Document:

Unassociated Document

    EXHIBIT
      10.1

    

      SUBSCRIPTION
        AGREEMENT

      

      
        	
                To:
                  

              	
                Handheld
                  Entertainment, Inc.

              

      

      539
        Bryant Street, Suite 403

      San
        Francisco, California 94107

      Fax:
        (415) 495-6470

      Attn:  
        William Bush,

                   Chief
        Financial Officer

      

      This
        Subscription Agreement (this “Agreement”)
        is
        being delivered to the purchaser identified on the signature page to this
        Agreement (the “Subscriber”)
        in
        connection with its investment in Handheld Entertainment, Inc., a Delaware
        corporation (the “Company”).
        The
        Company is conducting a private placement (the “Offering”)
        of
        shares of its common stock, $0.0001 par value per share (the “Shares”),
        at a
        purchase price of $1.66 per Share (the “Purchase
        Price”).
        

       

      1. SUBSCRIPTION
        AND PURCHASE PRICE

       

      (a) Subscription.
        The
        Subscriber hereby subscribes for and agrees to purchase the number of Shares
        indicated on page 7 hereof on the terms and conditions described herein.
        

       

      (b) Purchase
        of Shares.
        The
        Subscriber understands and acknowledges that the purchase price to be remitted
        to the Company in exchange for the Shares shall be set at $1.66 per Share
        (which
        was at least 100% of the closing bid price per Share on the Nasdaq Capital
        Market on the date hereof), for an aggregate purchase price as set forth
        on page
        7 hereof (the “Aggregate
        Purchase Price”).
        The
        Subscriber’s delivery of this Agreement to the Company shall be accompanied by
        payment for the Shares subscribed for hereunder, payable in United States
        dollars, by wire transfer of immediately available funds delivered
        contemporaneously with the Subscriber’s delivery of this Agreement to the
        Company in accordance with the instructions provided on Exhibit
        A.
        The
        Subscriber understands and agrees that, subject to applicable laws, by executing
        this Agreement, it is entering into a binding agreement. The Shares purchased
        by
        the Subscriber will be delivered by the Company as soon as practicable following
        the date hereof.

       

      2. INVESTOR’S
        REPRESENTATIONS, WARRANTIES AND COVENANTS

       

      The
        Subscriber hereby acknowledges, agrees with and represents and warrants to
        the
        Company and its affiliates, as follows:

       

      (a) The
        Subscriber has full power and authority to enter into this Agreement, the
        execution and delivery of which has been duly authorized, if applicable,
        and
        this Agreement constitutes a valid and legally binding obligation of the
        Subscriber.

       

      (b) The
        Subscriber acknowledges its understanding that the Offering and sale of the
        Shares is intended to be exempt from registration under the Securities Act
        of
        1933, as amended (the “Securities
        Act”),
        by
        virtue of Section 4(2) of the Securities Act and the provisions of Regulation
        D
        promulgated thereunder (“Regulation
        D”).
        In
        furtherance thereof, the Subscriber represents and warrants to the Company
        and
        its affiliates as follows:

       

      (i) The
        Subscriber realizes that the basis for the exemption from registration may
        not
        be available if, notwithstanding the Subscriber’s representations contained
        herein, the Subscriber is merely acquiring the Shares for a fixed or
        determinable period in the future, or for a market rise, or for sale if the
        market does not rise. The Subscriber does not have any such
        intention.

       

      (ii) The
        Subscriber realizes that the basis for exemption would not be available if
        the
        Offering is part of a plan or scheme to evade registration provisions of
        the
        Securities Act or any applicable state or federal securities laws.

       

      (iii) The
        Subscriber is acquiring the Shares solely for the Subscriber’s own beneficial
        account, for investment purposes, and not with view towards, or resale in
        connection with, any distribution of the Shares.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (iv) The
        Subscriber has the financial ability to bear the economic risk of the
        Subscriber’s investment, has adequate means for providing for its current needs
        and contingencies, and has no need for liquidity with respect to an investment
        in the Company.

       

      (v) The
        Subscriber and the Subscriber’s attorney, accountant, purchaser representative
        and/or tax advisor, if any (collectively, the “Advisors”)
        has
        such knowledge and experience in financial and business matters as to be
        capable
        of evaluating the merits and risks of a prospective investment in the Shares.
        If
        other than an individual, the Subscriber also represents it has not been
        organized solely for the purpose of acquiring the Shares.

       

      (vi) The
        Subscriber (together with its Advisors, if any) has received all documents
        requested by the Subscriber, if any, has carefully reviewed them and understands
        the information contained therein, prior to the execution of this
        Agreement.

       

      (c) The
        Subscriber is not relying on the Company or any of its employees, agents,
        sub-agents or advisors with respect to economic considerations involved in
        this
        investment. The Subscriber has relied on the advice of, or has consulted
        with,
        only its Advisors. Each Advisor, if any, is capable of evaluating the merits
        and
        risks of an investment in the Shares, and each Advisor, if any, has disclosed
        to
        the Subscriber in writing (a copy of which is annexed to this Agreement)
        the
        specific details of any and all past, present or future relationships, actual
        or
        contemplated, between the Advisor and the Company or any affiliate or sub-agent
        thereof.

       

      (d) The
        Subscriber has carefully considered the potential risks relating to the Company
        and a purchase of the Shares, and fully understands that the Shares are a
        speculative investment that involve a high degree of risk of loss of the
        Subscriber’s entire investment. Among other things, the Subscriber has carefully
        considered each of the risks described under the heading “Risk Factors” in the
        Company’s SEC Filings (as defined in Section 4(d) below), which risk factors are
        incorporated herein by reference.

       

      (e) The
        Subscriber represents, warrants and agrees that it will not sell or otherwise
        transfer the Shares without registration under the Securities Act or an
        exemption therefrom, and fully understands and agrees that the Subscriber
        must
        bear the economic risk of its purchase because, among other reasons, the
        Shares
        have not been registered under the Securities Act or under the securities
        laws
        of any state and, therefore, cannot be resold, pledged, assigned or otherwise
        disposed of unless they are subsequently registered under the Securities
        Act and
        under the applicable securities laws of such states, or an exemption from
        such
        registration is available. In particular, the Subscriber is aware that the
        Shares are “restricted securities,” as such term is defined in Rule 144
        promulgated under the Securities Act (“Rule
        144”),
        and
        they may not be sold pursuant to Rule 144 unless all of the conditions of
        Rule
        144 are met. The Subscriber also understands that the Company is under no
        obligation to register the Shares on behalf of the Subscriber or to assist
        the
        Subscriber in complying with any exemption from registration under the
        Securities Act or applicable state securities laws. The Subscriber understands
        that any sales or transfers of the Shares are further restricted by state
        securities laws and the provisions of this Agreement.

       

      (f) No
        oral
        or written representations or warranties have been made to the Subscriber
        by the
        Company or any of its officers, employees, agents, sub-agents, affiliates,
        advisors or subsidiaries, other than any representations of the Company
        contained herein, and in subscribing for the Shares, the Subscriber is not
        relying upon any representations other than those contained herein.

       

      (g) The
        Subscriber’s overall commitment to investments that are not readily marketable
        is not disproportionate to the Subscriber’s net worth, and an investment in the
        Shares will not cause such overall commitment to become excessive.

       

      (h) The
        Subscriber understands and agrees that the certificates for the Shares shall
        bear substantially the following legend until (i) such Shares shall have
        been
        registered under the Securities Act and effectively disposed of in accordance
        with a registration statement that has been declared effective or (ii) in
        the
        opinion of counsel for the Company, such Shares may be sold without registration
        under the Securities Act, as well as any applicable “blue sky” or state
        securities laws:

       

      THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
        THE
        UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
        STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE,
        PLEDGED OR HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A
        REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO SUCH SECURITIES UNDER THE
        SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT THERE
        IS
        AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
        ACT.
        ANY SUCH TRANSFER MAY ALSO BE SUBJECT TO COMPLIANCE WITH APPLICABLE STATE
        SECURITIES LAWS.

       

      
        
          
          

        

        
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      (i) Neither
        the U.S. Securities and Exchange Commission (the “SEC”)
        nor
        any state securities commission has approved the Shares or passed upon or
        endorsed the merits of the Offering. There is no government or other insurance
        covering any of the Shares.

       

      (j) The
        Subscriber and its Advisors, if any, have had a reasonable opportunity to
        ask
        questions of and receive answers from a person or persons acting on behalf
        of
        the Company concerning the Offering and the business, financial condition,
        results of operations and prospects of the Company, and all such questions
        have
        been answered to the full satisfaction of the Subscriber and its Advisors,
        if
        any.

       

      (k) The
        Subscriber is unaware of, is in no way relying on, and did not become aware
        of
        the Offering through or as a result of, any form of general solicitation
        or
        general advertising including, without limitation, any article, notice,
        advertisement or other communication published in any newspaper, magazine
        or
        similar media or broadcast over television or radio, or electronic mail over
        the
        Internet, in connection with the Offering and is not subscribing for Shares
        and
        did not become aware of the Offering through or as a result of any seminar
        or
        meeting to which the Subscriber was invited by, or any solicitation of a
        subscription by, a person not previously known to the Subscriber in connection
        with investments in securities generally.

       

      (l) The
        Subscriber has taken no action that would give rise to any claim by any person
        for brokerage commissions, finders’ fees or the like relating to this Agreement
        or the transactions contemplated hereby.

       

      (m) The
        Subscriber is not relying on the Company or any of its employees, agents,
        or
        advisors with respect to the legal, tax, economic and related considerations
        of
        an investment in the Shares, and the Subscriber has relied on the advice
        of, or
        has consulted with, only its own Advisors.

       

      (n) The
        Subscriber acknowledges that any estimates or forward-looking statements
        or
        projections furnished by the Company to the Subscriber, were prepared by
        management of the Company in good faith, but that the attainment of any such
        projections, estimates or forward-looking statements cannot be guaranteed
        by the
        Company or its management and should not be relied upon.

       

      (o) No
        oral
        or written representations have been made, or oral or written information
        furnished, to the Subscriber or its Advisors, if any, in connection with
        the
        Offering that are in any way inconsistent with the information contained
        herein.

       

      (p) (For
        ERISA plans only) The fiduciary of the ERISA plan (the “Plan”)
        represents that such fiduciary has been informed of and understands the
        Company’s investment objectives, policies and strategies, and that the decision
        to invest “plan assets” (as such term is defined in ERISA) in the Company is
        consistent with the provisions of ERISA that require diversification of plan
        assets and impose other fiduciary responsibilities. The Subscriber or Plan
        fiduciary (i) is responsible for the decision to invest in the Company; (ii)
        is
        independent of the Company and any of its affiliates; (iii) is qualified
        to make
        such investment decision; and (iv) in making such decision, the Subscriber
        or
        Plan fiduciary has not relied primarily on any advice or recommendation of
        the
        Company or any of its affiliates.

       

      (q) The
        Subscriber will indemnify and hold harmless the Company and its directors,
        officers, employees, agents, advisors, affiliates and shareholders, and each
        other person, if any, who controls any of the foregoing, from and against
        any
        and all loss, liability, claim, damage and expense whatsoever (including,
        but
        not limited to, any and all fees, costs and expenses whatsoever reasonably
        incurred in investigating, preparing or defending against any claim, lawsuit,
        administrative proceeding or investigation whether commenced or threatened)
        (a
“Loss”)
        arising out of or based upon any representation or warranty of the Subscriber
        contained herein or in any document furnished by the Subscriber to the Company
        in connection herewith being untrue in any material respect or any breach
        or
        failure by the Subscriber to comply with any covenant or agreement made by
        the
        Subscriber herein or therein; provided,
        however,
        that
        the Subscriber shall not be liable for any Loss that
        in
        the aggregate exceeds the Aggregate Purchase Price tendered
        hereunder.

       

      
        
          
          

        

        
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      (r) The
        Subscriber is, and on each date on which the Subscriber continues to own
        restricted securities from the Offering will be, an “Accredited Investor” as
        defined in Rule 501(a) under the Securities Act. In general, an “Accredited
        Investor” is deemed to be an institution with assets in excess of $5,000,000 or
        individuals with net worth in excess of $1,000,000 or annual income exceeding
        $200,000 or $300,000 jointly with his or her spouse.

       

      (s) The
        Subscriber, either alone or together with its representatives, has such
        knowledge, sophistication and experience in business and financial matters
        so as
        to be capable of evaluating the merits and risks of the Offering, and has
        so
        evaluated the merits and risks of such investment. The Subscriber has not
        authorized any person or entity to act as its Purchaser Representative (as
        that
        term is defined in Regulation D of the General Rules and Regulations under
        the
        Securities Act) in connection with the Offering. The Subscriber is able to
        bear
        the economic risk of an investment in the Shares and, at the present time,
        is
        able to afford a complete loss of such investment.

       

      (t) The
        Subscriber has reviewed, or had an opportunity to review, all of the SEC
        Filings.

       

      4. THE
        COMPANY’S REPRESENTATIONS, WARRANTIES AND COVENANTS

       

      The
        Company hereby acknowledges, agrees with and represents, warrants and covenants
        to the Subscriber, as follows:

       

      (a) The
        Company has the corporate power and authority to execute and deliver this
        Agreement and to perform its obligations hereunder. This Agreement has been
        duly
        authorized, executed and delivered by the Company and is valid, binding and
        enforceable against the Company in accordance with its terms.

       

      (b) The
        Shares to be issued to the Subscriber pursuant to this Agreement, when issued
        and delivered in accordance with the terms of this Agreement, will be duly
        and
        validly issued and will be fully paid and non-assessable.

       

      (c) Neither
        the execution and delivery nor the performance of this Agreement by the Company
        will conflict with the Company’s organizational materials, as amended to date,
        or result in a breach of any terms or provisions of, or constitute a default
        under, any material contract, agreement or instrument to which the Company
        is a
        party or by which the Company is bound.

       

      (d) The
        Company is subject to, and in full compliance with, the reporting requirements
        of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended
        (the
“Exchange
        Act”).
        The
        Company has made available to the Subscriber through the EDGAR system a true
        and
        complete copy of (i) the Company’s Annual Report on Form 10-KSB for the fiscal
        year ended December 31, 2006, (ii) the Company’s Quarterly Report on Form 10-QSB
        for the fiscal period ended March 31, 2007 and (iii) each of the Company’s
        Current Reports on Form 8-K filed since January 1, 2007 (collectively, the
        “SEC
        Filings”),
        and
        all such SEC Filings are incorporated herein by reference. The SEC Filings,
        when
        they were filed with the SEC (or, if any amendment with respect to any such
        document was filed, when such amendment was filed), complied in all material
        respects with the applicable requirements of the Exchange Act and the rules
        and
        regulations thereunder and did not, as of such date, contain an untrue statement
        of a material fact or omit to state a material fact required to be stated
        therein or necessary in order to make the statements therein, in the light
        of
        the circumstances under which they were made, not misleading. All reports
        and
        statements required to be filed by the Company under the Securities Act and
        the
        Exchange Act have been filed, together with all exhibits required to be filed
        therewith. The Company and each of its direct and indirect subsidiaries,
        if any
        (collectively, the “Subsidiaries”),
        are
        engaged in all material respects only in the business described in the SEC
        Filings, and the SEC Filings contain a complete and accurate description
        in all
        material respects of the business of the Company and the
        Subsidiaries.

       

      
        
          
          

        

        
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      (e) Any
        information furnished by the Company in connection with the Offering is true
        and
        correct in all material respects as of its date.

       

      (f) The
        Company acknowledges and agrees that the Subscriber is acting solely in the
        capacity of an arm’s length purchaser with respect to the Shares and the
        transactions contemplated hereby. The Company further acknowledges that the
        Subscriber is not acting as a financial advisor or fiduciary of the Company
        (or
        in any similar capacity) with respect to this Agreement and the transactions
        contemplated hereby and any advice given by any Subscriber or any of their
        respective representatives or agents in connection with this Agreement and
        the
        transactions contemplated hereby is merely incidental to the Subscriber’s
        purchase of the Shares. The Company further represents to the Subscriber
        that
        the Company’s decision to enter into this Agreement has been based solely on the
        independent evaluation of the transactions contemplated hereby by the Company
        and its representatives.

       

      (g) The
        Company will indemnify and hold harmless the Subscriber and, where applicable,
        its directors, officers, employees, agents, advisors and shareholders, from
        and
        against any and all loss, liability, claim, damage and expense whatsoever
        (including, but not limited to, any and all fees, costs and expenses whatsoever
        reasonably incurred in investigating, preparing or defending against any
        claim,
        lawsuit, administrative proceeding or investigation whether commenced or
        threatened) arising out of or based upon any representation or warranty of
        the
        Company contained herein or in any document furnished by the Company to the
        Subscriber in connection herewith being untrue in any material respect or
        any
        breach or failure by the Company to comply with any covenant or agreement
        made
        by the Company to the Subscriber in connection therewith.

       

      5. USE
        OF PROCEEDS

       

      The
        Company shall use the net proceeds from the Offering for general working
        capital
        purposes.

      

      6. INSIDER
        TRADING PROHIBITION; INDEMNITY

       

      (a) Until
        the
        date on which sales are permitted under Rule 144 of the Securities Act, the
        Subscriber hereby agrees to (i) refrain from (A) engaging in any transactions
        with respect to the capital stock of the Company or securities exercisable
        or
        convertible into or exchangeable for any shares of capital stock of the Company,
        and (B) entering into any transaction that would have the same effect, or
        entering into any swap, hedge or other arrangement that transfers, in whole
        or
        in part, any of the economic consequences of ownership of the capital stock
        of
        the Company and (ii) indemnify and hold harmless the Company and its respective
        officers and directors, employees, agents, sub-agents, advisors and affiliates
        and each other person, if any, who controls any of the foregoing, against
        any
        Loss arising out of or based upon any violation of this Section 6 by the
        Subscriber.

       

      (b) The
        Subscriber further agrees that in the event of any dispute, action, suit
        or
        other proceeding arising out of or in connection with this Agreement brought
        by
        the Subscriber (or a transferee), the Subscriber (or transferee) shall pay
        the
        fees and expense of counsel to the Company. As used herein, the fees and
        expenses of counsel shall be deemed to mean the full and actual costs reasonably
        incurred in investigating, preparing or defending against any litigation
        commenced or threatened or any claim whatsoever, calculated on the basis
        of the
        usual fee charged by attorneys performing such services, and the actual
        out-of-pocket expenses incurred in the course of performing such investigation
        and legal services.

       

      7. NOTICES
        TO SUBSCRIBERS

       

      (a) THE
        SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES
        LAWS
        OF ANY STATE AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM
        THE
        REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE SHARES
        HAVE
        NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION
        OR
        OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED
        UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY
        OF ANY
        INFORMATION FURNISHED IN CONNECTION WITH THIS OFFERING. ANY REPRESENTATION
        TO
        THE CONTRARY IS UNLAWFUL.

       

      (b) THE
        SHARES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
        NOT BE
        TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT, AND
        APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
        THEREFROM. SUBSCRIBERS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR
        THE
        FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
        TIME.

       

      
        
          
          

        

        
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                8.

              	
                MISCELLANEOUS
                  PROVISIONS

              

      

       

      (a) Legal
        Fees.
        Each of
        the parties hereto shall be responsible to pay the costs and expenses of
        their
        own legal counsel in connection with the preparation and review of this
        Agreement and related documentation.

       

      (b) Modification.
        Neither
        this Agreement, nor any provisions hereof, shall be waived, modified, discharged
        or terminated except by an instrument in writing signed by the party against
        whom any waiver, modification, discharge or termination is sought.

       

      (c) Survival.
        The
        representations, warranties and agreements of the Subscriber and the Company
        made in this Agreement shall survive the execution and delivery of this
        Agreement and the delivery of the Shares.

       

      (d) Notices.
        Any
        party may send any notice, request, demand, claim or other communication
        hereunder to the Subscriber at the address set forth on the signature page
        of
        this Agreement or to the Company at the address set forth above using any
        means
        (including personal delivery, expedited courier, messenger service, fax,
        ordinary mail or electronic mail), but no such notice, request, demand, claim
        or
        other communication will be deemed to have been duly given unless and until
        it
        actually is received by the intended recipient. Any party may change the
        address
        to which notices, requests, demands, claims and other communications hereunder
        are to be delivered by giving the other parties written notice in the manner
        herein set forth.

       

      (e) Binding
        Effect.
        Except
        as otherwise provided herein, this Agreement shall be binding upon, and inure
        to
        the benefit of, the parties to this Agreement and their heirs, executors,
        administrators, successors, legal representatives and assigns. If the Subscriber
        is more than one person or entity, the obligation of the Subscriber shall
        be
        joint and several and the agreements, representations, warranties and
        acknowledgments contained herein shall be deemed to be made by, and be binding
        upon, each such person or entity and his or its heirs, executors,
        administrators, successors, legal representatives and assigns. This Agreement
        sets forth the entire agreement and understanding between the parties as
        to the
        subject matter thereof and merges and supersedes all prior discussions,
        agreements and understandings of any and every nature among them.

       

      (f) Assignability.
        This
        Agreement is not transferable or assignable by the Subscriber.

       

      (g) Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of New York, without giving effect to conflicts of law
        principles.

       

      (h) Jurisdiction
        and Venue.
        The
        Company and the Subscriber hereby agree that any dispute which may arise
        between
        them arising out of or in connection with this Agreement shall be adjudicated
        before a court located in New York City, New York, and they hereby submit
        to the
        exclusive jurisdiction of the federal and state courts of the State of New
        York
        located in New York City with respect to any action or legal proceeding
        commenced by any party, and irrevocably waive any objection they now or
        hereafter may have respecting the venue of any such action or proceeding
        brought
        in such a court or respecting the fact that such court is an inconvenient
        forum,
        relating to or arising out of this Agreement or any acts or omissions relating
        to the sale of the securities hereunder, and consent to the service of process
        in any such action or legal proceeding by means of registered or certified
        mail,
        return receipt requested, postage prepaid, in care of the address set forth
        herein or such other address as either party shall furnish in writing to
        the
        other.

       

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

       

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        
          
          

        

        
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      ALL
        SUBSCRIBERS MUST COMPLETE THIS PAGE

       

      IN
        WITNESS WHEREOF, the Subscriber has executed this Agreement on the
        25th
        day of
        May 2007.

       

      

      
        	
                150,602
                  

              	 	
                x 
                  $ 1.66 for each Share

              	 	
                =
                  249,999.32 .

              
	
                Shares
                  subscribed for

              	 	
                   
                  Purchase Price

              	 	
                Aggregate
                  Purchase Price

              

      

      

      Manner
        in
        which Title is to be held (Please Check One):

       

      
        	
                1.

              	
                 
                  X  

              	
                Individual

              	
                7.

              	
                ___

              	
                Trust/Estate/Pension
                  or Profit sharing Plan

                Date
                  Opened:______________

              
	 	 	 	 	 	 
	
                2.

              	
                ___

              	
                Joint
                  Tenants with Right of Survivorship

              	
                8.

              	
                ___

              	
                As
                  a Custodian for

                ________________________________

                Under
                  the Uniform Gift to Minors Act of the State of

                ________________________________

              
	 	 	 	 	 	 
	
                3.

              	
                ___

              	
                Community
                  Property

              	
                9.

              	
                ___

              	
                Married
                  with Separate Property

              
	
                 

                4.

              	
                 

                ___

              	
                 

                Tenants
                  in Common

              	
                 

                10.

              	
                 

                ___

              	
                 

                Keogh

              
	
                 

                5.

              	
                 

                ___

              	
                 

                Corporation/Partnership/
                  Limited Liability Company

              	
                 

                11.

              	
                 

                ___

              	
                 

                Tenants
                  by the Entirety

              
	 	 	 	 	 	 
	
                6.

              	
                ___

              	
                IRA

              	 	 	 

      

      

      ALTERNATIVE
        DISTRIBUTION INFORMATION

       

      To
        direct
        distribution to a party other than the registered owner, complete the
        information below. YOU MUST COMPLETE THIS SECTION IF THIS IS AN IRA
        INVESTMENT.

       

      Name
        of
        Firm (Bank, Brokerage, Custodian):

       

      Account
        Name:

       

      Account
        Number:

       

      Representative
        Name:

       

      Representative
        Phone Number:

       

      Address:

       

      City,
        State, Zip:

       

      
        
          
          

        

        
          -
            7 -

          
            

          

        

        
          
          

        

      

      IF
        MORE
        THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.

       

      INDIVIDUAL
        SUBSCRIBERS MUST COMPLETE THIS PAGE 8.

       

      SUBSCRIBERS
        WHICH ARE ENTITIES MUST COMPLETE PAGE 9.

       

      EXECUTION
        BY NATURAL PERSONS

       

      
        	
                                                                                  
                  CARL
                  PAGE                                                                  
                  

                Exact
                  Name in Which Title is to be Held

              
	 	 	 
	
                                                       
                  CARL
                  PAGE                                        

                Name
                  (Please Print)

              	 	
                _________________________________

                Name
                  of Additional Purchaser

              
	 	 	 
	
                _________________________________

                Residence:
                  Number and Street

              	 	
                _________________________________

                Address
                  of Additional Purchaser

              
	 	 	 
	
                _________________________________

                City,
                  State and Zip Code

              	 	
                _________________________________

                City,
                  State and Zip Code

              
	 	 	 
	
                _________________________________

                Social
                  Security Number

              	 	
                _________________________________

                Social
                  Security Number

              
	 	 	 
	
                _________________________________

                Telephone
                  Number

              	 	
                _________________________________

                Telephone
                  Number

              
	 	 	 
	
                _________________________________

                Fax
                  Number (if available)

              	 	
                ________________________________

                Fax
                  Number (if available)

              
	
                 

                _________________________________

                E-Mail
                  (if available)

              	 	
                 

                ________________________________

                E-Mail
                  (if available)

              
	 	 	 
	
                                                    /s/
                  CARL
                  PAGE                                      

                (Signature)

              	 	
                ________________________________

                (Signature
                  of Additional Purchaser)

              
	 	 	 
	
                ACCEPTED
                  this 25th day of May 2007, on behalf of the Company.

              
	 	
                 

                By:                
                  /s/
                  Jeff
                  Oscodar                                            
                  

                       
                  Name: Jeff Oscodar

                       
                  Title: CEO

              

      

      

      
        
          
          

        

        
          -
            8 -EX 10.1

    EXHIBIT
      10.1

     

    Agreement
      for Stationing Project into Industrial Park

     

    (English
      Translation)

    

    Party
      A: Administrative
      Committee of Hunan Hengyang Songmu Industrial Park

     

    Party
      B: Shenzhen
      Ritar Power Co., Ltd.

    

    Party
      B
      will station the project of lead-acid battery plates and lead-acid battery
      assembly (the “Project”) into Hunan Henyang Songmu Industrial Park (the
“Industrial Park”). The total investment amounts of the Project will be RMB 0.8
      billion and the required area of land for the Project
      will be
      about 400 Mu. The
      Project will be constructed in three phases within the next four years. After
      the Project reaches its designed production capacity, the estimated annual
      production value will be RMB 2.5 billion, the annual tax will be RMB 0.1 billion
      and it will provide 7,200 job opportunities. The investment amount in the first
      phase construction of the Project will be RMB 0.2 billion and a land plot with
      the area of 70 Mu
      will be
      requisitioned for the construction of the first production line of lead-acid
      battery plates, which is anticipated to become operational in October, 2007.
      The
      production capacity for lead-acid battery plates will be 25,000 tons per year
      by
      September, 2008 and the annual production value will be RMB 0.5 billion. The
      second phase construction will be conducted in November, 2008, for which phase
      a
      land plot with the area of 130 Mu
      will be
      requisitioned so as to meet the designed annual production capacity of 60,000
      tons of lead battery plates. The annual production value will be RMB 1.2
      billion. The third phase construction for battery plates and lead-acid battery
      assembly will be conducted in
      October, 2009, for which
      phase a land plot with an area of 200 Mu
      will be
      requisitioned so as to meet the designed production capacity of 85,000 tons
      of
      battery plates and its production value RMB 1.7 billion, the production value
      of
      lead-acid battery RMB 0.8 billion and the total annual production value for
      the
      Project RMB 2.5 billion per year. Party A agrees that the Project will be
      constructed in the Industrial Park. The aggregate area of the land plot is
      about
      400 Mu,
      for
      which the specific location begins 30 meters east along Huagong Road from the
      entrance of 107 State Highway and ends at the distance of 700 meters from the
      starting points (the final location shall be subject to the marks in the
      red-line map). The land is for industrial use purpose. In order to clarify
      the
      obligations between Party
      A
      and Party B, both Parties have entered into the following agreement (the
“Agreement”): 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      
        	1.	 	
                Party
                  A agrees that Party B may station the Project of lead-acid battery
                  plates
                  and lead-acid battery assembly into the Industrial Park. All the
                  land
                  requisition fees for the first phase construction calculated on
                  the basis
                  of RMB 48,000 Yuan/Mu
                  shall be paid to Party A. Any excesses beyond that amount shall
                  be made up
                  by Party A, including but not limited
                  to:

              

      

    

    
       

      
        
          	
                	 	
                  (a)
                    payment of the land compensation fee,
                    relocation fee, compensation for attachments and structures to
                    or green
                    crops on the land and moving fee;

                

        

      

      
         

        
          
            	
                  	 	
                    (b)
                      payment of relevant fees which shall be
                      submitted to central and provincial governments: tax on occupation
                      of
                      cultivated land, land use fee on the newly added construction
                      land,
                      reclaiming fee for cultivated land, flood-prevention funds,
                      management fee
                      for requisitioned land, expense of civil defense and cultural
                      relic;

                  

          

        

        
           

          
            
              	
                    	 	
                      (c)
                        expenses incurred during the process of the
                        land use right application in connection with the following
                        activities,
                        but not limited to: survey, site election, purchase of drawings,
                        geological hazard evaluation and reporting, covered mineral
                        resources
                        evaluation and reporting, compensation for water protection
                        facilities,
                        and vegetation recovery; and

                    

            

          

          
            
               

              
                
                  	
                        	 	(d) other expenses incurred
                          for obtaining the
                          land use right approval of state-owned land of the
                          Project.

                

              

              
                
                   

                  
                    
                      	
                            	 	The land leveling shall
                              be borne by Party B.
                              

                    

                  

                  
                    
                       

                      
                        
                          	2.	 	
                                  The
                                    scope of land requisition 

                                   

                                  The
                                    area of the land plot for the first phase
                                    construction of the Project of Party B is about
                                    70 Mu,
                                    for which the specific location begins 30 meters
                                    east along Huagong Road
                                    from the entrance of 107 State Highway and ends
                                    at the distance of 700
                                    meters from the starting points (the final location
                                    and area shall be
                                    subject to the marks and records in the red-line
                                    map).
                                    

                                

                        

                      

                      
                        
                           

                          
                            
                              	3.	 	
                                      Warranties
                                        of Party B

                                    

                            

                          

                          
                            
                               

                              
                                
                                  	
                                        	 	
                                          (a)
                                            The area of the requisitioned land for
                                            the
                                            Project shall be about 400 Mu.
                                            The Project will be constructed within
                                            the next four years. The area of
                                            the requisitioned land for the first
phase
                                            construction of the Project shall
                                            be about 70
                                            Mu.
                                            The Project shall become operational
                                            in October,
                                            2007. The production capacity shall be
                                            2,000 tons per month by September,
                                            2008. The area of the requisitioned land
                                            for the second phase construction
                                            of the Project shall be about 130 Mu.
                                            The second phase construction shall be
                                            conducted in November, 2008 and
                                            shall finally meet the designed annual
                                            production capacity of 60,000 tons.
                                            The third phase construction shall be
                                            conducted in
                                            2009. The annual production value shall
                                            be
                                            RMB 2.5 billion and the tax payment shall
                                            be RMB 0.1 billion respectively
                                            by
                                            2011;
                                            

                                        

                                

                              

                              
                                
                                   

                                  
                                    
                                      
                                      

                                    

                                    
                                      2

                                      
                                        

                                      

                                    

                                    
                                      
                                      

                                    

                                  

                                   

                                  
                                    
                                      	
                                            	 	
                                              (b)
                                                The Project construction, production
                                                and
                                                operation shall comply with the relevant
                                                policies on state-owned land,
                                                zoning, environmental protection
                                                and
                                                security;

                                            

                                    

                                  

                                  
                                    
                                       

                                      
                                        
                                          	
                                                	 	
                                                  (c)
                                                    In case Party B fails to start
                                                    the
                                                    construction on time within half
                                                    a year after completion of the
                                                    land
                                                    requisition, Party A is entitled
                                                    to repossess the land for
                                                    free.

                                                

                                        

                                      

                                      
                                        
                                           

                                          
                                            
                                              	4.	 	
                                                      Warranties
                                                        of Party A

                                                    

                                            

                                          

                                          
                                            
                                               

                                              
                                                
                                                  	
                                                        	 	
                                                          (a)
                                                            In case Party B invests
                                                            and constructs the
                                                            Project according to
                                                            this Agreement, Party
                                                            A agrees to reserve the
                                                            land
                                                            for the second phase
                                                            construction of this
                                                            Project (about 130 Mu)
                                                            for Party B and to provide
                                                            such land to Party B
                                                            on the basis of the unit
                                                            price of the land used
                                                            for the first phase construction
                                                            of the Project,
                                                            i.e. RMB 48,000/Mu.
                                                            After Party B starts
                                                            the construction of the
                                                            land used for the first
                                                            phase
                                                            of the Project, Party
                                                            A shall apply for the
                                                            use right of the land
                                                            to be
                                                            used for the second phase
                                                            construction of the Project.
                                                            The location and
                                                            price of such land shall
                                                            be reserved till December,
                                                            2008. In case Party B
                                                            fails to requisition
                                                            the land and construct
                                                            it within the planned
                                                            geographic scopes or
                                                            within such time limit,
                                                            the location and price
                                                            of the
                                                            land shall not be reserved
                                                            according the aforesaid
                                                            stipulation. However,
                                                            considering such land
                                                            is reserved according
                                                            to the prices agreed
                                                            under
                                                            this Agreement, in case
                                                            such land is to be arranged
                                                            through price listing
                                                            and government industrial
                                                            development fund, Party
                                                            A shall provide partial
                                                            capital support. If Party
                                                            A fails to provide such
                                                            capital support, the
                                                            period of reserving such
                                                            land shall be extended
                                                            till October,
                                                            2009;

                                                        

                                                

                                              

                                              
                                                
                                                   

                                                  
                                                    
                                                      	
                                                            	 	
                                                              (b)
                                                                Party A shall complete
                                                                the relevant
                                                                administrative procedures
                                                                for Party B to station
                                                                the Project into
                                                                the
                                                                Industrial Park within
                                                                20 working days after
                                                                Party B has paid
                                                                the land
                                                                requisition fees
                                                                in full amounts.
                                                                Party A shall also
                                                                coordinate to solve
                                                                the relevant problems
                                                                arising from the
                                                                land requisition
                                                                to ensure that
                                                                Party B could start
                                                                the construction
                                                                as planned. Party
                                                                B shall station
                                                                into the Industrial
                                                                Park to start the
                                                                construction 20 working
                                                                days after
                                                                payment of the land
                                                                requisition
                                                                fees;

                                                            

                                                    

                                                  

                                                  
                                                    
                                                       

                                                      
                                                        
                                                          
                                                          

                                                        

                                                        
                                                          3

                                                          
                                                            

                                                          

                                                        

                                                        
                                                          
                                                          

                                                        

                                                      

                                                       

                                                      
                                                        
                                                          	
                                                                  
                                                                  

                                                                	 	
                                                                  (c)
                                                                    Party B is entitled
                                                                    to the favorable
                                                                    policies on the
                                                                    parts of value-added
                                                                    tax and income
                                                                    tax which are
                                                                    reserved
                                                                    by the local
                                                                    authorities (three-year
                                                                    tax holiday followed
                                                                    by two-year 50%
                                                                    reduction) according
                                                                    to Circular Heng
                                                                    Fa [2006]
                                                                    No.1;

                                                                

                                                        

                                                      

                                                      
                                                        
                                                           

                                                          
                                                            
                                                              	
                                                                      
                                                                      

                                                                    	 	
                                                                      (d)
                                                                        Party A shall
                                                                        be liable
                                                                        for compensation
                                                                        and relocation
                                                                        of people
                                                                        who live
                                                                        on the land
                                                                        and assisting
                                                                        Party B in
                                                                        the
                                                                        preparation
                                                                        of the construction
                                                                        of the Project,
                                                                        including,
                                                                        but not limited
                                                                        to project
                                                                        proposal,
                                                                        state-owned
                                                                        land use
                                                                        right
                                                                        approval;

                                                                    

                                                            

                                                          

                                                          
                                                            
                                                               

                                                              
                                                                
                                                                  	
                                                                          
                                                                          

                                                                        	 	
                                                                          (e)
                                                                            Party
                                                                            A warrants
                                                                            that
                                                                            it will
                                                                            provide
                                                                            access
                                                                            of water,
                                                                            electricity
                                                                            and sewer
                                                                            facilities
                                                                            to the
                                                                            Project
                                                                            in the
                                                                            Industrial
                                                                            Park,
                                                                            but establishment
                                                                            of those
                                                                            facilities
                                                                            within
                                                                            the boundary
                                                                            of the
                                                                            land
                                                                            used
                                                                            for the
                                                                            Project
                                                                            shall
                                                                            be borne
                                                                            by Party
                                                                            B;

                                                                        

                                                                

                                                              

                                                              
                                                                
                                                                   

                                                                  
                                                                    
                                                                      	
                                                                            	 	
                                                                              (f)
                                                                                Party
                                                                                A
                                                                                shall
                                                                                be
                                                                                responsible
                                                                                for
                                                                                coordinating
                                                                                to
                                                                                solve
                                                                                disputes
                                                                                arising
                                                                                from
                                                                                the
                                                                                construction,
                                                                                production
                                                                                and
                                                                                operation
                                                                                of
                                                                                the
                                                                                Project
                                                                                so
                                                                                as
                                                                                to
                                                                                provide
                                                                                an
                                                                                amicable
                                                                                economic
                                                                                environment
                                                                                for
                                                                                Party
                                                                                B;

                                                                            

                                                                    

                                                                     

                                                                      
                                                                        
                                                                          	
                                                                                	 	
                                                                                  (g)
                                                                                    Party
                                                                                    A
                                                                                    shall
                                                                                    be
                                                                                    responsible
                                                                                    for
                                                                                    coordinating
                                                                                    with
                                                                                    the
                                                                                    relevant
                                                                                    authorities
                                                                                    such
                                                                                    as
                                                                                    zoning,
                                                                                    state-owned
                                                                                    land,
                                                                                    environmental
                                                                                    protection,
                                                                                    electricity,
                                                                                    construction
                                                                                    and
                                                                                    fire
                                                                                    control
                                                                                    authorities
                                                                                    to
                                                                                    ensure
                                                                                    that
                                                                                    the
                                                                                    Project
                                                                                    can
                                                                                    be
                                                                                    constructed
                                                                                    as
                                                                                    planned;

                                                                                

                                                                        

                                                                        
                                                                           

                                                                          
                                                                            
                                                                              	
                                                                                    	 	
                                                                                      (h)
                                                                                        Party
                                                                                        A
                                                                                        shall
                                                                                        apply
                                                                                        for
                                                                                        the
                                                                                        land
                                                                                        requisition
                                                                                        on
                                                                                        behalf
                                                                                        of
                                                                                        Party
                                                                                        B
                                                                                        according
                                                                                        to
                                                                                        laws
                                                                                        after
                                                                                        receiving
                                                                                        the
                                                                                        application
                                                                                        documents
                                                                                        submitted
                                                                                        by
                                                                                        Party
                                                                                        B.

                                                                                    

                                                                            

                                                                            
                                                                               

                                                                              
                                                                                
                                                                                  	5.	 	
                                                                                          Party
                                                                                            B
                                                                                            intends
                                                                                            to
                                                                                            invest
                                                                                            in
                                                                                            the
                                                                                            Project
                                                                                            as
                                                                                            contemplated
                                                                                            by
                                                                                            the
                                                                                            Agreement.
                                                                                            In
                                                                                            case
                                                                                            Party
                                                                                            B
                                                                                            invests
                                                                                            and
                                                                                            constructs
                                                                                            the
                                                                                            Project
                                                                                            according
                                                                                            to
                                                                                            the
                                                                                            provisions
                                                                                            under
                                                                                            this
                                                                                            Agreement,
                                                                                            Party
                                                                                            A
                                                                                            shall
                                                                                            approve
                                                                                            such
                                                                                            Project.
                                                                                            Further,
                                                                                            Party
                                                                                            A
                                                                                            will
                                                                                            reserve
                                                                                            a
                                                                                            land
                                                                                            plot
                                                                                            of
                                                                                            200
Mu
                                                                                            situated
                                                                                            north
                                                                                            of
                                                                                            the
                                                                                            land
                                                                                            plot
                                                                                            used
                                                                                            for
                                                                                            the
                                                                                            first
                                                                                            and
                                                                                            second
                                                                                            phases
                                                                                            construction
                                                                                            of
                                                                                            the
                                                                                            Project
                                                                                            as
                                                                                            the
                                                                                            third
                                                                                            phase
                                                                                            construction
                                                                                            land
                                                                                            for
                                                                                            the
                                                                                            lead-acid
                                                                                            battery
                                                                                            assembly
                                                                                            Project
                                                                                            of
                                                                                            Party
                                                                                            B
                                                                                            and
                                                                                            provide
                                                                                            the
                                                                                            land
                                                                                            plot
                                                                                            to
                                                                                            Party
                                                                                            B
                                                                                            at
                                                                                            the
                                                                                            same
                                                                                            unit
                                                                                            price
                                                                                            of
                                                                                            the
                                                                                            land
                                                                                            used
                                                                                            for
                                                                                            the
                                                                                            first
                                                                                            phase
                                                                                            construction
                                                                                            of
                                                                                            the
                                                                                            Project,
                                                                                            i.e.
                                                                                            RMB
                                                                                            48,000/Mu.
                                                                                            The
                                                                                            location
                                                                                            and
                                                                                            price
                                                                                            of
                                                                                            such
                                                                                            land
                                                                                            shall
                                                                                            be
                                                                                            kept
                                                                                            and
                                                                                            reserved
                                                                                            till
                                                                                            October,
                                                                                            2009.
                                                                                            In
                                                                                            case
                                                                                            Party
                                                                                            B
                                                                                            fails
                                                                                            to
                                                                                            invest
                                                                                            and
                                                                                            construct
                                                                                            according
                                                                                            to
                                                                                            the
                                                                                            provision
                                                                                            herein,
                                                                                            Party
                                                                                            A
                                                                                            will
                                                                                            no
                                                                                            longer
                                                                                            be
                                                                                            required
                                                                                            to
                                                                                            provide
                                                                                            Party
                                                                                            B
                                                                                            with
                                                                                            land
                                                                                            according
                                                                                            to
                                                                                            the
                                                                                            above
                                                                                            location
                                                                                            and
                                                                                            price.

                                                                                        

                                                                                

                                                                                
                                                                                   

                                                                                  
                                                                                    
                                                                                      
                                                                                      

                                                                                    

                                                                                    
                                                                                      4

                                                                                      
                                                                                        

                                                                                      

                                                                                    

                                                                                    
                                                                                      
                                                                                      

                                                                                    

                                                                                  

                                                                                   

                                                                                  
                                                                                    
                                                                                      	6.	 	
                                                                                              Method
                                                                                                of
                                                                                                Payment

                                                                                               

                                                                                              According
                                                                                                to
                                                                                                the
                                                                                                unit
                                                                                                price
                                                                                                of
                                                                                                RMB
                                                                                                48,000/Mu,
                                                                                                the
                                                                                                land
                                                                                                requisition
                                                                                                fee
                                                                                                for
                                                                                                the
                                                                                                land
                                                                                                of
                                                                                                about
                                                                                                62.8995
Mu
                                                                                                to
                                                                                                be
                                                                                                used
                                                                                                for
                                                                                                the
                                                                                                first
                                                                                                phase
                                                                                                construction
                                                                                                shall
                                                                                                be
                                                                                                RMB
                                                                                                3,019,176
                                                                                                in
                                                                                                an
                                                                                                aggregate.
                                                                                                Party
                                                                                                B
                                                                                                shall
                                                                                                pay
                                                                                                the
                                                                                                whole
                                                                                                land
                                                                                                requisition
                                                                                                fee
                                                                                                to
                                                                                                Party
                                                                                                A
                                                                                                within
                                                                                                one
                                                                                                week
                                                                                                after
                                                                                                the
                                                                                                execution
                                                                                                of
                                                                                                this
                                                                                                Agreement.
                                                                                                Party
                                                                                                A
                                                                                                shall
                                                                                                coordinate
                                                                                                with
                                                                                                the
                                                                                                relevant
                                                                                                provincial
                                                                                                and
                                                                                                municipal
                                                                                                authorities
                                                                                                with
                                                                                                respect
                                                                                                to
                                                                                                the
                                                                                                process
                                                                                                of
                                                                                                requisition
                                                                                                of
                                                                                                the
                                                                                                land
                                                                                                to
                                                                                                be
                                                                                                used
                                                                                                for
                                                                                                the
                                                                                                Project
                                                                                                and
                                                                                                also
                                                                                                assist
                                                                                                in
                                                                                                solving
                                                                                                problems
                                                                                                in
                                                                                                connection
                                                                                                with
                                                                                                to
                                                                                                the
                                                                                                relocation
                                                                                                of
                                                                                                peasants
                                                                                                who
                                                                                                own
                                                                                                the
                                                                                                land
                                                                                                collectively
                                                                                                including
                                                                                                their
                                                                                                compensation
                                                                                                to
                                                                                                ensure
                                                                                                that
                                                                                                Party
                                                                                                B
                                                                                                can
                                                                                                start
                                                                                                the
                                                                                                construction
                                                                                                for
                                                                                                the
                                                                                                Project
                                                                                                on
                                                                                                time.
                                                                                                Party
                                                                                                A
                                                                                                shall
                                                                                                get
                                                                                                the
                                                                                                Land
                                                                                                Use
                                                                                                Certificate
                                                                                                of
                                                                                                State-owned
                                                                                                Land
                                                                                                within
                                                                                                three
                                                                                                months
                                                                                                after
                                                                                                receiving
                                                                                                the
                                                                                                whole
                                                                                                land
                                                                                                requisition
                                                                                                fee
                                                                                                from
                                                                                                Party
                                                                                                B.
                                                                                                Moreover,
                                                                                                Party
                                                                                                A
                                                                                                will
                                                                                                lease
                                                                                                to
                                                                                                Party
                                                                                                B
                                                                                                a
                                                                                                land
                                                                                                plot
                                                                                                with
                                                                                                an
                                                                                                area
                                                                                                of
                                                                                                5.892
Mu
                                                                                                in
                                                                                                front
                                                                                                of
                                                                                                the
                                                                                                land
                                                                                                used
                                                                                                for
                                                                                                the
                                                                                                first
                                                                                                phase
                                                                                                construction
                                                                                                at
                                                                                                the
                                                                                                price
                                                                                                of
                                                                                                RMB
                                                                                                10,000/Mu.
                                                                                                Party
                                                                                                B
                                                                                                will
                                                                                                use
                                                                                                such
                                                                                                land
                                                                                                for
                                                                                                the
                                                                                                construction
                                                                                                of
                                                                                                factory
                                                                                                building.
                                                                                                Party
                                                                                                A
                                                                                                will
                                                                                                also
                                                                                                transfer
                                                                                                such
                                                                                                land
                                                                                                to
                                                                                                Party
                                                                                                B
                                                                                                at
                                                                                                the
                                                                                                price
                                                                                                of
                                                                                                48,000/Mu
                                                                                                in
                                                                                                the
                                                                                                future.
                                                                                                Neither
                                                                                                Party
                                                                                                A
                                                                                                shall
                                                                                                claim
                                                                                                for
                                                                                                ownership
                                                                                                to
                                                                                                the
                                                                                                factory
                                                                                                building
                                                                                                nor
                                                                                                interfere
                                                                                                with
                                                                                                the
                                                                                                production
                                                                                                and
                                                                                                operation
                                                                                                of
                                                                                                Party
                                                                                                B
                                                                                                thereafter.

                                                                                            

                                                                                    

                                                                                    
                                                                                       

                                                                                      
                                                                                        
                                                                                          	7.	 	
                                                                                                  Liability
                                                                                                    for
                                                                                                    Breach
                                                                                                    of
                                                                                                    Agreement

                                                                                                

                                                                                        

                                                                                        
                                                                                           

                                                                                          
                                                                                            
                                                                                              	
                                                                                                    	 	
                                                                                                      (a)
                                                                                                        In
                                                                                                        case
                                                                                                        Party
                                                                                                        B
                                                                                                        fails
                                                                                                        to
                                                                                                        make
                                                                                                        payment
                                                                                                        on
                                                                                                        time,
                                                                                                        it
                                                                                                        shall
                                                                                                        compensate
                                                                                                        Party
                                                                                                        A
                                                                                                        two
                                                                                                        times
                                                                                                        of
                                                                                                        the
                                                                                                        bank
                                                                                                        loan
                                                                                                        interests
                                                                                                        for
                                                                                                        the
                                                                                                        same
                                                                                                        period
                                                                                                        every
                                                                                                        month
                                                                                                        in
                                                                                                        delay
                                                                                                        on
                                                                                                        the
                                                                                                        basis
                                                                                                        of
                                                                                                        the
                                                                                                        total
                                                                                                        amounts
                                                                                                        payable
                                                                                                        by
                                                                                                        Party
                                                                                                        B.
                                                                                                        In
                                                                                                        case
                                                                                                        Party
                                                                                                        A
                                                                                                        fails
                                                                                                        to
                                                                                                        deliver
                                                                                                        the
                                                                                                        land
                                                                                                        to
                                                                                                        Party
                                                                                                        B
                                                                                                        for
                                                                                                        use
                                                                                                        on
                                                                                                        time,
                                                                                                        it
                                                                                                        shall
                                                                                                        compensate
                                                                                                        Party
                                                                                                        B
                                                                                                        two
                                                                                                        times
                                                                                                        of
                                                                                                        the
                                                                                                        bank
                                                                                                        loan
                                                                                                        interests
                                                                                                        for
                                                                                                        the
                                                                                                        same
                                                                                                        period
                                                                                                        every
                                                                                                        month
                                                                                                        in
                                                                                                        delay
                                                                                                        on
                                                                                                        the
                                                                                                        basis
                                                                                                        of
                                                                                                        the
                                                                                                        total
                                                                                                        amounts
                                                                                                        which
                                                                                                        have
                                                                                                        already
                                                                                                        been
                                                                                                        paid
                                                                                                        by
                                                                                                        Party
                                                                                                        B.

                                                                                                    

                                                                                            

                                                                                            
                                                                                               

                                                                                              
                                                                                                
                                                                                                  	
                                                                                                        	 	
                                                                                                          (b)
                                                                                                            In
                                                                                                            case
                                                                                                            Party
                                                                                                            A
                                                                                                            fails
                                                                                                            to
                                                                                                            get
                                                                                                            the
                                                                                                            Land
                                                                                                            Use
                                                                                                            Certificate
                                                                                                            of
                                                                                                            State-owned
                                                                                                            Land
                                                                                                            on
                                                                                                            time
                                                                                                            after
                                                                                                            Party
                                                                                                            B
                                                                                                            fully
                                                                                                            pays
                                                                                                            the
                                                                                                            land
                                                                                                            requisition
                                                                                                            fee
                                                                                                            in
                                                                                                            accordance
                                                                                                            with
                                                                                                            this
                                                                                                            Agreement,
                                                                                                            all
                                                                                                            losses
                                                                                                            incurred
                                                                                                            therefrom
                                                                                                            shall
                                                                                                            be
                                                                                                            born
                                                                                                            by
                                                                                                            Party
                                                                                                            A.
                                                                                                            In
                                                                                                            case
                                                                                                            the
                                                                                                            losses
                                                                                                            can
                                                                                                            not
                                                                                                            be
                                                                                                            quantified,
                                                                                                            Party
                                                                                                            B
                                                                                                            is
                                                                                                            entitled
                                                                                                            to
                                                                                                            require
                                                                                                            Party
                                                                                                            A
                                                                                                            to
                                                                                                            pay
                                                                                                            RMB
                                                                                                            2,000,000
                                                                                                            in
                                                                                                            one
                                                                                                            installment
                                                                                                            as
                                                                                                            compensation.
                                                                                                            In
                                                                                                            addition,
                                                                                                            Party
                                                                                                            B
                                                                                                            is
                                                                                                            entitled
                                                                                                            to
                                                                                                            terminate
                                                                                                            the
                                                                                                            Agreement.

                                                                                                        

                                                                                                

                                                                                                 

                                                                                                
                                                                                                  
                                                                                                    
                                                                                                    

                                                                                                  

                                                                                                  
                                                                                                    5

                                                                                                    
                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                  
                                                                                                    
                                                                                                    

                                                                                                  

                                                                                                

                                                                                                
                                                                                                   

                                                                                                  
                                                                                                    
                                                                                                      	
                                                                                                            	 	
                                                                                                              (c)
                                                                                                                Party
                                                                                                                A
                                                                                                                warrants
                                                                                                                that
                                                                                                                there
                                                                                                                is
                                                                                                                no
                                                                                                                risk
                                                                                                                that
                                                                                                                Party
                                                                                                                B
                                                                                                                cannot
                                                                                                                get
                                                                                                                the
                                                                                                                Real
                                                                                                                Estate
                                                                                                                Certificate
                                                                                                                due
                                                                                                                to
                                                                                                                Party
                                                                                                                A’s
                                                                                                                reasons,
                                                                                                                especially
                                                                                                                by
                                                                                                                the
                                                                                                                reason
                                                                                                                that
                                                                                                                factory
                                                                                                                buildings
                                                                                                                of
                                                                                                                Party
                                                                                                                B
                                                                                                                are
                                                                                                                built
                                                                                                                on
                                                                                                                the
                                                                                                                leased
                                                                                                                land
                                                                                                                of
                                                                                                                Party
                                                                                                                A.
                                                                                                                In
                                                                                                                case
                                                                                                                the
                                                                                                                Real
                                                                                                                Estate
                                                                                                                Certificate
                                                                                                                could
                                                                                                                not
                                                                                                                be
                                                                                                                obtained
                                                                                                                due
                                                                                                                to
                                                                                                                such
                                                                                                                reasons,
                                                                                                                Party
                                                                                                                A
                                                                                                                shall
                                                                                                                pay
                                                                                                                RMB
                                                                                                                2,000,000
                                                                                                                to
                                                                                                                Party
                                                                                                                B
                                                                                                                as
                                                                                                                compensation.
                                                                                                                In
                                                                                                                case
                                                                                                                the
                                                                                                                Real
                                                                                                                Estate
                                                                                                                Certificate
                                                                                                                cannot
                                                                                                                be
                                                                                                                obtained
                                                                                                                exceeding
                                                                                                                90
                                                                                                                days
                                                                                                                after
                                                                                                                the
                                                                                                                occurrence
                                                                                                                of
                                                                                                                the
                                                                                                                above-mentioned
                                                                                                                event,
                                                                                                                it
                                                                                                                shall
                                                                                                                be
                                                                                                                deemed
                                                                                                                that
                                                                                                                the
                                                                                                                Real
                                                                                                                Estate
                                                                                                                Certificate
                                                                                                                cannot
                                                                                                                be
                                                                                                                obtained
                                                                                                                and
                                                                                                                Party
                                                                                                                A
                                                                                                                will
                                                                                                                be
                                                                                                                liable
                                                                                                                for
                                                                                                                losses
                                                                                                                Party
                                                                                                                B
                                                                                                                suffers.
                                                                                                                The
                                                                                                                date
                                                                                                                on
                                                                                                                which
                                                                                                                the
                                                                                                                above
                                                                                                                event
                                                                                                                occurs
                                                                                                                shall
                                                                                                                be
                                                                                                                determined
                                                                                                                through
                                                                                                                on-site
                                                                                                                witness
                                                                                                                by
                                                                                                                lawyers
                                                                                                                named
                                                                                                                by
                                                                                                                Party
                                                                                                                B
                                                                                                                to
                                                                                                                the
                                                                                                                relevant
                                                                                                                authorities
                                                                                                                and
                                                                                                                the
                                                                                                                witnessed
                                                                                                                documents
                                                                                                                shall
                                                                                                                be
                                                                                                                legally
                                                                                                                binding
                                                                                                                documents.

                                                                                                            

                                                                                                    

                                                                                                    
                                                                                                       

                                                                                                      
                                                                                                        
                                                                                                          	
                                                                                                                	 	
                                                                                                                  (d)
                                                                                                                    In
                                                                                                                    case
                                                                                                                    Party
                                                                                                                    A
                                                                                                                    fails
                                                                                                                    to
                                                                                                                    coordinate
                                                                                                                    to
                                                                                                                    solve
                                                                                                                    the
                                                                                                                    relevant
                                                                                                                    problems
                                                                                                                    in
                                                                                                                    connection
                                                                                                                    with
                                                                                                                    the
                                                                                                                    industrial
                                                                                                                    park
                                                                                                                    zoning,
                                                                                                                    state-owned
                                                                                                                    land,
                                                                                                                    environmental
                                                                                                                    protection,
                                                                                                                    construction,
                                                                                                                    consumption,
                                                                                                                    electricity
                                                                                                                    and
                                                                                                                    affiliated
                                                                                                                    facilities,
                                                                                                                    thus
                                                                                                                    causing
                                                                                                                    economic
                                                                                                                    damages
                                                                                                                    to
                                                                                                                    Party
                                                                                                                    B,
                                                                                                                    Party
                                                                                                                    A
                                                                                                                    shall
                                                                                                                    be
                                                                                                                    liable
                                                                                                                    for
                                                                                                                    all
                                                                                                                    the
                                                                                                                    economic
                                                                                                                    losses
                                                                                                                    Party
                                                                                                                    B
                                                                                                                    suffers.

                                                                                                                

                                                                                                        

                                                                                                        
                                                                                                           

                                                                                                          
                                                                                                            
                                                                                                              	8.	 	
                                                                                                                      The
                                                                                                                        Agreement
                                                                                                                        shall
                                                                                                                        take
                                                                                                                        into
                                                                                                                        effect
                                                                                                                        upon
                                                                                                                        execution
                                                                                                                        by
                                                                                                                        both
                                                                                                                        parties.
                                                                                                                        After
                                                                                                                        Party
                                                                                                                        B
                                                                                                                        has
                                                                                                                        established
                                                                                                                        a
                                                                                                                        new
                                                                                                                        company
                                                                                                                        for
                                                                                                                        such
                                                                                                                        Project,
                                                                                                                        Party
                                                                                                                        B’s
                                                                                                                        rights
                                                                                                                        and
                                                                                                                        obligations
                                                                                                                        under
                                                                                                                        this
                                                                                                                        Agreement
                                                                                                                        shall
                                                                                                                        be
                                                                                                                        transferred
                                                                                                                        to
                                                                                                                        the
                                                                                                                        new
                                                                                                                        company,
                                                                                                                        Party
                                                                                                                        A
                                                                                                                        hereby
                                                                                                                        acknowledges
                                                                                                                        the
                                                                                                                        validity
                                                                                                                        of
                                                                                                                        such
                                                                                                                        transfer.
                                                                                                                        Party
                                                                                                                        A
                                                                                                                        shall
                                                                                                                        issue
                                                                                                                        invoice
                                                                                                                        for
                                                                                                                        requisition
                                                                                                                        of
                                                                                                                        the
                                                                                                                        land
                                                                                                                        to
                                                                                                                        the
                                                                                                                        new
                                                                                                                        company
                                                                                                                        directly.

                                                                                                                    

                                                                                                            

                                                                                                            
                                                                                                               

                                                                                                              
                                                                                                                
                                                                                                                  	9.	 	
                                                                                                                          Any
                                                                                                                            other
                                                                                                                            matters
                                                                                                                            not
                                                                                                                            covered
                                                                                                                            under
                                                                                                                            this
                                                                                                                            Agreement
                                                                                                                            shall
                                                                                                                            be
                                                                                                                            resolved
                                                                                                                            through
                                                                                                                            consultation
                                                                                                                            by
                                                                                                                            both
                                                                                                                            parties.

                                                                                                                        

                                                                                                                

                                                                                                                
                                                                                                                   

                                                                                                                  
                                                                                                                    
                                                                                                                      	10.	 	
                                                                                                                              This
                                                                                                                                Agreement
                                                                                                                                shall
                                                                                                                                be
                                                                                                                                executed
                                                                                                                                in
                                                                                                                                six
                                                                                                                                original
                                                                                                                                sets
                                                                                                                                with
                                                                                                                                equal
                                                                                                                                legal
                                                                                                                                effect.
                                                                                                                                Each
                                                                                                                                party
                                                                                                                                shall
                                                                                                                                hold
                                                                                                                                three
                                                                                                                                original
                                                                                                                                sets.

                                                                                                                            

                                                                                                                    

                                                                                                                    
                                                                                                                       

                                                                                                                      
                                                                                                                        
                                                                                                                          	11.	 	
                                                                                                                                  Supplement:
                                                                                                                                    The
                                                                                                                                    area
                                                                                                                                    of
                                                                                                                                    the
                                                                                                                                    land
                                                                                                                                    requisitioned
                                                                                                                                    for
                                                                                                                                    the
                                                                                                                                    first
                                                                                                                                    phase
                                                                                                                                    construction
                                                                                                                                    under
                                                                                                                                    this
                                                                                                                                    Agreement
                                                                                                                                    has
                                                                                                                                    been
                                                                                                                                    adjusted
                                                                                                                                    to
                                                                                                                                    68.7915
Mu
                                                                                                                                    and
                                                                                                                                    the
                                                                                                                                    acquisition
                                                                                                                                    price
                                                                                                                                    of
                                                                                                                                    land
                                                                                                                                    use
                                                                                                                                    right
                                                                                                                                    has
                                                                                                                                    been
                                                                                                                                    adjusted
                                                                                                                                    to
                                                                                                                                    RMB
                                                                                                                                    3,301,992.

                                                                                                                                

                                                                                                                        

                                                                                                                         

                                                                                                                        Party
                                                                                                                          A:
Administrative
                                                                                                                          Committee
                                                                                                                          of
                                                                                                                          Hunan
                                                                                                                          Hengyang
                                                                                                                          Songmu
                                                                                                                          Industrial
                                                                                                                          Park

                                                                                                                         

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    (Official
      Seal)

     

    Date:
      April 15, 2007

     

     

    Party
      B: Shenzhen
      Ritar Power Co., Ltd.

     

    (Corporate
      Seal)

     

    /s/
      Jiada
      Hu                                       

     

    Name:
      Jiada Hu

     

    Date:
      April 15, 2007

    

    
      
        
        

      

      
        6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]