Document:

Exhibit 10.1

    
      

    

    
      
        EXHIBIT
          NO. 10.1

         

        WAIVER,
          CONSENT AND AMENDMENT NO. 5

        TO

        LOAN
          AGREEMENT 

         

        WAIVER,
          CONSENT AND AMENDMENT NO. 5,
          dated
          as of January 26, 2007 (this “Amendment”),
          to
          that certain Loan Agreement, dated as of July 29, 2002, as amended by
          Amendment No. 1 (“Amendment
          No. 1”),
          dated
          as of December 20, 2002, Amendment No. 2 (“Amendment
          No. 2”),
          dated
          as of February 13, 2004, Amendment No. 3 (“Amendment
          No. 3”),
          dated
          as of July 7, 2004 and Amendment No. 4 (“Amendment
          No. 4”),
          dated
          as of July 28, 2005 (as amended by Amendment No. 1, Amendment
          No. 2, Amendment No. 3 and Amendment No. 4, the “Existing
          Loan Agreement”),
          among
          Sunterra Corporation, a Maryland corporation (“Parent”),
          Borrowers (as defined therein), the Lenders (as defined therein), and Merrill
          Lynch Mortgage Capital Inc., as administrative agent and collateral agent
          for
          the Lenders (in such capacity, “Agent”).

         

        W
          I T N E S S E T H :

         

        WHEREAS,
          capitalized terms not otherwise defined herein shall have the same meanings
          as
          specified in the Existing Loan Agreement;

         

        WHEREAS,
          Borrowers have requested that Agent and Lenders agree to amend the Existing
          Loan
          Agreement and waive certain Events of Default that might occur under the
          Existing Loan Agreement as more specifically set forth herein; and

         

        WHEREAS,
          Agent
          and Lenders have indicated their willingness to agree to such amendment
          of, and
          to make such waivers to, the Existing Loan Agreement on the terms and subject
          to
          the satisfaction of the conditions set forth herein.

         

        NOW,
          THEREFORE,
          in
          consideration of the premises and of the mutual covenants and agreements
          contained herein, the parties hereto hereby agree as follows:

         

        SECTION 1. Amendment.
          As of
          the Effective Date (as defined in Section 3 hereof): 

         

        (a)  The
          definition of “Permitted
          Indebtedness”
in
          Section 1.1 of the Existing Loan Agreement is hereby amended by inserting
          the following clause (p) therein:

         

        “and
          (p) any Indebtedness of a European Subsidiary to any Loan
          Party.”

         

        (b)  The
          definition of “Permitted
          Liens”
in
          Section 1.1 of the Existing Loan Agreement is hereby amended by deleting
          clause (j) thereof in its entirety and inserting in lieu thereof, the
          following:

         

        “(j)  Liens
          securing Indebtedness referred to in clauses (h), (j), (l), (n) and (p) of
          the definition of “Permitted Indebtedness.”’

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        (c)  The
          definition of “Tangible
          Net Worth”
in
          Section 1.1 of the Existing Loan Agreement is hereby amended by inserting
          at the end thereof the following:

         

        “minus
          (i.e.
          adjusted to remove the effect of) any impairment of value of any European
          Subsidiary or any losses resulting from the sale or disposition of any
          European
          Subsidiary.”

         

        (d)  The
          following definition is added to Section 1.1 of the Loan
          Agreement:

         

        ‘“European
          Subsidiary”
means
          Sunterra Europe (Holdings) Limited, a United Kingdom company or any Subsidiary
          thereof, or any other Subsidiary of any Borrower formed or having its principal
          place of business in any country in Europe.’

         

        (e)  Section 6.1
          of the Existing Loan Agreement is hereby amended by deleting (i) the words
“30 days” in their entirety and inserting, in lieu thereof, the words
“45 days” in the first sentence of subsection 6.1(a)(ii) and
          (ii) inserting the words “(except any European Subsidiary)” following the
          word “Subsidiaries” in each instance where it appears in
          subsection 6.1(a)(ii).

         

        (f)  Section 6.2
          of the Existing Loan Agreement is hereby amended by (x) adding the
          following to the first sentence of subsection 6.2(c) directly following the
          words “or permit any of their Subsidiaries to do any of the foregoing”: “(it
          being the understanding of the parties hereto that, notwithstanding the
          foregoing, the sale, conveyance, transfer or disposition of any European
          Subsidiary by any Borrower or any Subsidiary is permitted hereunder provided
          that no
          Event of Default has occurred and is continuing under this Agreement or
          any
          other Loan Document).”

         

        (g)  Section 6.3
          of the Existing Loan Agreement is hereby amended by inserting the following
          directly prior to the end of Section 6.3(d): “or, in the event Borrowers or any
          Subsidiary shall recognize any impairment of value of any European Subsidiary
          or
          shall sell, convey or transfer any European Subsidiary and there exists
          any
          impairment of value of any European Subsidiary or any losses resulting
          from such
          sale or disposition of any European Subsidiary, permit at any time its
          minimum
          Tangible Net Worth to be less than $110,000,000.”

         

        (h)  Schedule 1.1(i)
          to this Amendment is hereby incorporated into and shall be deemed a part
          of,
          Schedule 1.1(i) to the Existing Loan Agreement, as referred to in the
          definition of “Consolidated EBITDA” in Section 1.1 of the Existing Loan
          Agreement.

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        SECTION 2.  Waiver.
          As of
          the Effective Date the Agent and Required Lenders hereby waive any Default
          or
          Event of Default under Sections 7.1(b), 7.1(c) or 7.1(d) of the Loan Agreement,
          breach of representation and warranty, or failure to satisfy any condition
          to
          the making of any Loan, arising or occurring prior to the Effective Date
          solely
          (a) as a result of the representation and warranty contained in Section
          5.1(h)
          of the Loan Agreement being incorrect or misleading or any failure to perform
          or
          comply with any covenant contained in Section 6.1(e) of the Loan Agreement,
          to
          the extent occurring in connection with, or relating to, any event, matter,
          condition or effect that has been publicly disclosed by the Parent on or
          prior
          to the Effective Date or (b) from the Borrowers’ failure to deliver to Agent any
          (i) financial statements, certificates of an Authorized Officer and/or any
          other documents required pursuant to Section 6.1(a) of the Loan Agreement
          and (ii) the Notice of Borrowing required pursuant to Section 2.2(a)
          of the Loan Agreement, on or prior to the dates required pursuant to the
          applicable provisions of the Loan Agreement, and solely with respect to
          the end
          of fiscal year 2006, Agent and Required Lenders waive compliance with the
          provision of Section 6.1(a)(i) requiring Borrowers to deliver certain
          financial statements within 120 days after the end of each fiscal year,
provided
          that
          Borrowers shall (i) deliver to Agent the financial statements required
          pursuant to Section 6.1(a)(i) of the Loan Agreement on or prior to
          July 31, 2007 and (ii) following the Effective Date, deliver to Agent
          each of the financial statements, reports, certificates and other documents
          required pursuant to Section 6.1(a) and the Borrowing Notice required
          pursuant to Section 2.2(a) of the Loan Agreement within the time periods
          and in compliance with the requirements of the Loan Agreement (as amended
          by
          this Amendment). It is agreed that (x) any such Default, Event of Default,
          breach of representation and warranty, or failure to satisfy any condition
          to
          the making of any Loan, waived pursuant to the foregoing sentence shall
          be
          deemed not to have occurred and shall no longer be continuing for all purposes
          of the Loan Agreement as of and following the Effective Date and (y) the
          representation and warranty contained in Section 5.1(h) of the Loan Agreement
          that is made or deemed made on and after the date hereof is hereby qualified
          to
          except any and all events, matters, conditions or effects publicly disclosed
          by
          the Parent on or prior to the Effective Date.

         

        SECTION 3.  Conditions
          Precedent to the Effectiveness of this Amendment.
          This
          Amendment shall become effective as of the date hereof (the “Effective
          Date”)
          provided
          that
          each of the following conditions precedent shall have been satisfied on
          or
          before such date:

         

        (a)  Amendment.
          Agent
          has received counterparts of this Amendment executed by Borrowers and Agent
          on
          behalf of Lenders.

         

        (b)  Fees.
          Borrower shall pay to Agent a fee in the amount of $225,000.00 on or before
          the
          Effective Date. The failure to pay such fee on or before the Effective
          Date
          shall be (x) an Event of Default and (y) shall render each of the
          amendments and waivers set forth herein to be no longer of any force or
          effect.

         

        (c)  Costs
          and Expenses.
          Borrowers shall pay all costs and expenses of Agent incurred in connection
          herewith or otherwise due and owing as of the date hereof pursuant to
          Section 9.4 of the Loan Agreement.

         

        (d)  Representations
          and Warranties.
          The
          representations and warranties contained in Section 4 of this Amendment and
          each of the Loan Documents shall be true and correct in all material respects
          on
          and as of the Effective Date, immediately prior (except to the extent waived)
          and after giving effect to this Amendment, as though made on and as of
          such date
          (except for any such representation and warranty that by its terms refers
          to a
          specific date other than the date first above written, in which case it
          shall be
          true and correct in all material respects as of such earlier date).

         

        (e)  No
          Default or Event of Default.
          After
          giving effect to this Amendment, no Default or Event of Default shall have
          occurred and be continuing or shall occur after giving effect to or result
          from
          this Amendment.

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        SECTION 4.  Representations
          and Warranties.
          To
          induce Agent and the Lenders to enter into this Amendment, each Borrower
          hereby
          represents and warrants to Agent and the Lenders:

         

        (a)  Representations
          and Warranties.
          The
          representations and warranties contained in this Section 4 and in each of
          the Loan Documents are true and correct in all material respects on and
          as of
          the Effective Date, immediately prior (except to the extent waived) and
          after
          giving effect to this Amendment, as though made on and as of such date
          (except
          for any such representation and warranty that by its terms refers to a
          specific
          date other than the date first above written, in which case it shall be
          true and
          correct in all material respects as of such earlier date).

         

        (b)  No
          Default or Event of Default.
          After
          giving effect to this Amendment, no Default or Event of Default shall have
          occurred and be continuing or shall occur after giving effect to or result
          from
          this Amendment.

         

        (c)  Liens.
          The
          Lien of the Agent in the Collateral is a valid and perfected first priority
          Lien, subject only to Permitted Liens (to the extent such Permitted Liens
          are
          accorded priority as a matter of law or pursuant to agreement by the Agent
          and/or Lenders).

         

        SECTION 5.  Reference
          to and Effect on the Loan Documents.
          As of
          the Effective Date, any reference in any Loan Document to the Existing
          Loan
          Agreement shall be to the Existing Loan Agreement, as amended hereby. The
          execution, delivery and effectiveness of this Amendment shall not operate
          as a
          waiver of any right, power or remedy of Agent or any of the Lenders under
          any of
          the Loan Documents, nor constitute a waiver of any provision of any of
          the Loan
          Documents.

         

        SECTION 6.  Integration;
          Amendment.
          This
          Amendment sets forth in full the terms of agreement between the parties
          with
          respect to the amendment described herein and is intended as the full,
          complete
          and exclusive agreement governing the relationship between the parties
          with
          respect to such amendment. This Amendment supersedes all discussions, promises,
          representations, warranties, agreements and understandings between the
          parties
          with respect to the amendment described herein. 

         

        SECTION 7.  No
          Third Party Beneficiaries.
          This
          Amendment shall be binding upon and inure to the benefit of Borrowers,
          Agent and
          the Lenders and their respective successors and assigns. No Person other
          than
          the parties hereto shall have any rights hereunder or be entitled to rely
          on
          this Amendment, and all third-party beneficiary rights are hereby expressly
          disclaimed.

         

        SECTION 8.  Execution
          in Counterparts.
          This
          Amendment may be executed in any number of counterparts and by different
          parties
          hereto in separate counterparts, each of which when so executed shall be
          deemed
          to be an original and all of which taken together shall constitute one
          and the
          same agreement. Delivery of an executed counterpart of a signature page
          to this
          Amendment by telecopier shall be effective as delivery of a manually executed
          counterpart of this Amendment.

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        SECTION 9.  Governing
          Law.
          This
          Amendment shall be governed by, and construed in accordance with, the laws
          of
          the State of New York.

         

        [remainder
          of page intentionally left blank]

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        IN
          WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
          by
          their respective officers thereunto duly authorized, as of the date first
          above
          written.

        
           

          
            	 	
                    AGENT:

                  
	 	 
	 	
                    MERRILL
                      LYNCH MORTGAGE CAPITAL INC.

                  
	 	 	 	 	 	 
	 	
                    By:

                  	 	
                    /s/

                  	 
	
                    Jeffrey
                      S. Cohen

                  
	 	 	
                    Name: 

                  	 	
                    Jeffrey
                      S. Cohen

                  
	 	 	
                    Title: 

                  	 	
                    Managing
                      Director

                  
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
                    LENDER:

                  
	 	 
	 	
                    MERRILL
                      LYNCH MORTGAGE LENDING, INC.

                  
	 	 	 	 	 	 
	 	
                    By:

                  	 
	
                    /s/

                  	 
	
                    Jeffrey
                      S. Cohen

                  
	 	 	
                    Name:

                  	 	 	
                    Jeffrey
                      S. Cohen

                  
	 	 	
                    Title:

                  	 	 	
                    Managing
                      Director

                  
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
                    BORROWERS:

                  
	 	 
	 	
                    SUNTERRA
                      CORPORATION

                  
	 	 	 	 	 	 
	 	
                    By:

                  	 
	
                    /s/
                      

                  	 
	
                    Frederick
                      C. Bauman

                  
	 	 	
                    Name:

                  	 	 	
                    Frederick
                      C. Bauman

                  
	 	 	
                    Title:

                  	 	 	
                    Vice
                      President

                  

          

           

          
            
              
              

            

            
              6

              
                

              

            

            
              
              

            

          

           

          
            
              
                
                  	 	
                          AKGI
                            ST. MAARTEN, NV

                        
	 	 	 	 	 	 	 	 
	 	
                          By:

                        	 	
                           
 
/s/

                        	 
	
                          Frederick
                            C. Bauman

                        
	 	 	 	
                          Name:

                        	 	
                          Frederick
                            C. Bauman

                        
	 	 	 	
                          Title:

                        	 	
                          Vice
                            President 

                        
	 	 
	 	 
	 	
                          CLUB
                            SUNTERRA, INC.

                        
	 	 	 	 	 	 	 	 
	 	
                          By:

                        	 	
                           
 
/s/

                        	 
	
                          Frederick
                            C. Bauman

                        
	 	 	 	
                          Name:

                        	 	
                          Frederick
                            C. Bauman

                        
	 	 	 	
                          Title:

                        	 	
                          Vice
                            President

                        
	 	 
	 	 
	 	
                          GEORGE
                            ACQUISITION SUBSIDIARY, INC.

                        
	 	 	 	 	 	 	 	 
	 	
                          By:

                        	 	
                           
 
/s/

                        	 
	
                          Frederick
                            C. Bauman

                        
	 	 	 	
                          Name:

                        	 	
                          Frederick
                            C. Bauman

                        
	 	 	 	
                          Title:

                        	 	
                          Vice
                            President

                        

                

              

            

            
 

            
              	 	
                      KABUSHIKI
                        GAISHA KEI, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Finance Holding Company, its Member

                    
	 	 	 	 	
                      By:

                    	 	
                      /s/

                    	 
	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      LAKE
                        TAHOE RESORT PARTNERS, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, a Delaware corporation
                        and its
                        member,

                    
	 	 	 	 	
                      By:

                    	 	
                      /s/

                    	 
	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    

            

          

          
            
              
              

            

            
              7

              
                

              

            

            
              
              

            

          

           

          
            
              
                	 	
                        MMG
                          DEVELOPMENT CORP.

                      
	 	 	 	 	 
	 	
                        By:

                      	
                        /s/

                      	 
	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Name:

                      	 	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Title:

                      	 	
                        Vice
                          President 

                      
	 	 
	 	 
	 	
                        RESORT
                          MARKETING INTERNATIONAL, INC.

                      
	 	 	 	 	 
	 	
                        By:

                      	
                        /s/

                      	 
	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Name:

                      	 	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Title:

                      	 	
                        Vice
                          President 

                      
	 	 
	 	 
	 	
                        RESORTS
                          DEVELOPMENT INTERNATIONAL, INC.

                      
	 	 	 	 	 
	 	
                        By:

                      	
                        /s/

                      	 
	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Name:

                      	 	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Title:

                      	 	
                        Vice
                          President 

                      
	 	 
	 	 
	 	
                        SUNTERRA
                          RESORT MANGEMENT, INC.

                      
	 	 	 	 	 
	 	
                        By:

                      	
                        /s/

                      	 
	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Name:

                      	 	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Title:

                      	 	
                        Vice
                          President 

                      
	 	 
	 	 
	 	
                        SUNTERRA
                          DEVELOPER AND SALES HOLDING COMPANY
                          (f/k/a AVCOM International, Inc.)

                      
	 	 	 	 	 
	 	
                        By:

                      	
                        /s/

                      	 
	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Name:

                      	 	
                        Frederick
                          C. Bauman

                      
	 	 	
                        Title:

                      	 	
                        Vice
                          President 

                      

              

            

          

          
            
              
              

            

            
              8

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      SUNTERRA
                        FINANCIAL SERVICES, INC.

                    
	 	 	 	 	 	 
	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Title:

                    	 	
                      Vice
                        President 

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        PACIFIC, INC.

                    
	 	 	 	 	 	 
	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        TRAVEL, INC.

                    
	 	 	 	 	 	 
	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        FINANCE HOLDING COMPANY

                    
	 	 	 	 	 	 
	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        CENTRALIZED SERVICES COMPANY

                    
	 	 	 	 	 	 
	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        MANAGEMENT AND EXCHANGE HOLDING COMPANY

                    
	 	 	 	 	 	 
	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    

            

          

           

          
            
              
              

            

            
              9

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      CLUB
                        SUNTERRA DEVELOPMENT, LLC
                        (f/k/a Club Sunterra, LLC)

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:
                        

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      INTERNATIONAL
                        TIMESHARES MARKETING, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        DAYTONA DEVELOPMENT, LLC
                        (f/k/a Sunterra Bent Creek Golf Course Development,
                        LLC)

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        HILTON HEAD DEVELOPMENT, LLC
                        (f/k/a Sunterra Bent Creek Village Development, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    

            

          

          
            
              
              

            

            
              10

              
                

              

            

            
              
              

            

          

          
            	 	
                    SUNTERRA
                      COMMUNICATIONS, LLC

                  
	 	 	 	 
	 	
                    By:

                  	 	
                    Sunterra
                      Management and Exchange Holding Company, its Manager

                  
	 	 	 	 	 	 	 	 
	 	 	 	
                    By:

                  	 	
                    /s/

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Name:

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Title:

                  	 	
                    Vice
                      President

                  
	 	 
	 	 
	 	
                    SUNTERRA
                      CORAL SANDS DEVELOPMENT, LLC

                  
	 	 	 	 
	 	
                    By:

                  	 	
                    Sunterra
                      Developer and Sales Holding Company, its Manager

                  
	 	 	 	 	 	 	 	 
	 	 	 	
                    By:

                  	 	
                    /s/

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Name:

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Title:

                  	 	
                    Vice
                      President

                  
	 	 
	 	 
	 	
                    SUNTERRA
                      CYPRESS POINTE I DEVELOPMENT, LLC

                  
	 	 	 	 
	 	
                    By:

                  	 	
                    Sunterra
                      Developer and Sales Holding Company, its Manager

                  
	 	 	 	 	 	 	 	 
	 	 	 	
                    By:

                  	 	
                    /s/

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Name:

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Title:

                  	 	
                    Vice
                      President

                  
	 	 
	 	 
	 	
                    SUNTERRA
                      CYPRESS POINTE II DEVELOPMENT, LLC

                  
	 	 	 	 
	 	
                    By:

                  	 	
                    Sunterra
                      Developer and Sales Holding Company, its Manager

                  
	 	 	 	 	 	 	 	 
	 	 	 	
                    By:

                  	 	
                    /s/

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Name:

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Title:

                  	 	
                    Vice
                      President

                  

          

           

          
            
              
              

            

            
              11

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      SUNTERRA
                        CYPRESS POINTE III DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      CLUB
                        SUNTERRA DEVELOPMENT HAWAII, LLC
                        (f/k/a Sunterra East Marketing, LLC)

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        FALL CREEK DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        GRAND BEACH I DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    

            

          

           

          
            
              
              

            

            
              12

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      SUNTERRA
                        GRAND BEACH II DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        GREENSPRINGS DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        EPIC MORTGAGE HOLDINGS, LLC
                        (f/k/a Sunterra KGK Partners Finance, LLC)

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Finance Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        MEXICO SHARE HOLDING, LLC (f/k/a
                        Kallof Place Development, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company., its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    

            

          

           

          
            
              
              

            

            
              13

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      SUNTERRA
                        LAKE TAHOE DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	
                      SUNTERRA
                        PALM SPRINGS DEVELOPMENT, LLC
                        (f/k/a Sunterra North Marketing, LLC)

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        POCO DIABLO DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        SCOTTSDALE DEVELOPMENT, LLC
                        (f/k/a Sunterra Poipu GP Development, LLC)

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    

            

          

           

          
            
              
              

            

            
              14

              
                

              

            

            
              
              

            

          

          

          
            	 	
                    SUNTERRA
                      LAS VEGAS DEVELOPMENT, LLC
                      (f/k/a Sunterra Polynesian Isles Development, LLC)

                  
	 	 	 	 
	 	
                    By:

                  	 	
                    Sunterra
                      Developer and Sales Holding Company, its Manager

                  
	 	 	 	 	 	 	 	 
	 	 	 	
                    By:

                  	 	
                     /s/

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Name:

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Title:

                  	 	
                    Vice
                      President

                  
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	
                    SUNTERRA
                      PORT ROYAL DEVELOPMENT, LLC

                  
	 	 	 	 
	 	
                    By:

                  	 	
                    Sunterra
                      Developer and Sales Holding Company, its Manager

                  
	 	 	 	 	 	 	 	 
	 	 	 	
                    By:

                  	 	
                     /s/

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Name:

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Title:

                  	 	
                    Vice
                      President

                  
	 	 
	 	 
	 	
                    SUNTERRA
                      POWHATAN DEVELOPMENT, LLC

                  
	 	 	 	 
	 	
                    By:

                  	 	
                    Sunterra
                      Developer and Sales Holding Company, its Manager

                  
	 	 	 	 	 	 	 	 
	 	 	 	
                    By:

                  	 	
                     /s/

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Name:

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Title:

                  	 	
                    Vice
                      President

                  
	 	 
	 	 
	 	
                    SUNTERRA
                      RESIDUAL ASSETS DEVELOPMENT, LLC

                  
	 	 	 	 
	 	
                    By:

                  	 	
                    Sunterra
                      Developer and Sales Holding Company, its Manager

                  
	 	 	 	 	 	 	 	 
	 	 	 	
                    By:

                  	 	
                     /s/

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Name:

                  	 	
                    Frederick
                      C. Bauman

                  
	 	 	 	 	 	
                    Title:

                  	 	
                    Vice
                      President

                  

          

          
            
              
              

            

            
              15

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      SUNTERRA
                        RIDGE ON SEDONA DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        RIDGE POINTE DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        SAN LUIS BAY DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        SANTA FE DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    

            

          

          
            
              
              

            

            
              16

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      SUNTERRA
                        SEDONA SPRINGS DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	
                       

                    	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        SEDONA SUMMIT DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        CITRUS SHARE HOLDING, LLC
                        (f/k/a Sunterra South Marketing, LLC)

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Corporation, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        ST. CROIX DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    

            

          

          
            
              
              

            

            
              17

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      SUNTERRA
                        STEAMBOAT DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        TAHOE BEACH & SKI DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        VILLA MIRAGE DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        VILLAS OF SEDONA DEVELOPMENT, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    

            

          

          
            
              
              

            

            
              18

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      SUNTERRA
                        RESIDUAL ASSETS FINANCE, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Finance Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        RESIDUAL ASSETS M&E, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Management and Exchange Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      CLUB
                        SUNTERRA DEVELOPMENT CALIFORNIA, LLC
                        (f/k/a Sunterra Texas Development, LLC)

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        MORTGAGE HOLDINGS, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Finance Holding Company, its Manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President:

                    

            

          

          
            
              
              

            

            
              19

              
                

              

            

            
              
              

            

          

           

          
            
              	 	
                      SUNTERRA
                        CENTRALIZED SERVICES GLOBAL, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Centralized Services Company

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President:

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        CENTRALIZED SERVICES NEVADA, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Centralized Services Company

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 
	 	 
	 	
                      SUNTERRA
                        CENTRALIZED SERVICES USA, LLC

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Centralized Services Company

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Name:

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	
                      Title:

                    	 	
                      Vice
                        President

                    
	 	 	 	 	 	 	 	 	 

            

             

            
              	 	
                      SUNTERRA
                        WEST MAUI DEVELOPMENT, LLC
                        (f/k/a Sunterra West Marketing, LLC)

                    
	 	 	 	 
	 	
                      By:

                    	 	
                      Sunterra
                        Developer and Sales Holding Company, its manager

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	 	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Its:

                    	 	 	 	
                      Vice
                        President

                    

            

          

          

          
            
              
              

            

            
              20

              
                

              

            

            
              
              

            

          

          

            
              	 	
                      RESORT
                        MANAGEMENT INTERNATIONAL,
                        INC.

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	
                       

                    	 	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	
                      Its:

                    	 	 	
                      Vice
                        President

                    
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	
                      WEST
                        MAUI RESORT PARTNERS, L.P.

                    
	 	 	 	 	 	 	 	 
	 	
                      By:

                    	 	 	
                      Sunterra
                        Developer and Sales Holding Company, its General
                        Partner

                    
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/
                        

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	 	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	
                      Its:

                    	 	 	
                      Vice
                        President

                    
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	
                      AKGI
                        POIPU INVESTMENTS, INC.

                    
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	 	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                       

                    	
                      Its:

                    	 	 	
                      Vice
                        President

                    

            

          

           

          

            
              	 	
                      SECTION 10.

                    	 	
                      POIPU
                        RESORT PARTNERS, LP

                    
	 	 	 	 	 	 	 	 
	 	
                      By:

                    	 	
                      AKGI
                        Poipu Investments, Inc.

                    
	 	
                      Its:

                    	 	
                      Sole
                        general partner

                    
	 	 	 	 	 	 	 	 
	 	 	 	
                      By:

                    	 	
                      /s/

                    	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	 	 	 	 	
                      Frederick
                        C. Bauman

                    
	 	 	 	
                      Its:

                    	 	 	 	
                      Vice
                        President

                    

            

          

          
            
              
              

            

            
              21

              
                

              

            

            
              
              

            

          

          Schedule
            1.1(i)

          

          PROFESSIONAL
            FEES

          As
            Attached

          

          
            	 	 	
                    Quarter
                      Ending

                    12/31/2005

                  	
                     

                  	
                    Quarter
                      Ending

                    3/31/2006

                  	
                     

                  	
                    Quarter
                      Ending

                    6/30/2006

                  	
                     

                  	
                    Quarter
                      Ending

                    9/30/2006

                  	
                     

                  	
                    Quarter
                      Ending

                    12/31/2006

                  	
                     

                  	
                    Quarter
                      Ending

                    3/31/2007

                  	
                     

                  	
                    Quarter
                      Ending

                    6/30/2007

                  	
                     

                  	
                    Quarter
                      Ending

                    9/30/2007

                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Investigation
                      and Restatement

                  	 	
                    $

                  	
                    -

                  	 	
                    $

                  	
                    -

                  	 	
                    $

                  	
                    5,692

                  	 	
                    $

                  	
                    6,723

                  	 	
                    $

                  	
                    2,362

                  	 	
                    $

                  	
                    2,918

                  	 	
                    $

                  	
                    590

                  	 	
                    $

                  	
                    550

                  	 

          

           

          Note:
            The
            above amounts are Sunterra management estimates. Due to the uncertain
            nature of
            such estimates, the actual fees may vary materiallyREGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this “Agreement”)
      is made
      and entered into as of January 31, 2007, by and among Irish Mag, Inc., a Florida
      corporation (the “Company”),
      and
      the investors signatory hereto (each a “Investor”
      and
      collectively, the “Investors”).

    

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      January 16, 2007 among the Company and the Investors, as amended (the
“Purchase
      Agreement”).

    

    The
      Company and the Investors hereby agree as follows: 

    

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

    

    “2007
      Delivery Date”
      means
      the date on which the 2007 Make Good Shares are required to be delivered to
      the
      Investors by Mr. Jiang Huai Lin
      pursuant
      to Section 4.11 of the Purchase Agreement.

    

    “2008
      Delivery Date”
      means
      the date on which the 2008 Make Good Shares are required to be delivered to
      the
      Investors by Mr. Jiang Huai Lin
      pursuant
      to Section 4.11 of the Purchase Agreement.

    

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

    

    “Common
      Stock”
      means
      the common stock of the Company, par value $0.01 per share, and any securities
      into which such common stock may hereafter be reclassified or for which it
      may
      be exchanged as a class.

    

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

    

    “Effectiveness
      Date”
      means
      (a) with respect to the
      Registration Statement required to be filed under Section 2(a),
      the
      earlier of (i) the 150th
      day
      following the Closing Date, and (ii) the fifth Trading Day following the date
      on
      which the Company is notified by the Commission that such Registration Statement
      will not be reviewed or is no longer subject to further review and comments,
      (b)
      with respect to a Registration Statement required to be filed under Section
      2(b), the earlier of: (b)(i) the 60th
      day
      following the date on which the Company becomes eligible to utilize Form S-3
      to
      register the resale of Common Stock; provided,
      that,
      if the Commission reviews and has written comments to such filed Registration
      Statement that would require the filing of a pre-effective amendment thereto
      with the Commission, then the Effectiveness Date under this clause (b)(i) shall
      be the 90th
      day
      following the date on which the Company becomes eligible to utilize Form S-3
      to
      register the resale of Common Stock, and (ii) the fifth Trading Day following
      the date on which the Company is notified by the Commission that the
      Registration Statement will not be reviewed or is no longer subject to further
      review and comments, (c) with respect to a Registration Statement required
      to be
      filed under Section 2(c), the earlier of: (c)(i) the 90th
      day
      following the 2007 Delivery Date; provided,
      that,
      if the Commission reviews and has written comments to such filed Registration
      Statement that would require the filing of a pre-effective amendment thereto
      with the Commission, then the Effectiveness Date under this clause (c)(i) shall
      be the 120th
      day
      following the 2007 Delivery Date, and (ii) the fifth Trading Day following
      the
      date on which the Company is notified by the Commission that the Registration
      Statement will not be reviewed or is no longer subject to further review and
      comments and (d) with respect to a Registration Statement required to be filed
      under Section 2(d), the earlier of: (d)(i) the 90th
      day
      following the 2008 Delivery Date; provided,
      that,
      if the Commission reviews and has written comments to such filed Registration
      Statement that would require the filing of a pre-effective amendment thereto
      with the Commission, then the Effectiveness Date under this clause (c)(i) shall
      be the 120th
      day
      following the 2008 Delivery Date, and (ii) the fifth Trading Day following
      the
      date on which the Company is notified by the Commission that the Registration
      Statement will not be reviewed or is no longer subject to further review and
      comments.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    “Effectiveness
      Period”
      has the
      meaning set forth in Section 2(a).

    

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

    “Filing
      Date”
      means
      (a) with respect to the Registration Statement required to be filed under
      Section 2(a), the 45th
      day
      following the Closing Date, (b) with respect to a Registration Statement
      required to be filed under Section 2(b), the 30th
      day
      following the date on which the Company becomes eligible to utilize Form S-3
      to
      register the resale of Common Stock, (c) with respect to the Registration
      Statement required to be filed under Section 2(c), the 45th
      day
      following the 2007 Delivery Date (provided that if the Company is then eligible
      to utilize Form S-3 to register the resale of Common Stock, the Filing Date
      under this clause (c) shall be 30 days following the 2007 Delivery
      Date)
      and (d)
with
      respect to the Registration Statement required to be filed under Section 2(d),
      the 45th
      day
      following the 2008 Delivery Date (provided that if the Company is then eligible
      to utilize Form S-3 to register the resale of Common Stock, the Filing Date
      under this clause (d) shall be 30 days following the 2008 Delivery
      Date).

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

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

    

    “Registrable
      Securities”
      means:
      (i) the Shares, (ii) any shares of Common Stock issuable upon the exercise
      of
      warrants issued to any placement agent (the “Placement
      Agent Warrants”)
      as
      compensation in connection with the financing that is the subject of the
      Purchase Agreement, (iii) the 2007 Make Good Shares, as applicable, (iv) the
      2008 Make Good Shares, as applicable and (v) any securities issued or issuable
      upon any stock split, dividend or other distribution, recapitalization or
      similar event, or any price adjustment as a result of such stock splits, reverse
      stock splits or similar events with respect to any of the securities referenced
      in (i), (ii), (iii), or (iv) above.

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    2. Registration.

     

    (a) On
      or
      prior to the applicable Filing Date, the Company shall prepare and file with
      the
      Commission a Registration Statement covering the resale of
      all
      Registrable Securities (other than the 2007 Make Good Shares and the 2008 Make
      Good Shares) not already covered by an existing and effective Registration
      Statement for an offering to be made on a continuous basis pursuant to Rule
      415,
      on Form SB-2 (or on such other form appropriate for such purpose). Such
      Registration Statement shall contain (except if otherwise required pursuant
      to
      written comments received from the Commission upon a review of such Registration
      Statement) the “Plan of Distribution” attached hereto as Annex
      A.
      The
      Company shall cause such Registration Statement to be declared effective under
      the Securities Act as soon as possible but, in any event, no later than its
      Effectiveness Date, and shall use its reasonable best efforts to keep the
      Registration Statement continuously effective under the Securities Act until
      the
      date which is the earliest of (i) two years after its Effective Date (and for
      purposes of a Registration Statement contemplated in Section 2(c) and/or Section
      2(d) hereof, two years after the Effective Date therefor), (ii) such time as
      all
      of the Registrable Securities covered by such Registration Statement have been
      publicly sold by the Holders, or (iii) such time as all of the Registrable
      Securities covered by such Registration Statement may be sold by the Holders
      pursuant to Rule 144(k) as determined by the counsel to the Company pursuant
      to
      a written opinion letter to such effect, addressed and acceptable to the
      Company's transfer agent and the affected Holders (the “Effectiveness
      Period”).
      By
      5:00 p.m. (New York City time) on the Business Day immediately following the
      Effective Date of such Registration Statement, the Company shall file with
      the
      Commission in accordance with Rule 424 under the Securities Act the final
      prospectus to be used in connection with sales pursuant to such Registration
      Statement (whether or not such filing is technically required under such
      Rule).

    

    (b) Promptly
      following any date on which the Company becomes eligible to use a registration
      statement on Form S-3 to register Registrable Securities for resale, the Company
      shall file a Registration Statement on Form S-3 covering all such Registrable
      Securities (or a post-effective amendment on Form S-3 to the then effective
      Registration Statement) and shall cause such Registration Statement to be filed
      by the Filing Date for such Registration Statement and declared effective under
      the Securities Act as soon as possible thereafter, but in any event prior to
      the
      Effectiveness Date therefor. Such Registration Statement shall contain (except
      if otherwise required pursuant to written comments received from the Commission
      upon a review of such Registration Statement) the “Plan of Distribution”
attached hereto as Annex
      A.
      The
      Company shall use its reasonable best efforts to keep such Registration
      Statement continuously effective under the Securities Act during the entire
      Effectiveness Period. By 5:00 p.m. (New York City time) on the Business Day
      immediately following the Effective Date of such Registration Statement, the
      Company shall file with the Commission in accordance with Rule 424 under the
      Securities Act the final prospectus to be used in connection with sales pursuant
      to such Registration Statement (whether or not such filing is technically
      required under such Rule).

    

    (c) On
      or
      prior to the applicable Filing Date, the Company shall prepare and file with
      the
      Commission a Registration Statement covering the resale of the 2007 Make Good
      Shares on Form SB-2 or Form S-3 if the Company is then eligible to utilize
      such
      Form (or on such other form appropriate for such purpose) and shall cause such
      Registration Statement to be filed by the Filing Date for such Registration
      Statement and declared effective under the Securities Act as soon as possible
      thereafter, but in any event prior to the Effectiveness Date therefor. Such
      Registration Statement shall contain (except if otherwise required pursuant
      to
      written comments received from the Commission upon a review of such Registration
      Statement) the “Plan of Distribution” attached hereto as Annex
      A.
      The
      Company shall use its reasonable best efforts to keep such Registration
      Statement continuously effective under the Securities Act during the entire
      Effectiveness Period which is applicable to it. By 5:00 p.m. (New York City
      time) on the Business Day immediately following the Effective Date of such
      Registration Statement, the Company shall file with the Commission in accordance
      with Rule 424 under the Securities Act the final prospectus to be used in
      connection with sales pursuant to such Registration Statement (whether or not
      such filing is technically required under such Rule).

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    (d) On
      or
      prior to the applicable Filing Date, the Company shall prepare and file with
      the
      Commission a Registration Statement covering the resale of the 2008 Make Good
      Shares on Form SB-2 or Form S-3 if the Company is then eligible to utilize
      such
      Form (or on such other form appropriate for such purpose) and shall cause such
      Registration Statement to be filed by the Filing Date for such Registration
      Statement and declared effective under the Securities Act as soon as possible
      thereafter, but in any event prior to the Effectiveness Date therefor. Such
      Registration Statement shall contain (except if otherwise required pursuant
      to
      written comments received from the Commission upon a review of such Registration
      Statement) the “Plan of Distribution” attached hereto as Annex
      A.
      The
      Company shall use its reasonable best efforts to keep such Registration
      Statement continuously effective under the Securities Act during the entire
      Effectiveness Period which is applicable to it. By 5:00 p.m. (New York City
      time) on the Business Day immediately following the Effective Date of such
      Registration Statement, the Company shall file with the Commission in accordance
      with Rule 424 under the Securities Act the final prospectus to be used in
      connection with sales pursuant to such Registration Statement (whether or not
      such filing is technically required under such Rule).

    

    (e) If:
      (i) a
      Registration Statement is not filed on or prior to its Filing Date covering
      all
      of the Registrable Securities required under this Agreement to be included
      therein (if the Company files a Registration Statement without affording the
      Holders the opportunity to review and comment on the same as required by Section
      3(a) hereof, the Company shall not be deemed to have satisfied this clause
      (i)),
      or (ii) a Registration Statement is not declared effective by the Commission
      on
      or prior to its required Effectiveness Date or if by the Business Day
      immediately following the Effective Date the Company shall not have filed a
      “final” prospectus for the Registration Statement with the Commission under Rule
      424(b) (whether or not such a prospectus is technically required by such Rule),
      or (iii) after its Effective Date, without regard for the reason thereunder
      or
      efforts therefore, such Registration Statement ceases for any reason to be
      effective and available to the Holders as to all Registrable Securities to
      which
      it is required to cover at any time prior to the expiration of its Effectiveness
      Period for more than an aggregate of 30 Trading Days (which need not be
      consecutive) (any such failure or breach being referred to as an “Event,”
      and for
      purposes of clauses (i) or (ii) the date on which such Event occurs, or for
      purposes of clause (iii) the date which such 30 Trading Day-period is exceeded,
      being referred to as “Event
      Date”),
      then
      in addition to any other rights the Holders may have hereunder or under
      applicable law: on each such Event Date, and on each monthly anniversary of
      each
      such Event Date (if the applicable Event shall not have been cured by such
      date)
      until the applicable Event is cured, the Company shall pay to each Holder an
      amount in cash, as partial liquidated damages and not as a penalty, equal to
      1.0% of the aggregate Investment Amount paid by such Holder for Shares pursuant
      to the Purchase Agreement; provided,
      however,
      that
      the total amount of partial liquidated damages payable by the Company pursuant
      to all Events under this Section shall be capped at an aggregate of 10% of
      the
      aggregate Investment Amount paid by the Investors under the Purchase Agreement.
      The partial liquidated damages pursuant to the terms hereof shall apply on
      a
      daily pro-rata basis for any portion of a month prior to the cure of an Event,
      except in the case of the first Event Date. In no event will the Company be
      liable for liquidated damages under this Agreement in excess of 1.0% of the
      aggregate Investment Amount of the Investors in any 30-day period. The Company
      will not be liable for liquidated damages under this Agreement with respect
      to
      any Placement Agent Warrants or any shares of Common Stock issuable upon
      exercise of the Placement Agent Warrants.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    (f) Each
      Holder agrees to furnish to the Company a completed Questionnaire in the form
      attached to this Agreement as Annex
      B
      (a
“Selling
      Holder Questionnaire”).
      The
      Company shall not be required to include the Registrable Securities of a Holder
      in a Registration Statement and shall not be required to pay any liquidated
      or
      other damages under Section 2(e) to any Holder who fails to furnish to the
      Company a fully completed Selling Holder Questionnaire at least two Trading
      Days
      prior to the Filing Date (subject to the requirements set forth in Section
      3(a)).

    

    3. Registration
      Procedures.

    

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

    

    (a) Not
      less
      than four Trading Days prior to the filing of a Registration Statement or any
      related Prospectus or any amendment or supplement thereto, the Company shall
      furnish to each Holder copies of the “Selling Stockholders” section of such
      document, the “Plan of Distribution” and any risk factor contained in such
      document that addresses specifically this transaction or the Selling
      Stockholders, as proposed to be filed which documents will be subject to the
      review of such Holder. The Company shall not file a Registration Statement,
      any
      Prospectus or any amendments or supplements thereto in which the “Selling
      Stockholder” section thereof differs from the disclosure received from a Holder
      in its Selling Holder Questionnaire (as amended or supplemented).

    

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

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

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

    

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

    

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

    

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

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

    

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

    

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

    

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

    

    4. Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with any
      Trading Market on which the Common Stock is then listed for trading, and (B)
      in
      compliance with applicable state securities or Blue Sky laws), (ii) printing
      expenses (including, without limitation, expenses of printing certificates
      for
      Registrable Securities and of printing prospectuses if the printing of
      prospectuses is reasonably requested by the holders of a majority of the
      Registrable Securities included in the Registration Statement), (iii) messenger,
      telephone and delivery expenses, (iv) fees and disbursements of counsel for
      the
      Company, (v) Securities Act liability insurance, if the Company so desires
      such
      insurance, and (vi) fees and expenses of all other Persons retained by the
      Company in connection with the consummation of the transactions contemplated
      by
      this Agreement. In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder. 

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

       

    

    5. Indemnification.

    

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

    

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

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

       

    

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

    

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

    

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

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

    

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

    

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

    

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

    

    6. Miscellaneous.

    

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

    

    (b) No
      Piggyback on Registrations.
      Except
      as and to the extent specified in Schedule
      3.1(v)
      to the
      Purchase Agreement, neither the Company nor any of its security holders (other
      than the Holders in such capacity pursuant hereto) may include securities of
      the
      Company in a Registration Statement other than the Registrable Securities,
      and
      the Company shall not during the Effectiveness Period enter into any agreement
      providing any such right to any of its security holders.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

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

    

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

    

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

    

    (f) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this Section 6(f),
      may
      not be amended, modified or supplemented, and waivers or consents to departures
      from the provisions hereof may not be given, unless the same shall be in writing
      and signed by the Company and the Holders of no less than a majority in interest
      of the then outstanding Registrable Securities. Notwithstanding the foregoing,
      a
      waiver or consent to depart from the provisions hereof with respect to a matter
      that relates exclusively to the rights of certain Holders and that does not
      directly or indirectly affect the rights of other Holders may be given by
      Holders of at least a majority of the Registrable Securities to which such
      waiver or consent relates.

    

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

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

       

    

    
      	
            	If
              to the Company:	
              Irish
                Mag, Inc.

              
                Unit
                  D

                Block
                  2

                Tian
                  An Cyber Park

                Chengongmiao

                Shenzhen,
                  Guangdong, 518040

                People’s
                  Republic of China

                Facsimile:

                Attn.:
                  Jiang Huai Lin

              

            

      	 	 	 

      	 	With a copy to:	Thelen Reid Brown Raysman and Steiner
              LLP
              701
                Eighth Street, NW

              Washington,
                D.C. 20001

              Facsimile:
                (202) 508-4321

              Attn.:
                Louis A. Bevilacqua, Esq.

            

      	 	 	 

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

      	 	 	 

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

      	 	 	 

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

    

    

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

    

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

    

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

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

       

    

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

    

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

    

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

    

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

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

       

    

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

    

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        15

        
          

        

      

      
         

      

    

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

     

    
      	 	 	 
	 	
              IRISH
                MAG, INC.

            
	 
 	 
 	 
 
	 	By:  	/s/
              Jiang Huai Lin
	 	
              
Jiang
              Huai Lin
	 	President
              and
              Chief Executive Officer 

    

    

    

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      Registration
        Rights Agreement

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

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

     

    
      	 	 	 
	 	
              INVESTORS:

              

              THE
                PINNACLE FUND, L.P.

            
	 
 	 
 	 
 
	 	By:  	/s/
              Barry M. Kitt
	 	
              
Barry
              M. Kitt,
	 	
              Sole
                Member, Pinnacle Fund Management, L.L.C.,

              the
                General Partner of Pinnacle Advisors, L.P.,

              the
                General Partner of The Pinnacle Fund, L.P.

            
	 	 
	 	
              ADDRESS
                FOR NOTICE

              

              The
                Pinnacle Fund, L.P.

              4965
                Preston Park Blvd., Suite 240

              Plano,
                TX 75093

              Attention:
                Barry M. Kitt

              Tel:
                972-985-2121

              Fax:
                972-985-2122

              bk@pinnaclefund.com

            

    [REMAINDER
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      FOLLOWS]

    Registration
      Rights Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    	 	 	 
	 	
            PINNACLE
              CHINA FUND, L.P.

          
	 
 	 
 	 
 
	 	By:  	/s/
            Barry M. Kitt
	 	
            
Barry
            M. Kitt,
	 	
            Manager,
              Kitt China Management, L.L.C.,

            the
              Manager of Pinnacle China Management, L.L.C.,

            the
              General Partner of Pinnacle China Advisors, L.P.,

            the
              General Partner of Pinnacle China Fund, L.P.

          
	 	 
	 	
            
              ADDRESS
                FOR NOTICE

              

              Pinnacle
                China Fund, L.P.

              4965
                Preston Park Blvd., Suite 240

              Plano,
                TX 75093

              Attention:
                Barry M. Kitt

              Tel:
                972-985-2121

              Fax:
                972-985-2122

              bk@pinnaclechinafund.com

            

          

     

    
      Registration
        Rights Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Annex
      A

    

    Plan
      of
      Distribution

    

    The
      Selling Stockholders and any of their pledgees, donees, transferees, assignees
      and successors-in-interest may, from time to time, sell any or all of their
      shares of Common Stock on any stock exchange, market or trading facility on
      which the shares are traded or in private transactions. These sales may be
      at
      fixed or negotiated prices. The Selling Stockholders may use any one or more
      of
      the following methods when selling shares:

    

    
      	
              ·

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

            

    

    

    
      	
              ·

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

            

    

    

    
      	
              ·

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

            

    

    

    
      	
              ·

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

            

    

    

    
      	
              ·

            	
              privately
                negotiated transactions;

            

    

    

    
      	
              ·

            	
              to
                cover short sales made after the date that this Registration Statement
                is
                declared effective by the Commission;

            

    

    

    
      	
              ·

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

            

    

    

    
      	
              ·

            	
              a
                combination of any such methods of sale;
                and

            

    

    

    
      	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

    

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this prospectus.

    

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

    

    The
      Selling Stockholders may from time to time pledge or grant a security interest
      in some or all of the Shares owned by them and, if they default in the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell shares of Common Stock from time to time under this prospectus,
      or under an amendment to this prospectus under Rule 424(b)(3) or other
      applicable provision of the Securities Act of 1933 amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus.

    

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

       

    

    Upon
      the
      Company being notified in writing by a Selling Stockholder that any material
      arrangement has been entered into with a broker-dealer for the sale of Common
      Stock through a block trade, special offering, exchange distribution or
      secondary distribution or a purchase by a broker or dealer, a supplement to
      this
      prospectus will be filed, if required, pursuant to Rule 424(b) under the
      Securities Act, disclosing (i) the name of each such Selling Stockholder and
      of
      the participating broker-dealer(s), (ii) the number of shares involved, (iii)
      the price at which such the shares of Common Stock were sold, (iv)the
      commissions paid or discounts or concessions allowed to such broker-dealer(s),
      where applicable, (v) that such broker-dealer(s) did not conduct any
      investigation to verify the information set out or incorporated by reference
      in
      this prospectus, and (vi) other facts material to the transaction. In addition,
      upon the Company being notified in writing by a Selling Stockholder that a
      donee
      or pledgee intends to sell more than 500 shares of Common Stock, a supplement
      to
      this prospectus will be filed if then required in accordance with applicable
      securities law.

    

    The
      Selling Stockholders also may transfer the shares of Common Stock in other
      circumstances, in which case the transferees, pledgees or other successors
      in
      interest will be the selling beneficial owners for purposes of this
      prospectus.

    

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Discounts, concessions, commissions and
      similar selling expenses, if any, that can be attributed to the sale of the
      securities will be paid by the Selling Stockholder and/or the purchasers. Each
      Selling Stockholder has represented and warranted to the Company that it
      acquired the securities subject to this registration statement in the ordinary
      course of such Selling Stockholder’s business and, at the time of its purchase
      of such securities such Selling Stockholder had no agreements or understandings,
      directly or indirectly, with any person to distribute any such securities.
      

    

    The
      Company has advised each Selling Stockholder that it may not use shares
      registered on this Registration Statement to cover short sales of Common Stock
      made prior to the date on which this Registration Statement shall have been
      declared effective by the Commission. If a Selling Stockholder uses this
      prospectus for any sale of the Common Stock, it will be subject to the
      prospectus delivery requirements of the Securities Act. The Selling Stockholders
      will be responsible to comply with the applicable provisions of the Securities
      Act and Exchange Act, and the rules and regulations thereunder promulgated,
      including, without limitation, Regulation M, as applicable to such Selling
      Stockholders in connection with resales of their respective shares under this
      Registration Statement.

    

    The
      Company is required to pay all fees and expenses incident to the registration
      of
      the shares, but the Company will not receive any proceeds from the sale of
      the
      Common Stock. The Company has agreed to indemnify the Selling Stockholders
      against certain losses, claims, damages and liabilities, including liabilities
      under the Securities Act. 

    

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    

    Annex
      B

     

    IRISH
      MAG, INC.

    OFFERING
      OF COMMON STOCK

    INVESTOR
      QUESTIONNAIRE

    

    NAME
      OF INVESTOR: _________________________________

    

    In
      connection with your purchase of shares of common stock (the “Securities”)
      of
      Irish Mag, Inc. (the “Company”)
      in
      various transactions (the “Offerings”),
      please provide the Company with the following information for the Company’s use
      in preparing a Registration Statement (the “Registration
      Statement”)
      relating to the Securities acquired by you which you are asking the Company
      to
      register. 

    

    A. General
      Information

    

    1. Please
      state your or your organization’s name exactly
      as it should appear on the Registration Statement.

     

    

    2. Please
      provide the Tax Identification Number of the person or entity listed in response
      to Item 1 above.

     

    

    3. Have
      you
      or your organization had any position, office or other material relationship
      within the past three years with the Company or any of its affiliates (other
      than as a participant in the Offerings)?

    

    o Yes         o No 

    

    If
      yes,
      please indicate the nature of any such relationships below:

    

    4. Does
      the
      Plan of Distribution attached to this Questionnaire as Annex
      A
      accurately reflect the means by which you ultimately intend to dispose or sell
      the Securities? 

    

    
      
        o Yes         o No 

    

    B. Securities
      Holdings

    

    Please
      fill in all blanks in the following questions related to your beneficial
      ownership of
      the
      Company’s capital stock. Generally, the term “beneficial
      ownership”
refers
      to any direct or indirect interest in the securities which entitles you to
      any
      of the rights or benefits of ownership, even though you may not be the holder
      of
      record of the securities. For example, securities held in “street name” over
      which you exercise voting or investment power would be considered beneficially
      owned by
      you.
      Other examples of indirect ownership include ownership by a partnership in
      which
      you are a partner or by an estate or trust of which you or any member of your
      immediate
      family is
      a
      beneficiary. Ownership of securities held in the names of your spouse, minor
      children or other relatives who live in the same household may be attributed
      to
      you. 

    

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

       

    

    Please
      note: If
      you
      have any reason to believe that any interest in securities of the Company which
      you may have, however remote, is a beneficial interest, please describe such
      interest. For purposes of responding to this questionnaire, it is preferable
      to
      err on the side of inclusion rather than exclusion. Where the SEC's
      interpretation of beneficial
      ownership would
      require disclosure of your interest or possible interest in certain securities
      of the Company, and you believe that you do not actually possess the attributes
      of beneficial ownership, an appropriate response is to disclose the interest
      and
      at the same time disclaim beneficial ownership of the securities.

    

    1. As
      of the
      closing of the
      Purchase Agreement,
      I owned
      outright (including shares registered in my name individually or jointly with
      others, shares held in the name of a bank, broker, nominee, depository or in
      “street name” for my account), the following number of shares of the Company’s
      capital stock:

    

    2. As
      of the
      closing of the Purchase Agreement, I owned the following number of securities
      that are exercisable or exchangeable for, or convertible into the Company’s
      common stock:   

    

    3. In
      addition to the number of shares I own outright as indicated by my answer to
      Item B(l), as of the closing of the Purchase Agreement,
      I had or
      shared voting power or investment power, directly or indirectly, through a
      contract, arrangement, understanding, relationship or otherwise, over the
      following number of shares of the Company's capital stock: 

    

    4. Please
      identify the natural person or persons who have voting and/or investment control
      over the Company's securities that you own, and state whether such person(s)
      disclaims beneficial ownership of the securities. For example, if you are a
      general partnership, please identify the general partners in the partnership.
      

    

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    

    C. NASD
      Questions

    

    1. Are
      you
      (i) a “member”1
      of
      the
      National Association of Securities Dealers, Inc. (the “NASD”),
      (ii) an “affiliate”2of
      a
      member of the NASD, (iii) a “person associated with a member” or an
“associated person of a member” of the NASD or (iv) an immediate family
      member3
      of
      any of
      the foregoing persons? If yes,
      please
      identify the member and describe such relationship (whether direct or indirect),
      and please respond to Item 2 below; if no,
      please
      proceed directly to Item 3 below.

     

    
      
        o Yes         o No 

      

    

    
      

      Description:

      

      2. If
        you
        answered “yes” to Question Number 1, please furnish any information as to
        whether any such member intends to participate in any capacity in the proposed
        public resale of the Securities, including the details of such
        participation:

    

     

    
      
        

      

    

     

    1 
      NASD
      defines a “member” as any broker or dealer admitted to membership in the NASD,
      or any officer or partner or branch manager of such a member, or any person
      occupying a similar status or performing a similar function for such a
      member.

     

    2  The
      term
“affiliate” means a person that directly, or indirectly through one or more
      intermediaries, controls, or is controlled by, or is in common control with,
      the
      person specified. Persons who have acted or are acting on behalf of or for
      the
      benefit of a person include, but are not necessarily limited to, directors,
      officers, employees, agents, consultants and sales representatives. The
      following should apply for purposes of the foregoing:

     

    (i) a
      person
      should be presumed to control a Member if the person beneficially owns 10
      percent or more the outstanding voting securities of a Member which is a
      corporation, or beneficially owns a partnership interest in 10 percent or more
      of the distributable profits or losses of a Member which is a
      partnership;

     

    (ii)
      a
      Member should be presumed to control a person if the Member and Persons
      Associated With a Member beneficially own 10 percent or more of the outstanding
      voting securities of a person which is a corporation, or beneficially own a
      partnership interest in 10 percent or more of the distributable profits or
      losses of a person which is a partnership; (iii) a person should be
      presumed to be under common control with a Member if:

     

    (1) the
      same
      person controls both the Member and another person by beneficially owning 10
      percent or more of the outstanding voting securities of a Member or person
      which
      is a corporation, or by beneficially owning a partnership interest in 10 percent
      or more of the distributable profits or losses of a Member or person which
      is a
      partnership; or

     

    (2)
      a
      person having the power to direct or cause the direction of the management
      or
      policies of the Member or such person also has the power to direct or cause
      the
      direction of the management or policies of the other entity in
      question.

     

    3 
      Immediate family includes parents, mother-in-law, father-in-law, husband or
      wife, brother or sister, brother-in-law or sister-in-law, son-in-law or
      daughter-in-law, and children, or any other person who is supported, directly
      or
      indirectly, to a material extent, by a person associated with a member of the
      NASD or any other broker dealer.

    

    
      
         

      

      
        B-3

        
          

        

      

      
         

      

    

    

    

    3. Are
      you
      or have you been an “underwriter or related person”4
      or
      a
      person associated with an underwriter or related person, including, without
      limitation, with respect to the proposed public resale of the Securities? If
      yes, please identify the underwriter or related person and describe such
      relationship (whether direct or indirect).

    

    
      o Yes         o No 

    Description:

    

    4. If
      known,
      please describe in detail any underwriting compensation received or underwriting
      arrangements or dealings entered into during the previous twelve months, or
      proposed to be consummated in the next twelve months, between (i) any
      underwriter or related person, member of the NASD, affiliate of a member of
      the
      NASD, person associated with a member or associated person of a member of the
      NASD or any immediate family member thereof, on the one hand, and (ii) the
      Company, or any director, officer or shareholder thereof, on the other hand,
      which provides for the receipt of any item of value and/or the transfer of
      any
      warrants, options or other securities from the Company to any such person (other
      than the information relating to the arrangements with any investment firm
      or
      underwriting organization which may participate in the proposed public resale
      of
      the Securities). 

    

    Description:

    

    5. Have
      you
      purchased the securities in the ordinary course of business?

    

    
      o Yes         o No 

    

    

    D. Regulation
      M

    

    You
      hereby acknowledge and agree that you have been advised by the Company that
      the
      anti-manipulation rules of Regulation M under the Exchange Act may apply to
      sales of shares in the market and to the activities of you and the other selling
      stockholders and your and their affiliates. In addition, you acknowledge that
      have agreed to make copies of the prospectus (as it may be supplemented or
      amended from time to time) available to you and the other selling stockholders
      for the purpose of satisfying the prospectus delivery requirements of the
      Securities Act. 

    

    E. Signatures

    

    The
      undersigned has prepared and carefully read this questionnaire. The undersigned
      understands that:

     

    
      
 

    4 
      The term
“underwriter or related person” includes underwriters, underwriters' counsel,
      financial consultants and advisors, finders, members of the selling or
      distribution group, and any and all other persons associated with or related
      to
      any of such persons, including members of the immediate family of such
      persons.

     

    
      
         

      

      
        B-4

        
          

        

      

      
         

      

       

    

    1. Thelen
      Reid Brown Raysman & Steiner LLP, 701 Eighth Street, N.W., Washington, DC
      20001, is the attorney for the Company.

    

    2. The
      above
      attorney will rely upon the answers and representations made above when
      preparing or reviewing documents, including, with limitation, the Registration
      Statement.

    

    3. One
      who
      causes documents to be misleading may be held liable civilly to investors and
      other persons who are damaged as a result of such
      misrepresentation.

    

    In
      view
      of the situation described above, the undersigned represents that the
      undersigned:

    

    1. has
      considered carefully each of the above questions;

    

    2. has
      answered each question fully and truthfully; and

    

    3. has
      knowledge of no facts other than as set forth above which might be construed
      to
      qualify any of the above answers to this questionnaire.

    

    The
      undersigned hereby agrees to indemnify and hold harmless the Company, its
      directors, officers, counsels and affiliates from and against any and all loss,
      liability, charge, claim, damage, and expense whatsoever as and when incurred,
      arising out of, based upon, or in connection with any incorrect or incomplete
      information contained in this questionnaire. 

    

    THE
      UNDERSIGNED WILL NOTIFY THE COMPANY PROMPTLY OF ANY SUBSTANTIAL CHANGES IN
      THE
      FOREGOING INFORMATION THAT MAY OCCUR.

    

    Date:
      ________________

    

    
      	
              For
                Individuals:

            	
              For
                Entities:

            
	 	 
	
              
                _______________________________

              

            	
              _______________________________

            
	
              Print
                Name Above

            	
              Print
                Name Above

            
	 	 
	
              
                _______________________________

              

            	
              By:
                ____________________________

            
	
              Sign
                Name Above

            	
              Name:

            
	 	
              Title:

            
	 	 
	
              
                _______________________________

              

            	
              _______________________________

            
	
              State
                of residence

            	
              State
                of Residence

            

    

    

    
      
         

      

      
        B-5

        
          

        

      

      
         

      

    

    PLEASE
      RETURN THE COMPLETED QUESTIONNAIRE BY FACSIMILE
      AND OVERNIGHT MAIL
      TO:

    

    

    Dawn
      M.
      Bernd-Schulz, Esq.

    Thelen
      Reid Brown Raysman & Steiner LLP

    701
      Eighth Street, N.W.

    Washington,
      DC 20001

    Telephone:
      (202) 508-4178

    Facsimile:
      (202) 654-3372

    dberndschulz@thelen.com
      

    

    

    
      
         

      

      
        B-6

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