Document:

China Power Technology, Inc.: Exhibit 4.1- Filed by newsfilecorp.com

Exhibit 4.1

REGISTRATION RIGHTS AGREEMENT

June 16, 2010

To each of the several Investors named in Securities Purchase Agreement of even date herewith 

Ladies and Gentlemen:

  This will confirm that in consideration of your agreement on the date hereof to purchase an aggregate of 3,703,704 shares (the “Shares”) of Common Stock, $.001 par value per share of China Power Technology, Inc., a Nevada
corporation (the “Company”), pursuant to the Securities Purchase Agreement of even date herewith (the “Purchase Agreement”) between the Company and you, among others, and as an inducement to you to consummate the
transactions contemplated by the Purchase Agreement, the Company covenants and agrees with each of you as follows:

1. 

Certain Definitions.  As used in this Agreement, the following terms shall have the following respective meanings and all capitalized terms used but not defined herein which are defined in the Purchase
Agreement shall have the respective meanings given to such terms in the Purchase Agreement. 

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

  “Exchange Act” shall mean the Securities Exchange Act of 1934, as
  amended, or any similar federal statute, and the rules and regulations of the
  Commission thereunder, all as the same shall be in effect at the time.

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

“Registration Expenses” shall have the meaning set forth in Section 8.

 “Registrable Securities” shall mean the (i) Shares and (ii) 2010 Make
 Good Shares and, 2011 Make Good Shares and Anti-dilution Shares (each as
 defined in the Make Good Escrow Agreement); provided, however, that the
 securities referred to in clause (ii) hereof shall only become Registrable
 Securities if and when they are released from escrow and transferred to the
 Investors and notwithstanding the foregoing, Registrable Securities shall
 exclude any such Shares which have been (a) registered under the Securities Act
 pursuant to an effective registration statement filed thereunder and disposed
 of in accordance with the registration statement covering them or (b) publicly
 sold pursuant to Rule 144 under the Securities Act or saleable under Rule 144
 without restriction as to volume or otherwise 

Registration Rights Agreement -- Page 2

 "Registration Statement" shall mean the registration statement required to be filed in accordance with Section 4 for the registration of the Shares under this Agreement, including in each case the Prospectus, amendments and supplements to such
registration statements or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference therein. 

 “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

“Selling Expenses” shall have the meaning set forth in Section 8.

2. 

Restrictive Legend.  Each certificate representing Shares shall, except as otherwise provided in this Section 2 or in Section 3, be stamped or otherwise imprinted with a legend substantially in the following
form:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND
APPLICABLE LAWS OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS AVAILABLE WITH RESPECT THERETO.”

A certificate shall not bear such legend if in the opinion of counsel satisfactory to the Company addressed to the Company and any transfer agent for the securities represented thereby to the effect that such securities may be publicly sold without
registration under the Securities Act and any applicable state securities laws. 

3. 

Notice of Proposed Transfer.  Prior to any proposed transfer of the Shares (other than under the circumstances described in Sections 4, 5, or 6), the holder thereof shall give written notice to the Company of
its intention to effect such transfer. Each such notice shall describe the manner of the proposed transfer and, if requested by the Company, shall be accompanied by an opinion of counsel satisfactory to the Company to the effect that the proposed
transfer may be effected without registration under the Securities Act and any applicable state securities laws, whereupon the holder of such Shares shall be entitled to transfer such Shares in accordance with the terms of its notice;
provided, however, that no such opinion of counsel shall be required for a transfer in accordance with the constituent documents of the entity to one or more partners or members, or employees of the transferor (in the case of a
transferor that is a partnership or a limited liability company, respectively) or to an affiliated corporation (in the case of a transferor that is a corporation).  Each certificate for the Shares transferred as above provided shall bear the legend
set forth in Section 2, except that such certificate shall not bear such legend if (i) such transfer is in accordance with the provisions of Rule 144 (or any other rule permitting public sale without registration under the Securities Act)
or (ii) the opinion of counsel referred to above is to the further effect that the transferee and any subsequent transferee (other than an affiliate of the Company) would be entitled to transfer such securities in a public sale without registration
under the Securities Act. The restrictions provided for in this Section 3 shall not apply to securities which are not required to bear the legend prescribed by Section 2 in accordance with the provisions of that Section. 

Registration Rights Agreement -- Page 3

	
 	
4. 		
Required Registration.

	

(a)  

Within ninety (90) days after the Closing date, the Company shall prepare
and file with the Commission the Registration Statement covering the Shares pursuant to Rule 415.  The Registration Statement required to be filed under this Agreement shall be filed on Form S-1 (or such other form permissible under the Securities
Act).

  (b) 

  The Company shall use commercially reasonable efforts to cause the
  Registration Statement required to be filed under this Agreement to be
  declared effective by the SEC within one hundred and eighty (180) days after
  Closing date, and shall use commercially reasonable efforts to keep each the
  Registration Statement continuously effective. 

  (c)  

  The Company shall be entitled to include in any registration statement referred to in this Section 4, for sale in accordance with the method of disposition specified by the requesting holders, shares of Common Stock to be sold by the Company
for its own account, except as and to the extent that, in the opinion of the managing underwriter (if such method of disposition shall be an underwritten public offering), such inclusion would adversely affect the marketing of the Registrable
Securities to be sold. Except for registration statements on Form S-4, S-8 or any successor thereto, the Company will not file with the Commission any other registration statement with respect to its Common Stock, whether for its own account or that
of other stockholders, from the date of receipt of a notice from requesting holders pursuant to this Section 4 until the completion of the period of distribution of the registration contemplated thereby (if the method of disposition is an
underwritten public offering) or until the registration statement becomes effective (if the Registration Statement is filed under Rule 415 of the Securities Act).

(d)

 If the Registration Statement is not declared effective by the Commission
within one hundred and eighty (180) days after Closing date, the Company shall
pay to each Investor an amount in cash, as partial liquidated damages and not as
a penalty, equal to 2.0% of the aggregate Investment Amount paid by such
Investor for Shares pursuant to the Securities Purchase Agreement.

Registration Rights Agreement -- Page 4

5.

Incidental Registration. If the Company at any time (other than pursuant
to Section 4 or Section 6) proposes to register any of its securities under the
Securities Act for sale to the public, whether for its own account or for the
account of other security holders or both (except with respect to registration
statements on Forms S-4, S-8 or another form not available for registering the
Registrable Securities for sale to the public), each such time it will give
written notice to all holders of outstanding Registrable Securities of its
intention so to do. Upon the written request of any such holder, received by the
Company within 10 days after the giving of any such notice by the Company, to
register any of its Registrable Securities, the Company
will use its best efforts to cause the Registrable Securities as to which registration shall have been so requested to be included in the securities to be covered by the registration statement proposed to be filed by the Company, all to the extent
requisite to permit the sale or other disposition by the holder of such Registrable Securities so registered.  In the event that any registration pursuant to this Section 5 shall be, in whole or in part, an underwritten public offering of Common
Stock, the number of shares of Registrable Securities to be included in such an underwriting may be reduced (pro rata among the requesting holders based upon the number of shares of Registrable Securities owned by such holders) if and to the extent
that the managing underwriter shall be of the opinion that such inclusion would adversely affect the marketing of the securities to be sold by the Company therein, provided, however, that if any shares are to be included in such
underwriting for the account of any person other than the Company or requesting holders of Registrable Securities, such number of shares of Registrable Securities shall be reduced pro rata based on the ownership of the selling stockholders that
include shares in such registration of shares of Common Stock (determined on a fully-diluted basis); and provided, further, however, that in no event may less than one-third of the total number of shares of Common Stock to be
included in such underwriting be made available for shares of Registrable Securities. Notwithstanding the foregoing provisions, the Company may withdraw any registration statement referred to in this Section 5 without thereby incurring any liability
to the holders of Registrable Securities.

6. 

Registration on Form S-3.  If at any time (i) a holder or holders of Registrable Securities request that the Company file a registration statement on Form S-3 or any successor thereto for a public offering of
all or any portion of the shares of Registrable Securities held by such requesting holder or holders, and (ii) the Company is a registrant entitled to use Form S-3 or any successor thereto to register such shares, then the Company shall use its best
efforts to register under the Securities Act on Form S-3 or any successor thereto, for public sale in accordance with the method of disposition specified in such notice, the number of shares of Registrable Securities specified in such notice.
Whenever the Company is required by this Section 6 to use its best efforts to effect the registration of Registrable Securities, each of the procedures and requirements of Section 4 (including but not limited to the requirement that the Company
notify all holders of Registrable Securities from whom notice has not been received and provide them with the opportunity to participate in the offering) shall apply to such registration, provided, however, the Company shall be
obligated to register Registrable Securities pursuant to this Section 6 on one occasion only, and provided, further, however, that the requirements contained in the first sentence of Section 4(a) shall not apply to any
registration on Form S-3 which may be requested and obtained under this Section 6.

7. 

Registration Procedures.  If and whenever the Company is required by the provisions of Sections 4, 5 or 6 to use its best efforts to effect the registration of any shares of Registrable Securities under the
Securities Act, the Company will, as expeditiously as possible:

  (a)  

  prepare and file with the Commission a registration statement (which, in the case of an underwritten public offering pursuant to Section 4, shall be on Form S-1 or other form of general applicability satisfactory to the managing underwriter
selected as therein provided) with respect to such securities and use its best efforts to cause such registration statement to
become and remain effective for the period of the distribution contemplated thereby (determined as hereinafter provided);

Registration Rights Agreement -- Page 5

  (b)  

  prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for the period specified in
paragraph (a) above and comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such registration statement in accordance with the sellers’ intended method of disposition set
forth in such registration statement for such period;

  (c)  

  furnish to each seller of Registrable Securities and to each underwriter such number of copies of the registration statement and the prospectus included therein (including each preliminary prospectus) as such persons reasonably may request in
order to facilitate the public sale or other disposition of the Registrable Securities covered by such registration statement;

  (d)  

  use its best efforts to register or qualify the Registrable Securities covered by such registration statement under the securities or “blue sky” laws of such jurisdictions as the sellers of Registrable Securities or, in the case of
an underwritten public offering, the managing underwriter reasonably shall request, provided, however, that the Company shall not for any such purpose be required to qualify generally to transact business as a foreign corporation in
any jurisdiction where it is not so qualified or to consent to general service of process in any such jurisdiction;

  (e)  

  use its best efforts to list the Registrable Securities covered by such registration statement with any securities exchange on which the Common Stock of the Company is then listed;

  (f)  

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

  (g)  

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

                            

Registration Rights Agreement -- Page 6

  (h)  

  make available for inspection by each seller of Registrable Securities, any underwriter participating in any distribution pursuant to such registration statement, and any attorney, accountant or other agent retained by such seller or
underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the Company’s officers, directors and employees to supply all information reasonably requested by any such seller, underwriter,
attorney, accountant or agent in connection with such registration statement.

  For purposes of Section 7(a) and 7(b), the period of distribution of Registrable Securities in a firm commitment underwritten public offering shall be deemed to extend until each underwriter has completed the distribution of all securities
purchased by it, and the period of distribution of Registrable Securities in any other registration shall be deemed to extend until all of the Registrable Securities covered by such Registration Statement have been sold pursuant to such Registration
Statement or all of the Registrable Securities covered by such Registration Statement may be sold without registration under Rule 144 of the 1933 Act.

  In connection with each registration hereunder, the sellers of Registrable Securities will furnish to the Company in writing such information with respect to themselves and the proposed distribution by them as reasonably shall be necessary in
order to assure compliance with federal and applicable state securities laws.

  In connection with each registration pursuant to Sections 4, 5 or 6 covering an underwritten public offering, the Company and each seller agree to enter into a written agreement with the managing underwriter selected in the manner herein provided
in such form and containing such provisions as are customary in the securities business for such an arrangement between such underwriter and companies of the Company’s size and investment stature.

8. 

Expenses.  All expenses incurred by the Company in complying with Sections 4, 5 and 6, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel and
independent public accountants for the Company, fees and expenses (including counsel fees) incurred in connection with complying with state securities or “blue sky” laws, fees of the National Association of Securities Dealers, Inc.,
transfer taxes, fees of transfer agents and registrars, costs of insurance, but excluding any
Selling Expenses, are called “Registration Expenses”.  All underwriting discounts and selling commissions applicable to the sale of Registrable Securities are called “Selling Expenses”.

Registration Rights Agreement -- Page 7

  The Company will pay all Registration Expenses in connection with each registration statement under Sections 4, 5 or 6. All Selling Expenses in connection with each registration statement under Sections 4, 5 or 6 shall be borne by the
participating sellers in proportion to the number of shares sold by each, or by such participating sellers other than the Company (except to the extent the Company shall be a seller) as they may agree.

9. 

Indemnification and Contribution. (a) In the event of a registration of any of the Registrable Securities under the Securities Act pursuant to Sections 4, 5 or 6, the Company will indemnify and hold harmless
each seller of such Registrable Securities thereunder, each underwriter of such Registrable Securities thereunder and each other person, if any, who controls such seller or underwriter within the meaning of the Securities Act, against any losses,
claims, damages or liabilities, joint or several, to which such seller, underwriter or controlling person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any registration statement under which such Registrable Securities was registered under the Securities Act pursuant to
Sections 4, 5 or 6, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and will reimburse each such seller, each such underwriter and each such controlling person for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action, provided, however, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of or
is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by any such seller, any such underwriter or any such controlling person in writing specifically for use in
such registration statement or prospectus.

  (b)  

  In the event of a registration of any of the Registrable Securities under the Securities Act pursuant to Sections 4, 5 or 6, each seller of such Registrable Securities thereunder, severally and not jointly, will indemnify and hold harmless the
Company, each person, if any, who controls the Company within the meaning of the Securities Act, each officer of the Company who signs the registration statement, each director of the Company, each underwriter and each person who controls any
underwriter within the meaning of the Securities Act, against all losses, claims, damages or liabilities, joint or several, to which the Company or such officer, director, underwriter or controlling person may become subject under the Securities Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement under
which such Registrable Securities was registered under the Securities Act pursuant to Sections 4, 5 or 6, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the
Company and each such officer, director, underwriter and controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action, provided,
however, that such seller will be liable hereunder in any such case if and only to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged
omission made in reliance upon and in conformity with information pertaining to such seller, as such, furnished in writing to the Company by such seller specifically for use in such registration statement or prospectus, and provided,
further, however, that the liability of each seller hereunder shall not in any event exceed the net proceeds received by such seller from the sale of Registrable Securities covered by such registration statement.

Registration Rights Agreement -- Page 8

  (c)  

  Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying
party in writing thereof, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to such indemnified party other than under this Section 9 and shall only relieve it from any liability which it
may have to such indemnified party under this Section 9 if and to the extent the indemnifying party is prejudiced by such omission. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of
the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel satisfactory to such indemnified party, and, after notice from the
indemnifying party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 9 for any legal expenses subsequently incurred by
such indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected, provided, however, that, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be reasonable defenses available to it which are different from or additional to those available to the indemnifying party or if
the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, the indemnified party shall have the right to select a separate counsel and to assume such legal defenses and otherwise to
participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the indemnifying party as incurred.

  (d)  

  In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any holder of Registrable Securities exercising rights under this Agreement, or any controlling person of any
such holder, makes a claim for indemnification pursuant to this Section 9 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last
right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 9 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any such
selling holder or any such controlling person in circumstances for which indemnification is provided under this Section 9; then, and in each such case, the Company and such holder will contribute to the aggregate losses, claims, damages or
liabilities to which they may be subject (after contribution
from others) in such proportion so that such holder is responsible for the portion represented by the percentage that the public offering price of its Registrable Securities offered by the registration statement bears to the public offering price of
all securities offered by such registration statement, and the Company is responsible for the remaining portion; provided, however, that, in any such case, (A) no such holder will be required to contribute any amount in excess of the
public offering price of all such Registrable Securities offered by it pursuant to such registration statement; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be
entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation.

Registration Rights Agreement -- Page 9

10.

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

11. 

Rule 144 Reporting. With a view to making available the benefits of certain rules and regulations of the Commission which may at any time permit the sale of the Registrable Securities to the public without
registration, at all times after 90 days after any registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, the Company agrees to:

  (a) 

  make and keep public information available, as those terms are understood and
  defined in Rule 144 under the Securities Act;

  (b) 

  use its best efforts to file with the Commission in a timely manner all
  reports and other documents required of the Company under the Securities Act
  and the Exchange Act; and

  (c)  

  furnish to each holder of Registrable Securities forthwith upon request a written statement by the Company as to its compliance with the reporting requirements of such Rule 144 and of the Securities Act and the Exchange Act, a copy of the most
recent annual or quarterly report of the Company, and such other reports and documents so filed by the Company as such holder may reasonably request in availing itself of any rule or regulation of the Commission allowing such holder to sell any
Registrable Securities without registration.

12. 

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

  (a) 

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

Registration Rights Agreement -- Page 10

  (b) 

  This Agreement has been duly executed and delivered by the Company and
  constitutes the legal, valid and binding obligation of the Company,
  enforceable in accordance with its terms.

	
 	
13. 		
Miscellaneous.

	

(a) 

All covenants and agreements contained in this Agreement by or on behalf of
any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto. 

  (b)  

  All notices, requests, consents and other communications hereunder shall be in writing and shall be delivered in person, mailed by overnight courier service, certified or registered mail, return receipt requested, or sent by telecopier or
telex, addressed as follows:

  if to the Company or any other party hereto, at the address or telecopier number of such party set forth in the Purchase Agreement;

  if to any subsequent holder Sharesto it at such address or telecopier number as may have been furnished to the Company in writing by such holder;

or, in any case, at such other address or addresses as shall have been furnished in writing to the Company (in the case of a holder of Shares) or to the holder Shares (in the case of the Company) in accordance with the provisions of this
paragraph.

  (c) 

  This Agreement shall be governed by and construed in accordance with the laws
  of the State of New York, without giving effect to the principles of conflicts
  of laws thereof.

  (d) 

  This Agreement may not be amended or modified, and no provision hereof may be
  waived, without the written consent of the Company and the holders of at least
  a majority of the outstanding Shares.

  (e) 

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

  (f)  

  The obligations of the Company to register shares of Registrable Securities under Sections 4, 5 or 6 shall terminate on the second anniversary of the date of this Agreement.

  (g)  

  If requested in writing by the underwriters for the initial underwritten public offering of securities of the Company, each holder of Registrable Securities who is a party to this Agreement shall agree not to sell publicly any shares of
Registrable Securities or any other shares of Common Stock (other than shares of Registrable Securities or other shares of Common Stock being registered in such offering), without the consent of such underwriters, for a period of
not more than 180 days following the effective date of the registration statement relating to such offering; provided, however, that all persons entitled to registration rights with respect to shares of Common Stock who are not parties
to this Agreement, all other persons selling shares of Common Stock in such offering, all persons holding in excess of 1% of the capital stock of the Company on a fully diluted basis and all executive officers and directors of the Company shall also
have agreed not to sell publicly their Common Stock under the circumstances and pursuant to the terms set forth in this Section 13(g).

Registration Rights Agreement -- Page 11

  (h) 

  Notwithstanding the provisions of Section 7 (a), the Company’s obligation to
  file a registration statement, or cause such registration statement to become
  and remain effective, shall be suspended for a period not to exceed 90 days in
  any 12-month period if there exists at the time material non-public
  information relating to the Company which, in the reasonable opinion of the
  Company, should not be disclosed.

  (i) 

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

  Please indicate your acceptance of the foregoing by signing and returning the enclosed counterpart of this letter, whereupon this Agreement shall be a binding agreement between the Company and you.

Very truly yours,

CHINA POWER TECHNOLOGY, INC.

By: ____________________________

        Name: Honghai Zhang 

       
Title: Chairman 

AGREED TO AND ACCEPTED as of the date first above written.

Purchasers named in the Purchase Agreement:

Registration Rights Agreement -- Page 12 

NAME OF INVESTOR 

____________________________

____________________________

By: ____________________________

       Name:  

       Title:China Power Technology, Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is dated as of June 16, 2010, by and among China Power Technology, Inc., a Nevada corporation (collectively with its predecessors, the
“Company”), and the investors listed on the Schedule of Buyers attached hereto as Annex A and identified on the signature pages hereto (each, an “Investor” and collectively, the “Investors”).

BACKGROUND

Subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act (as defined below) and Rule 506 promulgated thereunder, the Company desires to issue and sell to each
Investor, and each Investor, severally and not jointly, desires to purchase from the Company certain securities of the Company, as more fully described in this Agreement (the “Transaction”). 

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the
Investors agree as follows: 

ARTICLE 1. 

DEFINITIONS

1.1. Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this Section 1.1: 

“Action” means any action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or threatened in writing against or affecting
the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal, state, county, local or foreign), stock market, stock exchange or trading
facility. 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and
construed under Rule 144. 

“Business Day” means any day except Saturday, Sunday and any day which is a federal legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or
other governmental action to close. 

“Closing” means the closing of the purchase and sale of the Shares pursuant to
Article II.

“Closing Date” means the Business Day on which all of the conditions set forth in Sections 5.1 and 5.2 hereof are satisfied, or such other date as the parties may agree. 

“Commission” means the Securities and Exchange Commission.

“Common Stock” means the common stock of the Company, par value $0.001 per share, and any securities into which such common stock may hereafter be reclassified. 

“Common Stock Equivalents” means any securities of the Company or any Subsidiary which entitle the holder thereof to acquire Common Stock at any time, including without limitation, any debt, preferred
stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock or other securities that entitle the holder to receive, directly or
indirectly, Common Stock. 

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

“GAAP” means U.S. generally accepted accounting principles. 

 “Intellectual Property Rights Licensing Agreements” has the meaning set forth in Section 3.1(p) . 

“Investment Amount” means, with respect to each Investor, the Investment Amount indicated on such Investor’s signature page to this Agreement. 

“Lead Investor” means Sun Forever Limited.

 “Lien” means any lien, charge, encumbrance, security interest, right of first refusal or other restrictions of any kind. 

“Make Good Escrow Agreement” means the Make Good Escrow Agreement, dated as of the date hereof, among the Company, the escrow agent identified therein (the “Make Good Escrow Agent”),
the Make Good Pledgor and the Investors, in the form of Exhibit B hereto, as may be amended from time to time pursuant to Section 6.4 of this Agreement. 

“Make Good Pledgor” means Honghai Zhang.

 “Material Adverse Effect” means any of (i) a material and adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material and adverse effect on the results of
operations, assets, prospects, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) an adverse impairment to the Company’s ability to perform on a timely basis its obligations under any
Transaction Document. 

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

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“Outside Date” means the thirtieth (30th) calendar day following the date of this Agreement; provided, that if such day should fall on a day that is not a Business Day, the Outside
Date shall be deemed the next day that is a Business Day. 

“Per Share Purchase Price” equals $2.70.

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or
subdivision thereof) or other entity of any kind. 

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

“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. 

“Qualified Public Offering” means an underwritten public offering conducted by the Company in which it raises gross proceeds of at least $50 million at a price per share of no less than $5.40
and is listed concurrently or prior thereto on a Trading Market (other than the OTCBB). 

 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the date hereof, among the Company and the Investors, in the form of Exhibit A hereto. 

“Registration Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement.

“Requisite Holders” means the holders of a majority of the Shares.

 “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. 

“Securities” means the (i) Shares (ii) 2010 Make Good Shares, (iii) 2011 Make Good Shares,  and (iv) Anti-dilution Shares (each as defined in the Make Good Escrow Agreement). 

“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 this Agreement. 

“Short Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act and all types of direct and indirect stock pledges,
forward sale contracts, options, puts, calls, swaps and similar arrangements
(including on a total return basis), and sales and other transactions through non-US broker dealers or foreign regulated brokers. 

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“Subsidiary” means, as to the Company, any “subsidiary” as defined in Rule 1-02(x) of the Regulation S-X promulgated by the Commission under the Exchange Act. 

“Trading Day” means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market (other than the
OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the
over-the-counter market as reported by the Pink Sheets LLC (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii)
and (iii) hereof, then Trading Day shall mean a Business Day. 

“Trading Market” means whichever of the New York Stock Exchange, the NYSE/AMEX, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or OTC Bulletin Board on which the
Common Stock is listed or quoted for trading on the date in question. 

“Transaction Documents” means this Agreement, the Registration Rights Agreement, the Make Good Escrow Agreement, and any other documents or agreements executed in connection with the transactions
contemplated hereunder. 

  “Transfer Agent” means Globex Transfer LLC, the current transfer agent of the Company with a mailing address of 1607 Trinidad Ave, Deltona, FL 32725-5555, and any successor transfer agent of the Company. 

ARTICLE 2. 

PURCHASE AND SALE

2.1. Closing. Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to each Investor, and each Investor shall, severally and not jointly, purchase from
the Company, the Shares representing such Investor’s Investment Amount, calculated as the quotient of such Investor’s Investment Amount divided by the Per Share Purchase Price. The Closing shall take place at the offices of Pillsbury
Winthrop Shaw Pittman LLP, 2300 N Street, N.W., Washington, DC, on the Closing Date or at such other location or time as the parties may agree. 

2.2. Closing Deliveries.  At the Closing, the Company shall deliver or cause to be delivered to each Investor the following (the “Company Deliverables”): a certificate evidencing a number of
Shares equal to such Investor’s Investment Amount divided by the Per Share Purchase Price, registered in the name of such Investor; and 

(a) By the Closing, each Investor shall deliver or cause to be delivered the agreements specified in Section 5.2(d), each duly signed by such Investor (collectively, the “Investor Deliverables”). 

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(b) Within five (5) business days following the Closing date, each Investor shall cause to be delivered to the Company, its Investment Amount, in United States dollars or the equivalent in Chinese RMB calculated at the
exchange rate on the Closing Date, and in immediately available funds, by wire transfer to an account designated in writing by the Company for such purpose. The wire instructions for the Company’s account are attached hereto as Annex
B.

ARTICLE 3. 

REPRESENTATIONS AND WARRANTIES

3.1. Representations and Warranties of the Company.  Except as set forth in the Disclosure Materials (as defined below), the Company hereby makes the following representations and warranties to each Investor: 

(a) Subsidiaries.  The Company has no direct or indirect Subsidiaries other than as specified in the SEC Reports.  The Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and
clear of any and all Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights. 

(b) Organization and Qualification.  The Company and each Subsidiary are duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or
organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions of its
respective certificate or articles of incorporation, bylaws or other organizational or charter documents.  The Company and each Subsidiary are duly qualified to conduct its respective businesses and are in good standing as a foreign corporation or
other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not, individually
or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. 

(c) Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to
carry out its obligations thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly authorized by all necessary action on the part of
the Company and no further action is required by the Company or any Subsidiary in connection therewith. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the
terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application. 

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(d) No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated thereby do not and will not (i) conflict
with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument
(evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which
any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse
Effect. 

(e) Filings, Consents and Approvals.  Neither the Company nor any Subsidiary is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any
United States or PRC court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (i) the filing with the
Commission of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, (ii) filings required by state securities laws, (iii) the filing of a Notice of Sale of Securities on Form D with the
Commission under Regulation D of the Securities Act, (iv) the filings required in accordance with Section 4.5 hereof and (v) those that have been made or obtained prior to the date of this Agreement. 

(f) Issuance of the Shares. The Shares have been duly authorized and, when issued and paid for in accordance with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and
clear of all Liens.  The Company has reserved from its duly authorized capital stock the shares of Common Stock issuable pursuant to this Agreement in order to issue the Shares. 

(g) Capitalization.  The number of shares and type of all authorized, issued and outstanding capital stock of the Company, and all shares of Common Stock reserved for issuance under the Company’s various
option and incentive plans, is specified in Schedule 3.1(g).  Except as specified in Schedule 3.1(g), no securities of the Company are entitled to preemptive or similar rights, and no Person has any right of first refusal, preemptive
right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as specified in Schedule 3.1(g), there are no outstanding options, warrants, scrip rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts,
commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock, or securities or rights convertible or exchangeable into shares of Common Stock.  The issue and
sale of the Shares will not,
immediately or with the passage of time, obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Investors) and will not result in a right of any holder of Company securities to adjust the exercise,
conversion, exchange or reset price under such securities.

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(h) SEC Reports; Financial Statements.  The Company has filed all reports required to be filed by it under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the
twelve months preceding the date hereof (or such shorter period as the Company was required by law to file such reports) (the foregoing materials being collectively referred to herein as the “SEC Reports” and, together with the
Schedules to this Agreement (if any), the “Disclosure Materials”) on a timely basis or has timely filed a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of
their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when
filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of
filing. Such financial statements have been prepared in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto, and fairly present in all
material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to
normal, immaterial, year-end audit adjustments. 

(i) Press Releases. The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made and when made, not misleading. 

(j) Material Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there has been no event, occurrence or
development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) neither the Company nor any Subsidiary has incurred any liabilities (direct, indirect, contingent, or otherwise) other than (A) trade
payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be
disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting or the identity of its auditors, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its
stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities to any Company or Subsidiary officer, director or Affiliate, except pursuant
to existing Company stock option plans.

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The Company does not have pending before the Commission any request for confidential treatment of information. 

(k) Litigation. There is no Action which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Shares or (ii) except as specifically disclosed in
the SEC Reports, could, if there were an unfavorable decision, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof (in
his or her capacity as such), is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty, except as specifically disclosed in the SEC Reports.
 There has not been, and to the knowledge of the Company, there is not pending any investigation by the Commission involving the Company or any current or former director or officer of the Company (in his or her capacity as such). The Commission has
not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 

(l) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company or any Subsidiary. 

(m) Compliance.  Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a
default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument
to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation
of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case as could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. The Company is in compliance with all effective requirements of the
Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations thereunder, that are applicable to it, except where such noncompliance could not have or reasonably be expected to result in a Material Adverse Effect. 

(n) Regulatory Permits.  The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate United States and PRC federal, state, local or foreign regulatory
authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not, individually or in the aggregate, have or reasonably be expected to result in a Material
Adverse Effect, and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any such permits. 

(o) Title to Assets.  The Company and the Subsidiaries have valid land use rights or valid and binding leases for all real property that is material to their respective
businesses and good and marketable title in or valid and binding leases for all personal property owned or leased by them, as applicable, that is material to their respective businesses, in each case free and clear of all Liens, except for Liens as
do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries. Any real property and facilities held under lease by the Company and
the Subsidiaries are held by them under valid, subsisting and enforceable leases of which the Company and the Subsidiaries are in compliance, except as could not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect. 

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(p) Patents and Trademarks.  Schedule 3.1(p) sets forth all of the patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar
rights that the Company and its Subsidiaries owns or has the rights to use (collectively, the “Intellectual Property Rights”).  The Intellectual Property Rights constitute all of the patents, patent applications, trademarks,
trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary for use by the Company and its Subsidiaries in connection with their respective businesses as described in the SEC Reports. Neither
the Company nor any of its Subsidiaries has received a written or oral notice that the Intellectual Property Rights used by any of them violates or infringes upon the rights of any Person. Except as set forth in Schedule 3.1(p), all such
Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. To the knowledge of the Company and its Subsidiaries, no former or current employee, no former or
current consultant, and no third-party joint developer of the Company or its Subsidiaries has any Intellectual Property Rights made, developed, conceived, created or written by the aforesaid employee, consultant or third-party joint developer during
the period of his or her retention by, or joint venture with, such Company or Subsidiary which can be asserted against any of the Company or any such Subsidiary. The Intellectual Property Rights and the owner thereof or agreement through which they
are licensed to any of the Company or its Subsidiaries are set forth on Schedule 3.1(p). By the Closing, the Company shall have entered into agreements by which it is granted irrevocable, exclusive, royalty-free licenses on all Intellectual
Property Rights that are registered to or owned by any Person other than the Company or its predecessor.  Such agreements together with the agreements referenced in Schedule 3.1(p) are collectively the “Intellectual Property Rights
Licensing Agreements.” The Company and its Subsidiaries will take such action as may be required, including making and maintaining the filings set forth in Schedule 3.1(p) and shall cause any such transfers of Intellectual
Property Rights to the Company to be granted as is required in order for the Company to become the registered owner (in its current name) of all such Intellectual Property Rights (including, without limitation, the entering into of any Intellectual
Property Rights Licensing Agreements as may be necessary and the filing and maintaining of any information with the relevant PRC authority which relate to the change of name for those Intellectual Property Rights currently in the name of an entity
other than the Company). 

(q) Insurance.  The Company does not carry any business interruption insurance or third-party liability insurance or other insurance to cover risks associated with its business, so if the company suffers losses,
damages or liabilities and are unable to make a claim against a third party, the Company will be required to bear all such losses from its own funds.

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(r) Transactions With Affiliates and Employees.  Except as set forth in the SEC Reports, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company
is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by,
providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has
a substantial interest or is an officer, director, trustee or partner. 

(s) Solvency.  Based on the financial condition of the Company as of the Closing Date (and assuming that the Closing shall have occurred), (i) the Company’s fair saleable value of its assets exceeds the
amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital
to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital
requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash,
would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts
of cash to be payable on or in respect of its debt). 

(t) Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other
Person with respect to the transactions contemplated by this Agreement. The Investors shall have no obligation with respect to any fees or with respect to any claims (other than such fees or commissions owed by an Investor pursuant to written
agreements executed by such Investor which fees or commissions shall be the sole responsibility of such Investor) made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the
transactions contemplated by this Agreement.

(u) Listing and Maintenance Requirements. Except as specified in the SEC Reports, the Company has not, during the eighteen month period preceding the date hereof, received notice from any Trading Market to the
effect that the Company is not in compliance with the listing or maintenance requirements thereof.  The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with the listing and
maintenance requirements for continued listing of the Common Stock on the Trading Market on which the Common Stock is currently listed or quoted.  The issuance and sale of the Shares under the Transaction Documents does not contravene the rules and
regulations of the Trading Market on which the Common Stock is currently listed or quoted, and no approval of the shareholders of the Company thereunder is required for the Company to issue and deliver to the Investors the Shares contemplated by
Transaction Documents. 

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(v) Investment Company. The Company is not, and is not an Affiliate of, and immediately following the Closing will not have become, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended. 

(w) Application of Takeover Protections.  The Company has taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any
distribution under a rights agreement) or other similar anti-takeover provision under the Company’s Articles of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the
Investors as a result of the Investors and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation, the Company’s issuance of the Shares and the Investors’ ownership
of the Shares and the Make Good Pledgor’s pledge, and any delivery to the Investors, of 2010 Make Good Shares 2011 Make Good Shares and Anti-dilution Shares. 

(x) No Additional Agreements. The Company does not have any agreement or understanding with any Investor with respect to the transactions contemplated by the Transaction Documents other than as specified in the
Transaction Documents. 

(y) Foreign Corrupt Practices Act. Neither the Company nor any Subsidiary, nor to the knowledge of the Company, any agent or other person acting on behalf of any of the Company or any Subsidiary, has, directly or
indirectly, (i) used any funds, or will use any proceeds from the sale of the Shares, for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to
foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any Person
acting on their behalf of which the Company is aware) which is in violation of law, or (iv) has violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder. 

(z) PFIC. Neither the Company nor any Subsidiary is or intends to become a “passive foreign investment company” within the meaning of Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.

(aa) OFAC. Neither the Company nor any Subsidiary nor, to the knowledge of the Company, any director, officer, agent, employee, Affiliate or Person acting on behalf of the Company or any Subsidiary is currently
subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use the proceeds of the sale of the Shares, or lend,
contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person or entity, towards any sales or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned by OFAC or for the purpose
of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC. 

(bb) Make Good Shares. Make Good Pledgor is the sole record and beneficial owner of 2010 Make Good Shares, 2011 Make Good Shares and Anti-dilution Shares, and to the
best of the Company’s knowledge, holds such 2010 Make Good Shares, 2011 Make Good Shares and Anti-dilution Shares free and clear of all Liens. 

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(cc) Money Laundering Laws. The operations of each of the Company and any Subsidiary are and have been conducted at all times in compliance with the money laundering statutes of applicable jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any applicable governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or
proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company and/or any Subsidiary with respect to the Money Laundering Laws is pending or, to the best knowledge of the Company, threatened. 

(dd) Additional PRC Representations and Warranties.

(i) All material consents, approvals, authorizations or licenses requisite under PRC law for the due and proper establishment and operation of the Company and the Subsidiaries have been duly obtained from the relevant
PRC governmental authorities and are in full force and effect. 

(ii) All filings and registrations with the PRC governmental authorities required in respect of the Company and the Subsidiaries and their operations including, without limitation, the registration with the Ministry of
Commerce, the State Administration of Industry and Commerce, the State Administration for Foreign Exchange, tax bureau and customs authorities have been duly completed in accordance with the relevant PRC rules and regulations, except where, the
failure to complete such filings and registrations does not, and would not, individually or in the aggregate, have a Material Adverse Effect. 

(iii) The Company and the Subsidiaries have complied with all relevant PRC laws and regulations regarding the contribution and payment of its registered share capital, the payment schedule of which has been approved by
the relevant PRC governmental authorities. There are no outstanding rights of, or commitments made by the Company or any Subsidiary to sell any of their respective equity interests. 

(iv) Neither the Company nor any Subsidiary is in receipt of any letter or notice from any relevant PRC governmental authority notifying it of the revocation, or otherwise questioning the validity, of any licenses or
qualifications issued to it or any subsidy granted to it by any PRC governmental authority for non-compliance with the terms thereof or with applicable PRC laws, or the need for compliance or remedial actions in respect of the activities carried out
by the Company or such Subsidiary, except such revocation as does not, and would not, individually or in the aggregate, have a Material Adverse Effect. 

(v) The Company and the Subsidiaries have conducted their respective business activities within their permitted scope of business or have otherwise operated their respective businesses in compliance with all relevant
legal requirements and with all requisite licenses and approvals granted by competent PRC governmental authorities other than such non-compliance that do not, and would not, individually or in the aggregate, have a Material Adverse Effect. As to
licenses, approvals and government grants and concessions requisite or material for
the conduct of any part of the Company or any Subsidiaries’ business which is subject to periodic renewal, neither the Company nor such Subsidiary has any knowledge of any grounds on which such requisite renewals will not be granted by the
relevant PRC governmental authorities. 

12

(vi) With regard to employment and staff or labor, the Company and the Subsidiaries have complied with all applicable PRC laws and regulations in all material respects, including without limitation, laws and regulations
pertaining to welfare funds, social benefits, medical benefits, insurance, retirement benefits, pensions or the like, other than such non-compliance that do not, and would not, individually or in the aggregate, have a Material Adverse Effect. 

(ee) Disclosure. The Company confirms that neither it nor any Person acting on its behalf has provided any Investor or its respective agents or counsel with any information that the Company believes constitutes
material, non-public information concerning the Company, the Subsidiaries or their respective businesses, except insofar as the existence and terms of the proposed transactions contemplated hereunder may constitute such information. The Company
understands and confirms that the Investors will rely on the foregoing representations and covenants in effecting transactions in securities of the Company.  All disclosure provided to the Investors regarding the Company, the Subsidiaries or their
respective businesses and the transactions contemplated hereby, furnished by or on behalf of the Company (including the Company’s representations and warranties set forth in this Agreement and any business plan or investor presentation provided
by the Company or any Person acting on the Company's behalf) are true and correct and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. 

3.2. Representations and Warranties of the Investors. Each Investor hereby, for itself and for no other Investor, represents and warrants to the Company as follows: 

(a) Organization; Authority.  Such Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite corporate or partnership
power and authority to enter into and to consummate the transactions contemplated by the applicable Transaction Documents and otherwise to carry out its obligations thereunder. The execution, delivery and performance by such Investor of the
transactions contemplated by this Agreement has been duly authorized by all necessary corporate or, if such Investor is not a corporation, such partnership, limited liability company or other applicable like action, on the part of such Investor.
Each of this Agreement and the Registration Rights Agreement has been duly executed by such Investor, and when delivered by such Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Investor,
enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of,
creditors’ rights and remedies or by other equitable principles of general application. 

(b) Investment Intent. Such Investor is acquiring the Shares as principal for its own account for investment purposes only and not with a view to or for distributing or
reselling such Shares or any part thereof, without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or any part of such Shares in compliance with applicable federal and state securities laws.
Subject to the immediately preceding sentence, nothing contained herein shall be deemed a representation or warranty by such Investor to hold the Shares for any period of time.  Such Investor is acquiring the Shares hereunder in the ordinary course
of its business. Such Investor does not have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Shares. 

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(c) Investor Status. At the time such Investor was offered the Shares, it was, and at the date hereof it is, an “accredited investor” as defined in Rule 501(a) under the Securities Act. Such Investor is
not a registered broker-dealer under Section 15 of the Exchange Act. 

(d) General Solicitation.  Such Investor is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar
media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. 

(e) Access to Information. Such Investor acknowledges that it has reviewed the Disclosure Materials and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive
answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company and the Subsidiaries and their
respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or
can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of such Investor or its
representatives or counsel shall modify, amend or affect such Investor’s right to rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties contained in the Transaction
Documents. 

(f) Certain Trading Activities.  Such Investor has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Investor, engaged in any transactions in the
securities of the Company (including, without limitations, any Short Sales involving the Company’s securities) since the earlier to occur of (1) the time that such Investor was first contacted by the Company regarding an investment in the
Company and (2) the 30th day prior to the date of this Agreement. Such Investor covenants that neither it nor any Person acting on its behalf or pursuant to any understanding with it will engage in any transactions in the securities of
the Company (including Short Sales) prior to the time that the transactions contemplated by this Agreement are publicly disclosed. 

(g) Independent Investment Decision.  Such Investor has independently evaluated the merits of its decision to purchase Shares pursuant to the Transaction Documents, and such Investor confirms that it has not
relied on the advice of any other Investor’s business and/or legal counsel in making such decision. Such Investor confirms that none of such Persons
has made any representations or warranties to such Investor in connection with the transactions contemplated by the Transaction Documents. 

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The Company acknowledges and agrees that no Investor has made or makes any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.2. 

ARTICLE 4. 

OTHER AGREEMENTS OF THE PARTIES

4.1. Shares may only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of the Shares other than pursuant to an effective registration statement, to the Company, to an
Affiliate of an Investor or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor, the form and substance of which
opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Shares under the Securities Act. 

(a) Certificates evidencing Shares (as defined in Section 4.1(c)) will contain a legend that is substantially similar to the following legend, until such time as they are not required under Section 4.1(c): 

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A
BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES. 

The Company acknowledges and agrees that an Investor may from time to time pledge, and/or grant a security interest in some or all of the Shares pursuant to a bona fide margin agreement in connection with a bona fide
margin account and, if required under the terms of such agreement or account, such Investor may transfer pledged or secured Shares to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval or
consent of the Company and no legal opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection with the pledge, but such legal opinion may be required in connection with a subsequent transfer following default
by the Investor transferee of the pledge. No notice shall be required of such pledge. At the appropriate Investor’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Shares may
reasonably request in connection with a pledge or transfer thereof including the preparation and filing of any required prospectus supplement under Rule 424(b)(3) of the Securities Act or other applicable provision of the Securities Act to
appropriately amend the list of selling stockholders thereunder. Except as otherwise provided in Section 4.1(c), any Shares subject to a pledge or security interest as contemplated by this Section 4.1(b) shall continue to bear the legend set forth
in this Section 4.1(b) and be subject to the restrictions on transfer set forth in Section 4.1(a) . 

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(b) Certificates evidencing Shares, 2010 Make Good Shares, 2011 Make Good Shares and Anti-dilution Shares, if ever 2010 Make Good Shares or 2011 Make Good Shares or Anti-dilution Shares are due to be delivered pursuant
to the Transaction Documents shall not contain any legend (including the legend set forth in Section 4.1(b)): (i) while a registration statement (including the Registration Statement) covering such Securities is then effective, or (ii) following a
sale or transfer of such Securities pursuant to Rule 144 (assuming the transferee is not an Affiliate of the Company), or (iii) while such Securities are eligible for sale by the selling Investor without volume restrictions under Rule 144. The
Company agrees that following the Effective Date or such other time as legends are no longer required to be set forth on certificates representing Securities under this Section 4.1(c), it will, no longer than three Trading Days following the
delivery by an Investor to the Company or the Transfer Agent of a certificate representing such Securities containing a restrictive legend, deliver or instruct the Transfer Agent to deliver to such Investor, Securities which are free of all
restrictive and other legends. If the Company is then eligible, certificates for Securities subject to legend removal hereunder shall be transmitted by the Transfer Agent to an Investor by crediting the prime brokerage account of such Investor with
the Depository Trust Company System as directed by such Investor. If an Investor shall make a sale or transfer of Securities either (x) pursuant to Rule 144 or (y) pursuant to a registration statement and in each case shall have delivered to the
Company or the Company’s transfer agent the certificate representing the applicable Securities containing a restrictive legend which are the subject of such sale or transfer and a representation letter in customary form (the date of such sale
or transfer and Securities delivery being the “Share Delivery Date”) and (1) the Company shall fail to deliver or cause to be delivered to such Investor a certificate representing such Securities that is free from all restrictive or
other legends by the third Trading Day following the Share Delivery Date and (2) following such third Trading Day after the Share Delivery Date and prior to the time such Securities are received free from restrictive legends, the Investor, or any
third party on behalf of such Investor, purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Investor of such Securities (a “Buy-In”), then, in addition to any
other rights available to the Investor under the Transaction Documents and Legal Requirements, the Company shall pay in cash to the Investor (for costs incurred either directly by such Investor or on behalf of a third party) the amount by which the
total purchase price paid for Common Stock as a result of the Buy-In (including brokerage commissions, if any) exceed the proceeds received by such Investor as a result of the sale to which such Buy-In relates. The Investor shall provide the Company
written notice indicating the amounts payable to the Investor in respect of the
Buy-In.  The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section.

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4.2. Furnishing of Information.  As long as any Investor owns any Shares, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the Exchange Act.  As long as any Investor owns Shares, if the Company is not required to file reports pursuant to such laws, it will prepare and furnish to the Investors and make
publicly available in accordance with Rule 144(c) such information as is required for the Investors to sell the Shares under Rule 144. The Company further covenants that it will take such further action as any holder of Shares may reasonably
request, all to the extent required from time to time to enable such Person to sell the Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144. 

4.3. Furnishing of Financial Information.  The Company agrees that prior to a Qualified Public Offering, it will provide the Lead Investor in this offering, with the following information: (a) its monthly
financial statements and related materials on or before 15th of the following month, (b) its quarterly financial information on or before 20 days after the end of the quarter, and (c) its audited financial statements and related materials
of a fiscal year on or before the 90th day after the end of the fiscal year. The Lead Investor agrees to keep all of the nonpublic information that it receives pursuant to this Section 4.3 as strictly confidential until such information
becomes publicly available through a source other than the Lead Investor or other than through a breach of this Section 4.3 by the Lead Investor. 

4.4. Integration. The Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares to the Investors, or that would
be integrated with the offer or sale of the Shares for purposes of the rules and regulations of any Trading Market in a manner that would require stockholder approval of the sale of the securities to the Investors. 

4.5. Securities Laws Disclosure; Publicity. By (i) 9:30 a.m. (New York time) on the Trading Day following the Closing Date, the Company shall issue a press release, disclosing the transactions contemplated by the
Transaction Documents (including, without limitation, details with respect to the make good provision and thresholds (i.e. targeted Earnings Per Share) contained in the Make Good Escrow Agreement as well as projected revenue estimates for the
Company for each of the fiscal years ending December 31, 2010 and December 31, 2011) and the Closing and by (ii) 5:30 p.m. (New York time) on the Trading Day following the Closing Date, the Company will file a Current Report on Form 8-K, disclosing
the material terms of the Transaction Documents, including details with respect to the make good provision and thresholds (i.e. targeted Earnings Per Share) contained in the Make Good Escrow Agreement (and attach as exhibits thereto all existing
Transaction Documents) and the Closing.  The Company covenants that following such disclosure, the Investors shall no longer be in possession of any material, non-public information with respect to any of the Existing Company Entities. In addition,
the Company will make such other filings and notices in the manner and time required by the Commission and the Trading Market on which the Common Stock is listed.

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Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Investor, or include the name of any Investor in any filing with the Commission (other than the Registration Statement and any exhibits to filings made in respect
of this transaction in accordance with periodic filing requirements under the Exchange Act) or any regulatory agency or Trading Market, without the prior written consent of such Investor, except to the extent such disclosure is required by law or
Trading Market regulations.

4.6. Indemnification of Investors.  The Company will indemnify and hold the Investors and their directors, officers, shareholders, partners, employees and agents (each, an “Investor Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation
(collectively, “Losses”) that any such Investor Party may suffer or incur as a result of or relating to any misrepresentation, breach or inaccuracy of any representation, warranty, covenant or agreement made by the Company in any
Transaction Document.  In addition to the indemnity contained herein, the Company will reimburse each Investor Party for its reasonable legal and other expenses (including the cost of any investigation, preparation and travel in connection
therewith) incurred in connection therewith, as such expenses are incurred.

4.7. Non-Public Information. The Company covenants and agrees that neither it nor any other Person acting on its behalf will provide any Investor or its agents or counsel with any information that constitutes
material non-public information, unless prior thereto such Investor shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and confirms that each Investor shall be relying on the
foregoing representations in effecting transactions in securities of the Company. 

4.8. Listing of Shares. The Company agrees, (i) if the Company applies to have the Common Stock traded on any other Trading Market, it will include in such application the Shares, and will take such other action
as is necessary or desirable to cause the Shares to be listed on such other Trading Market as promptly as possible, and (ii) it will take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and
will comply in all material respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market. 

4.9. Use of Proceeds. The Company will use the net proceeds from the sale of the Shares hereunder for working capital purposes and not for the satisfaction of any portion of the Company’s debt (other than
payment of trade payables and accrued expenses in the ordinary course of the Company’s business and consistent with prior practices), or to redeem any Common Stock or Common Stock Equivalents. 

4.10. Qualified Public Offering. The Company covenants that it will use commercially reasonable efforts to launch a Qualified Public Offering before December 31st, 2010. 

4.11. Protective Provisions. Prior to its Qualified Public Offering, the Company shall not, without first obtaining the written consent of the Lead Investor, which consent shall not be unreasonably withheld: 

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(a) Excluding the acquisition of Changsha Boiler Co., Ltd., acquire through stock or asset purchase, or through any business combination, including a merger, share exchange or other transaction, a Person that has net
assets that are equal to or greater than thirty percent (30%) of the Company’s net assets;

(b) Sell or otherwise dispose of assets of the Company, including through the sale of stock of a Subsidiary or through a business combination, including a merger, share exchange or other transaction, that are equal to
or greater than thirty percent (30%) of the Company’s net assets; 

(c) Issue any shares of preferred stock or issue any convertible promissory notes or convertible bonds, in each case that are convertible into Common Stock; 

(d) Declare and distribute any kind of dividend; 

(e) Conduct any transactions with related persons (as defined in Item 404(a)
of Regulation S-K promulgated under the Exchange Act) that would be required to be disclosed under such Item 404(a), and 

(f) Hire a new Chief Financial Officer or Investor Relations Officer.

4.12. Board Designee.  During the period prior to the Qualified Public Offering, the Lead Investor shall be entitled to nominate one member of the Company’s Board of Directors (the “Designee”). The
Designee shall: (i) have experience serving on the board of directors of a public company or have comparable experience, (ii) be qualified to serve on the audit committee of the Company’s Board of Directors, and (iii) be able, consistent with
his or her other business activities, to dedicate reasonably sufficient time to the fulfillment of his or her duties to the Company. The Lead Investor will have the right to remove the Designee and to fill any vacancy resulting from a Designee
ceasing to be a member of the Company’s Board of Directors for any reason. On or before December 31, 2010, the Company shall purchase director and officer insurance and enter into a customary indemnification agreement with the Designee and
shall reimburse the designee for all reasonable costs incurred by the Designee in connection with his or her activities as a member of the board of directors of the Company. For so long as the Lead Investor is entitled to appoint a Designee, the
board of directors shall meet at least once per quarter.

4.13. Chief Financial Officer. If the Company fails to consummate the Qualified Public Offering within the twelve month period following the Closing, then the Lead Investor shall have the right to notify -the
Company in writing to terminate the Chief Financial Officer of the Company. The Company shall agree to terminate the Chief Financial Officer. Upon receipt of such written notice, the Company covenants and agrees that no later than 90 days following
receipt of such notice, the Company will hire a new chief financial officer. The Lead Investor shall have the right to veto the Company’s candidate.

4.14. Co-Sale Rights. Prior to the Qualified Public Offering, if the Company conducts any equity or equity-related financing in which it will receive gross proceeds in excess of $5,000,000, the Investors
shall have the right to sell up to 50% of their Shares in such financing transaction. Prior to the Qualified Public Offering, if Mr. Honghai Zhang sells his shares, the

19

Investors shall have the right to sell the same amount of shares split up among the Investors on a pro rata basis. 

4.15. The Company covenants to enter into a definitive agreement to acquire at least 80% shares of Changsha Boiler Co. Ltd. before December 31, 2010.

4.16. Make Good. The Company and the Make Good Pledgor covenant to enter into the Make Good Escrow Agreement, in the form of Exhibit B hereto. 

4.17. Upgrade to National Exchange. The Company will use commercially reasonable efforts to become listed on a Trading Market (other than the OTCBB) on or before December 31st, 2010.

ARTICLE 5. 

CONDITIONS PRECEDENT TO CLOSING

5.1. Conditions Precedent to the Obligations of the Investors to Purchase Shares. The obligation of each Investor to acquire Shares at the Closing is subject to the satisfaction or waiver by such Investor, at or
before the Closing, of each of the following conditions: 

(a) Representations and Warranties. The representations and warranties of the Company contained herein shall be true and correct in all material respects as of the date when made and as of the Closing as though
made on and as of such date; 

(b) Performance.  The Company and the Make Good Pledgor shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to
be performed, satisfied or complied with by it at or prior to the Closing; 

(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent
jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents; 

(d) Adverse Changes. Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably could have or result in a Material Adverse Effect; 

(e) No Suspensions of Trading in Common Stock; Listing.  Trading in the Common Stock shall not have been suspended by the Commission or any Trading Market (except for any suspensions of trading of not more than
one Trading Day solely to permit dissemination of material information regarding the Company) at any time since the date of execution of this Agreement, and the Common Stock shall have been at all times since such date listed for trading on a
Trading Market; 

(f) Company Deliverables. The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a);

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(g) Company Agreements. The Company shall have delivered:

(i) This Agreement, duly executed by the Company and the Make Good Pledgors;

(ii) The Make Good Escrow Agreement, duly executed by all parties
thereto (other than the Investors); and

(iii) The Registration Rights Agreement, duly executed by the Company. 

(h) Acquisition Agreement.  The Company shall have signed an equity transfer agreement relating to the acquisition of at least 60% of the equity interests of Shangdong Fuyuan Equipment Installation Co., Ltd. 

(i) Due Diligence.  The Investors shall have completed their due diligence investigation of the Company and the results thereof shall be satisfactory to the Investors. 

(j) Investment Committee. The investment committee or similar committee of each investor or any other internal authority whose approval is required shall have approved of the transactions contemplated hereby and the
Investor’s entry into this agreement and the other Transaction Documents to which it is a party. 

(k) Approval. If required by applicable law, the Company shall have obtained the current shareholders’ approval of the transaction stated in this Agreement and get any approval needed herein from the government.

(l) Legal Opinion. The Company shall have provided a clean legal opinion from a reputable Chinese law firm, which confirms the legality of the state-owned share equity transfer and the employees’ placement during
the state-owned-enterprise reform of the Company. The legal opinion shall be satisfactory to the Investors. 

(m) Termination. This Agreement shall not have been terminated as to such Investor in accordance with Section 6.5. 

5.2. Conditions Precedent to the Obligations of the Company to Sell Shares.  The obligation of the Company to sell Shares at the Closing is subject to the satisfaction or waiver by the Company, at or before the
Closing, of each of the following conditions: 

(a) Representations and Warranties.  The representations and warranties of each Investor contained herein shall be true and correct in all material respects as of the date when made and as of the Closing Date as
though made on and as of such date; 

(b) Performance. Each Investor shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied
or complied with by such Investor at or prior to the Closing; 

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(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent
jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents; 

(d) Investor Deliverables. Each Investor shall have delivered this Agreement, the Registration Rights Agreement and the Make Good Escrow Agreement, each duly executed by such Investor and a completed a Selling
Holder Questionnaire in the form previously provided to the Investor; and 

(e) Termination. This Agreement shall not have been terminated as to such Investor in accordance with Section 6.5. 

ARTICLE 6. 

MISCELLANEOUS

6.1. Fees and Expenses. Each Party shall bear its own expenses in connection with the transactions contemplated hereby; provided, however, that the Company shall reimburse the Lead Investor for expenses incurred
by the Lead Investor up to a cap of US$50,000. 

6.2. Entire Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all
prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. 

6.3. 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 5:30 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 5:30
p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.
The address for such notices and communications shall be as follows: 

	
If to the Company:
	
	
China Power Technology, Inc.
	

	
 
	
	
No. 12 Gongyuan Road
	

	
 
	
	
Kaifeng, Henan, 475002
	

	
 
	
	
People’s Republic of China
	

	
 
	
	
Attn: Chief Executive Officer
	

	
 
	
	
Facsimile: 86-378-2996111
	

	
 
	
	
 
	

	
With a copy to:
	
	
Pillsbury Winthrop Shaw Pittman LLP
	

	
 
	
	
2300 N Street, N.W.
	

22

	
 
	
	
Washington, D.C. 20037
	

	
 
	
	
Facsimile: (202) 663-8007
	

	
 
	
	
Attn.: Louis A. Bevilacqua, Esq.
	

	
 
	
	
 
	

	
If to an Investor:
	
	
To the address set forth under such Investor’s name on the
	

	
 
	
	
signature pages hereof;
	

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

6.4. Amendments; Waivers; No Additional Consideration.  No provision of this Agreement may be waived or amended except in a written instrument signed by the Company and the Requisite Holders. No waiver of any
default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. No consideration shall be offered or paid to any Investor to amend or consent to a waiver or modification of any
provision of any Transaction Document unless the same consideration is also offered to all Investors who then hold Shares.

6.5. Termination. This Agreement may be terminated prior to Closing: 

(a) by written agreement of the Investors and the Company; or 

(b) by the Company or an Investor (as to itself but no other Investor) upon
written notice to the other, if the Closing shall not have taken place by 6:30 p.m. Eastern time on the Outside Date; provided, that the right to terminate this Agreement under this Section 6.5(b) shall not be available to any Person whose
failure to comply with its obligations under this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such time. 

 In the event of a termination pursuant to this Section, the Company shall promptly notify all non-terminating Investors. Upon a termination in accordance with this Section 6.5, the Company and the terminating Investor(s) shall not have any further
obligation or liability (including as arising from such termination) to the other and no Investor will have any liability to any other Investor under the Transaction Documents as a result therefrom. 

6.6. Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this
Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. This Agreement shall be construed as if drafted jointly by the parties, and no
presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents. 

6.7. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the
Investors. Any Investor may assign any or all of its rights under this Agreement to any Person to whom such Investor assigns or transfers any Shares, provided such transferee agrees in writing to be bound, with respect to the transferred Shares, by
the provisions hereof that apply to the “Investors.” 

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6.8. No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person. 

6.9. 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 and any other
Transaction Documents (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be commenced exclusively 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 (including with respect to the enforcement of the any of the Transaction Documents), 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 such 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 legal 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 a Transaction Document, then the prevailing party in such Proceeding shall be reimbursed by the other party for its reasonable attorneys’
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding. 

6.10. Survival.  The representations, warranties, agreements and covenants contained herein shall survive the Closing and the delivery of the Shares for a period of 18 months, provided, however, that the
representations contained in Sections 3.1(c) and (g) shall survive for a period equal to the applicable statute of limitations. 

6.11. Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof. 

24

6.12. Severability.  If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in
any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 

6.13. Rescission and Withdrawal Right.  Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Investor exercises a right,
election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Investor may rescind or withdraw, in its sole discretion from time to time upon
written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights. 

6.14. Replacement of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon
cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if
requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares. If a replacement certificate or instrument evidencing any
Shares is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement. 

6.15. Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Investors and the Company will be entitled to specific
performance under the Transaction Documents.  The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agrees to waive in any
action for specific performance of any such obligation the defense that a remedy at law would be adequate. 

6.16. Payment Set Aside.  To the extent that the Company makes a payment or payments to any Investor pursuant to any Transaction Document or an Investor enforces or exercises its rights thereunder, and such
payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or
otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 

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

25

6.18. Limitation of Liability.  Notwithstanding anything herein to the contrary, the Company acknowledges and agrees that the liability of an Investor arising directly or indirectly, under any Transaction
Document of any and every nature whatsoever shall be satisfied solely out of the assets of such Investor, and that no trustee, officer, other investment vehicle or any other Affiliate of such Investor or any investor, shareholder or holder of shares
of beneficial interest of such a Investor shall be personally liable for any liabilities of such Investor. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE PAGES FOLLOW] 

 

 

 

26

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above. 

COMPANY: 

CHINA POWER TECHNOLOGY, INC. 

By:______________________________________

      Name: Honghai Zhang 

      Title: Chairman and CEO 

Only as to Sections 3.1 (bb) and 4.15 herein: 

Make Good Pledgor 

______________________________________

Honghai Zhang 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE PAGES FOR INVESTORS FOLLOW] 

 

 

 

 

27

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above. 

NAME OF INVESTOR 

______________________________________

By: ______________________________________

Name:______________________________________

Title: ______________________________________

Investment Amount: $_________________________

Tax ID No.: _________________________________

ADDRESS FOR NOTICE

c/o: ______________________________________

Street:______________________________________

City/State/Zip:_______________________________

Attention: _________________________________

Tel: ______________________________________

Fax:______________________________________

DELIVERY INSTRUCTIONS

(if different from above) 

c/o: ______________________________________

Street:____________________________________

City/State/Zip:______________________________

Attention: ________________________________

Tel:______________________________________

28

	  	  	           
                         
                         
                         
                         
                         
           Annex A 
	  	  	  
	SCHEDULE OF BUYERS 
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	Address and 
	Buyer 	Investment Amount 	Facsimile Number 
	  	  	
    c/o Edwin Xin 

	Sun Forever Limited 	$9,000,000 	
    Room1303, BEA Tower, 66 Hua Yuan Shi Qiao Road,
    

	  	  	
    Pudong New Area, Shanghai, China 

	Palm Springs 	$500,000 	
    Unit 503, 5/F, Silvercord Tower 2, 30 Canton
      Road, 

	International Holding 	  	
    Tsimshatsui, Kowloon, HongKong 

	Limited 	  	
      

	Giant Idea Limited 	$500,000 	
    Unit 2209 22/F, Wu Chung House 213 Queen’s RD
      East 

	  	  	
    Wanchai, HongKong 

	  	  	  
	Total 	$10,000,000 	 
    

29

ANNEX B

WIRE INSTRUCTIONS

USD: 

ACCOUNT NAME: Hong Kong Niceview Power Technology Co., Limited 

ACCOUNT NO: 053-114963-838 

Beneficiary Bank SWIFT BIC: HSBCHKHHHKH 

Beneficiary Bank Name: HSBC 

Message: Ocean Centre 

Beneficiary Bank Address: Shop 361-5, 3/F, Ocean Centre, 5 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong 

RMB: 

ACCOUNT NAME:  河南开封得胜锅炉股份有限公司

ACCOUNT NO: 5009497800090 

Beneficiary Bank Name:

开封市商业银行

Beneficiary Bank Address: 河南开封市大梁路西段商业银行大厦

30

 

EXHIBIT A

REGISTRATION RIGHTS AGREEMENT

 

 

 

 

31

EXHIBIT B

MAKE GOOD ESCROW AGREEMENT

 

 

 

 

 

32

CHINA POWER TECHNOLOGY, INC. 

DISCLOSURE SCHEDULES 

 These Disclosure Schedules (“Disclosure Schedules”) are
 being delivered by China Power Technology, Inc., a Nevada corporation (the “Company”),
 in connection with that certain Securities Purchase Agreement, dated as of June
 16, 2010 (the “Purchase Agreement”), by and among the Company and
 the investors listed on the Schedule of Investors attached thereto as 
 Appendix A. Unless the context otherwise requires, all capitalized terms
 used in these Disclosure Schedules shall have the respective meanings assigned
 to them in the Purchase Agreement.

 The representations, warranties, covenants and agreements made by the Company
 set forth in the Purchase Agreement are hereby excepted to the extent disclosed
 hereafter. The sections in these Disclosure Schedules correspond to the section
 numbers in the Purchase Agreement which are modified by the disclosures. The
 disclosures in these Disclosure Schedules shall modify and relate to the
 representations, warranties, covenants and agreements in the Section of the
 Purchase Agreement to which they expressly refer. Unless otherwise stated, all
 statements made herein are made as of the date of the execution of the Purchase
 Agreement. These Disclosure Schedules are incorporated by reference to the
 Purchase Agreement and should be considered an integral part of the Purchase
 Agreement. 

 The bold-faced headings contained in these Disclosure Schedules are included
 for convenience only, and are not intended to limit the effect of the
 disclosures contained herein or to expand the scope of the information required
 to be disclosed in these Disclosure Schedules. The representations and
 warranties made by the Company in the Purchase Agreement are exclusive and the
 Company make no representations or warranties whatsoever except as set forth in
 the Purchase Agreement. The information and disclosures contained in these
 Disclosure Schedules are intended only to qualify and limit the
 representations, warranties, covenants and agreements made by the Company
 contained in the Purchase Agreement and shall not be deemed to expand in any
 way the scope or effect of any of such representations, warranties, covenants
 or agreements.

 No reference to or disclosure of any item or other matter in these Disclosure
 Schedules shall be construed as an admission or indication that such item or
 other matter is material or that such item or other matter is required to be
 referred to or disclosed in these Disclosure Schedules. No disclosure in these
 Disclosure Schedules relating to any possible breach or violation of any
 agreement, law or regulation shall be construed as an admission or indication
 that any such breach or violation exists or has actually occurred, and nothing
 in these Disclosure Schedules constitutes an admission of any liability or
 obligation of the Company to any third party, nor an admission against the
 Company’s interests.

 Schedule 3.1(g) 

Capitalization 

Our authorized capital stock consists of 190,000,000 shares of common stock, par value $0.001 per share (the “Common Stock”).

We are authorized to issue up to 10,000,000 shares of preferred stock, par value $0.001 per share, in one or more classes or series within a class as may be determined by our board of directors. 

As of date of the Purchase Agreement, a total of 40,000,000 shares of our Common Stock are issued and outstanding. 

On May 6, 2010, Mr. Honghai Zhang, our Chairman and CEO, entered into an option agreement with Mr. Shiyong Fan, a New Zealand citizen and the sole shareholder of Wise Winning Limited (“Wise”), pursuant to which Mr. Zhang was granted an
option to acquire all of the equity interests of Wise owned by Mr. Fan. Mr. Zhang may exercise the option, in whole but not in part, during the period commencing on the 180th day following of 180 days after the date of on which a resale
registration statement for our shares issued to the investors in the option agreement and ending on first equity financing conducted after the second consummation of the Share Exchange Agreement is declared effective by the United States Securities
and Exchange Commission, but before the fifth anniversary of the that date thereof. 

2

Schedule 3.1(p) 

Patents and Trademarks 

Trademarks 

Desheng Boiler has the following trademarks registered under
its name:

	
    Trademark 	
    Registration 	Country 	Category 	Valid Period
      
	
      	No. 	  	 
    	 
    
    
    
	
         

    开锅
    

    

    	
    

    4715292 	
    

    PRC 	
    

    Class 11	
    

    April 7, 2008

    to April 6,

    2018 

    	  	  	  

    	  	  	  
	
      
	
      	  	  	
        

	
         

    
    开锅
    

    

    	
    4715294 	PRC 	Class 7	
    April 7, 2008

    to April 6,

    2018 

    	  	  	  
	
      
	  	  	   
	
      
	
      	  	  	
        

	
     开锅KG
     

    

    	
    4715295 	
    PRC 	
    Class 11	
    April 7, 2008

    to April 6,

    2018 

    	  	  	  
	
      
	  	  	   
	
      
	
      	  	  	
        

	
    
     
    开锅KG
     

    
	
    4715297 	PRC 	Class 7	
    April 7, 2008

    to April 6,

    2018 

    	  	  	  
	
      
	  	  	   
	
    

    
    开锅得胜
     

    
      

    	
      	  	  	
    April 7, 2008

    to April 6,2

    018   

    	4715299 	PRC 	Class 11

    	  	  	  

    	  	  	  

Patent

Desheng Boiler does not have any patent registered under its
name. However, it entered into a patent licensing agreement with Harbin
Institute of Technology on April 2, 2008, pursuant to which Desheng Boiler has
been granted exclusive right to use the patent owned by Harbin Institute of
Technology for a consideration of RMB50,000 (approximately $7,317) for the
period commencing from April 2, 2008 to April 2, 2023. The above agreement has
been filed with the State Intellectual Property Office of the PRC. The details
of this patent are as follows:

	
    Patents 
	Registration 	Type 	Authorization 
	
      
	No. 	 
    	Date 
	
    Horizontal tilted rotate fluidized bed desulfurization
      reactor 
	ZL200610009647.6 	Invention 	January 19, 2026 

	3

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