Document:

Unassociated Document

    
      

    

    Equity
Transfer Agreement

    股权转让协议

    

    This
Equity Transfer Agreement (this “Agreement”) is entered into on September 16,
2009 in Weihai, People’s Republic of China (the “PRC”), by and
between:

    本股权转让协议(“本协议”)由以下当事方于2009年6月[  ]日在中国威海签署:

    

    Transferors:

    转让方:

    Solar
Thin Films, Inc.

    Address地址:25 Highland
Blvd., Dix Hills, New York 11746, USA.

    

    Renewable
Energy Solutions, Inc.

    Address地址:200 Ludlow Dr.,
Suite C., Ewing NJ 08638

    

    Transferee:

    受让方:

    Innofast
Investments Limited

    Address地址:15th floor, Pearl
Oriental Centre, 200 Gloucester Road, Wanchai, Hong Kong

    

    The
Transferors and the Transferee will be individually referred to as “Each Party”
and collectively referred to as “the Parties”.

    转让方、受让方单独称为“一方”,合称为“各方”。

    

    Whereas,

    

    
      	
              1.

            	
              Weihai
      China Glass Solar Co., Ltd. (the “Company”) is a Sino-foreign equity joint
      venture company established and validly existing under the laws of the
      PRC.  Solar Thin Films, Inc. contributed USD1,500,000 to the
      Company, accounting for 15% of the registered capital of the Company;
      Renewable Energy Solutions, Inc. contributed USD500,000 to the Company,
      accounting for 5% of the registered capital of the
  Company;

            

    

    威海中玻光电有限公司(“公司”)系一家依据中国法律注册成立并有效存续的中外合资经营企业。Solar Thin Films,
Inc.在公司的出资额为150万美元,占公司注册资本的15%;Renewable Energy
Solutions, Inc.在公司的出资额为50万美元,占公司注册资本的5%;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

      
        

      

    

     

    
      	
              2.

            	
              The
      Transferee is a company established and validly existing under the laws of
      Hong Kong;

            

    

    
      	
               
      

            	
              受让方系一家依据香港法律注册成立并有效存续的公司;

            

    

    

    
      	
              3.

            	
              Each
      of the Transferors agrees to transfer its entire capital contribution in
      the Company (hereinafter referred to as “Transferred Equity”) to the
      Transferee; the Transferee agrees to accept the Transferred
      Equity.

            

    

    各转让方愿意将各自在公司的出资额(合称为“协议股权”)全部转让给受让方,受让方愿意受让。

    

    In
accordance with the laws and regulations of the PRC, the Parties hereby agree to
the equity transfer as follows:

    现各方根据中国现行的法律、法规,经协商一致,就转让股权事宜达成如下协议:

    

    
      
        	
                1

              	
                Transfer
      of the Transferred Equity

              

      

    

    协议股权的转让

    

    In
accordance with the terms and conditions set forth in this Agreement, the
Transferors agree to transfer the Transferred Equity to the Transferee and the
Transferee agrees to purchase the Transferred Equity listed
below.  The transfer price of the Transferred Equity (the “Transfer
Price”) is listed as below.

    根据本协议规定的条款及条件,各转让方同意将其持有的协议股权(如下表所列)转让给受让方,受让方同意受让该等协议股权。协议股权的转让价款如下表所列。

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
       

      
        

      

    
      
        
          
            
              
                
                  	
                          Transferors

                          转让方

                        	 	
                          Transferred Equity

                          (USD$)

                          协议股权

                          (美元)

                        	 	 	
                          Transfer Price

                          (USD$)

                          转让价款

                          (美元)

                        	 
	
                          SOLAR
      THIN FILMS, INC.

                        	 	 	1,500,000	 	 	 	1,350,000	 
	
                          RENEWABLE
      ENERGY SOLUTIONS, INC.

                        	 	 	500,000	 	 	 	450,000	 
	
                          Total总计

                        	 	 	2,000,000	 	 	 	1,800,000	 

                

              

            

          

        

      

    

    

    
      
        	
                2

              	
                Payment
      of the Transfer Price

              

      

    

    转让价款的支付

    

    The
Transferee shall pay to the Transferors the Transfer Price by wire transfer of
immediately available funds within thirty calendar days after the execution of
this Agreement in accordance with the following instructions:

     

    受让方应当在本协议签署后30日内向转让方支付转让价款,即将立即可获取的资金汇至以下账户:

    

    
      
        	
                Bank
      name:

              	 
	
                Bank
      address:

              	 
	
                ABA
      Routing number:

              	 
	
                Account
      number:

              	 
	
                Swift
      code:

              	
              

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      

    

    
      
        	
                3

              	
                Closing

              

      

    

    交割

    

    
      	
               
      

            	
              Subject
      to the terms and conditions of this Agreement, the consummation of the
      transactions contemplated by this Agreement shall take place at a closing
      (the “Closing”) when all the conditions precedent set forth in Article 4
      are fulfilled or waived in writing by the Parties.  The date on
      which the Closing occurs is herein referred to as the “Closing
      Date”.

            

    

    
      	 	
              根据本协议的条款和条件,本协议下的交易于第4条所列的先决条件全部满足或被各方书面豁免时完成(“交割”)。交割当日在本协议中被称为“交割日”。

            

    

    

    
      	
              4

            	
              Conditions
      Precedent to the Closing

            

    

    交割的先决条件

    

    The
Closing shall take place subject to the fulfillment of each of the following
conditions:

    协议股权的交割,在以下条件全部满足之后,方可实现:

    

    
      	
               
      

            	
              4.1

            	
              The
      other shareholders of the Company shall have waived in writing the right
      of first refusal with respect to the Transferred
  Equity;

            

    

    公司的其他股东书面放弃对协议股权的优先认购权;

    

    
      	
               
      

            	
              4.2

            	
              The
      formation, effectiveness, validity and performance of this Agreement is
      not challenged, restricted or prohibited by any third party or any court,
      arbitration institution or relevant government authority of the
      PRC;

            

    

    本协议的成立、生效、效力和履行没有受到任何第三方或中国任何法院、仲裁机构或有关政府部门的置疑、限制或禁止;

    

    
      	
               
      

            	
              4.3

            	
              Each
      Party shall have completed all the required internal approval procedures
      for the Closing pursuant to its articles of
  association;

            

    

    各方已经根据其公司章程完成了为实现交割所需的全部内部批准手续;

    

    
      	
               
      

            	
              4.4

            	
              The
      representations and warranties made by Each Party under this Agreement is
      still true and effective at the time of the
  Closing;

            

    

    本协议各方在本协议中所作的陈述和保证在交割时依然真实有效;

    

    
      	
               
      

            	
              4.5

            	
              The
      transfer of the Transferred Equity shall have been approved by the
      examination and approval authority and registered with the local
      administration of industry and
commerce.

            

    

    协议股权的转让已经得到原审批机关的批准,并在当地工商行政管理局办理了变更登记。

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
       

      
        

      

    
      
        	
                5

              	
                Representations
      and Warranties

              

      

    

    陈述与保证

    

    
      
        	
                5.1

              	
                Representations
      and Warranties of the
Transferors

              

      

    

    转让方的陈述与保证

    

    
      	
               
      

            	
              5.1.1

            	
              Each
      Transferor is a legal entity duly established and validly existing under
      the laws of the place of its
incorporation;

            

    

    各转让方均为根据其成立地的法律合法成立并有效存续的法人;

    

    
      	
               
      

            	
              5.1.2

            	
              Each
      Transferor possesses full power and authority to enter into and to perform
      its obligations hereunder, and its representative has obtained necessary
      authorization to execute this
Agreement;

            

    

    
      	
               
      

            	
              各转让方均拥有签署本协议并履行本协议的全部权力和授权,其签署本协议的授权代表已获得必要授权;

            

    

    

    
      	
            	
              5.1.3

            	
              The
      execution and implementation of this Agreement does not violate any laws
      or regulations which are applicable to the Transferors, or any material
      contracts or agreements in which either Transferor is one of the Parties,
      or any material contracts or agreements which are binding upon either
      Transferor’s properties;

            

    

    本协议的签署及履行不违反各转让方的公司章程或适用的法律、法规,或转让方作为当事一方的任何重大合同或协议,或对其财产具有约束力的任何重大合同或协议;

    

    
      	
               
      

            	
              5.1.3

            	
              There
      is no existing or potential suit, arbitration or preliminary hearing
      affecting the execution of this Agreement or either Transferor’s ability
      to perform this Agreement;

            

    

    各转让方无针对其已有或潜在诉讼、仲裁或调查会在任何方面影响其签署本协议及影响履行其在本协议项下义务的能力;

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
       

      
        

      

    
      	
               
      

            	
              5.1.4

            	
              All
      the representations and warranties made by the Transferors are true,
      authentic and complete on the date of execution of this Agreement. Each
      Transferor acknowledges that all the representations and warranties shall
      be true, authentic and complete until the
  Closing.

            

    

    各转让方在本协议中所做的声明和保证在本协议签署之日均为真实、准确和完整,各转让方保证该等声明和保证至协议股权交割日时亦为真实、准确和完整;

    

    
      	
               
      

            	
              5.1.5

            	
              The
      Transferred Equity is legally owned by the Transferors. As of the date of
      execution of this Agreement, the Transferred Equity, free from and clear
      of any pledge, encumbrance or freeze due to judicial judgment or
      administrative adjudication, can be legitimately transferred to the
      Transferee in accordance with the PRC
laws.

            

    

    各转让方向受让方转让的协议股权为其依法所有,截止本协议签署之日,协议股权未曾被设定任何质押或其他第三方权益,也未因司法、行政裁决被予以冻结,依据中国法律可以合法地转让给受让方;

    

    
      	
               
      

            	
              5.1.6

            	
              Each
      Transferor is not aware of any circumstance or legal obstacle which may
      lead to the liquidation, termination or non-existence of the
      Company.

            

    

    各转让方不知悉任何可能导致公司清算、终止或法不能存续的情形或法律障碍;

    

    
      	
               
      

            	
              5.1.7

            	
              The
      Transferors shall assist the Transferee in promoting the Company to
      approve the transfer of the Transferred Equity in accordance with the
      articles of association of the Company and in the preparation of all the
      documents relating to the transactions contemplated under this
      Agreement.

            

    

    各转让方将协助受让方促成公司根据公司章程的规定批准本次股权转让,准备与本协议筹划的交易相关的全部文件;

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
       

      
        

      

    
      	
               
      

            	
              5.1.8

            	
              The
      Transferors shall not sell all or a portion of the Transferred Equity to
      any third party or set any third party interest in any form from the
      execution of this Agreement to the registration of the Transferred Equity
      with the local administration of industry and
  commerce.

            

    

    本协议签署后至完成协议股权工商变更登记期间,各转让方不会将协议股权全部或部分让予任何第三方,或以任何形式在协议股权上设定任何第三方权益。

    

    
      	
              5.2

            	
              Representations
      and Warranties of the Transferee

            

    

    受让方的陈述与保证

    

    
      	
               
      

            	
              5.2.1

            	
              The
      Transferee is a legal entity duly established and validly existing under
      the laws of Hong Kong;

            

    

    受让方是根据香港法律合法成立并有效存续的法人;

    

    
      	
               
      

            	
              5.2.2

            	
              The
      Transferee possesses full power and authority to enter into and to perform
      its obligations hereunder, and its representative has obtained necessary
      authorization to execute this Agreement. This Agreement constitutes a
      valid and binding agreement of the Transferee, enforceable against it in
      accordance with its terms;

            

    

    
      	
               
      

            	
              受让方拥有签署本协议并履行本协议的全部权力和授权,其签署本协议的授权代表已获得受让方的必要授权。本协议构成对受让方合法、有约束力的协议,对受让方具有强制执行力;

            

    

    

    
      	
               
      

            	
              5.2.3

            	
              The
      implementation of this Agreement does not violate any applicable laws and
      regulations or any material contracts or agreements in which the
      Transferee is a party or which is binding on the properties of the
      Transferee;

            

    

    本协议的签署及履行不违反受让方的公司章程或任何其适用的法律、法规,或受让方作为当事一方的任何重大合同或协议,或对其财产具有约束力的任何重大合同或协议;

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      

    

    
      	
               
      

            	
              5.2.4

            	
              There
      is no existing or potential suit, arbitration or preliminary hearing
      affecting the execution of this Agreement or the Transferee’s ability to
      perform this Agreement;

            

    

    
      	
               
      

            	
              受让方无针对其的已有或潜在诉讼、仲裁、程序或调查会在任何方面影响其签署本协议及影响履行其在本协议下义务的能力;

            

    

    

    
      	
               
      

            	
              5.2.5

            	
              All
      the representations and warranties of the Transferee are true, authentic
      and complete on the date of execution of this Agreement. The Transferee
      acknowledges that all the representations and warranties shall be true,
      authentic and complete until the Closing;

            

    

    受让方在本协议中所做的声明和保证在本协议签署之日均为真实、准确和完整,受让方保证该等声明和保证至协议股权交割日时亦为真实、准确和完整;

    

    
      	
               
      

            	
              5.2.6

            	
              The
      Transferee has conducted its own due diligence investigation of the
      Company and the Transferred Equity and is fully capable of bearing the
      economic risks of its investment.

            

    

    受让方已对公司及协议股权进行了尽职调查,完全有能力承担投资的经济风险。

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      

    

    
      
        	
                6

              	
                Rights
      and Obligations

              

      

    

    权利和义务

     

    
      	
              6.1

            	
              Rights
      and Obligations of the Transferors

            

    

    转让方的权利和义务

    

    
      	
               
      

            	
              6.1.1

            	
              Each
      Transferor has the right to request the Transferee to pay the Transfer
      Price on time according to the provisions of this
    Agreement;

            

    

    
      	
               
      

            	
              各转让方有权要求受让方根据本协议的规定按时向转让方支付转让价款;

            

    

    

    
      	
               
      

            	
              6.1.2

            	
              Each
      Transferor shall promptly promote the board of the directors of the
      Company to approve the equity transfer pursuant to the current articles of
      association of the Company after execution of this
    Agreement;

            

    

    
      	
               
      

            	
              各转让方应在本协议签署后尽快促使公司董事会依据现公司章程的规定通过本次协议股权的转让;

            

    

    

    
      	
               
      

            	
              6.1.3

            	
              Each
      Transferor shall assist the Transferee and the Company to obtain all the
      required governmental approval and registration for the equity
      transfer;

            

    

    
      	
               
      

            	
              各转让方应协助受让方和公司取得协议股权转让所需的全部政府批准及登记;

            

    

    

    
      	
               
      

            	
              6.1.4

            	
              Other
      rights and obligations set forth in this
  Agreement.

            

    

    本协议规定的其他权利及义务。

    

    
      	
              6.2

            	
              Rights
      and Obligations of the Transferee

            

    

    受让方的权利和义务

    

    
      	
               
      

            	
              6.2.1

            	
              The
      Transferee has the right to request each Transferor to assist the
      Transferee and the Company to obtain all the required governmental
      approval and registration for the equity
  transfer;

            

    

    受让方有权要求各转让方协助受让方和公司办理协议股权转让所需的全部政府批准及登记;

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
       

      
        

      

    
      	
               
      

            	
              6.2.2

            	
              After
      the registration of the Transferred Equity with the local administration
      of industry and commerce, the Transferee shall have all the rights to the
      Transferred Equity and all the derived interests, and be entitled to
      undertake the rights and obligations stipulated in the articles of
      association of the Company;

            

    

    受让方有权自工商变更登记办理完毕之日起,依照中国法律、法规取得协议股权及其衍生的所有权益,享有并承担公司章程中规定的相应权利和义务;

    

    
      	
               
      

            	
              6.2.3

            	
              The
      Transferee shall pay the Transfer Price in full to the Transferors on time
      according to the provisions of this
Agreement;

            

    

    受让方应按照本协议的规定按时足额向转让方支付协议股权的转让价款;

    

    
      	
               
      

            	
              6.2.4

            	
              Other
      rights and obligations set forth in this
  Agreement.

            

    

    本协议规定的其他权利及义务。

    

    
      
        	
                7

              	
                Amendment
      and Termination of the
Agreement

              

      

    

    协议的变更及终止

    

    
      
        	
                7.1

              	
                Amendment
      of this Agreement

              

      

    

    协议的变更

    

    Any
amendment and supplement to this Agreement is invalid without an executed
agreement between the Parties in writing.

    非经各方签署并以书面形式作出,本协议的任何变更或修改均为无效。

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      

    

    
      
        	
                7.2

              	
                Termination
      of this Agreement

              

      

    

    协议的终止

    

    When any
of the following circumstances occurs, this Agreement can be terminated with the
Parties’ written consent:

    发生下列情形之一时,经各方书面同意可终止本协议:

    

    
      	
               
      

            	
              7.2.1

            	
              From
      the execution of this Agreement to the Closing, the applicable laws and
      regulations are modified or changed which substantially affect the
      performance of this Agreement and the Parties fail to reach
      an  agreement to amend this
Agreement;

            

    

    本协议签署后至股权转让完成之前,适用的法律、法规发生修改或变化,致使实质上影响本协议的履行,且各方无法根据新的法律、法规内容就本协议的修改达成一致意见;

    

    
      	
               
      

            	
              7.2.2

            	
              An
      event of force majeure occurs which renders the performance of this
      Agreement impossible;

            

    

    发生不可抗力事件致使本协议不能履行;

    

    
      	
               
      

            	
              7.2.3

            	
              Other
      circumstances in which the Parties agree to terminate this
      Agreement.

            

    

    其他经各方一致同意终止本协议的情形。

    

    
      
        	
                8

              	
                Liability
      for Breach of Contract

              

      

    

    违约责任

    

    
      	
              8.1

            	
              The
      Transferee is entitled to terminate this Agreement and the Transferors
      shall return the Transfer Price received from the Transferee in the event
      that either Transferor fails to transfer the Transferred Equity pursuant
      to the provisions of this
Agreement;

            

    

    如转让方未按本协议规定向受让方转让协议股权,受让方有权解除本协议,且转让方应返回实际获得的转让价款。

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
       

      
        

      

    
      	
              8.2

            	
              The
      Transferors are entitled to terminate this Agreement and the Transferee
      shall pay for the losses and damages of the Transferors in the event that
      the Transferee fails to fully pay for the Transferred Equity on time
      pursuant to this Agreement.

            

    

    如受让方未按本协议规定按时向转让方支付协议股权的全部协议价款,转让方有权解除本协议,且受让方应就转让方实际遭受的损失承担赔偿责任。

    

    
      	
              8.3

            	
              In
      the event that any party fails to perform its obligations after the
      execution of this Agreement, the party shall be regarded as breaching this
      Agreement. The party who breaches this Agreement shall compensate the
      other party for all the losses and damages due to the breach
      activities.

            

    

    本协议签署后,任何一方未能按本协议的规定履行其在本协议项下的其他义务,或作出任何虚假的陈述或保证,亦被视为违约。违约方应赔偿因其上述违约行为对守约方造成的一切损失。

    

    
      	
              8.4

            	
              The
      liability for breach of this Agreement shall not be exempted due to the
      Closing or termination of this
Agreement.

            

    

    违约方应承担的违约责任不因协议股权的交割完成或本协议的终止而免除。

    

    
      
        	
                9

              	
                Expenses

              

      

    

    费用的负担

    

    The
Transferors and the Transferee shall each bear their own respective taxes and
expenses due to the implementation of this Agreement. The taxes and expenses
which are not clearly defined by the law shall be equally born by the
Parties.

    
      转让方和受让方应依法各自承担因本协议的签署和履行而产生的各项税款和费用,法律没有明确规定应由哪一方承担相应的税款和费用的,由各方平均分担。

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
       

      
        

      

    
      
        	
                10

              	
                Confidentiality

              

      

    

    保密

    

    
      	
              10.1

            	
              Without
      the other party’s prior written consent, Each Party may not disclose or
      divulge any information related to this Agreement, identification of the
      other party, or any business secrets obtained due to execution and
      performance of this Agreement.

            

    

    未经对方事先书面同意,各方不得公开或泄漏或透露关于本协议或本协议项下交易的任何信息,亦不得透露对方的身份,以及因本协议的签署和履行而知晓的有关对方的商业秘密。

    

    
      	
              10.2

            	
              If
      a disclosure is explicitly required by law, any courts, arbitration
      tribunals or administrative authorities, such a disclosure by Each Party
      shall not be deemed as a violation of Article 10.1
  above.

            

    

    若依据法律、法院判决、仲裁裁决以及政府管理机关的决定应当披露保密信息的,
则一方对该信息的披露不应视为对上述10.1条的违反。

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      

    

    
      
        	
                11

              	
                Indemnification

              

      

    

    赔偿

    In
consideration of the Transferors’ execution and delivery of this Agreement and
selling the Transferred Equity hereunder, and in addition to all of the
Transferee’s other obligations under this Agreement, the Transferee shall
defend, protect, indemnify and hold harmless the Transferors, and all of their
respective affiliates, employees, advisors, and agents (including, without
limitation, those retained in connection with the transactions contemplated by
this Agreement) (collectively, the “Transferor
Indemnitees”) from and against any and all actions, causes of action,
suits, claims, losses, costs, penalties, fees, liabilities and damages, and
expenses in connection therewith (irrespective of whether any such Transferor
Indemnitee is a party to the action for which indemnification hereunder is
sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified
Liabilities”), incurred by the Transferor Indemnitees or any of them as a
result of, or arising out of, or relating to (a) any misrepresentation or breach
of any representation or warranty made by the Transferee in this Agreement, or
any other certificate, instrument or document contemplated hereby or thereby,
(b) any breach of any covenant, agreement or obligation of the Transferee
contained in this Agreement, or any other certificate, instrument or document
contemplated hereby or thereby, or (c) any cause of action, suit or claim
brought or made against such Transferor Indemnitee and arising out of or
resulting from the execution, delivery, performance or enforcement of this
Agreement or any other instrument, document or agreement executed pursuant
hereto by any of the Parties hereto.  To the extent that the foregoing
undertaking by the Transferee may be unenforceable for any reason, the
Transferee shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities, which is permissible under applicable
law.

    鉴于转让方签署并交付本协议,出售协议股权,受让方除了本协议下的所有其他义务外,受让方应当保障各转让方及它们各自的关联方、雇员、顾问及代理人(包括但不限于转让方聘用的与本协议下的交易相关的人)(合称为“转让方受偿者”)免于遭受如下损失,为转让方受偿者进行抗辩,赔偿转让方受偿者因以下事由而导致的任何诉讼、诉讼、请求、损失、开支、惩罚、费用、责任及损害赔偿(无论转让方受偿者是否为赔偿诉讼的当事方),包括合理的律师费和支出(“赔偿责任”):(a)受让方在本协议中作出虚假陈述或违反本协议下的任何陈述和保证;(b)违反受让方在本协议下的任何承诺、约定或义务,或违反相关的任何证明、契据或文件;或(c)针对转让方受偿者的任何诉因、诉讼或请求,并且该等诉因、诉讼或请求是源于本协议或任何其他相关契据、文件或协议的签署、交付或履行。如果受让方的上述承诺因任何原因而不可预见,受让方应当在法律允许的最大范围内赔偿转让方受偿者、履行赔偿责任。

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
       

      
        

      

    
      
        	
                12

              	
                Applicable
      laws and Dispute Resolutions

              

      

    

    适用法律及争议解决

    

    
      
        	
                12.1

              	
                The
      conclusion, effect, explanation, implementation and dispute resolutions
      shall be governed by the rules and regulations of the
  PRC.

              

      

    

    本协议的订立、效力、解释、履行和争议的解决均适用中国的法律、法规。

    

    
      
        	
                12.2

              	
                The
      Parties shall solve any dispute or claim arising from or relating to this
      Agreement thorough negotiation. If the Parties fail to reach an agreement
      after negotiation, the dispute may be brought to China International
      Economic and Trade Commission and be decided according to the then
      effective rules in Beijing. The arbitration award is final and binding on
      the Parties.

              

      

    

    因本协议引起的或与本协议有关的任何争议,由转让方和受让方协商解决。如经协商无法达成一致,该两方同意将该等争议提交中国国际经济贸易仲裁委员会,按其当时有效的仲裁规则在北京裁决。仲裁裁决是终局的,对各方均有约束力。

    

    
      
        	
                13

              	
                Miscellaneous

              

      

    

    其他条款

    

    
      	
              13.1

            	
              This
      Agreement shall come into effect upon the execution by the
      Parties.

            

    

    本协议经各方正式签署后生效。

    

    
      
        	
                13.2

              	
                In
      respect of any items not mentioned in this Agreement, the Parties may
      agree to enter into a supplemental agreement. The supplemental agreement
      shall take effect upon execution and has the same legal effect as this
      Agreement.

              

      

    

    
      	
               
      

            	
              本协议未尽事宜,各方经协商一致可签订补充协议,经各方签署后生效。补充协议与本协议具有同等法律效力。

            

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      

    

    
      
        	
                13.3

              	
                This
      Agreement is written in English and Chinese. Both versions shall have the
      same legal effect.

              

      

    

    本协议以中英文书就,中英文版本具有同等法律效力。

    

    
      
        	
                13.4

              	
                Any
      notices or other correspondences between the Parties in connection with
      the performance of this Agreement shall be in writing and be delivered in
      person, by registered mail, postage prepaid mail, recognized express mail,
      email or facsimile to the following correspondence
    addresses:

              

      

    

     

    本协议各方为履行本协议项下的权利、义务所发出的通知, 都应以书面做成,
并以专人递送、挂号邮寄、邮资预付邮寄、认可的快递服务、传真或电子邮件的形式发送到有关一方或各方下列的地址:

    

    Transferors:

    转让方

    

    Solar
Thin Films, Inc.

    Address地址:25 Highland
Blvd, Dix Hills, New York, 11746, USA.

    Fax 传真:

    Tel 电话:

    Email电邮:

    

    Renewable
Energy Solutions, Inc.

    Address地址:200 Ludlow Dr.
Suite C. Ewing, NJ 08638

    Fax 传真:

    Tel 电话:

    Email电邮:

    

    受让方

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
       

      
        

      

    Transferee:

    Innofast
Investments Limited

    
      Address地址:15th floor, Pearl
Oriental Centre, 200 Gloucester Road, Wanchai, Hong Kong

    

    Fax 传真:

    Tel 电话:

    Email电邮:

    

    Any
notice by facsimile transmission or e-mail shall be effective only if the
recipient acknowledges receipt.

    通过传真或电子邮件传送的通知应在收件人收到时生效。

    

    
      	
              13.5

            	
              This
      Agreement has five copies, each of which has the same legal force and
      effect.

            

    

    本协议一式[五]份,各份具有同等法律效力。

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
      

    

    In
witness whereof, the Parties have executed this Agreement as of the date first
written above.

    兹证明,本协议由各方正式授权代表于协议文首所载日期签署。

    

    Transferors:

    转让方:

    
      

      Solar
Thin Films, Inc.

      
        
          
            
              
                	
                        Authorized
      Representative:授权代表:

                      	 	
                        /s/ Peter C. Lewis

                      	 
      
	 
      	 	
                        Peter
      C. Lewis, Group Vice President and

                      
	 
      	 	
                        General
      Manager of the Thin Film
Group

                      

              

            

          

        

      

      

      Renewable
Energy Solutions, Inc.

      
        
          
            
              
                	
                        Authorized
      Representative:授权代表:

                      	 	
                        /s/ Zoltan Kiss

                      	 
      
	 
      	 	
                        Zoltan
      Kiss,
Director

                      

              

            

          

        

      

      

      Transferee:

      受让方:

      

      
        
          
            
              
                
                  	
                          Innofast
      Investments Limited

                        	 	 
      	 
      
	
                          Authorized
      Representative:授权代表:

                        	 	 
      	 
      

                

              

            

          

        

      

      
        
           

        

        
          18UNDER
FINRA RULE 5110(g) AND SUBJECT TO LIMITED EXCEPTIONS, THIS WARRANT AND THE
UNDERLYING SHARES OF COMMON STOCK SHALL NOT BE SOLD DURING THE INITIAL PUBLIC
OFFERING OF THE COMPANY'S COMMON STOCK (THE "PUBLIC OFFERING") OR SOLD,
TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR BE THE SUBJECT OF ANY
HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN
THE EFFECTIVE ECONOMIC DISPOSITION OF THIS WARRANT OR THE SECURITIES UNDERLYING
THIS WARRANT BY ANY PERSON FOR A PERIOD OF 180 DAYS IMMEDIATELY FOLLOWING THE
DATE OF EFFECTIVENESS OR COMMENCEMENT OF SALES OF THE PUBLIC
OFFERING.

     

    THE
WARRANT EVIDENCED OR CONSTITUTED HEREBY, AND ALL SHARES OF COMMON STOCK ISSUABLE
HEREUNDER, HAVE BEEN AND WILL BE ISSUED WITHOUT REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE SOLD,
OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT REGISTRATION
UNDER THE ACT UNLESS EITHER (i) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL,
IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT
REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH DISPOSITION OR (ii) THE
SALE OF SUCH SECURITIES IS MADE PURSUANT TO SEC RULE 144.

     

    WARRANT
TO PURCHASE COMMON STOCK

    OF

    ZST
DIGITAL NETWORKS, INC.

    

     

    
      
        
          	
                  NO.
      __

                	
                  __________
      __, 2009

                

        

      

    

     

    THIS CERTIFIES THAT, for $____
and other valuable consideration received by ZST DIGITAL NETWORKS, INC., a
Delaware corporation (the “Company”),
[RODMAN & RENSHAW,
LLC/WESTPARK CAPITAL, INC.], or its permitted registered assigns (“Holder”),
is entitled, subject to the terms and conditions of this Warrant, at any time or
from time to time after the first anniversary of the issuance date of this
Warrant (the “Effective
Date”), and before 5:00 p.m. Pacific Time on _______ __, 2014 (the “Expiration
Date”), to purchase from the Company, _____________ shares of Common
Stock of the Company at a price per share equal to $______ (the “Purchase
Price”).  Both the number of shares of Common Stock purchasable
upon exercise of this Warrant and the Purchase Price are subject to adjustment
and change as provided herein.

     

    1.           CERTAIN
DEFINITIONS.  As used in this Warrant the following terms shall
have the following respective meanings:

     

    1.1           “Fair Market
Value” of a share of Common Stock as of a particular date shall
mean:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)           If
traded on a securities exchange, the Fair Market Value shall be deemed to be the
average of the closing prices of the Common Stock of the Company on such
exchange or market over the five (5) trading days ending immediately prior to
the applicable date of valuation;

     

    (b)           If
actively traded over-the-counter, the Fair Market Value shall be deemed to be
the average of the closing bid prices over the thirty (30)-day period ending
immediately prior to the applicable date of valuation; and

     

    (c)           If
there is no active public market, the Fair Market Value shall be the value
thereof, as agreed upon by the Company and the Holder; provided, however, that if the Company
and the Holder cannot agree on such value, such value shall be determined by an
independent valuation firm experienced in valuing businesses such as the Company
and jointly selected in good faith by the Company and the
Holder.  Fees and expenses of the valuation firm shall be paid for in
equal proportions by the Company and the Holder.

     

    1.2           “Registered
Holder” shall mean any Holder in whose name this Warrant is registered
upon the books and records maintained by the Company.

     

    1.3           “Warrant”
as used herein, shall include this Warrant and any warrant delivered in
substitution or exchange therefor as provided herein.

     

    1.4           “Common
Stock” shall mean the Common Stock of the Company and any other
securities at any time receivable or issuable upon exercise of this
Warrant.

     

    2.           EXERCISE OF
WARRANT.

     

    2.1           Payment.  Subject
to compliance with the terms and conditions of this Warrant and applicable
securities laws, this Warrant may be exercised, in whole or in part at any time
or from time to time, on or before the Expiration Date by the delivery
(including, without limitation, delivery by facsimile) of the form of Notice of
Exercise attached hereto as Exhibit A (the
“Notice of
Exercise”), duly executed by the Holder, at the principal office of the
Company, and as soon as practicable after such date, surrendering

     

    (a)           this
Warrant at the principal office of the Company, and

     

    (b)           payment,
(i) in cash (by check) or by wire transfer, (ii) by cancellation by
the Holder of indebtedness of the Company to the Holder; or (iii) by a
combination of (i) and (ii), of an amount equal to the product obtained by
multiplying the number of shares of Common Stock being purchased upon such
exercise by the then effective Purchase Price (the “Exercise
Amount”).

     

    2.2           Net Issue Exercise.
In lieu of the payment methods set forth in Section 2.1(b) above,
the Holder may elect to exchange all or some of this Warrant for shares of
Common Stock equal to the value of the amount of the Warrant being exchanged on
the date of exchange.  If Holder elects to exchange this Warrant as
provided in this Section 2.2, Holder
shall tender to the Company the Warrant for the amount being exchanged, along
with written notice of Holder’s election to exchange some or all of the Warrant,
and the Company shall issue to Holder the number of shares of the Common Stock
computed using the following formula:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            	
                    X
      =   

                  	
                    Y (A-B)

                  
	 
      	
                    A

                  

          

        

      

    

    

    
      
        	
                Where:   X
      =

              	
                the
      number of shares of Common Stock to be issued to
Holder.

              
	
                Y
      =

              	
                the
      number of shares of Common Stock purchasable under the amount of the
      Warrant being exchanged (as adjusted to the date of such
      calculation).

              
	
                A
      =

              	
                the
      Fair Market Value of one share of the Common Stock on the date that the
      relevant Notice of Exercise is received by the Company.

              
	
                B
      =

              	
                Purchase
      Price (as adjusted to the date of such
  calculation).

              

      

    

     

    2.3           Stock Certificates; Direct
Registration; Fractional Shares.  As soon as practicable on or
after the date of any exercise of this Warrant, the Company shall issue and
deliver to the person or persons entitled to receive the same a certificate or
certificates for the number of whole shares of Common Stock issuable upon such
exercise, together with cash in lieu of any fraction of a share equal to such
fraction of the current Fair Market Value of one whole share of Common Stock as
of such date of exercise.  No fractional shares or scrip representing
fractional shares shall be issued upon an exercise of this
Warrant.  In lieu of providing a stock certificate pursuant to this
Section 2.3, the Holder may request that the Company provide the securities in
book-entry (uncertificated form) if, at such time, the Company is direct
registration eligible.

     

    2.4           Partial Exercise; Effective
Date of Exercise.  In case of any partial exercise of this
Warrant, the Company shall cancel this Warrant upon surrender hereof and shall
execute and deliver a new Warrant of like tenor and date for the balance of the
shares of Common Stock purchasable hereunder.  This Warrant shall be
deemed to have been exercised immediately prior to the close of business on the
date of its surrender for exercise as provided above.  The person
entitled to receive the shares of Common Stock issuable upon exercise of this
Warrant shall be treated for all purposes as the holder of record of such shares
as of the close of business on the date the Holder is deemed to have exercised
this Warrant.

     

    2.5           Vesting.  This
Warrant shall vest fully upon issuance.

     

    3.           VALID ISSUANCE;
TAXES.  All shares of Common Stock issued upon the exercise of
this Warrant shall be validly issued, fully paid and nonassessable, and the
Company shall pay all taxes and other governmental charges that may be imposed
in respect of the issue or delivery thereof.  The Company shall not be
required to pay any tax or other charge imposed in connection with any transfer
involved in the issuance of any certificate for shares of Common Stock in any
name other than that of the Registered Holder of this Warrant, and in such case
the Company shall not be required to issue or deliver any stock certificate or
security until such tax or other charge has been paid, or it has been
established to the Company’s reasonable satisfaction that no tax or other charge
is due.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    4.           ADJUSTMENT OF PURCHASE PRICE AND
NUMBER OF SHARES.  The number of shares of Common Stock
issuable upon exercise of this Warrant (or any shares of stock or other
securities or property receivable or issuable upon exercise of this Warrant) and
the Purchase Price are subject to adjustment upon occurrence of the following
events:

     

    4.1           Adjustment for Stock Splits,
Stock Subdivisions or Combinations of Shares.  The Purchase
Price of this Warrant shall be proportionally decreased and the number of shares
of Common Stock issuable upon exercise of this Warrant (or any shares of stock
or other securities at the time issuable upon exercise of this Warrant) shall be
proportionally increased to reflect any stock split or subdivision of the
Company’s Common Stock.  The Purchase Price of this Warrant shall be
proportionally increased and the number of shares of Common Stock issuable upon
exercise of this Warrant (or any shares of stock or other securities at the time
issuable upon exercise of this Warrant) shall be proportionally decreased to
reflect any combination of the Company’s Common Stock.

     

    4.2           Adjustment for Dividends or
Distributions of Stock or Other Securities or Property.  In
case the Company shall make or issue, or shall fix a record date for the
determination of eligible holders entitled to receive, a dividend or other
distribution with respect to the Common Stock (or any shares of stock or other
securities at the time issuable upon exercise of the Warrant) payable in (a)
securities of the Company or (b) assets (excluding cash dividends), then, in
each such case, the Holder of this Warrant on exercise hereof at any time after
the consummation, effective date or record date of such dividend or other
distribution, shall receive, in addition to the shares of Common Stock (or such
other stock or securities) issuable on such exercise prior to such date, and
without the payment of additional consideration therefor, the securities or such
other assets of the Company to which such Holder would have been entitled upon
such date if such Holder had exercised this Warrant on the date hereof and had
thereafter, during the period from the date hereof to and including the date of
such exercise, retained such shares and all such additional securities or other
assets distributed with respect to such shares as aforesaid during such period
giving effect to all adjustments called for by this Section
4.

     

    4.3           Reclassification.  If
the Company, by reclassification of securities or otherwise, shall change any of
the securities as to which purchase rights under this Warrant exist into the
same or a different number of securities of any other class or classes, this
Warrant shall thereafter represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect
to the securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change, and the Purchase
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section
4.  No adjustment shall be made pursuant to this Section 4.3 upon any
conversion or redemption of the Common Stock which is the subject of Section
4.5.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4.4           Adjustment for Capital
Reorganization, Merger or Consolidation.  In case of any
capital reorganization of the capital stock of the Company (other than a
combination, reclassification, exchange or subdivision of shares otherwise
provided for herein), or any merger or consolidation of the Company with or into
another corporation, or the sale of all or substantially all the assets of the
Company then, and in each such case, as a part of such reorganization, merger,
consolidation, sale or transfer, lawful provision shall be made so that the
Holder of this Warrant shall thereafter be entitled to receive upon exercise of
this Warrant, during the period specified herein and upon payment of the
Purchase Price then in effect, the number of shares of stock or other securities
or property of the successor corporation resulting from such reorganization,
merger, consolidation, sale or transfer that a holder of the shares deliverable
upon exercise of this Warrant would have been entitled to receive in such
reorganization, consolidation, merger, sale or transfer if this Warrant had been
exercised immediately before such reorganization, merger, consolidation, sale or
transfer, all subject to further adjustment as provided in this Section
4.  The foregoing provisions of this Section 4.4 shall
similarly apply to successive reorganizations, consolidations, mergers, sales
and transfers and to the stock or securities of any other corporation that are
at the time receivable upon the exercise of this Warrant.  If the
per-share consideration payable to the Holder hereof for shares in connection
with any such transaction is in a form other than cash or marketable securities,
then the value of such consideration shall be determined in good faith by the
Company’s Board of Directors.  In all events, appropriate adjustment
(as determined in good faith by the Company’s Board of Directors) shall be made
in the application of the provisions of this Warrant with respect to the rights
and interests of the Holder after the transaction, to the end that the
provisions of this Warrant shall be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable after
that event upon exercise of this Warrant.

     

    4.5           Conversion of Common
Stock.  In case all or any portion of the authorized and
outstanding shares of Common Stock of the Company are redeemed or converted or
reclassified into other securities or property pursuant to the Company’s
Certificate of Incorporation or otherwise, or the Common Stock otherwise ceases
to exist, then, in such case, the Holder of this Warrant, upon exercise hereof
at any time after the date on which the Common Stock is so redeemed or
converted, reclassified or ceases to exist (the “Termination
Date”), shall receive, in lieu of the number of shares of Common Stock
that would have been issuable upon such exercise immediately prior to the
Termination Date, the securities or property that would have been received if
this Warrant had been exercised in full and the Common Stock received thereupon
had been simultaneously converted immediately prior to the Termination Date, all
subject to further adjustment as provided in this
Warrant.  Additionally, the Purchase Price shall be immediately
adjusted to equal the quotient obtained by dividing (x) the aggregate Purchase
Price of the maximum number of shares of Common Stock for which this Warrant was
exercisable immediately prior to the Termination Date by (y) the number of
shares of Common Stock of the Company for which this Warrant is exercisable
immediately after the Termination Date, all subject to further adjustment as
provided herein.

     

    5.           CERTIFICATE AS TO
ADJUSTMENTS.  In each case of any adjustment in the Purchase
Price, or number or type of shares issuable upon exercise of this Warrant, the
Chief Financial Officer or Controller of the Company shall compute such
adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment and showing in detail the facts upon
which such adjustment is based, including a statement of the adjusted Purchase
Price.  The Company shall promptly send (by facsimile and by either
first class mail, postage prepaid or overnight delivery) a copy of each such
certificate to the Holder.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    6.           LOSS OR
MUTILATION.  Upon receipt of evidence reasonably satisfactory
to the Company of the ownership of and the loss, theft, destruction or
mutilation of this Warrant, and of indemnity reasonably satisfactory to it, and
(in the case of mutilation) upon surrender and cancellation of this Warrant, the
Company will execute and deliver in lieu thereof a new Warrant of like tenor as
the lost, stolen, destroyed or mutilated Warrant.

     

    7.           RESERVATION OF COMMON
STOCK.  The Company hereby covenants that at all times there
shall be reserved for issuance and delivery upon exercise of this Warrant such
number of shares of Common Stock or other shares of capital stock of the Company
as are from time to time issuable upon exercise of this Warrant and, from time
to time, will take all steps necessary to amend its Certificate of Incorporation
to provide sufficient reserves of shares of Common Stock issuable upon exercise
of this Warrant.  All such shares shall be duly authorized, and when
issued upon such exercise, shall be validly issued, fully paid and
non-assessable, free and clear of all liens, security interests, charges and
other encumbrances or restrictions on sale and free and clear of all preemptive
rights, except encumbrances or restrictions arising under federal or state
securities laws. Issuance of this Warrant shall constitute full authority to the
Company’s Officers who are charged with the duty of executing stock certificates
to execute and issue the necessary certificates for shares of Common Stock upon
the exercise of this Warrant.

     

    8.           TRANSFER AND
EXCHANGE.  Subject to the terms and conditions of this Warrant
and compliance with all applicable securities laws, this Warrant and all rights
hereunder may be transferred to any Registered Holder’s parent, subsidiary or
affiliate, or, if the Registered Holder is a partnership, to any partner of such
Registered Holder, in whole or in part, on the books of the Company maintained
for such purpose at the principal office of the Company referred to above, by
the Registered Holder hereof in person, or by duly authorized attorney, upon
surrender of this Warrant properly endorsed and upon payment of any necessary
transfer tax or other governmental charge imposed upon such
transfer.  Upon any permitted partial transfer, the Company will issue
and deliver to the Registered Holder a new Warrant or Warrants with respect to
the shares of Common Stock not so transferred.  Each taker and holder
of this Warrant, by taking or holding the same, consents and agrees that when
this Warrant shall have been so endorsed, the person in possession of this
Warrant may be treated by the Company, and all other persons dealing with this
Warrant, as the absolute owner hereof for any purpose and as the person entitled
to exercise the rights represented hereby, any notice to the contrary
notwithstanding; provided, however, that until a
transfer of this Warrant is duly registered on the books of the Company, the
Company may treat the Registered Holder hereof as the owner for all
purposes.  Notwithstanding anything to the contrary, this Warrant and
the Common Stock issued or issuable upon exercise hereof, shall be subject to
the restrictions on transfer contained in FINRA Rule 5110(g) and may not be sold
during the offering pursuant to which such Warrant was issued, or sold,
transferred, assigned, pledged, or hypothecated, or be the subject of any
hedging, short sale, derivative, put, or call transaction that would result in
the effective economic disposition of the securities by any person for a period
of 180 days immediately following the Effective Date, except as provided in
subparagraph (g)(2) of FINRA Rule 5110.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    9.           RESTRICTIONS ON
TRANSFER.  The Holder, by acceptance hereof, agrees that,
absent an effective registration statement filed with the Securities and
Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “Securities
Act”) covering the disposition or sale of this Warrant or the Common
Stock issued or issuable upon exercise hereof, as the case may be, and
registration or qualification under applicable state securities laws, such
Holder will not sell, transfer, pledge, or hypothecate any or all of this
Warrant or such Common Stock, as the case may be, unless either (i) the Company
has received an opinion of counsel, in form and substance reasonably
satisfactory to the Company, to the effect that such registration is not
required in connection with such disposition or (ii) the sale of such securities
is made pursuant to SEC Rule 144.  Further, the Holder agrees that
this Warrant and the Common Stock issued or issuable upon exercise hereof
(including any shares issuable upon an adjustment hereunder), shall not be sold
during the offering, or sold, transferred, assigned, pledged, or hypothecated,
or be the subject of any hedging, short sale, derivative, put, or call
transaction that would result in the effective economic disposition of the
securities by any person for a period of 180 days immediately following the date
of effectiveness or commencement of sales of the public offering of the Company
pursuant to Registration Statement 333-153005 on Form S-1, as amended, except as
provided in FINRA Rule 5110(g)(2).

     

    10.           COMPLIANCE WITH SECURITIES
LAWS.  By acceptance of this Warrant, the Holder hereby
represents, warrants and covenants that he/she/it is an “accredited investor” as
that term is defined under Rule 501 of Regulation D, that any shares of stock
purchased upon exercise of this Warrant shall be acquired for investment only
and not with a view to, or for sale in connection with, any distribution
thereof; that the Holder has had such opportunity as such Holder has deemed
adequate to obtain from representatives of the Company such information as is
necessary to permit the Holder to evaluate the merits and risks of its
investment in the Company; that the Holder is able to bear the economic risk of
holding such shares as may be acquired pursuant to the exercise of this Warrant
for an indefinite period; that the Holder understands that the shares of stock
acquired pursuant to the exercise of this Warrant will not be registered under
the Securities Act (unless otherwise required pursuant to exercise by the Holder
of the registration rights, if any, granted to the Registered Holder) and will
be “restricted securities” within the meaning of Rule 144, in its current form,
under the Securities Act and that the exemption from registration under Rule 144
will not be available for at least one (1) year from the date of exercise of
this Warrant, subject to any special treatment by the SEC for exercise of this
Warrant pursuant to Section 2.2, and even
then will not be available unless a public market then exists for the stock,
adequate information concerning the Company is then available to the public, and
other terms and conditions of Rule 144 are complied with; and that all stock
certificates representing shares of stock issued to the Holder upon exercise of
this Warrant or upon conversion of such shares may have affixed thereto a legend
substantially in the following form:

     

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY
STATE.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO
REGISTRATION OR EXEMPTION THEREFROM.  INVESTORS SHOULD BE AWARE THAT
THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME.  THE ISSUER OF THESE SECURITIES MAY REQUIRE
AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE
EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    11.           REGISTRATION
RIGHTS.  All shares of Common Stock issuable upon exercise of
this Warrant shall be “Registrable
Securities” or such other definition of securities entitled to
registration rights pursuant to Exhibit C to this
Warrant.

     

    12.           NO RIGHTS OR LIABILITIES AS
STOCKHOLDERS.  This Warrant shall not entitle the Holder to any
voting rights or other rights as a stockholder of the Company.  In the
absence of affirmative action by such Holder to purchase Common Stock by
exercise of this Warrant or Common Stock upon conversion thereof, no provisions
of this Warrant, and no enumeration herein of the rights or privileges of the
Holder hereof shall cause such Holder hereof to be a stockholder of the Company
for any purpose.

     

    13.           REPRESENTATIONS AND WARRANTIES OF THE
COMPANY.  The Company hereby represents and warrants to Holder
that:

     

    13.1           Due Authorization;
Consents.  All corporate action on the part of the Company, its
officers, directors and stockholders necessary for (a) the authorization,
execution and delivery of, and the performance of all obligations of the Company
under, this Warrant, and (b) the authorization, issuance, reservation for
issuance and delivery of all of the Common Stock issuable upon exercise of this
Warrant, has been duly taken.  This Warrant constitutes a valid and
binding obligation of the Company enforceable in accordance with its terms,
subject, as to enforcement of remedies, to applicable bankruptcy, insolvency,
moratorium, reorganization and similar laws affecting creditors’ rights
generally and to general equitable principles.

     

    13.2           Organization.  The
Company is a corporation duly organized and validly existing under the laws of
the State of Delaware and has all requisite corporate power to own, lease and
operate its property and to carry on its business as now being conducted and as
currently proposed to be conducted.

     

    14.           NOTICES.  Except as
may be otherwise provided herein, all notices, requests, waivers and other
communications made pursuant to this Agreement shall be in writing and shall be
conclusively deemed to have been duly given (a) when hand delivered to the other
party; (b) when received when sent by facsimile at the address and number set
forth below; (c) three business days after deposit in the U.S. mail with first
class or certified mail receipt requested postage prepaid and addressed to the
other party as set forth below; or (d) the next business day after deposit with
a national overnight delivery service, postage prepaid, addressed to the parties
as set forth below with next-business-day delivery guaranteed, provided that the
sending party receives a confirmation of delivery from the delivery service
provider.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      
        	
                To the
      Company:

              	
                To the
      Holder:

              
	 
      	 
      
	
                Building
      28, Huzhu Road

                Zhongyuan
      District, Zhengzhou

                People’s
      Republic of China

              	
                [1900
      Avenue of the Stars, Suite 310

                Los
      Angeles, CA 90067]

                [1251
      Avenue of the Americas, 20th
      Fl

                New
      York, NY 10020]

              

      

    

    

     

    Each
person making a communication hereunder by facsimile shall promptly confirm by
telephone to the person to whom such communication was addressed each
communication made by it by facsimile pursuant hereto but the absence of such
confirmation shall not affect the validity of any such
communication.  A party may change or supplement the addresses given
above, or designate additional addresses, for purposes of this Section 13 by giving
the other party written notice of the new address in the manner set forth
above.

     

    15.           HEADINGS.  The
headings in this Warrant are for purposes of convenience in reference only, and
shall not be deemed to constitute a part hereof.

     

    16.           LAW GOVERNING.  This
Warrant shall be construed and enforced in accordance with, and governed by, the
laws of the State of Delaware, with regard to conflict of law principles of such
state.

     

    17.           NO IMPAIRMENT.  The
Company will not, by amendment of its Certificate of Incorporation or bylaws, or
through reorganization, consolidation, merger, dissolution, issue or sale of
securities, sale of assets or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms of this Warrant, but will at
all times in good faith assist in the carrying out of all such terms and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of the Registered Holder of this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company (a) will not increase the par value of any shares of stock issuable upon
the exercise of this Warrant above the amount payable therefor upon such
exercise, and (b) will take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon exercise of this Warrant.

     

    18.           NOTICES OF RECORD
DATE.  In case:

     

    18.1           the
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time receivable upon the exercise of this Warrant), for the
purpose of entitling them to receive any dividend or other distribution, or any
right to subscribe for or purchase any shares of stock of any class or any other
securities or to receive any other right; or

     

    18.2           of
any consolidation or merger of the Company with or into another corporation, any
capital reorganization of the Company, any reclassification of the capital stock
of the Company, or any conveyance of all or substantially all of the assets of
the Company to another corporation in which holders of the Company’s stock are
to receive stock, securities or property of another corporation; or

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    18.3           of
any voluntary dissolution, liquidation or winding-up of the Company;
or

     

    18.4           of
any redemption or conversion of all outstanding Common Stock;

     

    then, and
in each such case, the Company will mail or cause to be mailed to the Registered
Holder of this Warrant a notice specifying, as the case may be, (i) the date on
which a record is to be taken for the purpose of such dividend, distribution or
right, or (ii) the date on which such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation, winding-up,
redemption or conversion is to take place, and the time, if any is to be fixed,
as of which the holders of record of Common Stock or (such stock or securities
as at the time are receivable upon the exercise of this Warrant), shall be
entitled to exchange their shares of Common Stock (or such other stock or
securities), for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up.  The Company shall use all
reasonable efforts to ensure such notice shall be delivered at least thirty (30)
days prior to the date therein specified.

     

    19.           SEVERABILITY.  If
any term, provision, covenant or restriction of this Warrant is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Warrant shall remain
in full force and effect and shall in no way be affected, impaired or
invalidated.

     

    20.           COUNTERPARTS.  For
the convenience of the parties, any number of counterparts of this Warrant may
be executed by the parties hereto and each such executed counterpart shall be,
and shall be deemed to be, an original instrument.

     

    21.           NO INCONSISTENT
AGREEMENTS.  The Company will not on or after the date of this
Warrant enter into any agreement with respect to its securities which is
inconsistent with the rights granted to the Holders of this Warrant or otherwise
conflicts with the provisions hereof.  The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to holders of the Company’s securities under any other
agreements, except rights that have been waived.

     

    22.           SATURDAYS, SUNDAYS AND
HOLIDAYS.  If the Expiration Date falls on a Saturday, Sunday
or legal holiday, the Expiration Date shall automatically be extended until 5:00
p.m. PST the next business day.

     

    23.           ENTIRE
AGREEMENT.  This Warrant contains the sole and entire agreement
and understanding of the parties with respect to the entire subject matter of
this Warrant, and any and all prior discussions, negotiations, commitments and
understandings, whether oral or otherwise, related to the subject matter of this
Warrant are hereby merged herein.

     

    [Signatures
appear on following page.]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have executed this Warrant as of the Effective Date.

     

    

     

    
      
        
          
            
              	
                      [WESTPARK
      CAPITAL, INC.]

                      [RODMAN
      & RENSHAW, LLC]

                       

                    	 
      	
                      ZST
      DIGITAL NETWORKS, INC.

                    
	 
      	 
      	 
      
	
                      By:

                    	
                       

                    	
                      

                        By:    
      Zhong Bo

                      

                    
	
                      Its:

                    	
                       

                    	
                      

                        Its:    
      Chairman and Chief Executive
  Officer

                      

                    

            

          

        

      

    

     

    SIGNATURE
PAGE TO WARRANT TO PURCHASE COMMON STOCK

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    NOTICE
OF EXERCISE

     

    (To be
executed upon exercise of Warrant)

     

    To: ZST
Digital Networks, Inc.

     

    The
undersigned hereby irrevocably elects to exercise the right of purchase
represented by the within Warrant Certificate for, and to purchase thereunder,
the securities of the Company, as provided for therein, and (check the
applicable box):

     

    
      
        
          	
                   ̈

                	
                  tenders
      herewith payment of the exercise price in full in the form of cash or a
      certified or official bank check in same-day funds in the amount of
      $____________ for _________ such securities.

                
	 	 
	
                   ̈

                	
                  elects
      the Net Issue Exercise option pursuant to Section 2.2 of the Warrant, and
      accordingly requests delivery of a net of ______________ of such
      securities.

                

        

      

    

     

    Please
issue a certificate or certificates for such securities in the name of, and pay
any cash for any fractional share to (please print name, address and social
security number):

     

    
      
        
          
            
              
                
                  	
                          Name:

                        	 
      
	 	 
	
                          Address:

                        	 
      
	 	 
	
                          Signature:

                        	 
      

                

              

            

          

        

      

    

     

    Note:  The
above signature should correspond exactly with the name on the first page of
this Warrant Certificate or with the name of the assignee appearing in the
assignment form below.

     

    If said
number of shares shall not be all the shares purchasable under the within
Warrant Certificate, a new Warrant Certificate is to be issued in the name of
said undersigned for the balance remaining of the shares purchasable thereunder
rounded up to the next higher whole number of shares.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    ASSIGNMENT

     

    (To be
executed only upon assignment of Warrant Certificate)

     

    For value
received, hereby sells, assigns and transfers unto ____________________________
the within Warrant Certificate, together with all right, title and interest
therein, and does hereby irrevocably constitute and appoint
____________________________ attorney, to transfer said Warrant Certificate on
the books of the within-named Company with respect to the number of Warrants set
forth below, with full power of substitution in the premises:

     

    
      
        	
                Name(s) of Assignee(s)

              	 
      	
                Address

              	 
      	
                # of Warrants

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

      

    

    

     

    And if
said number of Warrants shall not be all the Warrants represented by the Warrant
Certificate, a new Warrant Certificate is to be issued in the name of said
undersigned for the balance remaining of the Warrants registered by said Warrant
Certificate.

     

    
      
        
          
            
              
                
                  
                    	 	 
	 	 
	
                            Dated:

                          	 
      
	 	 
	
                            Signature:

                          	 
      

                  

                

              

            

          

        

      

    

     

    Notice:  The
signature to the foregoing Assignment must correspond to the name as written
upon the face of this security in every particular, without alteration or any
change whatsoever; signature(s) must be guaranteed by an eligible guarantor
institution (banks, stock brokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program)
pursuant to Securities and Exchange Commission Rule 17Ad-15.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    1.           REGISTRATION
RIGHTS.

     

    1.1           Definitions.  For
purposes of this Section 1:

     

    
      	
               
      

            	
              (a)

            	
              Registration.  The
      terms “register,”
      “registered,”
      and “registration”
      refer to a registration effected by preparing and filing a registration
      statement in compliance with the Securities Act of 1933, as amended, (the
      “Securities
      Act”), and the declaration or ordering of effectiveness of such
      registration statement

            

    

     

    
      	
               
      

            	
              (b)

            	
              Registrable
      Securities.  The term “Registrable
      Securities” means:  (1) any Common Stock of the Company
      issued or to be issued upon exercise of the Warrant and (2) any
      shares of Common Stock of the Company issued as (or issuable upon the
      conversion or exercise of any warrant, right or other security which is
      issued as) a dividend or other distribution with respect to, or in
      exchange for or in replacement of, any shares of Common Stock described in
      clause (1) of this subsection (b).  Notwithstanding the
      foregoing, “Registrable Securities” shall exclude any Registrable
      Securities sold by a person in a transaction in which rights under this
      Section 1
      are not assigned in accordance with this Warrant or any Registrable
      Securities sold in a public offering, whether sold pursuant to
      Rule 144 promulgated under the Securities Act, or in a registered
      offering, or otherwise.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Registrable Securities
      Then Outstanding.  The number of shares of “Registrable
      Securities then outstanding” shall mean the number of shares of
      Common Stock of the Company that are Registrable Securities and (l) are
      then issued and outstanding or (2) are then issuable pursuant to an
      exercise of the Warrant or pursuant to conversion of securities issuable
      pursuant to an exercise of the
Warrant.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Holder.  For
      purposes of this Section 1,
      the term “Holder”
      means any person owning of record Registrable Securities or any permitted
      assignee of record of such Registrable Securities to whom rights under
      this Section 1
      have been duly assigned in accordance with this
  Warrant.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Form.  The
      term “Form”
      means any form under the Securities Act for the registration of securities
      as is in effect on the date hereof or any successor registration form
      under the Securities Act subsequently adopted by the SEC which permits
      inclusion or incorporation of substantial information by reference to
      other documents filed by the Company with the
  SEC.

            

    

     

    
      	
               
      

            	
              (f)

            	
              SEC.  The
      term “SEC”
      or “Commission”
      means the U.S. Securities and Exchange
  Commission.

            

    

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              1.2

            	
              Piggyback
      Registrations. The Company shall notify all Holders of Registrable
      Securities in writing at least thirty (30) days prior to filing any
      registration statement under the Securities Act for purposes of effecting
      a public offering of securities of the Company (including, but not limited
      to, registration statements relating to secondary offerings of securities
      of the Company, but excluding
      registration statements relating to any registration under Section 1.3,
      below, or to any employee benefit plan or a corporate reorganization) and
      will afford each such Holder an opportunity to include in such
      registration statement all or any part of the Registrable Securities then
      held by such Holder.  Each Holder desiring to include in any
      such registration statement all or any part of the Registrable Securities
      held by such Holder shall within fifteen (15) days after receipt of the
      above-described notice from the Company, so notify the Company in writing,
      and in such notice shall inform the Company of the number of Registrable
      Securities such Holder wishes to include in such registration
      statement.  If a Holder decides not to include all of its
      Registrable Securities in any registration statement thereafter filed by
      the Company, such Holder shall nevertheless continue to have the right to
      include any Registrable Securities in any subsequent registration
      statement or registration statements as may be filed by the Company with
      respect to offerings of its securities, all upon the terms and conditions
      set forth herein.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Underwriting.  If
      a registration statement under which the Company gives notice under this
      Section 1.2
      is for an underwritten offering, then the Company shall so advise the
      Holders of Registrable Securities.  In such event, the right of
      any such Holder’s Registrable Securities to be included in a registration
      pursuant to this Section 1.2
      shall be conditioned upon such Holder’s participation in such underwriting
      and the inclusion of such Holder’s Registrable Securities in the
      underwriting to the extent provided herein.  All Holders
      proposing to distribute their Registrable Securities through such
      underwriting shall enter into an underwriting agreement in customary form
      with the managing underwriter or underwriters selected for such
      underwriting (including a market stand-off agreement of up to 180 days if
      required by such underwriters).  Notwithstanding any other
      provision of this Exhibit C, if the managing underwriter(s) determine(s)
      in good faith that marketing factors require a limitation of the number of
      shares to be underwritten, then the Company shall include in such offering
      (i) first, all the securities the Company proposes to register for its own
      account, and (ii) second, Holder’s Registrable Securities and other shares
      of Common Stock of the Company requested to be included by other investors
      having written registration rights agreements with the Company respecting
      such shares (“Other
      Registrable Securities”), with Holder and each such investor
      proposing to sell such shares participating in such registration on a
      pro rata basis,
      such participation to be based upon the number of shares of Registrable
      Securities and Other Registrable Securities then held by the Holder and
      each such investor, respectively;  provided, however, that the right
      of the underwriters to exclude shares (including Registrable Securities)
      from the registration and underwriting as described above shall be
      restricted so that all shares that are not Registrable Securities or Other
      Registrable Securities and are held by any other person, including,
      without limitation, any person who is an employee or officer of the
      Company (or any subsidiary of the Company) shall first be excluded from
      such registration and underwriting before any Registrable Securities and
      Other Registrable Securities are so excluded.  If any Holder
      disapproves of the terms of any such underwriting, such Holder may elect
      to withdraw therefrom by written notice to the Company and the
      underwriter(s), delivered at least ten (10) business days prior to the
      effective date of the registration statement.  Any Registrable
      Securities excluded or withdrawn from such underwriting shall be excluded
      and withdrawn from the registration.  For any Holder that is a
      partnership, the Holder and the partners and retired partners of such
      Holder, or the estates and family members of any such partners and retired
      partners and any trusts for the benefit of any of the foregoing persons,
      and for any Holder that is a corporation, the Holder and all corporations
      that are affiliates of such Holder, shall be deemed to be a single
      “Holder,” and any pro
      rata reduction with respect to such “Holder” shall be based upon
      the aggregate amount of shares carrying registration rights owned by all
      entities and individuals included in such “Holder,” as defined in this
      sentence.

            

    

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Expenses.  All
      expenses incurred in connection with a registration pursuant to this Section 1.2
      (excluding underwriters’ and brokers’ discounts and commissions relating
      to shares sold by the Holders and legal fees of counsel for the Holders),
      including, without limitation all federal and “blue sky” registration,
      filing and qualification fees, printers’ and accounting fees, and fees and
      disbursements of counsel for the Company, shall be borne by the
      Company.

            

    

     

    
      	
               
      

            	
              (c)

            	
              No Limit on
      Registrations.  Except as otherwise provided herein,
      there shall be no limit on the number of times the Holders may request
      registration of Registrable Securities under this Section 1.2,
      provided however, that such registration rights shall terminate of the
      seventh anniversary of the Effective
Date.

            

    

     

    
      	
               
      

            	
              1.3

            	
              Form
      Registration.  In case the Company shall at any time
      during the period ending on the fifth anniversary of the Effective Date,
      receive from any Holder or Holders of a majority of all Registrable
      Securities then outstanding a written request or requests that the Company
      effect a registration on Form S-1 or any similar long form registration
      statement or Form S-3 or any similar short form registration statement and
      any related qualification or compliance with respect to all or a part of
      the Registrable Securities owned by such Holder or Holders, then the
      Company will:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Notice.  Promptly
      give written notice of the proposed registration and the Holder’s or
      Holders’ request therefor, and any related qualification or compliance, to
      all other Holders of Registrable Securities;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              Registration.  As
      soon as practicable, effect such registration and all such qualifications
      and compliances as may be so requested and as would permit or facilitate
      the sale and distribution of all or such portion of such Holders or
      Holders’ Registrable Securities as are specified in such request, together
      with all or such portion of the Registrable Securities of any other Holder
      or Holders joining in such request as are specified in a written request
      given within fifteen (15) days after the Company provides the notice
      contemplated by Section 1.3(a);
      provided, however, that the
      Company shall not be obligated to effect any such registration,
      qualification or compliance pursuant to this Section 1.3:

            

    

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

     

    (1)           [intentionally
deleted];

     

    
      	
               
      

            	
              (2)

            	
              if
      the Holders, together with the holders of any other securities of the
      Company entitled to inclusion in such registration, propose to sell
      Registrable Securities and such other securities (if any) at an aggregate
      price to the public of less than
$1,000,000;

            

    

     

    
      	
               
      

            	
              (3)

            	
              if
      the Company shall furnish to the Holders a certificate signed by the
      President or Chief Executive Officer of the Company stating that in the
      good faith judgment of the Board of Directors of the Company, it would be
      materially detrimental to the Company and its shareholders for such Form
      Registration to be effected at such time, in which event the Company shall
      have the right to defer the filing of the Form Registration statement no
      more than once during any twelve month period for a period of not more
      than ninety (90) days after receipt of the request of the Holder or
      Holders under this Section 1.3;

            

    

     

    
      	
               
      

            	
              (4)

            	
              if
      the Company has, within the six (6) month period preceding the date of
      such request, already effected a registration under the Securities Act
      other than a registration from which the Registrable Securities of Holders
      have been excluded (with respect to all or any portion of the Registrable
      Securities the Holders requested be included in such registration)
      pursuant to the provisions of Section 1.2(a);
      or

            

    

     

    
      	
               
      

            	
              (5)

            	
              in
      any particular jurisdiction in which the Company would be required to
      qualify to do business or to execute a general consent to service of
      process in effecting such registration, qualification or
      compliance.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Expenses.  The
      Company shall pay all expenses incurred in connection with one
      registration requested pursuant to this Section 1.3,
      (excluding underwriters’ or brokers’ discounts and commissions relating to
      shares sold by the Holders and legal fees of counsel for the Holders and
      excluding expenses required to be paid by a Holder pursuant to Section 1.4(g)
      below), including without limitation federal and “blue sky” registration,
      filing and qualification fees, printers’ and accounting fees, and fees and
      disbursements of counsel.

            

    

     

    
      
        
        

      

      
        C-4

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (d)

            	
              Deferral.  Notwithstanding
      the foregoing, if the Company shall furnish to Holders requesting the
      filing of a registration statement pursuant to this Section 1.3,
      a certificate signed by the President or Chief Executive Officer of the
      Company stating that in the good faith judgment of the Board, it would be
      materially detrimental to the Company and its stockholders for such
      registration statement to be filed, then the Company shall have the right
      to defer such filing for a period of not more than ninety (90) days after
      receipt of the request of the initiating Holders; provided, however, that the
      Company may not utilize this right more than once in any twelve (12) month
      period.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Limit on
      Registrations.  The Holders shall be entitled to request
      registration of Registrable Securities under this Section 1.3
      on one (1) occasion.

            

    

     

    
      	
               
      

            	
              1.4

            	
              Obligations of the
      Company.  Whenever required to effect the registration of
      any Registrable Securities under this Warrant the Company shall, as
      expeditiously as reasonably
possible:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Registration
      Statement.  Prepare and file with the SEC a registration
      statement with respect to such Registrable Securities and use its
      commercially reasonable efforts to cause such registration statement to
      become effective, provided, however, that the
      Company shall not be required to keep any such registration statement
      effective for more than ninety (90)
days.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Amendments and
      Supplements.  Prepare and file with the SEC such
      amendments and supplements to such registration statement and the
      prospectus used in connection with such registration statement as may be
      necessary to comply with the provisions of the Securities Act with respect
      to the disposition of all securities covered by such registration
      statement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Prospectuses.  Furnish
      to the Holders such number of copies of a prospectus, including a
      preliminary prospectus, in conformity with the requirements of the
      Securities Act, and such other documents as they may reasonably request in
      order to facilitate the disposition of the Registrable Securities owned by
      them that are included in such
registration.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Blue
      Sky.  Use its commercially reasonable efforts to register
      and qualify the securities covered by such registration statement under
      such other securities or Blue Sky laws of such states as shall be
      reasonably requested by the Holders, provided that the Company shall not
      be required in connection therewith or as a condition thereto to qualify
      to do business or to file a general consent to service of process in any
      such states or jurisdictions.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Underwriting.  In
      the event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement in usual and customary form,
      with the managing underwriter(s) of such offering.  Each Holder
      participating in such underwriting shall also enter into and perform its
      obligations under such an
agreement.

            

    

     

    
      
        
        

      

      
        C-5

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (f)

            	
              Notification.  Notify
      each Holder of Registrable Securities covered by 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 as a
      result of which the prospectus included 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 the light of the
      circumstances then existing.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Opinion and Comfort
      Letter.  Furnish, at the request of any Holder requesting
      registration of Registrable Securities, on the date that such Registrable
      Securities are delivered to the underwriters for sale, if such securities
      are being sold through underwriters, (i) an opinion, dated as of such
      date, of the counsel representing the Company for the purposes of such
      registration, in form and substance as is customarily given to
      underwriters in an underwritten public offering and reasonably
      satisfactory to a majority in interest of the Holders requesting
      registration, addressed to the underwriters, if any, and (ii) a “comfort”
      letter dated as of such date, from the independent certified public
      accountants of the Company, in form and substance as is customarily given
      by independent certified public accountants to underwriters in an
      underwritten public offering and reasonably satisfactory to a majority in
      interest of the Holders requesting registration, addressed to the
      underwriters, if any, provided however, that the Company’s obligation to
      obtain a “comfort” letter shall be limited to commercially reasonable
      efforts.  If such securities are not being sold through
      underwriters, then the Company shall furnish, at the request and at the
      sole expense of any Holder requesting registration of Registrable
      Securities, on the date that the registration statement with respect to
      such securities becomes effective, an opinion, dated as of such date, of
      the counsel representing the Company for the purposes of such
      registration, in form and substance as is customarily given to
      underwriters in an underwritten public offering and reasonably
      satisfactory to a majority in interest of the Holders requesting
      registration, addressed to the underwriters, if any, and to the Holders
      requesting registration of Registrable
  Securities.

            

    

     

    
      	
               
      

            	
              1.5

            	
              Furnish
      Information.  It shall be a condition precedent to the
      obligations of the Company to take any action pursuant to Sections 1.2 or
      1.3 that
      the selling Holders shall furnish to the Company such information
      regarding themselves, the Registrable Securities held by them, and the
      intended method of disposition of such securities as shall be required to
      timely effect the Registration of their Registrable
      Securities.

            

    

     

    
      	
               
      

            	
              1.6

            	
              Indemnification.  In
      the event any Registrable Securities are included in a registration
      statement under Sections 1.2 or
      1.3:

            

    

     

    
      
        
        

      

      
        C-6

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (a)

            	
              By the
      Company.  To the extent permitted by law; the Company
      will indemnify and hold harmless each Holder, the partners, officers and
      directors of each Holder, any underwriter (as determined in the Securities
      Act) for such Holder and each person, if any, who controls such Holder or
      underwriter within the meaning of the Securities Act or the Securities
      Exchange Act of 1934, as amended, (the “1934
      Act”), against any losses, claims, damages, or Liabilities (joint
      or several) to which they may become subject under the Securities Act, the
      1934 Act or other federal or state law, insofar as such losses, claims,
      damages, or liabilities (or actions in respect thereof) arise out of or
      are based upon any of the following statements, omissions or violations
      (collectively a “Violation”):

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      untrue statement or alleged untrue statement of a material fact contained
      in such registration statement, including any preliminary prospectus or
      final prospectus contained therein or any amendments or supplements
      thereto;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              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, or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              any
      violation or alleged violation by the Company of the Securities Act, the
      1934 Act, any federal or state securities law or any rule or regulation
      promulgated under the Securities Act, the 1934 Act or any federal or state
      securities law in connection with the offering covered by such
      registration statement;

            

    

     

    and the
Company will reimburse each such Holder, partner, officer or director,
underwriter or controlling person for any legal or other expenses reasonably
incurred by them, as incurred, in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that the indemnity
agreement contained in this subsection 1.6(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable in any such case
for any such loss, claim, damage, liability or action to the extent that it
arises out of or is based upon a Violation which occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by such Holder, partner, officer, director, underwriter
or controlling person of such Holder.

     

    
      
        
        

      

      
        C-7

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              By Selling
      Holders.  To the extent permitted by law, each selling
      Holder will indemnify and hold harmless the Company, each of its
      directors, each of its officers who have signed the registration
      statement, each person, if any, who controls the Company within the
      meaning of the Securities Act, any underwriter and any other Holder
      selling securities under such registration statement or any of such other
      Holder’s partners, directors or officers or any person who controls such
      Holder within the meaning of the Securities Act or the 1934 Act, against
      any losses, claims, damages or liabilities (joint or several) to which the
      Company or any such director, officer, controlling person, underwriter or
      other such Holder, partner or director, officer or controlling person of
      such other Holder may become subject under the Securities Act, the 1934
      Act or other federal or state law, insofar as such losses, claims, damages
      or liabilities (or actions in respect thereto) arise out of or are based
      upon any Violation, in each case to the extent (and only to the extent)
      that such Violation occurs in reliance upon and in conformity with written
      information furnished by such Holder expressly for use in connection with
      such registration; and each such Holder will reimburse any legal or other
      expenses reasonably incurred by the Company or any such director, officer,
      controlling person, underwriter or other Holder, partner, officer,
      director or controlling person of such other Holder in connection with
      investigating or defending any such loss, claim, damage, liability or
      action: provided,
      however, that the
      indemnity agreement contained in this Section 1.6(b)
      shall not apply to amounts paid in settlement of any such loss, claim,
      damage, liability or action if such settlement is effected without the
      consent of the Holder, which consent shall not be unreasonably withheld;
      and provided,
      further, that the
      total amounts payable in indemnity by a Holder under this Section 1.6(b)
      in respect of any Violation shall not exceed the net proceeds received by
      such Holder in the registered offering out of which such Violation
      arises.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Notice.  Promptly
      after receipt by an indemnified party under this Section 1.6
      of notice of the commencement of any action (including any governmental
      action), such indemnified party will, if a claim in respect thereof is to
      be made against any indemnifying party under this Section 1.6,
      deliver to the indemnifying party a written notice of the commencement
      thereof and the indemnifying party shall have the right to participate in,
      and, to the extent the indemnifying party so desires, jointly with any
      other indemnifying party similarly noticed, to assume the defense thereof
      with counsel mutually satisfactory to the parties; provided, however, that an
      indemnified party shall have the right to retain its own counsel, with the
      fees and expenses to be paid by the indemnifying party, if representation
      of such indemnified party by the counsel retained by the indemnifying
      party would be inappropriate due to actual or potential conflict of
      interests between such indemnified party and any other party represented
      by such counsel in such proceeding.  The failure to deliver
      written notice to the indemnifying party within a reasonable time of the
      commencement of any such action shall relieve such indemnifying party of
      liability to the indemnified party under this Section 1.6
      to the extent the indemnifying party is prejudiced as a result thereof,
      but the omission so to deliver written notice to the indemnified party
      will not relieve it of any liability that it may have to any indemnified
      party otherwise than under this Section 1.6.

            

    

     

    
      
        
        

      

      
        C-8

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (d)

            	
              Defect Eliminated in
      Final Prospectus.  The foregoing indemnity agreements of
      the Company and Holders are subject to the condition that, insofar as they
      relate to any Violation made in a preliminary prospectus but eliminated or
      remedied in the amended prospectus on file with the SEC at the time the
      registration statement in question becomes effective or the amended
      prospectus filed with the SEC pursuant to SEC Rule 424(b) (the “Final
      Prospectus”), such indemnity agreement shall not inure to the
      benefit of any person if a copy of the Final Prospectus was timely
      furnished to the indemnified party and was not furnished to the person
      asserting the loss, liability, claim or damage at or prior to the time
      such action is required by the Securities
Act.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Contribution.  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
      exercising rights under this Warrant, or any controlling person of any
      such Holder, makes a claim for indemnification pursuant to this Section 1.6
      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 1.6
      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 1.6;
      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
      and sold under the registration statement bears to the public offering
      price of all securities offered by and sold under such registration
      statement, and the Company and other selling Holders are 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 and sold by such Holder 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.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Survival.  The
      obligations of the Company and Holders under this Section 1.6
      shall survive until the fifth anniversary of the completion of any
      offering of Registrable Securities in a registration statement, regardless
      of the expiration of any statutes of limitation or extensions of such
      statutes.

            

    

     

    
      	
            	
              1.7 

            	
              Termination of the
      Company’s Obligations.  The Company shall have no
      obligations pursuant to Sections 1.2
      and 1.3
      with respect to any Registrable Securities proposed to be sold by a Holder
      in a registration pursuant to (a) Section 1.2
      more than seven years or (b) Section 1.3
      more than five years, respectively, after the date of this Warrant, or,
      if, in the opinion of counsel to the Company, all such Registrable
      Securities proposed to be sold by a Holder may then be sold under Rule 144
      in one transaction without exceeding the volume limitations
      thereunder.

            

    

    
      
         

      

      
        C-9

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