Document:

EXHIBIT
      4.1

     

    SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of July 18, 2006, among GRC Holdings, Inc., a Texas corporation
      (“GRC”)
      and
      its wholly-owned subsidiary, Logic Express Limited (“Logic
      Express”),
      and
      its 82.76% owned subsidiary Shandong Missile Biologic Products Co., Ltd.
      (“Shandong Missile”
      or
      the
“Company”),
      the
      selling stockholders identified on the signature pages hereto (each, a
“Selling
      Stockholder,”
      and
      collectively, the “Selling
      Stockholders”)
      and the
      investors identified on the signature pages hereto (each, an “Investor”
      and
      collectively, the “Investors”).

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      Section 4(2) of the Securities Act (as defined below) and Rule 506 promulgated
      thereunder, GRC and the Selling Stockholders desire to sell to each Investor,
      and each Investor, severally and not jointly, desires to purchase from GRC
      and
      the Selling Stockholders, certain securities of GRC, as more fully described
      in
      this Agreement.

     

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

     

    ARTICLE
      1.

    DEFINITIONS

     

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

     

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

     

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

     

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

     

    “Buy-In”
has
      the
      meaning set forth in Section 4.1(c).

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

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

     

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

     

    “Closing
      8-K”
      means
      the Form 8-K to be filed by the Company on the second Business Day following
      the
      Closing Date in accordance with Section 4.5.

     

    “Commission”
      means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
      means
      the common stock of GRC, par value $.0001
      per
      share, and any securities into which such common stock may hereafter be
      reclassified.

     

    “Common
      Stock Equivalents”
      has the
      meaning set forth in Section 4.13.

     

    “Effective
      Date”
      means
      the date that the initial Registration Statement required by Section 2(a) of
      the
      Registration Rights Agreement is first declared effective by the
      Commission.

     

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

     

    “Exchange
      Transaction”
      shall
      mean the transaction contemplated by the Share Exchange Agreement by and among
      GRC, Logic Express and the shareholders of Logic Express of even date
      herewith.

     

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

     

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

     

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

     

    “Investor
      Deliverables”
      has the
      meaning set forth in Section 2.2(b).

     

    “Investor
      Party”
      has the
      meaning set forth in Section 4.7.

     

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

     

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

     

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

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    “Outside
      Date”
      means
      July 21, 2006.

     

    “Per
      Unit Purchase Price”
      equals
      $1.8950.

     

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

     

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

     

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

     

    “Registration
      Statement”
      means a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement and covering the resale by the Investors of the Shares and
      the
      Warrant Shares.

     

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

     

    “Securities”
      means
      the Shares, the Selling Stockholder Shares, the Warrants and the Warrant
      Shares.

     

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

     

    “Seller
      Deliverables”
      has the
      meaning set forth in Section 2.2(a).

     

    “Selling
      Stockholder Shares” means
      the
      shares of Common Stock being offered and sold by the Selling Stockholder to
      the
      Investors hereunder in such number as is set forth below the Selling
      Stockholder’s signature to this Agreement.

     

    “Share
      Delivery Date”
has
      the
      meaning set forth in Section 4.1(c).

     

    "Share
      Escrow Agreement"
      means
      the Share Escrow Agreement, dated as of the date hereof, among the Selling
      Stockholders, GRC, the Investor Representative and the Escrow Agent, in the
      form
      of Exhibit
      E
      hereto.

     

    “Shares”
      means
      the shares of Common Stock offered and sold to the Investors by GRC pursuant
      to
      this Agreement.

     

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

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    “Warrants”
      means
      the
      Common Stock purchase warrants in the form of Exhibit
      A,
      which
      are issuable to the Investors at the Closing.

     

    “Warrant
      Shares” means
      the
      shares of Common Stock issuable upon exercise of the Warrants.

     

    ARTICLE
      2.

    PURCHASE
      AND SALE

     

    2.1. Closing.
      

     

    (a) Subject
      to the terms and conditions set forth in this Agreement, at the Closing GRC
      and
      the Selling Stockholders shall sell to each Investor, and each Investor shall,
      severally and not jointly, purchase from the Company and the Selling
      Stockholders, the Shares, Selling Stockholder Shares and the Warrants
      representing such Investor’s Investment Amount. The Closing shall take place at
      the offices of Bryan Cave LLP, 1290 Avenue of the Americas, New York, NY 10104
      on the Closing Date or at such other location or time as the parties may
      agree.

     

    (b) GRC
      and
      the Selling Stockholders will cooperate with one another, and will cause the
      Selling Stockholder Shares to be transferred to the Investors at Closing as
      part
      of a single stock certificate registered in the name of the relevant Investor
      that will include all Shares and Selling Stockholder Shares being acquired
      by
      such Investor under this Agreement. In furtherance thereof, each Selling
      Stockholder will (i) deliver to GRC any certificates representing the Selling
      Stockholder Shares it will be selling at the Closing, together with such other
      documents (including legal opinions) as GRC may require to effect the transfer
      of such shares to the name of the Investors at the Closing, including executed
      stock powers and directions for GRC to effect the transfer of such shares on
      its
      books as of the Closing and (ii) instruct GRC to hold any certificates
      representing the Selling Stockholder Shares it has received and deliver the
      Selling Stockholder Shares at Closing in accordance with Section
      2.2.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    2.2. Closing
      Deliveries.
      i)
      At the
      Closing, GRC and the Selling Shareholders shall deliver or cause to be delivered
      to each Investor the following (the “Seller
      Deliverables”):

     

    (i) a
      single
      certificate evidencing the aggregate number of Shares and Selling Stockholder
      Shares equal to such Investor’s Investment Amount divided by the Per Unit
      Purchase Price, registered in the name of such Investor;

     

    (ii) a
      Warrant, registered in the name of such Investor, pursuant to which such
      Investor shall have the right to acquire the number of shares of Common Stock
      equal to 25% of the number of Shares purchased by such Investor pursuant to
      Section 2.2(a)(i);

     

    (iii) the
      legal
      opinions of Loeb & Loeb LLP and Snell, Wylie & Tibbals, P.C., in the
      forms attached as Exhibit
      C
      and
Exhibit
      D,
      respectively, addressed to the Investors;

     

    (iv) the
      Registration Rights Agreement, duly executed by GRC; and

     

    (v) the
      Share
      Escrow Agreement, duly executed by GRC, the Selling Stockholders, the Escrow
      Agent and the Investor Representative.

     

    (b) At
      the
      Closing, each Investor shall deliver or cause to be delivered to or upon the
      instruction of GRC and the Selling Stockholders the following (the “Investor
      Deliverables”):

     

    (i) its
      Investment Amount, in United States dollars and in immediately available funds,
      by wire transfer to an account designated in writing by GRC and the Selling
      Stockholders for such purpose; and

     

    (ii) the
      Registration Rights Agreement, duly executed by such Investor.

     

    ARTICLE
      3.

    REPRESENTATIONS
      AND WARRANTIES

     

    3.1. Representations
      and Warranties of the Company.
      The
      Company hereby makes the following representations and warranties to each
      Investor:

     

    (a) Subsidiaries.
      Logic
      Express has no subsidiaries other than the Company, which is its 82.76% owned
      subsidiary. The Company has no direct or indirect subsidiaries. Except as
      disclosed in Schedule
      3.1(a),
      Logic
      Express owns, directly or indirectly, all of the subsidiary and joint venture
      interests of the Company free and clear of any and all Liens, and all the issued
      and outstanding subsidiary and joint venture interests of the Company are
      validly issued and are fully paid, non-assessable and free of preemptive and
      similar rights.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    (b) Organization
      and Qualification.
      Logic
      Express and the Company are duly incorporated or otherwise organized, validly
      existing and in good standing under the laws of the jurisdiction of its
      incorporation or organization (as applicable), with the requisite power and
      authority to own and use its properties and assets and to carry on its business
      as currently conducted. Other than as disclosed in the Closing 8-K, neither
      Logic Express nor the Company is in violation of any of the provisions of its
      respective certificate or articles of incorporation, bylaws or other
      organizational or charter documents. The Company is duly qualified to conduct
      its business and is in good standing as a foreign corporation or other entity
      in
      each jurisdiction in which the nature of the business conducted or property
      owned by it makes such qualification necessary.

     

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

     

    (d) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents and the
      consummation of the transactions contemplated thereby and the sale of the
      Selling Stockholder Shares hereunder do not and will not (i) conflict with
      or
      violate any provision of Logic Express’ or the Company certificate or articles
      of incorporation, bylaws or other organizational or charter documents, or (ii)
      conflict with, or constitute a default (or an event that with notice or lapse
      of
      time or both would become a default) under, or give to others any rights of
      termination, amendment, acceleration or cancellation (with or without notice,
      lapse of time or both) of, any agreement, credit facility, debt or other
      instrument (evidencing a Company debt or otherwise) or other understanding
      to
      which the Company is a party or by which any property or asset of the Company
      is
      bound or affected, or (iii) result in a violation of any law, rule, regulation,
      order, judgment, injunction, decree or other restriction of any court or
      governmental authority to which the Company is subject (including federal and
      state securities laws and regulations), or by which any property or asset of
      the
      Company is bound or affected.

     

    (e) Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any court
      or
      other federal, state, local or other governmental authority or other Person
      in
      connection with the execution, delivery and performance by the Company of the
      Transaction Documents or by reason of the sale of the Selling Stockholder Shares
      hereunder, other than (i) the filing with the Commission of one or more
      Registration Statements in accordance with the requirements of the Registration
      Rights Agreement, (ii) filings required by state securities laws, (iii) the
      filing of a Notice of Sale of Securities on Form D with the Commission under
      Regulation D of the Securities Act, (iv) the filings required in accordance
      with
      Section 4.5 and (v) those that have been made or obtained prior to the date
      of
      this Agreement. To the knowledge of the Company, no Selling Stockholder is
      required to obtain any consent, waiver, authorization or order of, give any
      notice to, or make any filing or registration with, any court or other federal,
      state, local or other governmental authority or any other Person in connection
      with the execution, delivery and performance by them of the Transaction
      Documents or by reason of the sale of the Selling Stockholder Shares
      hereunder.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    (f) Issuance
      of the Securities.
      The
      Securities have been duly authorized and, when issued and paid for in accordance
      with the Transaction Documents, will be duly and validly issued, fully paid
      and
      nonassessable, free and clear of all Liens. GRC has reserved from its duly
      authorized capital stock the shares of Common Stock issuable pursuant to this
      Agreement and the Warrants in order to issue the Shares and the Warrant Shares.
      When issued, the Selling Stockholder Shares were duly authorized and were
      validly issued, fully paid and nonassessable. The Selling Stockholders are
      the
      sole record owner of the Selling Stockholder Shares to be sold
      hereunder.

     

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

     

    (h) Financial
      Statements.
      The
      financial statements of the Company included in the Closing 8-K comply in all
      material respects with applicable accounting requirements and the rules and
      regulations of the Commission with respect thereto as in effect at the time
      of
      filing. Such financial statements have been prepared in accordance with GAAP
      applied on a consistent basis during the periods involved, except as may be
      otherwise specified in such financial statements or the notes thereto, and
      fairly present in all material respects the financial position of the Company
      as
      of and for the dates thereof and the results of operations and cash flows for
      the periods then ended, subject, in the case of unaudited statements, to normal,
      year-end audit adjustments.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

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

     

    (j) Material
      Changes.
      Since
      the date of the audited financial statements for the year ended December 31,
      2005, (i) there has been no event, occurrence or development that has had or
      that could reasonably be expected to result in a Material Adverse Effect, (ii)
      the Company has not incurred any liabilities (contingent or otherwise) other
      than (A) trade payables, accrued expenses and other liabilities incurred in
      the
      ordinary course of business consistent with past practice and (B) liabilities
      not required to be reflected in the Company’s financial statements pursuant to
      GAAP, (iii) the Company has not altered its method of accounting or the identity
      of its auditors, (iv) the Company has not declared or made any dividend or
      distribution of cash or other property to its stockholders or purchased,
      redeemed or made any agreements to purchase or redeem any shares of its capital
      stock, and (v) the Company has not issued any equity securities to any officer,
      director or Affiliate, except pursuant to existing Company stock option plans.
      The Company does not have pending before the Commission any request for
      confidential treatment of information.

     

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

     

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

     

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

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    (n) Regulatory
      Permits.
      The
      Company possesses all certificates, authorizations and permits issued by the
      appropriate federal, state, local or foreign regulatory authorities necessary
      to
      conduct its business as currently conducted, and the Company has not received
      any notice of proceedings relating to the revocation or modification of any
      such
      permits.

     

    (o) Title
      to Assets.
      The
      Company has good and marketable title in fee simple to all real property owned
      by it that is material to its business and good and marketable title in all
      personal property owned by it that is material to its business, in each case
      free and clear of all Liens, except for Liens as do not materially affect the
      value of such property and do not materially interfere with the use made and
      proposed to be made of such property by the Company. Any real property and
      facilities held under lease by the Company are held by it under valid,
      subsisting and enforceable leases of which the Company is in
      compliance.

     

    (p) Patents
      and Trademarks.
      The
      Company has, or has rights to use, all patents, patent applications, trademarks,
      trademark applications, service marks, trade names, copyrights, licenses and
      other similar rights that are necessary or material for use in connection with
      their respective businesses as described in the Closing 8-K and which the
      failure to so have could, individually or in the aggregate, have or reasonably
      be expected to result in a Material Adverse Effect (collectively, the
“Intellectual
      Property Rights”).
      The
      Company has not received a written notice that the Intellectual Property Rights
      used by the Company violates or infringes upon the rights of any Person. To
      the
      knowledge of the Company, all such Intellectual Property Rights are enforceable
      and there is no existing infringement by another Person of any of the
      Intellectual Property Rights.

     

    (q) Insurance.
      The
      Company is insured by insurers of recognized financial responsibility against
      such losses and risks and in such amounts as are prudent and customary in the
      businesses in which the Company is engaged. The Company has no reason to believe
      that it will not be able to renew its existing insurance coverage as and when
      such coverage expires or to obtain similar coverage from similar insurers as
      may
      be necessary to continue its business on terms consistent with market for the
      Company’s respective lines of business.

     

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

     

    (s) Internal
      Accounting Controls.
      The
      Company maintains a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management’s general or specific authorizations, (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      GAAP and to maintain asset accountability, (iii) access to assets is permitted
      only in accordance with management’s general or specific authorization, and (iv)
      the recorded accountability for assets is compared with the existing assets
      at
      reasonable intervals and appropriate action is taken with respect to any
      differences. The Company has established disclosure controls and procedures
      (as
      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and
      designed such disclosure controls and procedures to ensure that material
      information relating to the Company is made known to the certifying officers
      by
      others within those entities, particularly during the period in which the
      Company’s Form 10-K or 10-Q, as the case may be, is being prepared.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

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

     

    (u) Certain
      Fees.
      Except
      as described in Schedule
      3.1(u),
      no
      brokerage or finder’s fees or commissions are or will be payable by the Company
      to any broker, financial advisor or consultant, finder, placement agent,
      investment banker, bank or other Person with respect to the transactions
      contemplated by this Agreement. The Investors shall have no obligation with
      respect to any fees or with respect to any claims (other than such fees or
      commissions owed by an Investor pursuant to written agreements executed by
      such
      Investor which fees or commissions shall be the sole responsibility of such
      Investor) made by or on behalf of other Persons for fees of a type contemplated
      in this Section that may be due in connection with the transactions contemplated
      by this Agreement.

     

    (v) Certain
      Registration Matters.
      Assuming the accuracy of the Investors’ representations and warranties set forth
      in Section 3.2(b)-(e), no registration under the Securities Act is required
      for
      the offer and sale of the Shares and Selling Stockholder Shares and Warrant
      Shares by GRC and the Selling Stockholders (as applicable) to the Investors
      under the Transaction Documents. Neither
      the Company nor GRC nor any their respective Affiliates has directly or through
      any agent (i) sold, offered for sale, solicited offers to buy or otherwise
      negotiated in respect of, any “security” (as defined in the Securities Act) that
      is or could be integrated with the sale of the Shares or the Selling Stockholder
      Shares in a manner that would require registration under the Securities Act
      or
      (ii) engaged in any form of general solicitation or general advertising (as
      those terms are used in Regulation D under the Securities Act) in connection
      with the offering of the Shares and the Selling Stockholder Shares or in any
      manner involving a public offering within the meaning of Section 4(2) of the
      Securities Act. GRC
      is
      eligible to register its Common Stock for resale by the Investors under Form
      S-1
      promulgated under the Securities Act. Except as specified in Schedule
      3.1(v),
      the
      Company has not granted or agreed to grant to any Person any rights (including
      “piggy-back” registration rights) to have any securities of the Company
      registered with the Commission or any other governmental authority that have
      not
      been satisfied.

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    (z) No
      Undisclosed Events, Liabilities, Developments or Circumstances.
      No
      event, liability, development or circumstance has occurred or exists, or is
      contemplated to occur with respect to the Company, or its business, properties,
      prospects, operations or financial condition, that would be required to be
      disclosed by the Company under applicable securities laws on a registration
      statement on Form S-1 filed with the Commission relating to an issuance and
      sale
      by the Company of its Common Stock and which has not been described in the
      Closing 8-K.

     

    (aa) Foreign
      Corrupt Practices.
      Neither
      the Company, nor any director, officer, agent, employee or other Person acting
      on behalf of the Company has, in the course of its actions for, or on behalf
      of,
      the Company (i) used any corporate funds for any unlawful contribution, gift,
      entertainment or other unlawful expenses relating to political activity; (ii)
      made any direct or indirect unlawful payment to any foreign or domestic
      government official or employee from corporate funds; (iii) violated or is
      in
      violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977,
      as
      amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment,
      kickback or other unlawful payment to any foreign or domestic government
      official or employee.

     

    (bb) Tax
      Status.
      The
      Company (i) has made or filed all foreign, federal and state income and all
      other tax returns, reports and declarations required by any jurisdiction to
      which it is subject, (ii) has paid all taxes and other governmental assessments
      and charges that are material in amount, shown or determined to be due on such
      returns, reports and declarations, except those being contested in good faith
      and (iii) has set aside on its books provision reasonably adequate for the
      payment of all taxes for periods subsequent to the periods to which such
      returns, reports or declarations apply. There are no unpaid taxes in any
      material amount claimed to be due by the taxing authority of any jurisdiction,
      and the officers of the Company know of no basis for any such
      claim.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    (cc) Off
      Balance Sheet Arrangements.
      There
      is no transaction, arrangement, or other relationship between the Company and
      an
      unconsolidated or other off balance sheet entity that would be required to
      be
      disclosed by the Company in Exchange Act filings.

     

    (dd) Environmental
      Laws.
      The
      Company (i) is in compliance with any and all Environmental Laws (as hereinafter
      defined), (ii) has received all permits, licenses or other approvals required
      of
      them under applicable Environmental Laws to conduct its business and (iii)
      is in
      compliance with all terms and conditions of any such permit, license or approval
      where, in each of the foregoing clauses (i), (ii) and (iii), the failure to
      so
      comply could be reasonably expected to have, individually or in the aggregate,
      a
      Material Adverse Effect. The term "Environmental
      Laws"
      means
      all federal, state, local or foreign laws relating to pollution or protection
      of
      human health or the environment (including, without limitation, ambient air,
      surface water, groundwater, land surface or subsurface strata), including,
      without limitation, laws relating to emissions, discharges, releases or
      threatened releases of chemicals, pollutants, contaminants, or toxic or
      hazardous substances or wastes (collectively, "Hazardous
      Materials") into
      the
      environment, or otherwise relating to the manufacture, processing, distribution,
      use, treatment, storage, disposal, transport or handling of Hazardous Materials,
      as well as all authorizations, codes, decrees, demands or demand letters,
      injunctions, judgments, licenses, notices or notice letters, orders, permits,
      plans or regulations issued, entered, promulgated or approved
      thereunder.

     

    (ee) Indebtedness
      and Other Contracts.
      Except
      as disclosed in the Closing 8-K, the Company (i) has no outstanding Indebtedness
      (as defined below), (ii) is not a party to any contract, agreement or
      instrument, the violation of which, or default under which, by the other
      party(ies) to such contract, agreement or instrument would result in a Material
      Adverse Effect, (iii) is not in violation of any term of or in default under
      any
      contract, agreement or instrument relating to any Indebtedness, except where
      such violations and defaults would not result, individually or in the aggregate,
      in a Material Adverse Effect, and (iv) is not a party to any contract, agreement
      or instrument relating to any Indebtedness, the performance of which, in the
      judgment of the Company's officers, has or is expected to have a Material
      Adverse Effect. The Closing 8-K provides a detailed description of the material
      terms of any such outstanding Indebtedness. For purposes of this Agreement:
      (x)
      "Indebtedness"
      of any
      Person means, without duplication (A) all indebtedness for borrowed money,
      (B)
      all obligations issued, undertaken or assumed as the deferred purchase price
      of
      property or services (other than trade payables entered into in the ordinary
      course of business), (C) all reimbursement or payment obligations with respect
      to letters of credit, surety bonds and other similar instruments, (D) all
      obligations evidenced by notes, bonds, debentures or similar instruments,
      including obligations so evidenced incurred in connection with the acquisition
      of property, assets or businesses, (E) all indebtedness created or arising
      under
      any conditional sale or other title retention agreement, or incurred as
      financing, in either case with respect to any property or assets acquired with
      the proceeds of such indebtedness (even though the rights and remedies of the
      seller or bank under such agreement in the event of default are limited to
      repossession or sale of such property), (F) all monetary obligations under
      any
      leasing or similar arrangement which, in connection with GAAP, consistently
      applied for the periods covered thereby, is classified as a capital lease,
      (G)
      all indebtedness referred to in clauses (A) through (F) above secured by (or
      for
      which the holder of such Indebtedness has an existing right, contingent or
      otherwise, to be secured by) any mortgage, lien, pledge, charge, security
      interest or other encumbrance upon or in any property or assets (including
      accounts and contract rights) owned by any Person, even though the Person which
      owns such assets or property has not assumed or become liable for the payment
      of
      such indebtedness, and (H) all Contingent Obligations in respect of indebtedness
      or obligations of others of the kinds referred to in clauses (A) through (G)
      above; (y) "Contingent
      Obligation"
      means,
      as to any Person, any direct or indirect liability, contingent or otherwise,
      of
      that Person with respect to any indebtedness, lease, dividend or other
      obligation of another Person if the primary purpose or intent of the Person
      incurring such liability, or the primary effect thereof, is to provide assurance
      to the obligee of such liability that such liability will be paid or discharged,
      or that any agreements relating thereto will be complied with, or that the
      holders of such liability will be protected (in whole or in part) against loss
      with respect thereto.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    (ff) Disclosure.
      The
      Company confirms that neither it nor any other Person acting on its behalf
      has
      provided any of the Investors or their agents or counsel with any information
      that constitutes or could reasonably be expected to constitute material,
      nonpublic information other than as set forth in the following sentence. The
      Company understands and confirms that each of the Investors will rely on the
      foregoing representations in effecting transactions in securities of the
      Company. To the knowledge of the Company, the representations and warranties
      of
      the Selling Stockholders are true and correct in all material respects. All
      disclosure provided to the Investors regarding the Company, its business and
      the
      transactions contemplated hereby, including the Schedules to this Agreement,
      furnished by or on behalf of the Company is true and correct and does not
      contain any untrue statement of a material fact or omit to state any material
      fact necessary in order to make the statements made therein, in the light of
      the
      circumstances under which they were made, not misleading.

     

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

     

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

     

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

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

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

     

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

     

    (e) Access
      to Information.
      Such
      Investor acknowledges that it has reviewed the Closing 8-K and has been afforded
      (i) the opportunity to ask such questions as it has deemed necessary of, and
      to
      receive answers from, representatives of the Company concerning the terms and
      conditions of the offering of the Shares and the merits and risks of investing
      in the Securities; (ii) access to information about the Company and its
      financial condition, results of operations, business, properties, management
      and
      prospects sufficient to enable it to evaluate its investment; and (iii) the
      opportunity to obtain such additional information that the Company possesses
      or
      can acquire without unreasonable effort or expense that is necessary to make
      an
      informed investment decision with respect to the investment. Neither such
      inquiries nor any other investigation conducted by or on behalf of such Investor
      or its representatives or counsel shall modify, amend or affect such Investor’s
      right to rely on the truth, accuracy and completeness of the Closing 8-K and
      the
      Company’s representations and warranties contained in the Transaction
      Documents.

     

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

     

    (g) Independent
      Investment Decision.
      Such
      Investor has independently evaluated the merits of its decision to purchase
      Securities pursuant to the Transaction Documents, and such Investor confirms
      that it has not relied on the advice of any other Investor’s business and/or
      legal counsel in making such decision. 

     

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

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    3.3. Representations
      and Warranties of the Selling Stockholders. Each Selling Stockholder for itself
      and no other Selling Stockholder hereby makes the following representations
      and
      warranties to each Investor:

     

    (a) Enforcement.
      This
      Agreement has been duly executed and delivered by each Selling Stockholder
      and
      constitutes the valid and binding obligation of each Selling Stockholder,
      enforceable against him in accordance with its terms except as such
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally the enforcement of, creditors’ rights and remedies or by
      other equitable principles of general application.

     

    (b) No
      Consents.
      No
      consent, approval, authorization or order of, or any filing or declaration
      with,
      any court or governmental agency or body or other Person is required in
      connection with the consummation by each Selling Stockholder of the transactions
      on its part contemplated by the Transaction Documents, except (i) filings
      as may be required under Sections 13(d) and 16(a) of the Exchange Act, and
      (ii) those that have been made or obtained prior to the date of this
      Agreement.

     

    (c) No
      Conflicts.
      The
      execution, delivery and performance by each Selling Stockholder of the
      Transaction Documents to which it is a party and the consummation of the
      transactions contemplated thereby do not and will not result in a breach or
      violation of, or constitute a default under (with or without notice or lapse
      of
      time), any stockholders agreement, voting trust agreement, pledge registration
      rights agreement or other agreement or instrument to which such Selling
      Stockholder or any of its properties are bound or affected, and will not violate
      or conflict with any judgment, decree or order of any court or other
      governmental agency or any law, rule or regulation applicable to such Selling
      Stockholder, in each case such as could not have or result in a Material Adverse
      Effect.

     

    (d) Certain
      Registration Matters.
      Assuming the accuracy of the Investors’ representations and warranties set forth
      in Sections 3.2(b)-(d), no registration under the Securities Act is required
      for
      the purchase and sale of the Selling Stockholder Shares to the Investors
      hereunder.

     

    (e) Good
      and Marketable Title.
      Each
      Selling Stockholder is the sole lawful record and sole beneficial owner of
      all
      of the Selling Stockholder Shares to be sold by it hereunder. Such Selling
      Stockholder has good and marketable title to the Selling Stockholder Shares
      to
      be sold by it hereunder, free and clear of any Liens, except for restrictions
      on
      subsequent transfer imposed by the securities laws. Upon consummation of the
      Closing, the Investors will have good and marketable title to the Selling
      Stockholder Shares purchased by them, free and clear of all Liens created by
      or
      through such Selling Stockholder.

     

    (f) Certain
      Fees.
      Except
      as described in Schedule
      3.3(f),
      no
      brokerage or finder's fees or commissions are or will be payable by the Selling
      Stockholders to any broker, financial advisor or consultant, finder, placement
      agent, investment banker, bank or other Person with respect to the transactions
      contemplated by this Agreement. The Investors shall have no obligation with
      respect to any fees or with respect to any claims (other than such fees or
      commissions owed by an Investor pursuant to written agreements executed by
      such
      Investor which fees or commissions shall be the sole responsibility of such
      Investor) made by or on behalf of other Persons for fees of a type contemplated
      in this Section that may be due in connection with the transactions contemplated
      by this Agreement. 

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

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

     

    ARTICLE
      4.

    OTHER
      AGREEMENTS OF THE PARTIES

     

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

     

    (b) Certificates
      evidencing the Securities will contain the following legend, until such time
      as
      they are not required under Section 4.1(c):

     

    [NEITHER
      THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
      HAVE BEEN REGISTERED] [THESE SECURITIES HAVE NOT BEEN REGISTERED] WITH THE
      SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
      IN
      RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
      EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT
      OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
      TO,
      THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
      APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
      TO
      THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
      ACCEPTABLE TO THE COMPANY. [THESE SECURITIES AND THE SECURITIES ISSUABLE UPON
      EXERCISE OF THESE SECURITIES] [THESE SECURITIES] MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

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

     

    (c) Certificates
      evidencing Shares and Warrant Shares shall not contain any legend (including
      the
      legend set forth in Section 4.1(b)): (i) if such
      Shares or Warrant Shares are registered for resale under the Securities
      Act,
      or (ii)
      following a sale or transfer of such Shares or Warrant Shares pursuant to Rule
      144 (assuming the transferee is not an Affiliate of GRC), or (iii) such Shares
      or Warrant Shares are eligible for sale under Rule 144(k) or (iv) in
      connection with a sale, assignment or other transfer, such Investor provides
      GRC
      with an opinion of counsel, in a form reasonably acceptable to GRC, to the
      effect that such sale or transfer of the Shares or Warrant Shares may be made
      without registration under the applicable requirements of the Securities
      Act.
      If an
      Investor shall make a sale or transfer of Shares or Warrant Shares either (x)
      pursuant to Rule 144 or (y) pursuant to a registration statement and in each
      case shall have delivered to GRC or GRC’s transfer agent the certificate
      representing Shares or Warrant Shares containing a restrictive legend which
      are
      the subject of such sale or transfer
      and a representation letter in customary form (the
      date of
      such sale or transfer and Share or Warrant Share, as the case may be, delivery
      being the “Share
      Delivery Date”)
      and (1)
      GRC shall fail to deliver or cause to be delivered to such Investor a
      certificate representing such Shares or Warrant Shares that is free from all
      restrictive or other legends by the third Trading Day following the Share
      Delivery Date and (2) following such third Trading Day after the Share Delivery
      Date and prior to the time such Shares or Warrant Shares are received free
      from
      restrictive legends, the Investor, or any third party on behalf of such
      Investor, purchases (in an open market transaction or otherwise) shares of
      Common Stock to deliver in satisfaction of a sale by the Investor of such Shares
      or Warrant Shares (a "Buy-In"),
      then
      GRC shall pay in cash to the Investor (for costs incurred either directly by
      such Investor or on behalf of a third party) the amount by which the total
      purchase price paid for Common Stock as a result of the Buy-In (including
      brokerage commissions, if any) exceed the proceeds received by such Investor
      as
      a result of the sale to which such Buy-In relates. The Investor shall provide
      GRC written notice indicating the amounts payable to the Investor in respect
      of
      the Buy-In.

     

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

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

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

     

    4.4. Subsequent
      Registrations.
      Other
      than pursuant to the Registration Statement, prior to the Effective Date, GRC
      may not file any registration statement (other than on Form S-8) with the
      Commission with respect to any securities of GRC.

     

    4.5. Securities
      Laws Disclosure; Publicity.
      By 9:00
      a.m. (New York time) on the Trading Day following the Closing Date, the Company
      shall issue a press release disclosing the transactions contemplated hereby
      and
      the Closing. On the second Business Day following the Closing Date GRC will
      file
      a Current Report on Form 8-K disclosing the material terms of the Transaction
      Documents (and attach as exhibits thereto the Transaction Documents) and the
      Closing. In addition, GRC will make such other filings and notices in the manner
      and time required by the Commission and the Trading Market on which the Common
      Stock is listed. Notwithstanding the foregoing, GRC shall not publicly disclose
      the name of any Investor, or include the name of any Investor in any filing
      with
      the Commission (other than the Registration Statement and any exhibits to
      filings made in respect of this transaction in accordance with periodic filing
      requirements under the Exchange Act) or any regulatory agency or Trading Market,
      without the prior written consent of such Investor, except to the extent such
      disclosure is required by law or Trading Market regulations.

     

    4.6. Limitation
      on Issuance of Future Priced Securities.
      During
      the six months following the Closing Date, GRC shall not issue any “Future
      Priced Securities” as such term is described by NASD IM-4350-1.

     

    4.7. Indemnification
      of Investors. In addition to the indemnity provided in the Registration Rights
      Agreement, the Company and each Selling Stockholder hereby agree to the
      following indemnification of the Investors:

     

    (a) The
      Company will indemnify and hold the Investors and their respective directors,
      officers, shareholders, partners, employees and agents (each, an "Investor
      Party")
      harmless from any and all losses that any such Investor Party may suffer or
      incur as a result of or relating to any misrepresentation, breach or inaccuracy
      of any representation, warranty, covenant or agreement made by the Company
      in
      any Transaction Document. In addition to the indemnity contained herein, the
      Company will reimburse each Investor Party for its reasonable legal and other
      expenses (including the cost of any investigation, preparation and travel in
      connection therewith) incurred in connection therewith, as such expenses are
      incurred. 

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    (b) Each
      Selling Stockholder will severally and not jointly indemnify and hold each
      of
      the Company and each Investor Party harmless from any and all losses that the
      Company or any such Investor Party may suffer or incur as a result of or
      relating to any misrepresentation, breach or inaccuracy of any representation,
      warranty, covenant or agreement made by such Selling Stockholder in any
      Transaction Document. In addition, such Selling Stockholder will reimburse
      each
      of the Company and each Investor Party for its reasonable legal and other
      expenses (including the cost of any investigation, preparation and travel in
      connection therewith) incurred in connection therewith, as such expenses are
      incurred.

     

    Except
      as
      otherwise set forth herein, the mechanics and procedures with respect to the
      rights and obligations under this Section 4.7 shall be the same as those set
      forth in Section 5 of the Registration Rights Agreement.

     

    4.8. Non-Public
      Information.
      GRC,
      the Company and the Selling Stockholders covenant and agree that neither they
      nor any other Person acting on their behalf will provide any Investor or its
      agents or counsel with any information that GRC or the Company believes
      constitutes material non-public information, unless prior thereto such Investor
      shall have executed a written agreement regarding the confidentiality and use
      of
      such information. GRC, the Company and the Selling Stockholders understand
      and
      confirm that each Investor shall be relying on the foregoing representations
      in
      effecting transactions in securities of GRC.

     

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

     

    4.10. Use
      of
      Proceeds.
      GRC
      will use the net proceeds from the sale of the Shares hereunder for working
      capital purposes and in accordance with Section 4.14 herein, and not for the
      satisfaction of any portion of its debt (other than payment of trade payables
      and accrued expenses in the ordinary course of its business and consistent
      with
      prior practices), or to redeem any Common Stock or Common Stock
      Equivalents.

     

    4.11. Make
      Good
      Escrow Arrangement. Ms. LI Lin Ling and Ms. CHAN Siu Ling shall escrow 4,280,000
      shares (the “Make
      Good Shares”)
      of
      GRC's common stock so that (a) if the audited consolidated financial statements
      of GRC, prepared in accordance with GAAP, do not reflect at least $4,819,500
      of
      after-tax net income or $5,823,465 of after-tax net income before the minority
      interest for the fiscal year ending December 31, 2006, one-half of the Escrow
      Shares will be distributed on a pro rata basis to the Investors and (b) if
      the
      audited consolidated financial statements of GRC, prepared in accordance with
      GAAP, do not reflect at least $8,302,000 of after-tax net income or $10,031,416
      of after-tax net income before the minority interest for the fiscal year ending
      December 31, 2007, the second-half of the Escrow Shares will be distributed
      on a
      pro rata basis to the Investors.
      If
      required, the appropriate number of Escrow Shares will be delivered to the
      Investors within ten (10) Business Days of the date the audit report for the
      applicable period is delivered to the Investor Representative (such delivery
      of
      the financial statements referenced in (a) and (b) above to the Investor
      Representative shall be no later than March 31, 2007 and March 31, 2008,
      respectively), otherwise, if GRC has met the applicable threshold, the
      appropriate number of Escrow Shares shall be returned to Ms. LI Lin Ling and
      Ms.
      CHAN Siu Ling within such ten (10) Business Day period. The Investors hereby
      appoint Lane Capital Markets, LLC to act as the Investors Representative in
      connection with the Share Escrow Agreement entered into for the purpose of
      effectuating this provision. The Investors Representative’s sole responsibility
      shall be to review the audited financial statements of GRC to determine whether
      any Escrow Shares should be distributed.

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

     

    4.12. Investor
      Relations. GRC covenants that prior to October 31, 2006 it will hire an investor
      relations firm acceptable to Pinnacle China Fund, L.P.

     

    4.13. Additional
      Issuances of Securities.

     

    For
      purposes of this Section 4.13, the following definitions shall
      apply.

     

    "Convertible
      Securities"
      means
      any stock or securities (other than Options) convertible into or exercisable
      or
      exchangeable for shares of Common
      Stock.

     

    "Options"
      means
      any rights, warrants or options to subscribe for or purchase shares of
Common
      Stock or
      Convertible Securities.

     

    "Common
      Stock Equivalents"
      means,
      collectively, Options and Convertible Securities.

     

    (a) From
      the
      date hereof until the date that is 30 Trading Days following the Effective
      Date
      (plus one additional day for each Trading Day following the Effective Date
      during which either (1) the Registration Statement is not effective or
      (2) the prospectus forming a portion of the Registration Statement is not
      available for the resale of all Registrable Securities (as defined in the
      Registration Rights Agreement) required to be covered thereby) (the
      "Trigger
      Date"),
      GRC
      will not, directly or indirectly, offer, sell, grant any option to purchase,
      or
      otherwise dispose of (or announce any offer, sale, grant or any option to
      purchase or other disposition of) any of its or its subsidiaries' equity or
      equity equivalent securities, including without limitation any debt, preferred
      stock or other instrument or security that is, at any time during its life
      and
      under any circumstances, convertible into or exchangeable or exercisable for
      shares of Common Stock or Common Stock Equivalents (any such offer, sale, grant,
      disposition or announcement being referred to as a "Subsequent
      Placement").

     

    (b) From
      the
      Trigger Date until the second anniversary of the Effective Date (plus
      one
      additional day for each Trading Day following the Effective Date during which
      either (1) the Registration Statement is not effective or (2) the
      prospectus forming a portion of the Registration Statement is not available
      for
      the resale of all Registrable Securities (as defined in the Registration Rights
      Agreement) required to be covered thereby),
      GRC
      will not, directly or indirectly, effect any Subsequent Placement unless GRC
      shall have first complied with this Section 4.13.

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

     

    (c) GRC
      shall
      deliver to each Investor who purchased at least $1,000,000 of Securities
      hereunder (each, an "Eligible
      Buyer")
      with a
      written notice (the "Offer
      Notice")
      of any
      proposed or intended issuance or sale or exchange (the "Offer")
      of the
      securities being offered (the "Offered
      Securities")
      in a
      Subsequent Placement, which Offer Notice shall (w) identify and describe the
      Offered Securities, (x) describe the price and other terms upon which they
      are to be issued, sold or exchanged, and the number or amount of the Offered
      Securities to be issued, sold or exchanged, (y) identify the persons or
      entities (if known) to which or with which the Offered Securities are to be
      offered, issued, sold or exchanged and (z) offer to issue and sell to or
      exchange with such Eligible Buyers at least 50% of the Offered Securities,
      allocated among such Eligible Buyers (a) based on such Eligible Buyer's pro
      rata
      portion of the total Investment Amount hereunder by Eligible Buyers (the
      "Basic
      Amount"),
      and
      (b) with respect to each Eligible Buyer that elects to purchase its Basic
      Amount, any additional portion of the Offered Securities attributable to the
      Basic Amounts of other Eligible Buyers as such Eligible Buyer shall indicate
      it
      will purchase or acquire should the other Eligible Buyers subscribe for less
      than their Basic Amounts (the "Undersubscription
      Amount"),
      which
      process shall be repeated until the Investors shall have an opportunity to
      subscribe for any remaining Undersubscription Amount.

     

    (d) To
      accept
      an Offer, in whole or in part, such Eligible Buyer must deliver a written notice
      to GRC prior to the end of the fifth (5th)
      Business Day after such Eligible Buyer's receipt of the Offer Notice (the
      "Offer
      Period"),
      setting forth the portion of such Eligible Buyer's Basic Amount that such
      Eligible Buyer elects to purchase and, if such Eligible Buyer shall elect to
      purchase all of its Basic Amount, the Undersubscription Amount, if any, that
      such Eligible Buyer elects to purchase (in either case, the "Notice
      of Acceptance").
      If
      the Basic Amounts subscribed for by all Eligible Buyers are less than the total
      of all of the Basic Amounts, then each Eligible Buyer who has set forth an
      Undersubscription Amount in its Notice of Acceptance shall be entitled to
      purchase, in addition to the Basic Amounts subscribed for, the Undersubscription
      Amount it has subscribed for; provided,
      however,
      that if
      the Undersubscription Amounts subscribed for exceed the difference between
      the
      total of all the Basic Amounts and the Basic Amounts subscribed for (the
      "Available
      Undersubscription Amount"),
      each
      Eligible Buyer who has subscribed for any Undersubscription Amount shall be
      entitled to purchase only that portion of the Available Undersubscription Amount
      as the Basic Amount of such Eligible Buyer bears to the total Basic Amounts
      of
      all Eligible Buyers that have subscribed for Undersubscription Amounts, subject
      to rounding by GRC to the extent its deems reasonably necessary.

     

    (e) GRC
      shall
      have ten (10) Business Days from the expiration of the Offer Period above to
      (i)
      offer, issue, sell or exchange all or any part of such Offered Securities as
      to
      which a Notice of Acceptance has not been given by the Eligible Buyers (the
      "Refused
      Securities"),
      but
      only to the offerees described in the Offer Notice (if so described therein)
      and
      only upon terms and conditions (including, without limitation, unit prices
      and
      interest rates) that are not more favorable to the acquiring person or persons
      or less favorable to GRC than those set forth in the Offer Notice and (ii)
      to
      publicly announce (a) the execution of such Subsequent Placement Agreement
      (as
      defined below), and (b) either (x) the consummation of the transactions
      contemplated by such Subsequent Placement Agreement or (y) the termination
      of
      such Subsequent Placement Agreement, which shall be filed with the Commission
      on
      a Current Report on Form 8-K with such Subsequent Placement Agreement and any
      documents contemplated therein filed as exhibits thereto.

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    (f) In
      the
      event GRC shall propose to sell less than all the Refused Securities (any such
      sale to be in the manner and on the terms specified in this Section 4.13),
      then
      each Eligible Buyer may, at its sole option and in its sole discretion, reduce
      the number or amount of the Offered Securities specified in its Notice of
      Acceptance to an amount that shall be not less than the number or amount of
      the
      Offered Securities that such Eligible Buyer elected to purchase pursuant to
      Section 4.13(d) above multiplied by a fraction, (i) the numerator of which
      shall
      be the number or amount of Offered Securities GRC actually proposes to issue,
      sell or exchange (including Offered Securities to be issued or sold to Eligible
      Buyers pursuant to Section 4.13(d) above prior to such reduction) and (ii)
      the
      denominator of which shall be the original amount of the Offered Securities. In
      the event that any Eligible Buyer so elects to reduce the number or amount
      of
      Offered Securities specified in its Notice of Acceptance, GRC may not issue,
      sell or exchange more than the reduced number or amount of the Offered
      Securities unless and until such securities have again been offered to the
      Eligible Buyers in accordance with Section 4.13(c) above.

     

    (g) Upon
      the
      closing of the issuance, sale or exchange of all or less than all of the Refused
      Securities, the Eligible Buyers shall acquire from GRC, and GRC shall issue
      to
      the Eligible Buyers, the number or amount of Offered Securities specified in
      the
      Notices of Acceptance, as reduced pursuant to Section 4.13(f) above if the
      Eligible Buyers have so elected, upon the terms and conditions specified in
      the
      Offer. The purchase by the Eligible Buyers of any Offered Securities is subject
      in all cases to the preparation, execution and delivery by GRC and the Eligible
      Buyers of a purchase agreement relating to such Offered Securities reasonably
      satisfactory in form and substance to the Eligible Buyers and their respective
      counsel.

     

    (h) Any
      Offered Securities not acquired by the Eligible Buyers or other persons in
      accordance with Section 4.13(g) above may not be issued, sold or exchanged
      until
      they are again offered to the Eligible Buyers under the procedures specified
      in
      this Agreement.

     

    (i)  In
      exchange for GRC’s willingness to agree to these procedures, each Eligible Buyer
      hereby irrevocably agrees that it will hold in strict confidence any and all
      Offer Notices, the information contained therein, and the fact that GRC is
      contemplating a Subsequent Placement, unless it notifies GRC in writing that
      it
      no longer desires to receive Offer Notices.

     

    4.14. Capital
      Deficit. Within 3 Trading Days of the Closing Date, the Company shall have
      been
      paid the remaining registered capital deficit of RMB 26,400,000. Logic Express
      shall provide the Investors with evidence that such registered deficit has
      been
      paid by providing a Capital Verification Report and a new Business License
      on or
      before July 31, 2006. 

     

    4.15. Obligations
      of the Company. GRC shall cause the Company to satisfy its obligations under
      the
      Transaction Documents.

     

    4.16. No
      Non-US
      Reincorporation. For so long as the Investors own at least 10% of the Securities
      purchased by them hereunder, GRC shall not change its jurisdiction of
      incorporation to any jurisdiction other than one of the fifty United States
      without the approval of Investors representing at least 75% of the aggregate
      Investment Amount.

     

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

     

    ARTICLE
      5.

    CONDITIONS
      PRECEDENT TO CLOSING

     

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

     

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

     

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

     

    (c) Exchange
      Transaction.
      The
      Exchange Transaction shall have been completed.

     

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

     

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

     

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

     

    (g) Deliverables.
      GRC and
      the Selling Stockholders shall have delivered the Seller Deliverables in
      accordance with Section 2.2(a).

     

    5.2. Conditions
      Precedent to the Obligations of GRC and the Selling Stockholders to sell
      Securities.
      The
      obligation of GRC and the Selling Stockholders to sell Securities at the Closing
      is subject to the satisfaction or waiver by GRC and the Selling Stockholders,
      at
      or before the Closing, of each of the following conditions:

     

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    (d) Investors
      Deliverables.
      Each
      Investor shall have delivered its Investors Deliverables in accordance with
      Section 2.2(b).

     

    ARTICLE
      6.

    MISCELLANEOUS

     

    6.1. Fees
      and
      Expenses.
      Each
      party shall pay the fees and expenses of its advisers, counsel, accountants
      and
      other experts, if any, and all other expenses incurred by such party incident
      to
      the negotiation, preparation, execution, delivery and performance of the
      Transaction Documents. GRC shall pay all stamp and other taxes and duties levied
      in connection with the sale of the Shares.

     

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

     

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

     

    If
      to
      GRC, the Company,

    or
      Logic
      Express:

    China
      Biologic Products, Inc.

    No.
      14
      East Hushan Road

    Ta’ian
      City, Shandong Province

    P.C.
      271000, China

    Attention:
      Michael Li

     

    
      
         

      

      
        -24-

        
          

        

      

      
         

      

    

     

    With
      a
      copy to:

    Loeb
      & Loeb LLP

    345
      Park
      Avenue

    New
      York,
      NY 10154

    Facsimile:
      (212) 504-3013

    Attention:
      Mitchell S. Nussbaum, Esq.

    

    If
      to a
      Selling 

    Stockholder:

    To
      the
      address set forth under such Selling Stockholder’s name
      on
      the signature pages hereof;

    

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

    

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

     

    6.4. Amendments;
      Waivers; No Additional Consideration.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed by GRC and the Investors holding a majority of the Shares.
      In
      addition, Sections 3.3, 4.7(b) and Article VI may not be waived or amended
      except in a written instrument signed by the Investors holding a majority of
      the
      Shares, the Company and the Selling Stockholder. No waiver of any default with
      respect to any provision, condition or requirement of this Agreement shall
      be
      deemed to be a continuing waiver in the future or a waiver of any subsequent
      default or a waiver of any other provision, condition or requirement hereof,
      nor
      shall any delay or omission of either party to exercise any right hereunder
      in
      any manner impair the exercise of any such right. No consideration shall be
      offered or paid to any Investor to amend or consent to a waiver or modification
      of any provision of any Transaction Document unless the same consideration
      is
      also offered to all Investors who then hold Shares.

     

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

     

    (a) by
      written agreement of the Investors and GRC;
      and

     

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

     

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

     

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

     

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

     

    6.7. Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. Neither GRC nor the Selling Stockholders
      may assign this Agreement or any rights or obligations hereunder without the
      prior written consent of the Investors. Any Investor may assign any or all
      of
      its rights under this Agreement to any Person to whom such Investor assigns
      or
      transfers any Securities, provided such transferee agrees in writing to be
      bound, with respect to the transferred Securities, by the provisions hereof
      that
      apply to the “Investors.”

     

    6.8. No
      Third-Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person, except as otherwise set
      forth
      in Section 4.7 (as to each Investor Party).

     

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

     

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

     

    6.10. Survival.
      The
      representations, warranties, agreements and covenants contained herein shall
      survive the Closing and the delivery of the Securities.

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOLLOW]

     

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

       

    

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

     

    GRC
      HOLDINGS, INC.

     

    By:
        /s/ Michael Li                                                            

    Name:
    Michael Li

    Title:
        CEO 

     

    

     

    LOGIC EXPRESS
      LIMITED

     

    By:
        /s/ Lin Ling Li                                                            

    Name:
        Lin Ling Li 

    Title:
        Legal Representative 

     

    

     

    SHANDONG
      MISSILE BIOLOGIC PRODUCTS CO., LTD.

     

    By:_____________________________________

    Name:

    Title:

     

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOR SELLING STOCKHOLDERS FOLLOW]

     

    
      
         

      

      
        -29-

        
          

        

      

      
         

      

       

    

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

    

    SELLING
      STOCKHOLDER

     

     

    /s/ Chan,
    Siu Ling                                                                

    Name: Chan,
      Siu
      Ling

    Tax
      ID
      No.: N/A

     

    NUMBER
      OF SELLING STOCKHOLDER SHARES

     

    _________1,040,000_______________________

     

    ADDRESS
      FOR NOTICE

     

    Street:
      Flat
      22C, Tower 15, Pacific Palisades

     

    City/State/Zip:
      North
      Point, Hong Kong

     

    Tel:_____________________________________

     

    Fax:_____________________________________

     

    SELLING
      STOCKHOLDER

     

    /s/
        Lin Ling Li                                                                     

    Name: Li,
      Lin
      Ling

     

    Tax
      ID
      No.: N/A

     

    NUMBER
      OF SELLING STOCKHOLDER SHARES

     

    _______1,040,000_________________________

     

    ADDRESS
      FOR NOTICE

     

    Street:
      Flat
      22D, Oceanic Building, 38 Finnie Street

     

    City/State/Zip:
      Quarry
      Bay, Hong Kong

     

    Tel:_____________________________________

     

    Fax:_____________________________________

     

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOR INVESTORS FOLLOW]

     

    
      
         

      

      
        -30-

        
          

        

      

      
         

      

    

     

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

     

    Pinnacle
      China Fund LP

     

    By:
        /s/ Barry
      Kitt                                             

    Name: Barry
      Kitt

    Title: Principle

     

    Investment
      Amount: $4,000,000

     

     

    Tax
      ID
      No.:

     

    ADDRESS
      FOR NOTICE

     

    Street:
      4965
      Preston Park Blvd., Suite 240

     

    City/State/Zip:
      Plano, Texas 75093-5770

     

    Attention:
      Barry
      Kitt

     

    Tel:
        972-985-2121                                                   

     

    Fax: 972-985-2122                                                  

     

    DELIVERY
      INSTRUCTIONS

     

    (if
      different from above)

     

    c/o:
        Banc of America Securities                          

     

    Street:
        901 Main St., Ste 6616                              

     

    City/State/Zip:
        Dallas ,TX 75202                        

     

    Attention:
        Brett Speer                                           

     

    Tel:
        214-209-9973                                                   

     

    
      
         

      

      
        -31-

        
          

        

      

      
         

      

       

    

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

     

    JayHawk
      China Fund “Cayman LTD”

     

    By:
        /s/ Michael
        Schmitz                                         

    Name: Michael
        Schmitz 

    Title: Chief
      Financial Officer

     

    Investment
      Amount: $3,000,000

     

     

    Tax
      ID
      No.: 98-0170144                                         

     

    ADDRESS
      FOR NOTICE

     

    Street:8201
      Mission Road, Suite 110

     

    City/State/Zip:Prairie
      Village, KS 66208

     

    Attention: Michael
    Schmitz 

     

    Tel:_____________________________________

     

    Fax:_____________________________________

     

    DELIVERY
      INSTRUCTIONS

    (if
      different from above)

     

    c/o:_____________________________________

     

    Street:___________________________________

     

    City/State/Zip:_____________________________

     

    Attention:________________________________

     

    Tel:_____________________________________

     

    
      
         

      

      
        -32-

        
          

        

      

      
         

      

    

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

     

    Hudson
      Bay Fund LP

     

    By:
        /s/ Yoav
      Roth                                                       

    Name: Yoav
      Roth

    Title: Principle
      & Portfolio Manager

     

    Investment
      Amount: $500,000

     

    

     

    Tax
      ID
      No.:

     

    ADDRESS
      FOR NOTICE

     

    Street:120
      Broadway, 40th
      floor

     

    City/State/Zip:New
      York, NY 10019

     

    Attention:Yoav
      Roth

     

    Tel:
        212-571-1244                                                           

     

    Fax: 212-571-1279                                                          

     

    DELIVERY
      INSTRUCTIONS

    (if
      different from above)

     

    c/o:_____________________________________

     

    Street:___________________________________

     

    City/State/Zip:_____________________________

     

    Attention:________________________________

     

    Tel:_____________________________________

     

    
      
         

      

      
        -33-

        
          

        

      

      
         

      

       

    

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

     

    Capital
      Ventures International, by

     

    Heights
      Capital Management, Inc.

     

    By:
        /s/ Martin
        Kobinger                                                  

    Name: Martin
      Kobinger

    Title: Investment
      Manager

     

    Investment
      Amount: $610,600

     

    Tax
      ID
      No.:

     

    ADDRESS
      FOR NOTICE

     

    Street:101
      California Street, Suite 3250

     

    City/State/Zip:
      San
      Francisco, CA 94111

     

    Attention:
        Martin Hoe                                                   

     

    Tel:
        415-403-6500                                                            

     

    Fax: 415-403-6525                                                            

     

    DELIVERY
      INSTRUCTIONS

    (if
      different from above)

     

    c/o:_____________________________________

     

    Street:___________________________________

     

    City/State/Zip:_____________________________

     

    Attention:________________________________

     

    Tel:_____________________________________

     

    
      
         

      

      
        -34-

        
          

        

      

      
         

      

    

    Schedule
      3.1(a) - Subsidiaries of the Company

     

    None

     

    Schedule
      3.1(g) - Capitalization of the Company

     

    Registered
      capital: RMB 87,000,000, the contributed capital is RMB 60,600,000.

     

    Shareholders:
      Logic Express Ltd.(“LOGIC”), holding 82.76% equity interest; Shandong Province
      Biological Product Research Institute (“Research Institute”), holding 17.24%
      equity interest.

     

    Schedule
      3.1(u) - Fees

     

    Lane
      Capital Markets, LLC: US$416,900

     

    Schedule
      3.1(v) - Registration Rights

     

    None

     

    Schedule
      3.3(f) - Fees

     

    Lane
      Capital Markets, LLC: US$394,160

     

    
      
         

      

        -35-EXHIBIT
      4.2

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this "Agreement")
      is made
      and entered into as of July 18, 2006, by and among GRC
      Holdings, Inc.,
      a Texas
      corporation (the "Company"),
      and
      the investors signatory hereto (each a "Investor"
      and
      collectively, the "Investors").

     

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof among the Company and the Investors (the "Purchase
      Agreement").

     

    The
      Company and the Investors hereby agree as follows: 

     

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

     

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

     

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

     

    “Effectiveness
      Date”
      means
      (a) with respect to the Registration Statement required to be filed under
      Section 2(a), the earlier of: (a)(i) the 180th
      day
      following the Closing Date, and (ii) the fifth Trading Day following the date
      on
      which the Company is notified by the Commission that the Registration Statement
      will not be reviewed or is no longer subject to further review and
      comments.

     

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

     

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

     

    "Filing
      Date"
      means
      (a) with respect to the Registration Statement required to be filed under
      Section 2(a), the 45th
      day
      following the Closing Date.

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

       

    

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

     

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

     

    “Registrable
      Securities”
      means:
      (i) the Shares, (ii) the Warrant Shares, (iii) the Escrow Shares, (iv) any
      shares of Common Stock issuable upon exercise of warrants issued to any
      placement agent as compensation in connection with the financing that is the
      subject of the Purchase Agreement, and (v) any securities issued or issuable
      upon any stock split, dividend or other distribution, recapitalization or
      similar event, or any exercise price adjustment with respect to any of the
      securities referenced in (i), (ii), (iii), or (iv) above; provided however,
      that
      once any such securities referred to in foregoing clauses (i), (ii), (iii),
      (iv)
      or (v) have been sold pursuant to the Registration Statement or are eligible
      for
      resale under Rule 144 of the Securities Act, they shall no longer constitute
      Registrable Securities..

     

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

     

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

     

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

     

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

     

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

     

    "Shares"
      means
      the shares of Common Stock sold to the Investors pursuant to the Purchase
      Agreement.

     

    “Warrants”
      means
      the
      Common Stock purchase warrants issued or issuable to the Investors pursuant
      to
      the Purchase Agreement and to any placement agent identified in

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    Schedule
      3.1(u)
      to the
      Purchase Agreement in accordance with the terms of the engagement or similar
      agreements between the Company and any such agents.

     

    "Warrant
      Shares" means
      the
      shares of Common Stock issued or issuable upon exercise of the
      Warrants.

     

    2. Registration.

     

    (a) On
      or
      prior to the Filing Date, the Company shall prepare and file with the Commission
      a Registration Statement covering the resale of all Registrable Securities
      for
      an offering to be made on a continuous basis pursuant to Rule 415, on Form
      S-1
      (or on such other form appropriate for such purpose). Such Registration
      Statement shall contain (except if otherwise required pursuant to written
      comments received from the Commission upon a review of such Registration
      Statement) the "Plan of Distribution" attached hereto as Annex A. The Company
      shall cause such Registration Statement to be declared effective under the
      Securities Act as soon as possible but, in any event, no later than the
      Effectiveness Date, and shall use its reasonable best efforts to keep the
      Registration Statement continuously effective under the Securities Act until
      the
      date which is the earliest of (i) three years after its Effective Date, and
      (ii) such time as all of the Registrable Securities covered by such Registration
      Statement have either been publicly sold by the Holders or may be sold by the
      Holders pursuant to Rule 144(k) under the Securities Act (the "Effectiveness
      Period").
      By
      5:00 p.m. (New York City time) on the Effective Date, the Company shall file
      with the Commission in accordance with Rule 424 under the Securities Act the
      final prospectus to be used in connection with sales pursuant to such
      Registration Statement (whether or not such filing is technically required
      under
      such Rule).

     

    (b)  If:
      (i) a Registration Statement is not filed on or prior to its Filing Date (if
      the
      Company files a Registration Statement without affording the Holders the
      opportunity to review and comment on the same as required by Section 3(a)
      hereof, the Company shall not be deemed to have satisfied this clause (i)),
      or
      (ii) a Registration Statement is not declared effective by the Commission on
      or
      prior to its required Effectiveness Date, or if by the second Business Day
      immediately following the Effective Date the Company shall not have filed a
      “final” prospectus for the Registration Statement with the Commission under Rule
      424(b) in accordance with Section 2(a), 2(b) or 2(c) herein, as the case may
      be
      (whether or not such a prospectus is technically required by such Rule), or
      (iii) after its Effective Date, without regard for the reason thereunder or
      efforts therefor, such Registration Statement ceases for any reason to be
      effective and available to the Holders as to all Registrable Securities to
      which
      it is required to cover at any time prior to the expiration of its Effectiveness
      Period for more than an aggregate of 30 Trading Days (which need not be
      consecutive) (any such failure or breach being referred to as an “Event,”
      and for
      purposes of clauses (i) or (ii) the date on which such Event occurs, or for
      purposes of clause (iii) the date which such 30 Trading Day-period is exceeded,
      being referred to as “Event
      Date”),
      then
      in addition to any other rights the Holders may have hereunder or under
      applicable law: on such Event Date and in the case of an Event arising under
      either clause (i) or (ii) above, on each monthly anniversary of each such Event
      Date (if the applicable Event shall not have been cured by such date)
until
      the
      applicable Event is cured
      the
      Company shall pay to each Holder an amount in cash or shares of Common Stock
      of
      the Company that have been registered under the Securities Act, as partial
      liquidated damages and not as a penalty, equal to 1.0%
      of
      the aggregate Investment Amount paid by such Holder for Shares pursuant to
      the

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    Purchase
      Agreement;
      provided,
      however, that if any damages are payable pursuant to this Section 2(b) as a
      result of the Registration Statement not being declared effective by the
      Commission prior to the required Effectiveness Date, such liquidated damages
      shall equal 0.75% (instead of 1.0%) of the aggregate Investment Amount paid
      by
      such Holder for Shares pursuant to the Purchase Agreement. The
      parties agree that the Company will not be liable for liquidated damages under
      this Section with respect to the Warrants or Warrant
      Shares.
      In no
      event will the Company be liable for damages in excess of 1.0% of the aggregate
      Investment Amount of the Holders in any 30-day period and the maximum aggregate
      liquidated damages payable to a Holder under this Section 2(b) shall not exceed
      ten percent (10%) of the aggregate Investment Amount paid by such Holder
      pursuant to the Purchase Agreement. The partial liquidated damages pursuant
      to
      the terms hereof shall apply on a daily pro-rata basis for any portion of a
      month prior to the cure of an Event, except in the case of the first Event
      Date.

     

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

     

    3. Registration
      Procedures.

     

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

     

    (a) Not
      less
      than four Trading Days prior to the filing of a Registration Statement, the
      Company shall furnish to each Holder copies of such document which will be
      subject to the review of such Holder. The Company shall not file a Registration
      Statement to which a Holder reasonably objects in writing (including via
      e-mail).

     

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

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

       

    

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

     

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

     

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

     

    (f) Prior
      to
      any resale of Registrable Securities by a Holder, use its reasonable best
      efforts to register or qualify or cooperate with the selling Holders in
      connection with the registration or qualification (or exemption from the
      registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing (including
      via

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    e-mail),
      to keep each registration or qualification (or exemption therefrom) effective
      during the Effectiveness Period and to do any and all other acts or things
      reasonably necessary to enable the disposition in such jurisdictions of the
      Registrable Securities covered by each Registration Statement; provided,
      that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified, subject the Company to any
      material tax in any such jurisdiction where it is not then so subject or file
      a
      general consent to service of process in any such jurisdiction. In connection
      with the Company’s obligations under this Section 3(f), the Company shall
      promptly following the Effectiveness Date, qualify for a “Manual’s Exemption”
allowing for secondary trading in the Company’s Common Stock once the Company
      has a listing in Standard & Poor’s Rating Services, Moody’s Investor
      Service, or other similar nationally recognized securities manual.

     

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

     

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

     

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

     

    5. Indemnification.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

       

    

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

     

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, arising solely out of or based solely
      upon: (x) such Holder's failure to comply with the prospectus delivery
      requirements of the Securities Act or (y) any untrue statement of a material
      fact contained in any Registration Statement, any Prospectus, or any form of
      prospectus, or in any amendment or supplement thereto, or arising solely out
      of
      or based solely upon any omission of a material fact required to be stated
      therein or necessary to make the statements therein not misleading to the
      extent, but only to the extent that, (1) such untrue statements or omissions
      are
      based solely upon information regarding such Holder furnished in writing to
      the
      Company by such Holder expressly for use therein, or to the extent that such
      information relates to such Holder or such Holder's proposed method of
      distribution of Registrable Securities and was reviewed and expressly approved
      in writing by such Holder expressly for use in the Registration Statement (it
      being understood that the Holder has approved Annex A hereto for this purpose),
      such Prospectus or such form of Prospectus or in any

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    amendment
      or supplement thereto or (2) in the case of an occurrence of an event of the
      type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated
      or
      defective Prospectus after the Company has notified such Holder in writing
      that
      the Prospectus is outdated or defective and prior to the receipt by such Holder
      of an Advice or an amended or supplemented Prospectus, but only if and to the
      extent that following the receipt of the Advice or the amended or supplemented
      Prospectus the misstatement or omission giving rise to such Loss would have
      been
      corrected. In no event shall the liability of any selling Holder hereunder
      be
      greater in amount than the dollar amount of the net proceeds received by such
      Holder upon the sale of the Registrable Securities giving rise to such
      indemnification obligation.

     

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

     

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

     

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

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    indemnification
      hereunder; provided, that the Indemnifying Party may require such Indemnified
      Party to undertake to reimburse all such fees and expenses to the extent it
      is
      finally judicially determined that such Indemnified Party is not entitled to
      indemnification hereunder).

     

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

     

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

     

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

     

    6. Miscellaneous.

     

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

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

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

     

    If
      to the
      Company:

    China
      Biologic Products, Inc.

    No.
      14
      East Hushan Road

    Ta’ian
      City, Shandong Province

    P.C.
      271000, China

    Attention:
      Michael Li

    

    With
      a
      copy to:

    Loeb
      & Loeb LLP

    345
      Park
      Avenue

    New
      York,
      NY 10154

    Facsimile:
      (212) 504-3013

    Attention:
      Mitchell S. Nussbaum, Esq.

     

    If
      to a
      Investor:

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

       

    

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

     

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

     

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

     

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

     

    (n) Independent
      Nature of Investors' Obligations and Rights.
      The
      obligations of each Investor under this Agreement are several and not joint
      with
      the obligations of each other Investor, and no Investor shall be responsible
      in
      any way for the performance of the obligations of any other Investor under
      this
      Agreement. Nothing contained herein or in any Transaction Document, and no
      action taken by any Investor pursuant thereto, shall be deemed to constitute
      the
      Investors as a partnership, an association, a joint venture or any other kind
      of
      entity, or create a presumption that the Investors are in any way acting in
      concert or as a group with respect to

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

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

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES TO FOLLOW]

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

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

     

    GRC
      HOLDINGS, INC.

    

    

    By:
        /s/ Michael Li                                                 

    Name:
        Michael Li 

    Title:
        CEO 

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES OF INVESTORS TO FOLLOW]

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

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

     

    

    NAME
      OF INVESTING ENTITY

     

     

     Pinnacle
        China Fund; LP           

     

       
	By:
        /s/ Barry M. Kitt                                                                  

    Name:
    Barry M. Kitt

    Title:
        General Partner 

    

    ADDRESS
      FOR NOTICE

    

   
   c/o:
        Pinnacle China Fund, LP                                                   

    

    
	Street:
        4965 Preston Park Blvd, Ste 240                                  

    

   
   City/State/Zip:
        Plano, TX 75093                                              

    

  
  Attention: 
    Barry M. Kitt                                                          

    

    
	Tel:
        972-985-2121                                                                        

    

    
	Fax: 972-985-2122                                                                        

    

   
   Email:
        barry@pinnaclechinafund.com                                   

     

    
      
         

      

      
        -15-

        
          

        

      

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

     

    

    NAME
      OF INVESTING ENTITY

     

     

              Jayhawk
          China Fund (Cayman) Ltd.                  

     

   
   By:
        /s/ Michael Schmitz                                                              

    Name:
    Michael Schmitz

    Title:
        CFO of Investment Manager 

    

    ADDRESS
      FOR NOTICE

    

    
	c/o:
        Jayhawk Capital Management, LLC                                

    

    
	Street:
        8201 Mission Rd., Ste. 110                                           

    

   
   City/State/Zip:
        Prairie Village, KS 66208                                 

    

    
	Attention:                                                                                   

    

    
	Tel:
                                                                                                        

    

    
	Fax:                                                                                                 

    

    
	Email:                                                                                             

     

    
      
         

      

      
        -16-

        
          

        

      

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

     

    

    NAME
      OF INVESTING ENTITY

     

     

              Hudson
    Bay Overseas Fund, Ltd.            

     

    
	By:
        /s/ Yoav Roth                                                                   

    Name:
    Yoav Roth

    Title:
        Principle and Portfolio Manager 

    

    ADDRESS
      FOR NOTICE

    

    
	c/o:
        Hudson Bay Capital Management LP                            
		

    

    
	Street:
        120 Broadway, 40th Floor                                            

    

    
	City/State/Zip:
        New York, NY 10271                                       

    

    
	Attention: 
    Yoav Roth                                                          

    

   
   Tel:
        212-571-1244                                                                        

    

    
	Fax: 212-571-1279                                                                        

    

    
	Email:
        yroth@hudsonbaycapital.com                                    

     

    
      
         

      

      
        -17-

        
          

        

      

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

     

    

    NAME
      OF INVESTING ENTITY

     

     

              Hudson
          Bay Fund            

     

    
	By:
        /s/ Yoav Roth                                                                     

   
   Name:
    Yoav Roth

    Title:
        Principle and Portfolio Manager

    

    ADDRESS
      FOR NOTICE

    

    
	c/o:
        Hudson Bay Capital Management, LP                           

    

    
	Street:
        120 Broadway, 40th Floor                                            

    

    
	City/State/Zip:
        New York, NY 10271                                       

    

    
	Attention: Yoav
          Roth                                                               

    

    
	Tel:
        212-571-1244                                                                        

    

    
	Fax: 212-571-1279                                                                        

    

    
	Email:
                                                                                                  

     

    
      
         

      

      
        -18-

        
          

        

      

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

     

    

    NAME
      OF INVESTING ENTITY

     

     

              Capital
          Ventures International           

     

    
	By:
        /s/ Martin Kobinger                                                           

    Name:
    Martin Kobinger 

    Title:
        Investment Manager

    

    ADDRESS
      FOR NOTICE

    

    
	c/o:
        Heights Capital Management                                           

    

    
	Street:
        101 California Street, Suite 3250                                  

    

    
	City/State/Zip:
        San Francisco, CA 94111                               

    

    
	Attention: Martin
          Kobinger or Martin Hoe                          

    

    
	Tel:
        415-403-6500                                                                        

    

   
   Fax: 415-403-6525                                                                        

    

    
	Email:
        martin.kobinger@sig.com or martin.hoe@sig.com   

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

     

    Annex
      A

     

    Plan
      of
      Distribution

     

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

     

    
      	
              ·

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

            

    

     

    
      	
              ·

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

            

    

     

    
      	
              ·

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

            

    

     

    
      	
              ·

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

            

    

     

    
      	
              ·

            	
              privately
                negotiated transactions;

            

    

     

    
      	
              ·

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

            

    

     

    
      	
              ·

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

            

    

     

    
      	
              ·

            	
              a
                combination of any such methods of sale;
                and

            

    

     

    
      	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

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

     

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

     

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

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

    

     

    Upon
      the
      Company being notified in writing by a Selling Stockholder that any material
      arrangement has been entered into with a broker-dealer for the sale of Common
      Stock through a block trade, special offering, exchange distribution or
      secondary distribution or a purchase by a broker or dealer, a supplement to
      this
      prospectus will be filed, if required, pursuant to Rule 424(b) under the
      Securities Act, disclosing (i) the name of each such Selling Stockholder and
      of
      the participating broker-dealer(s), (ii) the number of shares involved, (iii)
      the price at which such the shares of Common Stock were sold, (iv) the
      commissions paid or discounts or concessions allowed to such broker-dealer(s),
      where applicable, and (v) other facts material to the transaction. In addition,
      upon the Company being notified in writing by a Selling Stockholder that a
      donee
      or pledgee intends to sell more than 500 shares of Common Stock, a supplement
      to
      this prospectus will be filed if then required in accordance with applicable
      securities law.

     

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

     

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

     

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

     

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

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    Annex
      B

     

     

    China
      Biologic Products, Inc. (the “Company”)

     

    SELLING
      SHAREHOLDER QUESTIONNAIRE

     

    The
      following information is requested for use in connection with the preparation
      of
      a registration statement registering shares of our common stock, including
      shares of our common stock underlying warrants, options and convertible notes
      that we have sold or issued, for resale by you as a selling shareholder (the
      “Shares”). The Shares, which you acquired in connection with the Company’s
      reverse merger (the “Acquisition”) and in other financing transactions, will be
      included in a Registration Statement on Form SB-2 (the “Registration Statement”)
      filed under the Securities Act of 1933 (the “Act”). 

     

    Please
      complete and sign one copy of this questionnaire, and return it to Norwood
      Beveridge, Esq., Loeb & Loeb LLP, 345 Park Avenue, New York, New York 10154
      at your earliest opportunity.

     

    Kindly
      note that while some of the information requested herein may be deemed not
      material and therefore not required to be disclosed in the Registration
      Statement relating to the proposed public offering, you should provide all
      the
      information requested. 

     

    ITEM
      1.
      DEFINITIONS

     

    Before
      you complete this Questionnaire, please give consideration to the following
      definitions of various terms used in this Questionnaire.

     

    “Associate”,
      as used throughout this questionnaire, means (a) any corporation or organization
      (other than the Company or any of its subsidiaries) of which you are an officer,
      director or partner or of which you are, directly or indirectly, the beneficial
      owner of 5% or more of any class of equity securities, (b) any trust or other
      estate in which you have a substantial beneficial interest or as to which you
      serve as trustee or in a similar capacity, (c) your spouse, (d) any relative
      of
      your spouse or any relative of yours who has the same home as you or who is
      a
      director or officer of key executive of the Company or any of its subsidiaries,
      (e) any partner, syndicate member or person with whom you have agreed to act
      in
      concert with respect to the acquisition, holding, voting or disposition of
      shares of the Company's securities.

     

    “Beneficially”,
      when used in connection with the ownership of securities, means (a) any interest
      in a security which entitled you to any of the rights or benefits of ownership
      even though you may not be the owner of record or (b) securities owned by you
      directly or indirectly, including those held by you for your own benefit
      (regardless of how registered), and securities held by others for your benefit
      (regardless of how registered), such as by custodians, brokers, nominees,
      pledgees, etc., and including securities held by an estate or trust in which
      you
      have an interest as legatee or beneficiary, securities owned by a partnership
      of
      which you are a partner, securities held by a personal holding company of which
      you are a shareholder, etc., and securities held in the name of your spouse,
      minor children and any relative (sharing the same

     

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

    home).
      A
“beneficial owner” of a security includes any person who, directly or
      indirectly, through any contract, arrangement, understanding, relationship
      or
      otherwise has or shares:

     

    
      	 	
              (1)

            	
              voting
                power which includes the power to vote, or to direct the voting of,
                such
                security; and/or

            

    

     

    
      	 	
              (2)

            	
              investment
                power which includes the power to dispose, or to direct the disposition,
                of such security.

            

    

     

    In
      addition to being beneficial owner of securities over which you have, or share,
      voting or investment power, you are deemed to be the beneficial owner of a
      security if you have a right, within 60 days, to acquire beneficial ownership
      of
      (i.e., the right to obtain or share voting or investment power over) such
      security. Examples of such rights would include the right to acquire: (i)
      through the exercise of any option, warrant or similar right; (ii) through
      conversion of any security; or (iii) pursuant to the power to revoke, or the
      provision for automatic termination of, a trust, discretionary account or
      options, convertible securities or power to revoke such a trust with the
“purpose or effect” or changing or influencing control underlying securities
      upon such acquisition, without regard to the sixty day rule state
      above.

     

    “Control”
      means the possession, directly or indirectly, of the power to direct or cause
      the direction of the management and policies of a person, whether through the
      ownership of voting securities, by contract or otherwise.

     

    A
      “Control Person” of a specified person is a person that directly, or indirectly
      through one or more intermediaries, controls the person specified.

     

    “Material”,
      when used in this Questionnaire to qualify a requirement for the furnishing
      of
      information as to any subject, limits the information required to those matters
      as to which an average prudent investor ought reasonable to be informed before
      purchasing the common stock of the Company.

     

    “Material
      Relationship” has not been defined by the Securities and Exchange Commission.
      However, the Commission has indicated that it will probably construe as a
“material relationship” any relationship which tends to prevent arms-length
      bargaining in dealings with a company, whether arising from a close business
      connection or family relationship, a relationship of control or otherwise.
      It
      seems prudent, therefore, to consider that you would have such a relationship,
      for example, with any organization of which you are an officer, director,
      trustee or partner or in which you own, directly or indirectly, 10% or more
      of
      the outstanding voting stock, or in which you have some other substantial
      interest, and with any person or organization with whom you have, or with whom
      any relative or spouse (or any other person or organization as to which you
      have
      any of the foregoing other relationships) has, a contractual
      relationship.

     

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

     

    The
      National Association of Securities Dealers, Inc. (“NASD”) defines a “Member” as
      being either any broker or dealer admitted to a membership in the NASD or any
      officer or partner of such a member, or the executive representative of such
      a
      member or the substitute for such a representative.

     

    The
      NASD
      defines a “Person Associated with a Member” as being every sole proprietor,
      partner, officer, director or branch manager of any member, or any natural
      person occupying a similar status or performing similar functions, or any
      natural person engaged in the investment banking or securities business who
      is
      directly or indirectly controlling or controlled by such member (for example,
      any employee), whether or not any such person is registered or exempt from
      registration with the NASD.

     

    The
      NASD
      defines an “Underwriter or a Related Person” with respect to a proposed offering
      as being underwriters, underwriters' counsel, financial consultants and
      advisors, finders, members of the selling or distribution group, and any and
      all
      other persons associated with or related to any of such persons.

     

    ITEM
      2.
      Please complete the following:

     

    If
      you
      need more space to respond to or clarify your response to a question, use the
      “Additional Information” page at the end of this Questionnaire.

     

    
      	1.	
              Print
                name of shareholder
                _____________________________________________

            

    

     

    
      	2.	
              Print
                address
                _____________________________________________________________

            

    

    _______________________________________________________________

    _______________________________________________________________

     

    
      	
              3.

            	
              If
                you plan to sell any shares in a state other than the state included
                in
                your address, please identify
                below:

            

    

     

    
      	
              4.

            	
              List
                all positions or offices that you or any of your directors, officers,
                partners, shareholders or members have had since January 1, 2001
                with the
                Company or any of its affiliates:

            

    

     

     

    
      
         

      

      
        -24-

        
          

        

      

      
         

      

    

     

    
      	
              5.

            	
              Describe
                below any material relationship you or any of your directors, officers,
                partners, shareholders or members have had with the Company or any
                of its
                officers or directors:

            

    

     

    
      	
              6.

            	
              State
                below whether you or any of your Associates is or after January 1,
                2001
                was a member of the NASD, a controlling shareholder of a member,
                a person
                Associated or affiliated with a member or an Underwriter or a Related
                Person with respect to the proposed offering. If you respond “yes”,
                describe such relationship:

            

    

     

    Yes
      _____
      No _____

     

    (IF
      THE
      RESPONSE TO 6 WAS “NO”, DO NOT RESPOND TO PARTS 7-9)

     

    
      	
              7.

            	
              Describe
                below information as to all purchases and acquisitions (including
                contracts to purchase or to acquire) of securities of the Company
                by you
                since January 1, 2001, and all proposed purchases and acquisitions
                which
                are to be consummated in whole or in part within the next twelve
                months:

            

    

    
    

     

    
      	
              Seller
                or 

              Prospective
                Seller

            	 	
              Amount
                and

              Nature
                of Securities

            	 	
              Price
                or Other Consideration

            	 	
              Date

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

     

    
      	
              8.

            	
              Describe
                below all information as to all sales and dispositions (including
                contracts to sell or to dispose) of securities of the Company since
                January 1, 2001 by you to any “member” of the NASD or any Person
                Associated with a Member with respect to the proposed public offering,
                as
                well as to all proposed sales and dispositions by you which are to
                be
                consummated in whole or in part within the next twelve
                months.

            

    

    
    

     

    
      	
              Seller
                or 

              Prospective
                Seller

            	 	
              Amount
                and 

              Nature
                of Securities

            	 	
              Price
                or Other Consideration

            	 	
              Date

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

     

     

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

     

    
      	
              9.

            	
              If
                you have had since January 1, 2001, or are to have within the next
                twelve
                months, any transaction of the character referred to in either Point
                7 or
                8 above, describe briefly below the relationship, affiliation or
                association of both you and, if known, the other party or parties
                to any
                such transaction with an underwriter or other “in the stream of
                distribution” with respect to the proposed offering. In any case, where
                the purchaser (whether you or any such party) is known by you to
                be a
                member of a “private investment group”, such as a hedge fund or other
                group of purchasers, list, if known, the names of all persons comprising
                the “group” and their “association with” or “relationship to” any
                broker-dealer.

            

    

     

    
      	
              10.

            	
              Describe
                any arrangement known to you made or to be made by any person, or
                any
                transaction already effected and if no such arrangement or transaction
                is
                known to you, state “none”:

            

    

    
      	 	
              (i)

            	
              to
                limited or restrict the sale of the common stock of the Company during
                the
                period of the offering of such common stock registered under the
                Registration Statement;

            

    

     

    
      	 	
              (ii)

            	
              to
                stabilize the market for the common stock;
                or

            

    

     

    
      	 	
              (iii)

            	
              to
                withhold commissions or otherwise to hold each underwriter or dealer
                responsible for the distribution of his participation in the
                offering.

            

    

     

     

    
      	
              11.

            	
              Specify
                below the information required as to Shares and all other securities
                beneficially owned by you (including any options or warrants) as
                of the
                date of this Questionnaire. [Please refer to the attached definition
                of
                “Beneficially” or the first page of this
                Questionnaire.]

            

    

    
    

     

    
      	
              Number
                of Shares

            	 	
              Registered
                in

              the
                Name of:

            	 	
              Beneficially

              Owned
                by:

            	 	
              Remarks
                (specify voting or investment power you have, in what capacity you
                have
                such power)

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

     

    
      
         

      

      
        -26-

        
          

        

      

      
         

    

     

    
      	12.	
              Specify
                below the number of Shares acquired by you in the Acquisition or
                other
                financing transaction which you wish to include in the Registration
                Statement pursuant to your registration rights (if left blank, all
                such
                Shares will be included):

            

    

     

    
      	
              Number
                of Shares

            	 	
              Registered
                in

              the
                Name of:

            	 	
              Beneficially

              Owned
                by:

            	 	
              Remarks
                (specify voting or investment power you have, in what capacity you
                have
                such power)

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

     

    
      	
              13.

            	
              State
                below whether you or any of your Associates is a market-maker in,
                or in
                any other way involved in the trading of, any security of the Company.
                If
                you respond “yes”, describe such
                relationship:

            

    

     

    Yes
      _____
      No _____

     

    
      	
              14.

            	
              State
                below whether shareholder is selling the Shares to be sold pursuant
                to the
                registration statement for the purposes of raising funds or diversifying
                your investment portfolio. If you respond “no”, describe the purpose of
                your sale:

            

    

     

    Yes
      _____
      No _____

     

    
      	
              15.

            	
              State
                whether you may sell shares in any method of distribution other than
                from
                time to time in transactions on the OTC Bulletin Board, in negotiated
                transactions, through the writing of options or a combination of
                such
                methods of sale. If you respond “yes”, describe such
                method:

            

    

     

    Yes
      _____
      No _____

     

    
      	
              16.

            	
              State
                whether you may sell the shares to or through broker-dealers.
                

            

    

     

    Yes
      _____
      No _____

     

    Please
      note that the selling shareholders and any broker-dealers or agents who
      participate in the distribution of shares pursuant to the Registration Statement
      may be deemed to be “underwriters” as that term is defined in the Act, and any
      commissions received by them and profit on any resale of the shares as principal
      might be deemed to be underwriting discounts and commissions under the
      Act.

     

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

     

    ITEM
      3.
      SIGNATURE

     

    I
      understand that the information that I am furnishing China Biologic Products,
      Inc. herein will be used by the Company in the preparation of the Registration
      Statement under the Securities Act of 1933, as amended. The responses supplied
      in this questionnaire are accurate and complete to the best of my knowledge.
      If,
      at any time after the date of my signing this Questionnaire and prior to the
      date of registration of the Company’s securities, any change occurs which would
      render any of my statements in this Questionnaire inaccurate, misleading or
      incomplete in any respect, I will immediately advise Loeb & Loeb LLP of such
      changes and the details thereof.

     

    Signature:________________________________________

     

    Name
      (please
      print):

    

     

    Title:____________________________________________

     

    Telephone
      No:____________________________________

     

    Fax
      No:_________________________________________

     

    Business
      Address:________________________________

    _________________________________________

     

    Date:___________________________________________

     

     

    
      
         

      

        -28-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]