey, and deliver to Seller, all of the Acquired Assets at the
Closing for the consideration specified below in this Section 2.

    

    (b)    Assumption of
Liabilities.  On and subject to the terms and conditions of
this Agreement, Buyer agrees to assume and become responsible for all of the
Assumed Liabilities at the Closing.

    

    (c)    Purchase
Price.  The purchase price to be paid by Buyer for the Acquired
Assets will be as follows:

     

     

    
      
        
        

      

      
        
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                (i)

              	
                The
      assumption of the Assumed
Liabilities;

              

      

      
        	 	
                (ii)

              	
                The
      cancellation by Buyer of Seller’s of  its non-negotiable secured
      convertible demand promissory note (“Original Seller
      Note”) delivered to Buyer under the Asset Purchase
      Agreement;

              

      

    

    
      
        	 	
                (iii)

              	
                Termination
      by Buyer of the General Security Agreement dated September 28, 2007
      between Seller and Buyer
      (“Original Security
Agreement”);

              

      

    

    
      
        	 	
                (iv)

              	
                Issuance
      by Buyer to Seller, or Seller’s designee, of $125,000 of sponsorship
      considerations for all events to be held by Buyer during calender year
      2008.

              

      

    

    

    (d)    The
Closing.  The closing of the transactions contemplated by this
Agreement ("Closing")
shall take place at the offices of Robert C. Laskowski, Attorney at
Law,  at 520 SW Yamhill, Suite 600, Portland, OR 97204 on the second
business day following the satisfaction or waiver of all conditions to the
obligations of the Parties to consummate the transactions contemplated hereby,
other than conditions with respect to actions the respective Parties will take
at the Closing itself,  or such other date as the Parties may mutually
determine ( "Closing Date");
provided,
however that the Closing Date shall be no later than April 1,
2008.

    

    (e)    Deliveries at the
Closing.  In addition to any other documents to be delivered
under other provisions of this Agreement, at the Closing:

    

    
      
        	 	
                (i)

              	
                Seller  will
      execute and deliver to Buyer:

              

      

    

     

    
      	 	
              (A)

            	
              a
      bill of sale for the Acquired Assets in the form attached hereto as
      Exhibit 2(e)(i);

            

    

    

    
      	 	
              (B)

            	
              such
      other deeds, bills of sale, assignments, certificates of title, documents
      and other instruments as may reasonably be requested by Buyer, each in a
      form and substance satisfactory to Buyer, as the case may be, and their
      legal counsel;

            

    

    

    
      	 	
              (ii) 

            	
              Buyer
      will deliver to Seller:

            

    

    

    
      	 	
              (A) 

            	
              the
      Original Seller Note marked
“CANCELLED”;

            

    

    

    
      	 	
              (B) 

            	
              the
      termination of the Original Security
Agreement;

            

    

    

    
      	 	
              (C) 

            	
              the
      Assumption Agreement in the form attached hereto as Exhibit
      2(e)(ii);

            

    

    

    
      	 	
              (D)

            	
              the
      termination of Buyer’s employment agreement with
  Seller.

            

    

    

    3.     Representations and
Warranties of Seller.  Seller represents and warrants to Buyer
that the statements contained in this Section 3 are correct and complete as of
the date of this Agreement and will be correct and complete as of the Closing
Date, as though made then and as though the Closing Date were substituted for
the date of this Agreement throughout this Section

    

    
      
        
        

      

      
        
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    (a)    Noncontravention.  Neither
the execution and the delivery of this Agreement, nor the consummation of the
transactions contemplated hereby, including the assignments and assumptions
referred to in Section 2 above, will (i) violate any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction of any government, governmental agency, or court to which Seller is
subject, or (ii) conflict with, result in a breach of, constitute a default
under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel, or require any notice under any
agreement, contract, lease, license, instrument, or other arrangement to which
Seller is a party or by which he is bound or to which any of his assets is
subject, or result in the imposition of any Security Interest upon any of his
assets, except where the violation, conflict, breach, default, acceleration,
termination, modification, cancellation, failure to give notice, or Security
Interest would not have a material adverse effect or on the ability of the
Parties to consummate the transactions contemplated by this
Agreement.  Seller shall not be required to give any notice to, make
any filing with, or obtain any authorization, consent, or approval of any
government or governmental agency in order for the Parties to consummate the
transactions contemplated by this Agreement, including the assignments and
assumptions referred to in Section 2 above, except where the failure to give
notice, to file, or to obtain any authorization, consent, or approval would not
have a material adverse effect on the ability of the Parties to consummate the
transactions contemplated by this Agreement.

    

    (b)    Brokers'
Fees.  Seller has no liability or obligation to pay any fees or
commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement for which Buyer could become liable or
obligated.

    

    (c)    Title
to  Assets.   Seller has good and
marketable  title to the Acquired Assets free of any liens and
encumbrances.

    

    (d)    Disclaimer of other
Representations and Warranties.  Except as expressly set forth
in this Section 3, Seller makes no representation or warranty, express or
implied, at law or in equity, in respect of the Acquired Assets and the Assumed
Liabilities with respect to merchantability or fitness for any particular
purpose, and any such other representations or warranties are hereby expressly
disclaimed.  Buyer hereby acknowledges and agrees that, except to the
extent specifically set forth in this Section 3, it is purchasing the Acquired
Assets on an "as-is, where-is" basis.  Without limiting the generality
of the foregoing, Seller makes no representation or warranty regarding any
assets other than the Acquired Assets or any liabilities other than the Assumed
Liabilities, and none shall be implied at law or in equity.

    

    4.     Pre-Closing
Covenants.  The Parties agree as follows with respect to the
period between the execution of this Agreement and the Closing.

    

    (a)    General.  Each
of the Parties will use its reasonable best efforts to take all action and to do
all things necessary in order to consummate and make effective the transactions
contemplated by this Agreement, including satisfaction, but not waiver, of the
closing conditions set forth in Section 6 below.

    

    (b)    Ownership of Acquired
Assets.  Seller will not engage in any practice, take any
action, or enter into any transaction which will have the affect of causing an
Adverse Consequence to the Acquired Assets.

    

    
      
        
        

      

      
        
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    (c)    Confidentiality. 
Each of the Parties will treat and hold in the strictest confidence any
Confidential Information it receives from the other in the course of the
negotiation and preparation of this Agreement and will not use any of the
Confidential Information except in connection with this Agreement, and in
addition shall not directly or indirectly disclose, copy, distribute, republish
or allow any third party to have access to any Confidential Information except
to the extent necessary to effect the transactions contemplated under this
Agreement, and in such cases solely to their respective officers, counsel,
accountants and similar agents,
and, if this Agreement is terminated for any reason whatsoever, will
return to Company  all tangible embodiments, and all copies of the
Confidential Information which are in their respective possession, custody or
control.

    

    5.     Conditions to Obligation to
Close.

    

    (a)    Conditions to Obligation of
Buyer.  The obligation of Buyer to consummate the transactions
to be performed by them in connection with the Closing is subject to
satisfaction of the following conditions:

    

    
      	 	
              (i) 

            	
              the
      representations and warranties set forth in Section 3 above shall be true
      and correct in all material respects at and as of the Closing
      Date;

            

    

    

    
      	 	
              (ii) 

            	
              Seller
      shall have performed and complied with all of its covenants hereunder in
      all material respects through the
Closing;

            

    

    

    
      	 	
              (iii) 

            	
              there
      shall not be any injunction, judgment, order, decree, ruling, or charge in
      effect preventing consummation of any of the transactions contemplated by
      this Agreement;

            

    

    

    
      	 	
              (iv) 

            	
              all
      actions to be taken by Seller in connection with consummation of the
      transactions contemplated hereby and all certificates, instruments, and
      other documents required to effect the transactions contemplated hereby
      will be reasonably satisfactory in form and substance to Rhino and
      Seller.

            

    

    

    Each
Buyer may waive any condition specified in this Section 5(a) if it executes a
writing so stating at or prior to the Closing.

    

    (b)    Conditions to Obligation of
Seller.  The obligation of Seller to consummate the
transactions to be performed by him in connection with the Closing is subject to
satisfaction of the following conditions:

    

    
      	 	
              (i) 

            	
              there
      shall not be any injunction, judgment, order, decree, ruling, or charge in
      effect preventing consummation of any of the transactions contemplated by
      this Agreement.

            

    

    

    
      	 	
              (ii) 

            	
              all
      actions to be taken by Rhino and Seller in connection with consummation of
      the transactions contemplated hereby and all certificates, instruments,
      and other documents required to effect the transactions contemplated
      hereby will be reasonably satisfactory in form and substance to
      Company.

            

    

    

    
      
        
        

      

      
        
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    Seller
may waive any condition specified in this Section 5(b) if it executes a writing
so stating at or prior to the Closing.

    

    6.     Termination.

    

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

    

    
      	 	
              (i) 

            	
              The
      Parties may terminate this Agreement by written consent of all Parties at
      any time prior to the Closing;

            

    

    

    
      	 	
              (ii) 

            	
              Buyer
      may terminate this Agreement by giving written notice to Seller at any
      time prior to the Closing (A) in the event Seller has breached
      any  representation, warranty, or covenant contained in this
      Agreement in any material respect, Buyer has notified Seller of the
      breach, and the breach has continued without cure for a period of thirty
      (30) days after the notice of
breach;

            

    

    

    
      	 	
              (iii) 

            	
              Seller
      may terminate this Agreement by giving written notice to Buyer at any time
      prior to the Closing (A) in the event Buyer has failed to perform any
      obligation called for by this Agreement, Seller has notified Buyer of the
      failure to perform,  and the nonperformance has continued
      without cure for a period of thirty (30) days after the notice of
      breach.

            

    

    

    (b)    Effect of
Termination.  If any Party terminates this Agreement pursuant
to Section 6(a) above, all rights and obligations of the Parties hereunder shall
terminate without any liability of any Party to any other Party, except for any
liability of any Party then in breach; provided, however,
that the confidentiality provisions contained in Section4(c) above shall survive
termination.

    

    7.     Indemnification.

    

    (a)    Indemnification Provisions
for Benefit of  Seller.

    

    
      	 	
              (i) 

            	
              In
      the event Buyer breaches any of his representations, warranties, and
      covenants contained in this Agreement, then Buyer agrees to indemnify each
      of Rhino, Seller, their respective directors, officers, shareholders,
      agents, attorneys and employees (each, a“Buyer Indemnified Party”)
      from and against any Adverse Consequences a Buyer Indemnified Party
      shall suffer through and after the date of the claim for indemnification
      caused by the breach.

            

    

    

    (b)    Indemnification Provisions
for Benefit of Buyer.

    

    
      	 	
              (i) 

            	
              In
      the event Buyer breaches any of his covenants contained in this Agreement,
      including the Assumption Agreement and other exhibits attached hereto,
      then Buyer agrees to indemnify Seller, and its officers, directors and
      shareholders (each, a “Seller Indemnified
      Party”) from and against the entirety of any Adverse Consequences a
      Seller Indemnified Party shall suffer through and after the date of the
      claim for indemnification caused by the
breach.

            

    

     

    
      
        
        

      

      
        
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    (c)    Matters Involving Third
Parties.

    

    
      	 	
              (i) 

            	
              If
      any third party shall notify any Party( "Indemnified Party")
      with respect to any matter ( "Third Party Claim")
      which may give rise to a claim for indemnification against any other Party
      ("Indemnifying Party")
      under this Section 8, then the Indemnified Party shall promptly,
      and in any event within seven (7) business days after receiving notice of
      the Third Party Claim, notify the Indemnifying Party thereof in
      writing.

            

    

    

    
      	 	
              (ii) 

            	
              Any
      Indemnifying Party will have the right at any time to assume and
      thereafter conduct the defense of the Third Party Claim with counsel of
      its choice reasonably satisfactory to the Indemnified Party;provided,
      however, that the Indemnifying Party will not consent to the entry
      of any judgment or enter into any settlement with respect to the Third
      Party Claim without the prior written consent of the Indemnified Party,
      not to be withheld unreasonably, unless the judgment or proposed
      settlement involves only the payment of money damages without any
      admission of liability and does not impose an injunction or other
      equitable relief upon the Indemnified
Party.

            

    

    

    
      	 	
              (iii) 

            	
              Unless
      and until an Indemnifying Party assumes the defense of the Third Party
      Claim as provided in Section 7(c)(ii) above, however, the Indemnified
      Party may defend against the Third Party Claim in any manner it reasonably
      may deem appropriate.

            

    

    

    
      	 	
              (iv) 

            	
              In
      no event will the Indemnified Party consent to the entry of any judgment
      or enter into any settlement with respect to the Third Party Claim without
      the prior written consent of the Indemnifying Party, not to be withheld
      unreasonably.

            

    

    

    9.     Miscellaneous.

    

    (a)    Survival of Representations
and Warranties.  All of the representations and warranties of
the Parties contained in this Agreement shall survive the Closing hereunder,
except as otherwise expressly provided herein.

    

    (b)    Press Releases and Public
Announcements.  No Party shall issue any press release or make
any public announcement relating to the subject matter of this Agreement without
the prior written approval of the other Party; provided, however, that any Party
may make any public disclosure it believes in good faith is required by
applicable law or any listing or trading agreement concerning publicly-traded
securities, in which case the disclosing Party will use its best efforts to
advise the other Party prior to making the disclosure.

    

    (c)    No Third-Party
Beneficiaries.  This Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors
and permitted assigns.

    

    (d)    Entire
Agreement.  This Agreement, including the documents referred to
herein, constitutes the entire agreement between the Parties and supersedes any
prior understandings, agreements, or representations by or between the Parties,
written or oral, related to the subject matter hereof.

    

    
      
        
        

      

      
        
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    (e)    Succession and
Assignment.  This Agreement shall be binding upon and inure to
the benefit of the Parties named herein and their respective successors and
permitted assigns.  No Party may assign either this Agreement or any
of its rights, interests, or obligations hereunder without the prior written
approval of the other Party.

    

    (f)    Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same
instrument.

    

    (g)    Headings.  The
section headings contained in this Agreement are inserted for convenience only
and shall not affect in any way the meaning or interpretation of this
Agreement.

    

    (h)    Notices.  All
notices, requests, demands, claims, and other communications hereunder will be
in writing.  Any notice, request, demand, claim, or other
communication hereunder shall be in writing and shall be  deemed given
to a Party when (a) delivered to the appropriate address by hand or by
nationally recognized courier service, costs prepaid; (b) sent by facsimile or
e-mail with confirmation of transmission by the transmitting equipment; or (c)
received or rejected by the addressee, if sent by registered or certified mail,
return receipt requested, postage prepaid, in each case to the following
addresses, facsimile numbers or e-mail addresses and marked to the attention of
the person designated as set forth below:

    

    

    If
to Seller:

    

    Water
Tatum

    1191
Center Point Drive

    Henderson,
NV 89704

    Facsimile:

    E-mail:

    

    If
to Buyer:

    

    Richard
C. Klein II

    2915
Molly Lane

    Placerville,
CA 95667

    Facsimile:

    E-mail:

    

    

    Any Party
may change the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other Party notice in
the manner herein set forth.

    

    (i)    Governing
Law.  This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of Nevada without giving effect
to any choice or conflict of law provision or rule. Each Party hereby submits to
the exclusive jurisdiction and venue of the state courts located in Clark
County, Nevada  and federal courts located in Nevada over any dispute
arising under this Agreement.

    

    
      
        
        

      

      
        
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    (j)    Amendments and
Waivers.  No amendment of any provision of this Agreement shall
be valid unless the same shall be in writing and signed by all
Parties.  No waiver by any Party of any default, misrepresentation, or
breach of warranty or covenant hereunder, whether intentional or not, shall be
deemed to extend to any prior or subsequent default, misrepresentation, or
breach of warranty or covenant hereunder or affect in any way any rights arising
by virtue of any prior or subsequent such occurrence.

    

    (k)    Severability.  Any
term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other
jurisdiction.

    

    (l)    Construction.  The
Parties have participated jointly in the negotiation and drafting of this
Agreement.  In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the Parties and no presumption or burden of proof shall arise favoring or
disfavoring any Party by virtue of the authorship of any of the provisions of
this Agreement.  Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires
otherwise.  The word "including" shall mean including without
limitation.

    

    (m)    Incorporation of Exhibits
and Schedules.  The Exhibits and Schedules identified in this
Agreement are incorporated herein by reference and made a part
hereof.

    

    (n)    Advice of
Counsel.     This Agreement was prepared by
legal counsel to the Seller. Buyer has been advised to seek and obtain his own
legal counsel and representation in connection with this Agreement and Buyer has
informed Seller that Buyer elects not to obtain such legal counsel and
representation.

    

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

    

    

    SELLER:

    

    W.E. ROCK
EVENT, INC.

    a Nevada
corporation

    

    
       

      
        	By: 	/s/ WALT
    TATUM	 	 
	 	Walt Tatum, President	 	 
	 	 	 	 
	BUYER:	 	 	 
	 	 	 	 
	/s/ RICHARD C. KLEIN
      II	 	 
	Richard C. Klein
      II	 	 

      

       

    

     

    

    

     

    

     

    

    

       

      
        
          
          

        

        
          
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        Addendum
to Agreement

        Richard
C. Klein, II and W.E.Rock Event, Inc.

         

        Sponsorship

         

        Richard  Klein
will provide Rhino Outdoor International, Inc. (”ROI”) and its operating
subsidiaries $125,000 in value during the 2008 W.E.Rock series through banner
site location advertising, vendor booths, and primary coverage in all media
participation including but not limited to “Announcements by Microphone” that
ROI or it’s assigned subsidiary is a primary sponsor of W.E.Rock and has
exclusive rights for “Dune Buggy or similar Off-Road product” placement at each
W.E.Rock event. ROI will get first choice of booth location in vendor
row.

         

        There are
8 scheduled events for 2008, and ROI will receive one-full page advertising in
each program, and if W.E.Rock does not secure a Sponsor paying more than
$125,000 in 2008, ROI will be considered the “Primary” sponsor of W.E.Rock and
be granted all favored nations rights, including any perks or options that any
sponsor may negotiate with W.E.Rock independently.  Such as, inclusion
of name or 15 second spots in radio or primary Logo placement on billboard
ads.   Klein agrees to provide ROI with original copy of all
sponsorship deals it negotiates during 2008.

         

        Sponsorship
Sales

         

        Klein
recognizes that ROI and it’s subsidiaries has invested time and resources in
marketing sponsorships for W.E.Rock and during 2008 any sponsors that ROI or
it’s agents, affiliates, subsidiaries or officers have proposed W.E.Rock
sponsorships to  - ROI will be compensated at 50% of the total
collected.  The list of potential sponsorships includes but is not
limited to, NOS, Shark Energy Drinks, Sway a Way, Herbalife, AlphaTrade,
Quicksand Performance, YamaBuggy, Rhino Linings, or Rhino Off-Road
RTV’s.

         

        ROI will
cap it’s collection of this fee at $125,000, and after ROI has collected the
full $125,000 during 2008 ROI will reduce it’s commissions to 20% for any
sponsorships it delivers to W.E.Rock.

         

        ROI – Driver
Debts

         

        ROI/W.E.Rock
Event, Inc. assumed approximately $80,000 in driver debts owed by Klein when it
acquired the assets, and ROI paid those debts with cash and stock negotiated by
officers of ROI at the time.  ROI accepts liability to assure that
original list of driver debts is satisfied.  Klein will not be
responsible for any driver liabilities listed on the original list of debts
assumed by ROI/W.E.Rock Event, Inc.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Other
Debts

         

        Klein
recognizes that ROI used its best efforts in negotiating some of Klein’s other
debts with companies like Shotcrete, RPM video, Nicole Johnson, and Klein
accepts full responsibility to satisfy those liabilities.  ROI is not
responsible to administrate or negotiate any further for Klein and Klein agrees
to fulfill his obligation with those debts not acquired by ROI/W.E.Rock Event,
Inc.

        

        Agreed
to:

        
          
            	 	 	 	 	 
	
                    
                      W.E.
      Rock Event, Inc.

                    

                  	 	 	
                    /s/
      RICHARD C. KLEIN, II

                  	 
	
                    By:
      /s/ WALT TATUM, President

                  	 	 	 	 

          

        

         

        
           

        

        

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        Schedule A

         

         

        
          Schedule A - Acquired
Assets

          

          

          

          
            	 
	
                    1.  Maxxis
      Sponsorship receivable - $6750.00

                  
	
                    2.  97'
      6500 Top Kick

                  
	
                    3.  44'
      race trailer

                  
	
                    4.  Computers
      (2 PC's and 2 laptops)

                  
	
                    5.  Misc.
      supplies

                  
	
                    6.  Misc.
      equipment

                  
	 
	 

          

          

          

          

          

          

          

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Schedule B

         

        Schedule B - Assumed
Liabilities

         

        
          
            	
                    Liabilities

                  	 	 	 	 
	 	 	 	 	 
	
                    Driver
      Name

                  	 	
                    Amount

                  	 	
                    Contact

                  
	 	 	 	 	 
	
                    Randy
      Torbett

                  	 	$	
                    215.00

                  	 	 
	
                    Danny
      Rohrer

                  	 	$	
                    1,558.00

                  	 	 
	
                    Bob
      Roggy

                  	 	$	
                    283.00

                  	 	 
	
                    Cody
      Waggoner

                  	 	$	
                    1,290.00

                  	 	 
	
                    Jason
      Scherer

                  	 	$	
                    1,428.00

                  	 	 
	
                    Bruce
      Zeller

                  	 	$	
                    4,419.00

                  	 	 
	
                    Tom
      Haman

                  	 	$	
                    204.00

                  	 	 
	
                    Terry
      Dagen

                  	 	$	
                    4,299.00

                  	 	 
	
                    Rock
      Runner Racing

                  	 	$	
                    4,651.00

                  	 	
                    George
      Watson

                  
	
                    Lovell
      Racing

                  	 	$	
                    8,861.00

                  	 	
                    Brad
      Lovell

                  
	
                    Ben
      Hanks

                  	 	$	
                    484.00

                  	 	 
	
                    Tim
      Florian

                  	 	$	
                    901.00

                  	 	 
	
                    T-N-T
      Off Road

                  	 	$	
                    5,522.00

                  	 	
                    Troy
      Bailey

                  
	
                    Richard
      Bronsema

                  	 	$	
                    2,581.00

                  	 	 
	
                    James
      Andrus

                  	 	$	
                    267.00

                  	 	 
	
                    Ken
      Blume

                  	 	$	
                    9,266.00

                  	 	 
	
                    Shannon
      Campbell

                  	 	$	
                    5,600.00

                  	 	
                    Tami
      Campbell

                  
	
                    David
      Schneider

                  	 	$	
                    776.00

                  	 	 
	
                    Tracy
      Jordan

                  	 	$	
                    6,066.00

                  	 	 
	
                    Eric
      Hackney

                  	 	$	
                    232.00

                  	 	 
	
                    Jesse
      HaInes

                  	 	$	
                    2,749.00

                  	 	 
	
                    Matt
      Deas

                  	 	$	
                    3,226.00

                  	 	 
	
                    Brad
      Styles

                  	 	$	
                    1;474.00

                  	 	 
	
                    Rusty
      Bray

                  	 	$	
                    878.00

                  	 	 
	
                    Dean
      Bultoch

                  	 	$	
                    690.00

                  	 	 
	
                    Derek
      West

                  	 	$	
                    5,431.00

                  	 	 
	
                    Alan
      Rich

                  	 	$	
                    535.00

                  	 	 
	
                    Jake
      Tennis

                  	 	$	
                    2,629.00

                  	 	 
	
                    Ricky
      Artes

                  	 	$	
                    328.00

                  	 	 
	
                    Mike
      Cole

                  	 	$	
                    334.00

                  	 	 
	
                    Aaron
      Stapen

                  	 	$	
                    373.00

                  	 	 
	
                    Matt
      Messer

                  	 	$	
                    780.00

                  	 	 
	
                    Hobie
      Smith

                  	 	$	
                    480.00

                  	 	 
	
                    John
      James

                  	 	$	
                    480.00

                  	 	 
	
                    Brett
      Porter

                  	 	$	
                    140.00

                  	 	 
	
                    Cody
      Deschamps

                  	 	$	
                    180.00

                  	 	 
	
                    Brian
      Ellinger

                  	 	$	
                    340.00

                  	 	 
	 	 	 	 	 	 
	
                    Subtotal
      A

                  	 	$	
                    79,950,00

                  	 	 

          

        

      

      
         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Exhibit 2(e)(i)

        

        BILL
OF SALE

        

        1.    Sale and
Transfer of Assets

        

        For good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and as contemplated by the terms and conditions of that certain
Asset Repurchase Agreement dated as of March 27, 2008  to which the
undersigned is the seller
(“Seller”) and Richard C. Klein, is the buyer, (collectively, “Buyer”) ,
Seller hereby sells, transfers, assigns, conveys, grants and delivers to Buyer,
all of Seller’s right, title and interest in and to all of the
assets

         ( “Assets” ) described
in Exhibit A attached hereto.

        

        2.    Further
Actions

        

        Seller
covenants and agrees to warrant and defend the sale, transfer, assignment,
conveyance, grant and delivery of the Assets hereby made against all persons
whomsoever, to take all steps reasonably necessary to establish the record of
Buyer’s’ title to the Assets and, at the request of the Buyer, to execute and
deliver further instruments of transfer and to take such other action as Buyer
may reasonably request to more effectively transfer and assign to and vest in
Buyer  the Assets, all at the sole cost and expense of
Seller.

        

        
          3.    Terms
of the Asset Purchase Agreement

        

        

        The terms
of the Asset Repurchase Agreement, including but not limited to the Seller’s
representations and  warranties relating to the Assets, are
incorporated herein by this reference. The Seller acknowledges and agrees that
the representations and warranties contained in the Asset Repurchase Agreement
shall not be superceded hereby but shall remain in full force and effect. In the
event of any conflict or inconsistency between the terms of the Asset Repurchase
Agreement and the terms of this Bill of Sale, the terms of the Asset Repurchase
Agreement shall govern.

        

        IN
WITNESS WHEREOF, the Seller has executed this Bill of Sale as of March 27,
2008

        

        . 

          
            	 	W.E.
      ROCK EVENT, INC.	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ WALT
      TATUM	 
	 	 	Walt
      Tatum, President	 

          

        

         

        

         

        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
2(e)(ii)

    

    ASSUMPTION
AGREEMENT

    

    THIS
ASSUMPTION AGREEMENT (“Assumption”) is made and
entered into effective as of March 27, 2008 by and between W.E. Rock Event,
Inc., a Nevada corporation
(“Assignor”) and Richard C. Klein II (“Assignee”),  All
capitalized terms used herein that are defined in the Agreement, defined below,
shall have the same meaning herein as specified in the Agreement, unless
otherwise expressly defined herein.

    

    RECITALS

    

    

    WHEREAS,
Assignor is selling and transferring to Assignee substantially all of the assets
of Assignor’s business pursuant to an Asset Repurchase Agreement dated March 27,
2008 (“Agreement”) by
and between Assignee and Assignor;  and

    

    WHEREAS,
pursuant to the Agreement, Assignee is to assume certain liabilities of
Assignor.

    

    NOW,
THEREFORE, in consideration of the foregoing, of the mutual covenants herein set
forth and of other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as
follows:

     

    1.    Assumption of
Obligations.

    

    Assignee
hereby assumes and agrees to pay, perform, fulfill and discharge in full, as and
when due, all liabilities and obligations arising under or pursuant to the
Assumed Liabilities.  Assignee agrees that, upon Assignor’s reasonable
request, it shall do, execute, acknowledge, and deliver all acts, deeds,
instruments of transfer, agreements and other documents as may be reasonably
required to further effect and evidence the assumption of liabilities
hereunder.

    

    2.    Termination of General
Security Agreement.

    

    By
executing this Assumption, Assignee acknowledges the cancellation and
termination of the General Security Agreement dated September 28, 2007 by and
between the Assignee and Assignor.

    

    3.    Effect.

    

    This
Assumption shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, executors, legal representatives, successors
and assigns.  This Assumption is being delivered pursuant to the
Agreement, shall be construed consistently therewith, and is subject to all of
the terms and conditions thereof.

    

    
      
        
        

      

      
        
          Assumption Agreement- Page
1

        

        
          

        

      

      
        
        

      

    

    4.    Governing
Law.

    

    This
Assumption and all performances hereunder shall be governed by and construed in
accordance with the laws of the State of Nevada.

    

    5.    Modifications.

    

    This
Assumption may not be altered or amended and no rights hereunder may be waived
except by an instrument in writing signed by all parties hereto.

    

    6.    Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same
instrument.

    

    

    IN
WITNESS WHEREOF, the parties hereto have duly executed this Assumption as of the
day and year first set forth above.

     

    
    

    
      
        	
                ASSIGNEE:

              	 	ASSIGNOR:	 
	 	 	 	 
	 	 	W.E.
      ROCK EVENT, INC.	 
	 	 	 	 
	
                /s/
      RICHARD C. KLEIN II

              	 	By:	
                /s/
      WALT TATUM

              	 
	
                
                  Richard
      C. Klein II

                

              	 	Name:	
                Walt Tatum

              	 
	
                 

              	 	Title:	
                PresidentChina Public Security Technology, Inc.: Exhibit 4.1 - Prepared by TNT Filings Inc.

  

Exhibit 4.1

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this "Agreement") is made and entered into as of March 26, 2008, by and among China Public Security Technology, Inc., a Florida corporation (the "Company"), and the investors signatory hereto (each an "Investor" and collectively, the "Investors").

This Agreement is made in connection with the Purchase Agreement, dated as of the date hereof among the Company and the Investors (the "Purchase Agreement").

The Company and the Investors hereby agree as follows:  

1.

Definitions.  Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement will have the respective meanings given such terms in the Purchase Agreement.  As used in this Agreement, the following terms have the respective meanings set forth in this Section 1:

“Advice”  has the meaning set forth in Section 6(d).

"Commission Comments"  means written comments pertaining solely to Rule 415 which are received by the Company from the Commission to a filed Registration Statement, a copy of which shall have been provided by the Company to the Holders, which either (i) requires the Company to limit the number of Registrable Securities which may be included therein to a number which is less than the number sought to be included thereon as filed with the Commission or (ii) requires the Company to either exclude Registrable Securities held by specified Holders or deem such Holders to be underwriters with respect to Registrable Securities they seek to include in such Registration Statement.

“Cut Back Shares” has the meaning set forth in Section 2(b).

"Effective Date" means, as to a Registration Statement, the date on which such Registration Statement is first declared effective by the Commission.

“Effectiveness Date” means: (a) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a), the earlier of (i) the 150th day following the Closing Date and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that the initial Registration Statement will not be reviewed or is no longer subject to further review and comments; (b) with respect to any additional Registration Statements required to be filed pursuant to Section 2(a), the earlier of (i) the 90th day following the applicable Filing Date for such additional Registration Statement(s), and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that such additional Registration Statement(s) will not be reviewed or is no longer subject to further review; (c) with respect to any additional Registration Statements required to be filed solely due to SEC Restrictions, the earlier of (i) the 90th day following the applicable Restriction Termination Date and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that such Registration Statement will not be reviewed or is no longer subject to further review and comments; and (d) with respect to a Registration Statement required to be filed under Section 2(c), the earlier of:  (i) the 60th day following the date on which the Company becomes eligible to utilize Form S-3 to register the resale of Common Stock; provided, that, if the Commission reviews and has written comments to such filed Registration Statement that would require the filing of a pre-effective amendment thereto with the Commission, then the Effectiveness Date under this clause (d)(i) shall be the 90th day following the date on which the Company becomes eligible to utilize Form S-3 to register the resale of Common Stock; and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that the Registration Statement will not be reviewed or is no longer subject to further review and comments.

"Effectiveness Period" means, as to any Registration Statement required to be filed pursuant to this Agreement, the period commencing on the Effective Date of such Registration Statement and ending on the earliest to occur of (a) the second anniversary of such Effective Date, (b) such time as all of the Registrable Securities covered by such Registration Statement have been publicly sold by the Holders of the Registrable Securities included therein, or (c) such time as all of the Registrable Securities covered by such Registration Statement may be sold by the Holders without volume restrictions pursuant to Rule 144, in each case as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company's transfer agent and the affected Holders.

"Exchange Act" means the Securities Exchange Act of 1934, as amended.

"Filing Date" means (a) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a), the 45th day following the Closing Date; (b) with respect to any additional Registration Statements required to be filed pursuant to Section 2(a), the 30th day following the Effective Date for the last Registration Statement filed pursuant to this Agreement under Section 2(a); (c) with respect to any additional Registration Statements required to be filed due to SEC Restrictions, the 30th day following the applicable Restriction Termination Date; and (d) with respect to a Registration Statement required to be filed under Section 2(c), the 30th day following the date on which the Company becomes eligible to utilize Form S-3 to register the resale of Common Stock.

"Holder" or "Holders" means the holder or holders, as the case may be, from time to time of Registrable Securities.

“Indemnified Party” has the meaning set forth in Section 5(c).

“Indemnifying Party” has the meaning set forth in Section 5(c).

“Losses” has the meaning set forth in Section 5(a).

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

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

- 2 -

“Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

“Registrable Securities” means: (i) the Shares, (ii) any shares of Common Stock issuable upon exercise of warrants issued to any placement agent as compensation in connection with the financing that is the subject of the Purchase Agreement, and (iii) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event, or any exercise price adjustment with respect to any of the securities referenced in (i) or (ii) above. Notwithstanding the foregoing, a security shall cease to be a Registrable Security for purposes of this Agreement from and after such time as the Holder of such security may resell such security without volume restrictions under Rule 144, as evidence by an opinion of counsel reasonably acceptable to the Company.

"Registration Statement" means the initial registration statement required to be filed in accordance with Section 2(a) and any additional registration statements required to be filed under this Agreement, including in each case the Prospectus, amendments and supplements to such registration statements or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference therein.

“Restriction Termination Date” has the meaning set forth in Section 2(b).

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

"Rule 415" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"Rule 424" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

“SEC Restrictions” has the meaning set forth in Section 2(b).

"Securities Act" means the Securities Act of 1933, as amended.

"Shares" means the shares of Common Stock issued or issuable to the Investors pursuant to the Purchase Agreement.

- 3 -

2.

Registration.

(a)

On or prior to the applicable Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all Registrable Securities not already covered by an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415.  Each Registration Statement required to be filed under this Agreement shall be filed on Form S-1 (or if the Company is not then eligible to utilize such form of registration, it shall utilize such other available form appropriate for such purpose) and contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement, other than as to the characterization of any Holder as an underwriter, which shall not occur without such Holder’s written consent) the "Plan of Distribution" attached hereto as Annex A.  The Company shall cause each Registration Statement required to be filed under this Agreement to be declared effective under the Securities Act as soon as possible but, in any event, no later than its Effectiveness Date, and shall use its reasonable best efforts to keep each such Registration Statement continuously effective during its entire Effectiveness Period.  By 5:00 p.m. (New York City time) on the Business Day immediately following the Effective Date of each Registration Statement, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement (whether or not such filing is technically required under such Rule).  If for any reason other than due solely to SEC Restrictions, a Registration Statement is effective but not all outstanding Registrable Securities are registered for resale pursuant thereto, then the Company shall prepare and file by the applicable Filing Date an additional Registration Statement to register the resale of all such unregistered Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415.  

(b)

Notwithstanding anything to the contrary contained in this Section 2, if the Company receives Commission Comments, and following discussions with and responses to the Commission in which the Company uses its reasonable best efforts to cause as many Registrable Securities for as many Holders as possible to be included in the Registration Statement filed pursuant to Section 2(a) without characterizing any Holder as an underwriter (and in such regard uses its reasonable best efforts to cause the Commission to permit the affected Holders or their respective counsel to participate in Commission conversations on such issue together with Company Counsel, and timely conveys relevant information concerning such issue with the affected Holders or their respective counsel), the Company is unable to cause the inclusion of all Registrable Securities, then the Company may, following not less than three (3) Trading Days prior written notice to the Holders (i) remove from the Registration Statement such Registrable Securities (the “Cut Back Shares”) and/or (ii) agree to such restrictions and limitations on the registration and resale of the Registrable Securities, in each case as the Commission may require in order for the Commission to allow such Registration Statement to become effective; provided, that in no event may the Company name any Holder as an underwriter without such Holder’s prior written consent (collectively, the “SEC Restrictions”).  Unless the SEC Restrictions otherwise require, any cut-back imposed pursuant to this Section 2(b) shall be allocated among the Registrable Securities of the Holders on a pro rata basis.  No liquidated damages under Section 2(d) shall accrue on or as to any Cut Back Shares, and the required Effectiveness Date for such Registration Statement will be tolled, until such time as the Company is able to effect the registration of the Cut Back Shares in accordance with any SEC Restrictions (such date, the “Restriction Termination Date”).  From and after the Restriction Termination Date, all provisions of this Section 2 (including, without limitation, the liquidated damages provisions, subject to tolling as provided above) shall again be applicable to the Cut Back Shares (which, for avoidance of doubt, retain their character as “Registrable Securities”) so that the Company will be required to file with and cause to be declared effective by the Commission such additional Registration Statements in the time frames set forth herein as necessary to ultimately cause to be covered by effective Registration Statements all Registrable Securities (if such Registrable Securities cannot at such time be resold by the Holders thereof without volume limitations pursuant to Rule 144).

- 4 -

(c)

Promptly following any date on which the Company becomes eligible to use a registration statement on Form S-3 to register Registrable Securities for resale, the Company shall file a Registration Statement on Form S-3 covering the Registrable Securities (or a post-effective amendment on Form S-3 to the then effective Registration Statement) and shall cause such Registration Statement to be filed by the Filing Date for such Registration Statement and declared effective under the Securities Act, as soon as possible thereafter, but in any event prior to the Effectiveness Date therefor.  Such Registration Statement shall contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement, other than as to the characterization of any Holder as an underwriter, which shall not occur without such Holder’s consent) the “Plan of Distribution” attached hereto as Annex A.  The Company shall use its reasonable best efforts to keep such Registration Statement continuously effective under the Securities Act during the entire Effectiveness Period.  By 5:00 p.m. (New York City time) on the Business Day immediately following the Effective Date of such Registration Statement, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement (whether or not such filing is technically required under such Rule).

(d)

Each Holder agrees to furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex B (a “Selling Holder Questionnaire”).  The Company shall not be required to include the Registrable Securities of a Holder in a Registration Statement who fails to furnish to the Company a fully completed Selling Holder Questionnaire at least two Trading Days prior to the Filing Date (subject to the requirements set forth in Section 3(a)).

3.

Registration Procedures.

In connection with the Company's registration obligations hereunder, the Company shall:

(a)

Not less than four Trading Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company shall furnish to each Holder copies of the “Selling Stockholders” section of such document, the “Plan of Distribution” and any risk factor contained in such document that addresses specifically this transaction or the Selling Stockholders, as proposed to be filed, which documents will be subject to the review of such Holder.  The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which the “Selling Stockholder” section thereof differs from the disclosure received from a Holder in its Selling Holder Questionnaire (as amended or supplemented).  The Company shall not file a Registration Statement, any Prospectus or any amendments or supplements thereto in which it (i) characterizes any Holder as an underwriter, (ii) excludes a particular Holder due to such Holder refusing to be named as an underwriter, or (iii) reduces the number of Registrable Securities being registered on behalf of a Holder except pursuant to, in the case of subsection (iii), the Commission Comments, without, in each case, such Holder’s express written authorization.

- 5 -

(b)

(i)  Prepare and file with the Commission such amendments, including post-effective amendments, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible provide the Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that would not result in the disclosure to the Holders of material and non-public information concerning the Company; and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the Registration Statement(s) and the disposition of all Registrable Securities covered by each Registration Statement.

(c)

Notify the Holders as promptly as reasonably possible (and, in the case of (i)(A) below, not less than three Trading Days prior to such filing and, in the case of (v) below, not less than three Trading Days prior to the financial statements in any Registration Statement becoming ineligible for inclusion therein) and (if requested by any such Person) confirm such notice in writing no later than one Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a "review" of such Registration Statement and whenever the Commission comments in writing on such Registration Statement (the Company shall provide true and complete copies thereof and all written responses thereto to each of the Holders that pertain to the Holders as a Selling Stockholder or to the Plan of Distribution, but not information which the Company believes would constitute material and non-public information); and (C) with respect to each Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

- 6 -

(d)

Use its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

(e)

Furnish to each Holder, without charge, at least one conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by such Person (including those previously furnished) promptly after the filing of such documents with the Commission.

(f)

Promptly deliver to each Holder, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request.  The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

(g)

Prior to any public offering of Registrable Securities, register or qualify such Registrable Securities for offer and sale under the securities or Blue Sky laws of all jurisdictions within the United States as any Holder may request, to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statement(s).

(h)

Cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statement(s), which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may request.

(i)

Upon the occurrence of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

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4.

Registration Expenses.  All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement.  The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, and (B) in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement.  In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.  Notwithstanding the foregoing, the Company shall have no obligation to pay or otherwise bear any portion of the underwriters’ commissions or discounts attributable to the Registrable Securities being offered and sold by the Holders or the fees and expenses of any counsel to the Holders in connection with the registration of the Registrable Securities (other than as set forth in Section 5).

5.

Indemnification.

(a)

Indemnification by the Company.  The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, agents, investment advisors, partners, members and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable attorneys' fees) and expenses (collectively, "Losses"), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose) or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected.  The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

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(b)

Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon: (x) such Holder's failure to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading to the extent, but only to the extent that, (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or  defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected.  In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

(c)

Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "Indemnified Party"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the "Indemnifying Party") in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.

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An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless:  (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party).  The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder).

(d)

Contribution.  If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.  The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission.  The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

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The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.

6.

Miscellaneous.

(a)

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

(b)

No Piggyback on Registrations.  Neither the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in a Registration Statement other than the Registrable Securities, and the Company shall not during the Effectiveness Period enter into any agreement providing any such right to any of its security holders.

(c)

Compliance.  Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement.

(d)

Discontinued Disposition.  Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such Holder's receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the "Advice") by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.  The Company may provide appropriate stop orders to enforce the provisions of this paragraph.

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(e)

Piggy-Back Registrations.  If at any time during the Effectiveness Period  there is not an effective Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then the Company shall send to each Holder written notice of such determination and, if within fifteen calendar days after receipt of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such holder requests to be registered, subject to customary underwriter cutbacks applicable to all holders of registration rights.

(f)

Amendments and Waivers.  The provisions of this Agreement, including the provisions of this Section 6(f), may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of no less than a majority in interest of the then outstanding Registrable Securities.  Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of certain Holders and that does not directly or indirectly affect the rights of other Holders may be given by Holders of at least a majority of the Registrable Securities to which such waiver or consent relates; provided, further that no amendment or waiver to any provision of this Agreement relating to naming any Holder or requiring the naming of any Holder as an underwriter may be effected in any manner without such Holder’s prior written consent.  Section 2(a) may not be amended or waived except by written consent of each Holder affected by such amendment or waiver.  

(g)

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

If to the Company:

China Public Security Technology, Inc.

21st Floor, Everbright Bank Building, 

Zhuzilin, Futian District, 

Shenzhen, Guangdong, 518040 

People’s Republic of China

Attn: Chief Executive Officer

Facsimile:  (+86) 755-8370-9333

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With a copy to:

Thelen Reid Brown Raysman and Steiner LLP

701 Eighth Street, NW

Washington, D.C. 20001

Facsimile:  (202) 508-4321

Attn.:  Louis A. Bevilacqua, Esq.

If to a Investor:  

To the address set forth under such Investor's name on the signature pages hereto.

If to any other Person who is then the registered Holder:

To the address of such Holder as it appears in the stock transfer books of the Company

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

(h)

Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder.  The Company may not assign its rights or obligations hereunder without the prior written consent of each Holder.  Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.

(i)

Execution and Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

(j)

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

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(k)

Cumulative Remedies.  The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

(l)

Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

(m)

Headings.  The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

(n)

Independent Nature of Investors' Obligations and Rights.  The obligations of each Investor under this Agreement are several and not joint with the obligations of each other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under this Agreement.  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 this Agreement or any other Transaction Document.  Each Investor acknowledges that no other Investor will be acting as agent of such Investor in enforcing its rights under this Agreement.  Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any Proceeding for such purpose.  The Company acknowledges that each of the Investors has been provided with the same Registration Rights Agreement for the purpose of closing a transaction with multiple Investors and not because it was required or requested to do so by any Investor.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES TO FOLLOW]

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

CHINA PUBLIC SECURITY TECHNOLOGY, INC.

By:_________________________________

Name: Jiang Huai Lin

Title: President and Chief Executive Officer

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES OF INVESTORS TO FOLLOW]

Signature Page to Lin Private Sale Registration Rights Agreement

 

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

  	NAME
      OF INVESTING ENTITY
	 
	 
	 
	By:	 
	 	Name: 
	 	Title:
	 
	
      ADDRESS FOR NOTICE
	 
	c/o:	 
	 	 
	Street:	 
	 	 
	
      City/State/Zip:	 
	 	 
	Attention:	 
	 	 
	Tel:	 
	 	 
	Fax:	 
	 	 
	Email:	 

 

Signature Page to Lin Private Sale Registration Rights Agreement

ANNEX A

PLAN OF DISTRIBUTION

The selling stockholders may from time to time sell, transfer or otherwise dispose of any or all of their shares of common stock or interests in shares of common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.

The selling stockholders may use any one or more of the following methods when disposing of shares or interests therein:

•

ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

•

block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction;

•

purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

•

an exchange distribution in accordance with the rules of the applicable exchange;

•

privately negotiated transactions;

•

short sales effected after the date the registration statement of which this prospectus is a part is declared effective by the SEC;

•

through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

•

broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share; and

•

a combination of any such methods of sale.

The selling stockholders may, from time to time, pledge or grant a security interest in some or all of the shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock, from time to time, under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

In connection with the sale of our common stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling stockholders may also sell shares of our common stock short and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

The aggregate proceeds to the selling stockholders from the sale of the common stock offered by them will be the purchase price of the common stock less discounts or commissions, if any. Each of the selling stockholders reserves the right to accept and, together with their agents from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents. We will not receive any of the proceeds from this offering.

Broker-dealers engaged by the selling stockholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchase of shares, from the purchaser) in amounts to be negotiated. The selling stockholders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved.

The selling stockholders also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act, provided that they meet the criteria and conform to the requirements of that rule.

Any broker-dealers or agents that participate in the sale of the common stock or interests therein and any selling stockholders who are affiliates of broker-dealers are “underwriters” within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn on any resale of the shares may be underwriting discounts and commissions under the Securities Act. Selling stockholders who are “underwriters” within the meaning of Section 2(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities Act. We know of no existing arrangements between any of the selling stockholders and any other stockholder, broker, dealer, underwriter, or agent relating to the sale or distribution of the shares, nor can we presently estimate the amount, if any, of such compensation. See “Selling Stockholders” for description of any material relationship that a stockholder has with us and the description of such relationship.

To the extent required, the shares of our common stock to be sold, the names of the selling stockholders, the respective purchase prices and public offering prices, the names of any agents, dealer or underwriter, any applicable commissions or discounts with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement that includes this prospectus.

In order to comply with the securities laws of some states, if applicable, the common stock may be sold in these jurisdictions only through registered or licensed brokers or dealers. In addition, in some states the common stock may not be sold unless it has been registered or qualified for sale or an exemption from registration or qualification requirements is available and is complied with.

We have advised the selling stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and to the activities of the selling stockholders and their affiliates. In addition, we will make copies of this prospectus (as it may be supplemented or amended from time to time) available to the selling stockholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The selling stockholders may indemnify any broker-dealer that participates in transactions involving the sale of the shares against certain liabilities, including liabilities arising under the Securities Act.

 

We have agreed with the selling stockholders to keep the registration statement of which this prospectus constitutes a part effective until the earlier of (1) such time as all of the shares covered by this prospectus have been disposed of pursuant to and in accordance with the registration statement or (2) the date on which the shares may be sold pursuant to Rule 144(k) of the Securities Act.

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